Employer of Record in Argentina

Hiring employees in Argentina involves navigating a complex landscape of local labor laws, social security contributions, and tax regulations. For companies looking to expand their operations into this vibrant market, understanding the various employment avenues is crucial to ensure compliance and efficient talent acquisition.

Whether you plan to establish a long-term presence or hire a specialized team, several approaches can facilitate your entry into the Argentine workforce, each with distinct implications for compliance, cost, and administrative burden.

Companies typically have a few options when it comes to employing individuals in Argentina:

• Establishing a Local Legal Entity: This involves setting up a subsidiary or branch office, which requires significant time, investment, and ongoing administrative effort to manage local registration, legal compliance, payroll, and HR functions.
• Utilizing an Employer of Record (EOR): Partnering with an EOR like Rivermate allows companies to hire employees in Argentina without needing to establish their own local entity, with the EOR handling all legal and HR responsibilities.
• Hiring Independent Contractors: Engaging individuals as independent contractors can offer flexibility but requires careful attention to avoid misclassification risks under Argentine labor law, which could lead to severe penalties.

How an EOR Works in Argentina

An Employer of Record acts as the legal employer for your team members in Argentina, managing all local employment responsibilities on your behalf, while you retain full control over day-to-day work and management.

• Payroll and Tax Management: The EOR handles all aspects of local payroll processing, including calculating and remitting social security contributions, income tax withholdings, and other mandatory deductions.
• Compliance with Labor Laws: The EOR ensures your employees' contracts, working conditions, and termination processes fully comply with Argentina's comprehensive labor laws, including severance, holidays, and working hour regulations.
• Employee Benefits Administration: This includes managing statutory benefits such as health insurance, pension contributions, and annual leave, as well as any additional benefits your company wishes to offer.
• HR Support and Local Expertise: An EOR provides ongoing HR support, drafts locally compliant employment contracts, and offers expert guidance on Argentine employment regulations, protecting your company from legal risks.

Benefits of Using an EOR for Hiring in Argentina

Partnering with an Employer of Record offers numerous advantages for companies seeking to expand into Argentina without the complexities of establishing a local entity.

• Rapid Market Entry: Hire talent in Argentina quickly, often within days, bypassing the lengthy and expensive process of company registration.
• Reduced Legal and Compliance Risk: Offload the burden of navigating Argentina's intricate labor laws, tax regulations, and social security requirements to local experts, ensuring full compliance.
• Cost Efficiency: Avoid the significant administrative costs, legal fees, and ongoing overhead associated with establishing and maintaining a subsidiary in a foreign country.
• Focus on Core Business: Reallocate internal resources to strategic initiatives and core business operations, rather than managing international HR and compliance.
• Access to Top Talent: Recruit and retain top talent across Argentina, regardless of your company's physical presence, expanding your hiring pool significantly.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Argentina includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Argentina.

Argentina's tax system involves national, provincial, and municipal taxes, with employers and employees bearing specific obligations. Employers must contribute approximately 24-27% of gross salaries to social security, covering pensions, healthcare, family allowances, labor risks, and unemployment benefits. These contributions fund key social programs and vary by industry and company size.

Employers are also responsible for withholding income tax from employee wages based on progressive brackets:

Employees can claim deductions such as non-taxable amounts, dependents, social security contributions, medical expenses, rent, and education costs to reduce taxable income. Employers must adhere to strict reporting deadlines for social security and income tax payments, typically within the first two weeks of the following month, and file annual reports.

Foreign workers and companies face additional considerations, including tax treaties, permanent establishment rules, transfer pricing, and expatriate taxation. Non-residents are taxed only on Argentine-source income, while residents are taxed on worldwide income. Staying compliant requires careful attention to evolving regulations and potential professional advice.

Argentina's salary landscape is heavily influenced by inflation, industry demand, and economic conditions. Salaries vary widely across sectors, with technology roles like Software Engineers earning between ARS 800,000 and ARS 1,500,000 monthly, and Doctors earning up to ARS 2,500,000. The minimum wage as of April 2025 is ARS 234,315 per month, applicable to all covered employees, with higher rates possible through collective agreements.

Compensation packages often include bonuses such as the Aguinaldo (equivalent to one month's salary paid twice a year), vacation bonuses, productivity, attendance, and allowances for meals, transportation, or education. Salaries are typically paid monthly via bank transfer, with detailed payslips required. Due to high inflation, salary adjustments are frequent, especially in sectors like technology and finance, making ongoing market monitoring essential for employers.

Argentina's vacation and leave policies provide comprehensive support for employees. Paid annual leave varies by tenure: less than 5 years earns 14 days, 5-10 years 21 days, 10-20 years 28 days, and over 20 years 35 days. Leave must be scheduled between October 1 and April 30, with employees notified at least 45 days in advance, and vacation pay is paid before leave begins.

Key leave types include public holidays, sick leave, parental leave, and other special leaves. Argentina observes numerous public holidays, with employees working on holidays entitled to double pay. Sick leave offers up to 6 months for employees with dependents and 3 months without, with pay during this period. Parental leave includes 90 days of maternity leave (with flexible pre- and post-birth days), 2 days of paternity leave, and adoption leave with benefits similar to biological parents.

