Argentina’s job employment laws are governed by collective bargaining, international treaties, and many other legal statutes. These laws are implemented by the Argentinian national ministry of labor law. Learn more about the employment conditions and regulations in Argentina below.
Employee Contract
Public and Provincial Holidays
Leave Information
Basic
The official language for employment contracts in Argentina is Spanish.
Probation Period
The probationary period for employees in Argentina ranges from three to twelve months.
13th Month Pay
The 13th month salary is mandatory in Argentina. They are paid in semi-annual installments – one part due before 30th June and the other part by 18th December.
Employee Benefits
Employers in USA may provide the following benefits to their employees:
- Pension Fund
- Life Insurance
- Health Insurance
- Labor Risk Insurance
- Maternity Leave
- Paternity Leave
The payroll cycle followed in Argentina is monthly.
Argentina’s national minimum wage rate is ARS 271,571.22 for all monthly workers and ARS 1,357.86 per hour for daily workers.
Overtime is paid at a rate of 50% unless it’s past 1 pm on Saturday, Sunday, or public holidays, the rate for which is 100%. However, overtime must not exceed 3 hours a day or 30 hours a month.
Employer Payroll Cost:
| Payroll Category |
Tax % |
| Pension Fund |
16% |
| Social Health Care Plan |
6% |
| Labor Risk Insurance |
2.41% |
| Life Insurance |
0.50% |
Employee Payroll Cost:
| Payroll Category |
Tax % |
| Pension Fund |
1% |
| Social Health Care Plan |
3% |
| Social Health Care Plan |
3% |
Employee Income Tax
| Annual Taxable Income
(Argentine Pesos, ARS)
|
Tax Rates (%) |
| 0 to 419,253.95 |
5% |
| 419,253.95 to 838,507.92 |
9% |
| 838,507.92 to 1,257,761.87 |
12% |
| 1,257,761.87 to 1,677,015.87 |
15% |
| 1,677,015.87 to 2,515,523.74 |
19% |
| 2,515,523.74 to 3,354,031.63 |
23% |
| 3,354,031.63 to 5,031,047.45 |
27% |
| 5,031,047.45 to 6,708,063.39 |
31% |
| Above 6,708,063.39 |
35% |
VAT
The standard VAT rate is 21% and a reduced rate of 10.5% for certain industries.
Termination in Argentina can take place with few restrictions. The employer must notify the termination of the employee in writing. An employer is required to give a minimum of 15 days to 2 months notice period of dismissal, while an employee must give 15 days notice for resignation.
An employer can terminate the contract on mutual agreement, a just cause, or grounds of misconduct and would not be required to give any notice period or payment in this case.
The notice period for employees during the probationary period is from 15 to 30 days, while for permanent employees, it ranges from 15 to 60 days.
Severance pay
Severance payment for those employees who are dismissed without a just cause is equivalent to one month’s salary on each year of service, or a fraction of a year exceeding 3 months.
According to the statutory law of Argentina, severance payment for employees dismissed for redundancy is equivalent to half of the payment as per.
No severance payment is due for dismissals with just cause.
Employees working for more than 90 days in Argentina, need a 23A or 23E visa.