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.

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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

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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.

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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.

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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.

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Minimum Wage

‍The national minimum wage in Argentina is 271,571.22 Argentine Pesos per month and rising (as of October 2024).

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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.

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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.

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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.

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VAT

The standard VAT rate in Argentina is 21%.

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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.

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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.

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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.

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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.

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