Argentina mandates a comprehensive set of employee benefits, including salary, annual bonus (Aguinaldo), paid vacation, sick leave, maternity leave, family allowances, social security contributions, workers' compensation, and life insurance. For example, the minimum wage as of April 2025 is regularly updated, and the Aguinaldo equals 50% of the highest semester salary, paid in June and December. Vacation entitlements vary with seniority, ranging from 14 to 35 days annually.

Employers often supplement mandatory benefits with optional offerings such as private health insurance (Medicina Prepaga), meal vouchers, transportation allowances, wellness programs, education assistance, childcare support, performance bonuses, and stock options. Health coverage includes public, social security, and private options, with private plans favored by higher-income employees for broader access and shorter wait times. Retirement benefits are primarily through the public pension system, with some companies offering additional retirement savings plans.

Employers must budget for these benefits, ensure legal compliance, and maintain accurate records. Costs can be substantial, especially when combining mandatory and optional benefits, making professional legal and HR advice advisable for effective benefit management.

Argentina's employment agreements are governed by strict labor laws aimed at protecting workers, requiring contracts to specify key terms such as contract type, clauses, probation periods, and termination procedures. Employers must ensure compliance to avoid legal issues and maintain workforce stability.

The main types of employment agreements include:

Legal requirements emphasize clarity on employment conditions, with probation periods typically lasting up to 3 months, and termination procedures governed by law. Employers should carefully navigate these regulations to ensure compliance and avoid penalties.

Argentina's remote work landscape is governed by Law No. 27,555, which ensures employees' rights to request remote arrangements, mandates employer responsibilities for equipment and safety, and guarantees equal benefits for remote and on-site workers. Contracts must be formalized in writing, detailing work hours, performance, and communication protocols, with employees retaining the right to revert to in-person work.

Flexible arrangements in Argentina include part-time work, flexible hours, and hybrid models, allowing employers to adapt to diverse operational needs. Key legal and practical considerations include ensuring data protection, expense reimbursement, and maintaining technological infrastructure. The legal framework emphasizes good-faith consideration of employee requests and equal rights, fostering a compliant and productive remote work environment.

Argentina's employment laws impose strict regulations on employee termination, emphasizing notice periods, severance pay, and procedural compliance to avoid legal disputes. Employers must adhere to specific notice periods based on employee tenure, with a minimum of 15 days for less than 3 months, 1 month for 3 months to 5 years, and 2 months for over 5 years of service. They can opt to pay in lieu of notice, covering salary and benefits for the notice duration.

Severance pay is calculated primarily as one month's salary per year of service (or part thereof over three months), plus proportional Christmas bonus (SAC), and any payment in lieu of notice. For example, an employee with 7 years earning ARS 200,000 monthly would receive ARS 1,400,000 for severance, plus other entitlements. Termination with cause requires serious misconduct, supported by documented evidence, while without cause mandates proper notice and severance. Employers must follow formal procedures, including written notices, documentation, and timely payments, to ensure lawful termination.

Employees are protected against wrongful dismissal, with options to challenge unjust terminations through labor courts, potentially leading to reinstatement or increased compensation. Discrimination, union activity, and pregnancy-related dismissals are strictly prohibited, reinforcing strong employee protections.

Argentina's labor market heavily incorporates freelancing and independent contracting, especially in sectors undergoing digital transformation and requiring flexible work arrangements. Employers must navigate specific legal and tax frameworks to ensure compliance and properly classify workers to avoid misclassification risks. The distinction between employees and independent contractors hinges on "dependency" criteria, such as economic, technical, legal, and organizational dependencies. Misclassification can lead to significant obligations like social security contributions and severance pay.

Engaging independent contractors requires formal contracts that clearly define the scope of work, deliverables, payment terms, and the independent nature of the relationship. Contracts should also address intellectual property rights, ensuring that any work created is assigned to the engaging entity. Independent contractors are responsible for their own tax and social security obligations, typically registering as Monotributistas or Autónomos, and issuing electronic invoices for services. Employers may need to withhold certain taxes depending on the contractor's status.

Independent contractors are prevalent in industries such as technology, creative services, consulting, and professional services, where specialized skills and project-based work are common. These sectors benefit from the flexibility and expertise that independent contractors provide, allowing businesses to meet specific project needs without committing to full-time employment.

Argentina provides several visa options for foreign workers, primarily requiring a temporary residence visa sponsored by an Argentine employer. The most common is the Temporary Residence Visa for Work Purposes, valid for one year and extendable, with other categories including visas for professionals, intra-company transfers, and a non-work business visa. Employers must register with RENURE, and the application process involves submitting documents such as a valid passport, criminal record, proof of qualifications, and employment contract. Processing times typically range from 2 to 6 months, with fees varying by nationality and visa type.

Once in Argentina, workers can apply for permanent residency after legally residing for at least three years, maintaining a clean criminal record, and demonstrating financial stability and societal integration. Family members can obtain dependent visas, allowing them to reside in Argentina, though work authorization for dependents requires separate permits. Both employers and employees must comply with legal obligations, including accurate reporting, adherence to labor laws, and visa renewal, to avoid penalties. Key data points are summarized below: