Employer of Record (EOR) in Argentina

Employment Laws and Regulations in Argentina

Employment Contracts

All employment relationships in Argentina are governed by Ley de Contrato de Trabajo No. 20.744 (WIPO Lex), enforced by the Ministry of Labor. Argentine law assumes all contracts are indefinite unless there’s a specific reason to limit the term.

Fixed-term contracts must be in writing with documented justification and are limited to a maximum of 5 years.

All contracts must be executed in Spanish and include mandatory terms such as job title, responsibilities, compensation, working conditions, and applicable collective bargaining agreement (CBA) provisions. Part-time contracts need explicit documentation of hours and can’t exceed two-thirds of a full-time schedule.

Working Hours and Overtime

The Argentine labor code caps the workweek at 48 hours, usually 8 hours a day Monday through Saturday. Overtime beyond 8 hours daily carries a 50% wage premium on regular weekdays and a 100% premium on Sundays and public holidays (Ley 20.744, Art. 201). Employers cannot require more than 3 hours of overtime per day or 200 hours per year.

Night work (between 21:00 and 6:00) is limited to 7 hours per shift. Each hour of night work counts as 1 hour 8 minutes for pay purposes. Employees must receive a minimum 12-hour rest period between shifts and 35 continuous hours of weekly rest.

The table below summarizes the overtime rates, daily limits, and exemptions that apply to Argentine employees under Ley 11.544 and LCT Art. 201.

Minimum Wage

Argentina’s Salario Minimo Vital y Movil (SMVM) stands at approximately $258 per month as of April 2026. This rate was established under Resolution 9/2025 issued by the National Council of Employment, Productivity, and Minimum Wage. The same resolution schedules gradual increases through August 2026, when the SMVM will reach approximately $272 per month.

For current rates and historical adjustments, see the Argentina minimum wage page.

Probation Period

Indefinite employment contracts in Argentina include a standard 6-month probation period under Ley 27.742 (enacted July 2024). During the first 30 days, employers may terminate without notice or severance. From day 31 through the end of probation, 15 days’ written notice is required before termination.

Collective bargaining agreements may extend probation to 8 or 12 months for companies with fewer than 50 employees. No severance payment is owed for termination during probation, provided proper notice is given after the first 30 days. Leave entitlements accrue from day one, including during probation.

Leave Entitlements

Argentine law provides comprehensive leave entitlements that accrue from the first day of employment. These cover annual vacation, sick leave, family-related leave, and several other statutory absences defined under Ley 20.744.

Annual Leave

Annual leave entitlements increase with tenure: 14 days for employees with less than 5 years of service, 21 days for 5 to 10 years, 28 days for 10 to 20 years, and 35 days for 20 or more years (Ley 20.744, Art. 150). Leave must be taken between October 1 and April 30, unless employer and employee agree otherwise. Vacation accrues during probation and cannot be unilaterally canceled by the employer.

Sick Leave

Employees with less than 5 years of tenure are entitled to 3 months of paid sick leave per year; those with 5 or more years receive 6 months. If the employee has dependents, the duration doubles to 6 or 12 months respectively. The employer pays 100% of wages throughout the sick leave period.

A medical certificate is required from the first day of absence. After the employer’s paid obligation ends, continued medical coverage transitions to the employee’s obra social (health plan) and ART (workers’ compensation insurer).

Maternity Leave

Maternity leave totals 90 days, structured as 45 days before birth and 45 days after, or alternatively 30 days before and 60 days after at the employee’s choice. The 100% wage replacement is funded by ANSES (Argentina’s social security agency), not the employer (PwC Argentina). Employees cannot be terminated during pregnancy or for 7.5 months after the birth, except for serious cause under strict legal standards.

Paternity Leave

Fathers are entitled to 2 days of paid leave at 100% of regular wages following the birth of a child. This leave must be taken within the days immediately following the birth date.

Other Statutory Leave

• Marriage leave: 10 consecutive days, fully paid
• Bereavement leave: 3 days for spouse, child, or parent; 1 day for a sibling
• Study and exam leave: 2 days per exam, maximum 10 days per calendar year
• Moving leave: 1 day for residential relocation

Statutory Employee Benefits

Argentine employers must enroll all employees in obra social, a mandatory health plan funded by a 6% employer contribution and 3% deducted from employee wages. Employers also register workers with an ART provider, which covers workplace injuries, occupational diseases, and rehabilitation. All employees participate in the SIPA integrated pension system, with contributions managed through ANSES and AFIP (PwC Argentina).

