How to hire and pay employees in Argentina
With Instahirin, your business can easily hire employees in Argentina. No more worrying about local laws, complex tax systems, or managing international payroll.
Before hiring
EMPLOYEES IN The Argentina
Before hiring employees in Argentina, one key thing employers should be aware of is compliance with the Personal Data Protection Law No. 25.326. This law regulates the collection, processing, and storage of personal data and is inspired by principles similar to the GDPR. Employers must obtain informed consent, ensure data is used only for specified purposes, and implement secure handling practices, especially for any international data transfers, which require approval from Argentina’s data protection authority (AAIP).
Employment contracts must be in writing, and employers must register employees with AFIP (tax authority) and the relevant social security entities. The labor law also sets out rules on working hours, termination procedures, severance pay, and union rights.
At a glance
CURRENCY
Argentinian Peso and US Dollar - USD
OFFICIAL LANGUAGE
Spanish
PAYROLL FREQUENCY
Monthly
EMPLOYER TAXES
26.4%
of gross salary
13th / 14th SALARY
N/A
Good to know
Argentina has a universal healthcare system supported by three sectors: public hospitals, union-run obra social schemes, and private insurance. Employers are required to contribute 6% and employees 3% of gross salary to fund health coverage through obra social. Many employers also offer private health plans (prepagas) for enhanced services and reduced wait times.
The standard workweek is 48 hours, typically 8 hours per day over 6 days, though many office jobs operate on a 5-day schedule. Overtime is permitted and must be compensated at 150% of the regular wage, and 200% on weekends or public holidays. Employees are entitled to 14 to 35 calendar days of paid annual leave, depending on years of service, plus 15 national public holidays annually.
Labor laws in Argentina
Working hours and overtime
Standard working hours are 8 hours per day, 40 hours per week, with an extra hour per day for the lunch break. The standard work week is from Monday to Friday. However, standard working hours can also be 48 hours.
Employment contracts
Contracts must be in Spanish and can be bilingual. They must be in writing and signed by both parties. A contract must include:
- Name
- Start date
- Length of the employment
- Job description
- Termination conditions
Probationary period
In Argentina, the probationary period for indefinite-term contracts is 6 months, extendable to 8 or 12 months depending on company size. During this time, either party can terminate the contract with 15 days’ notice and no severance pay. Employees still receive full social security and labor rights throughout probation.
Calculate costs to hire internationally
Benefits and leave in Argentina
Annual leave in Argentina
In Argentina, employees are entitled to 14–35 calendar days of paid annual leave depending on their years of service. Leave must be taken between October 1 and April 30, with at least 45 days’ prior notice from the employer. Unused leave can partly be carried over and must be paid out upon termination.
Sick leave
In Argentina, employees are entitled to up to 3 to 6 months of paid sick leave based on their service length, with longer periods for those with dependents. During this time, full salary is paid upon presenting a medical certificate. Employers must retain the position for up to 12 additional unpaid months if the employee is still unfit to return.
Parental leave
In Argentina, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.
Holidays
Argentina celebrates 17 national holidays. Some holidays are transferrable, meaning they will be moved to the previous Monday if they fall on a Tuesday or Wednesday. Those that fall on Thursday and Friday, will be moved to the following Monday.
Also, there can be additional holidays for non-transferrable public holidays so the population has the chance to take a long weekend.
Employer tax
In Argentina, employers contribute 24% to 26.4% of an employee’s gross salary to social security, covering pensions, health, and unemployment benefits. The rate depends on company size and sector, with partial exemptions on low salary amounts.
Individual tax
In Argentina, resident individuals pay progressive income tax ranging from 5% to 35%, based on annual income. Employees also contribute about 17% to social security, leading to a total personal tax burden of approximately 22–25%.
Termination in The Argentina
Terminations in Argentina have a high complexity. There is no at-will termination in Argentina for employers [outside the probation period].
Compliant terminations include:
- Voluntarily by the employee
- By mutual agreement
- By expiration of the contract
Notice period
The minimum notice period is 30 days and will be increased according to the length of the employment.
- 30 days if the length of service is less than 5 years
- 60 days if the length of service is more than 5 years
During the probation period, the notice period is 15 days.
Start hiring employees in
Argentina
Setting up a business entity in every country where you want to hire isn’t scalable it’s time-consuming, expensive, and legally complex. In Argentina, employers must navigate complex labor laws, high social security contributions, and strict tax regulations. Compliance with mandatory employee benefits, union agreements, and severance rules can be challenging. Manual management of HR, contracts, and payroll increases the risk of legal complications and administrative inefficiencies.
With InstaHirin, you can easily manage HR, payroll, and automate compliance in Argentina and 180+ countries all from one user-friendly platform so you can hire quickly and confidently without setting up a local entity.
Disclaimer: The information provided in this resource is for general educational purposes only and shall not be construed as legal advice. While InstaHirin yster strives to provide current and accurate information, InstaHirin makes no warranties or representations as to the correctness of the content provided and accepts no liability or responsibility for any errors or omissions in the content provided. By using this resource you acknowledge and agree that you do so at your own risk. The content of this resource is subject to change without notice.
