Employing in Argentina
Argentina is one of Latin America’s largest economies, boasting a GDP of 630.7 billion USD in 2022 and a labor force of over 21 million people. It has become a prime location for businesses due to its economic strength and business-friendly policies. Here are the essential considerations employers should keep in mind when hiring in Argentina.
Employee Contract
While written contracts are not mandatory for permanent or full-time employment relationships in Argentina, they are required for fixed-term or temporary employment. These contracts must include details like:
- Employment duration
- Basic salary and benefits
- Working hours
- Job description
Probation Period
Employees can be hired under a trial period lasting up to three months. During this time, employers may terminate the employee without severance, but notice is required.
Employee Leaves
- Annual/Earned Leave:
- Less than 5 years of service: 14 days
- 5–10 years: 21 days
- 10–20 years: 28 days
- Over 20 years: 35 days
- Maternity Leave: 90 days (with the option for additional unpaid leave).
- Paternity Leave: 2 days.
- Sick Leave:
- Up to 3 months for employees with less than 5 years of service.
- Up to 6 months for employees with more than 5 years of service.
Payroll
Payroll Cycle
Employees in Argentina are typically paid on a monthly basis, though bi-weekly payment schedules are also permitted based on employment agreements.
Minimum Wage
The national minimum wage in Argentina is 271,571.22 Argentine Pesos per month and rising (as of October 2024).
Overtime Pay
- Overtime is compensated at 50% above the employee’s regular rate for standard days.
- For work on public holidays or weekends, overtime is paid at 100% above the regular rate.
- Overtime hours are capped at 30 hours per month and 200 hours per year.
Bonus
Employees are entitled to a mandatory 13th-month salary, known as Aguinaldo. It is paid in two installments, one in June and the other in December.
Employee Benefits
- Social Security Contributions: Covers pensions, health insurance, family allowances, and more, with contributions required from both employers and employees.
- Parental Leave: 90 days for mothers and 2 days for fathers.
- Study Leave: Up to 10 days annually for employees pursuing education.
- Marriage Leave: 10 days for employees getting married.
VAT
The standard VAT rate in Argentina is 21%.
Offboarding & Termination
Termination Process
Both employers and employees may terminate the employment relationship. However, employers must provide notice and may need to pay severance depending on the circumstances.
Notice Period
- 15 days for employees under the trial period.
- 1 month for employees with up to 5 years of service.
- 2 months for employees with over 5 years of service.
Severance Pay
Employees terminated without cause are entitled to:
- Compensation for unused vacation and worked hours.
- Seniority bonus equal to one month’s salary per year of service.
- A prorated 13th-month salary.
Visa and Immigration
Employers hiring foreign nationals must register with Argentina’s immigration authorities. Work permits are typically arranged by the employer and are linked to temporary residency.