Argentina doesn’t require employers to pay for meals, transportation, or housing beyond what union agreements might specify. That said, many employers offer extra perks like upgraded health plans (prepaga), performance bonuses, or training budgets to attract good talent. For a full breakdown of mandatory and optional benefits, see the Argentina employee benefits page.

Recent Regulatory Updates (2026)

Ley 27.742, which took effect in July 2024, was the biggest change to Argentine employment law in years. It extended probation from 3 months to 6 months on indefinite contracts and lets union agreements stretch it to 8 or 12 months for small companies with fewer than 50 employees. It also capped damages for discriminatory dismissal at 50 to 100% of standard severance and introduced the option for employers to contribute to alternative severance funds established through CBAs.

Resolution 9/2025 established a schedule of minimum wage increases running from December 2025 through August 2026. The SMVM rose from approximately $246 in January 2026 to $258 in April, with further increases scheduled monthly through August. A March 2026 reform capped mandatory union dues at 2% of gross wages for a two-year transition period, after which the cap drops to 0.5%.

Work Permits and Visas in Argentina

Work Permit Requirements

Who Needs a Work Permit

Citizens of Mercosur member states (Brazil, Paraguay, Uruguay, Bolivia, and others) benefit from a simplified residency process that grants work authorization with minimal documentation. Non-Mercosur nationals must obtain a formal work visa sponsored by their Argentine employer before beginning employment. All work permits are administered by the Direccion Nacional de Migraciones.

Eligibility and Required Documents

Applicants must submit a valid passport with at least 6 months remaining validity, a police clearance certificate from their country of residence, proof of professional qualifications (diplomas or certifications), and a signed employment contract compliant with Ley 20.744. All documents must be apostilled and translated into Spanish by a certified translator. A medical examination confirming fitness to work is also required for most visa categories.

Processing Time and Validity

Temporary residence work visas typically take 30 to 90 days for approval, depending on the consulate and country of origin. Initial validity ranges from 1 to 3 years based on the visa category and employment contract duration. Factors that extend processing include incomplete documentation, high application volumes at specific consulates, and additional security clearances for certain nationalities.

Renewal Process

Employees must file renewal applications with the immigration authority before their current visa expires, ideally 60 days in advance. The employee may continue working during the renewal processing period, provided the application was submitted on time. Renewal typically takes 30 to 60 days and requires updated documentation including a current employment contract and tax compliance certificates.

Common Visa Types for Foreign Workers

Argentina offers several work visa categories depending on the employee’s nationality, profession, and employment relationship. The table below summarizes the most common options used by EOR-employed workers.

For detailed guidance on each category, consult the Argentina work visa guide.

How an EOR Handles Work Permits

An EOR sponsors the work permit application as the official employer, preparing the employment contract, compiling the application dossier, and communicating with the consulate and Direccion Nacional de Migraciones on your behalf. The employee provides personal documents (passport, police clearance, qualifications), while the EOR manages the rest. This process typically extends the standard 1 to 2 week onboarding timeline by 4 to 8 weeks, depending on the visa category and consular processing schedule.

Payroll, Taxes, and Social Security in Argentina

Employers hiring in Argentina owe mandatory contributions on top of gross salary, funding social security, health, pensions, and other statutory schemes (PwC Argentina Tax Summary). The table below lists the employer-side contribution rates so you can calculate the true all-in cost of each hire.

Argentine employers contribute approximately 26% on top of gross salaries across pension, health insurance, family allowances, and workers’ compensation. The statutory rate ranges from 24% to 26.4% depending on company classification, with an additional variable ART premium based on industry risk category (PwC Argentina). These contributions are remitted to AFIP by the 15th of the following month.

For complete payroll and tax compliance guidance, see the Argentina payroll and tax page.

Employees in Argentina have 17% deducted from their gross salary each month for pension, health insurance, and social services. These deductions are withheld by the employer and remitted directly to the corresponding social security funds through AFIP.

Argentina applies a progressive income tax (Impuesto a las Ganancias) with nine brackets ranging from 5% to 35%. Employees receive personal deductions that are adjusted every six months to account for inflation. For the first half of 2026, the annual employee deduction is approximately $12,700, meaning many lower-income employees pay little or no income tax.

