Employer of Record in Argentina

General Information

• Currency: Argentine Peso (ARS)
• Employer Taxes: 26.00% – 29.00% +176 ARS
• Payroll Frequency: Monthly
• Employee Costs: 17%
• Capital: Buenos Aires
• Fiscal Year: 1 January – 31 December

Main Aspects of the Labour Code

Minimum Wage

General: The national minimum wage is 234,315 ARS per month

Payroll

Payroll Cycle: Payment terms are determined by the type of contract and governed by Sections 126 and 128 of the Argentina Employment Contract Law. Here’s how payments are structured:

• Monthly employees receive payment at the end of each calendar month.
• Employees paid on a daily or hourly basis must be paid weekly or bi-weekly.
• Personnel compensated per project basis are paid on a weekly or bi-weekly basis.

Employers are required to process payments within specific timeframes:

Payments for weekly employees must be completed within three working days.

Payments for monthly or bi-weekly employees must be completed within four working days.

13th Salary: According to Argentinean local law, employees are entitled to receive an additional month’s salary known as Aguinaldo, also referred to as the 13th-month salary. This payment is divided into two semi-annual installments, which must be paid before June 30th and December 18th each year.

The amount of each installment equals 50.00% of the highest monthly wage received during the previous 6-month period.

Working Hours

General: The Employment Contract Law stipulates that regular working hours should not exceed 8 hours per day and 48 hours per week, excluding rest periods. However, for work considered unhealthy or involving night shifts (between 9 pm and 6 am), employees are limited to 7 hours of work per day.

Overtime regulations specify that employees must not exceed 3 hours per day, 30 hours per month, or 200 hours per year unless authorized by the relevant labor authority beforehand.

Compensation for overtime varies:

• Overtime on weekdays is paid at an additional 50% of the regular salary.
• Overtime on Saturday afternoons, Sundays, or public holidays is compensated at double the regular salary.

Leave

Annual Leave (Vacation):

Employees in Argentina are entitled to annual leave based on their length of service with the employer:

• Employees with more than six months of service: Initially entitled to 14 calendar days of leave, increasing with continuous employment, up to a maximum of 35 calendar days.
• New employees: Entitled to 1 day of leave for every 20 days worked.

The entitlement to paid vacation varies as follows:

• Less than five years of service: 14 calendar days
• 5–10 years of service: 21 calendar days
• 10–20 years of service: 28 calendar days
• More than 20 years of service: 35 calendar days

During annual leave, employers are required to pay the employee their full salary along with any other benefits they are entitled to. The calculation for annual leave pay involves dividing the salary by 25 and multiplying it by the number of days of leave to which the employee is entitled.

Public Holidays

Holidays that fall at the end of the week are moved to the following Monday.

Sick Days

Employees in Argentina are entitled to paid sick leave based on their length of service with the company:

• Less than five years of service: Up to a maximum of 3 months of paid sick leave.
• More than five years of service: Extended to up to 6 months of paid sick leave.

Employers are responsible for covering sick pay. Additionally, Employment Risk Insurance, which is compulsory for employers, covers the costs of treatment, sick pay, or rehabilitation in case of work-related accidents, injuries, or illnesses.

Maternity Leave

Maternity leave in Argentina consists of 90 days, with the requirement that the mother takes at least 30 days before the birth of the child. Typically, this leave is split with 45 days before and 45 days after the delivery.

Maternity leave benefits are paid by the Argentine Social Security system.

Paternity Leave

New fathers are entitled to 2 days of paid paternity leave.

Parental Leave

There are no provisions for Parental leave in Argentina.

Other Leave

Employees also receive paid leave under the following circumstances in Argentina:

• 10 days of leave for their marriage
• 3 days of leave for the death of a child, parent, or spouse, and 1 day of leave for the death of a sibling
• 2 days of leave for university or high school exams, with a maximum of 10 days in total

Brain Source International operates as an Employer of Record (EOR) in Argentina, facilitating companies’ expansion by serving as the legal employer for their workforce in the country. As an EOR, Brain Source International manages payroll, benefits, compliance with local labor laws, and other administrative tasks on behalf of their client companies. This allows businesses to establish a presence and manage their employees in Argentina without needing to establish a legal entity themselves, ensuring compliance and operational efficiency in a new market.

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