AFIP adjusts bracket thresholds and deduction amounts semi-annually based on accumulated inflation from the prior period. Employers are responsible for withholding income tax from each monthly payroll and remitting it to AFIP.

Payroll Cycle

Payroll in Argentina runs on a monthly cycle, with salaries typically paid between the 1st and 5th of the following month. Bank transfer is mandatory for companies with more than 25 employees; all payments are made in local currency. Employers must issue detailed pay slips showing gross salary, each deduction, employer contributions, and net pay.

Social security filings are submitted to AFIP by the 15th of the month following the pay period. Late submissions trigger penalties and interest charges. The EOR handles all filing deadlines, ensuring contributions are declared and paid on time.

13th Month Salary and Bonus Pay

The aguinaldo (13th month bonus) is mandatory under Ley 20.744, Art. 121-123, and is paid in two installments each year. Each installment equals 50% of the highest monthly gross salary earned in the preceding six-month period. The first installment is due by June 30 and the second by December 18.

Employees who join or leave mid-year receive a pro-rata aguinaldo based on months worked in the relevant semester. The aguinaldo is subject to full social security contributions (both employer and employee) and income tax withholding, which reduces the net payout. Argentina does not mandate a 14th month salary or profit-sharing bonus, though some CBAs or individual contracts may include additional performance incentives.

Cost of Hiring Through an EOR in Argentina

EOR Service Fees

EOR service fees in Argentina typically range from $300 to $600 per employee per month. This flat monthly fee covers payroll processing and tax withholding, statutory compliance filings with AFIP and ANSES, benefits administration including obra social and ART enrollment, ongoing HR support, and employment contract management throughout the relationship.

The total monthly cost to employ one person through an EOR in Argentina is approximately $2,013 for a $1,200 gross salary, roughly 68% above gross compensation. This includes all mandatory employer contributions (26.10%), the monthly aguinaldo accrual (8.33%), and the EOR service fee ($400). All USD amounts are approximate conversions at April 2026 exchange rates.

By comparison, setting up a local entity in Argentina costs $15,000 to $30,000 upfront and $8,000 to $15,000 per year in ongoing maintenance, making the EOR model significantly more cost-effective for teams of 1 to 15 employees.

Ready to hire in Argentina? Get started with Remote People; we handle employment contracts, payroll, tax withholding, and full Argentina compliance. No local entity needed.

Benefits of Using an EOR in Argentina

An EOR accelerates your time to market by enabling employee onboarding within 1 to 2 weeks, compared to the 3 to 6 months required for entity registration, AFIP enrollment, bank account setup, and local HR hiring. Traditional entity setup costs $15,000 to $30,000 or more before your first employee starts work; an EOR eliminates those upfront costs entirely and replaces them with a predictable monthly fee.

Compliance with Ley 20.744 requires precise handling of monthly social security filings, aguinaldo calculations, progressive income tax withholding, and leave tracking across multiple entitlement categories. An EOR manages all of these obligations, reducing your exposure to penalties from incorrect payroll processing, missed filing deadlines, or noncompliant termination procedures. This is particularly valuable in Argentina, where labor law enforcement is active and employee-friendly courts tend to rule in favor of workers in disputes.

The EOR model provides local expertise without long-term structural commitment. Your EOR partner navigates Argentina’s inflation-adjusted tax brackets, manages obra social health plan selections, and handles AFIP correspondence in Spanish. You gain the flexibility to scale your Argentina team up or down as business needs change, without the fixed overhead of a local entity.

For companies testing the Argentine market or managing seasonal hiring fluctuations, this combination of speed, compliance assurance, and cost efficiency makes the EOR the standard entry path.

Termination and Offboarding in Argentina

Notice Periods

Argentine employment law requires written notice before termination, with the duration increasing by tenure. During the first 30 days of probation, no notice is required. From day 31 through the end of the 6-month probation period, 15 days’ notice is mandatory.

After probation, employees with less than 5 years of service require 1 month’s notice, while those with 5 or more years require 2 months’ notice (Ley 20.744, Art. 231).

Employers may elect to pay in lieu of notice, providing the employee with their full gross salary (including base pay, commissions, and regular bonuses) for the applicable notice period instead of requiring them to work through it.

The table below consolidates Argentina’s statutory notice periods for employer-initiated dismissal under LCT Art. 231, as updated by the 2026 Labor Modernization Law.

Severance Pay

The worked examples below assume a dismissal without just cause under LCT Art. 245 and use a hypothetical best normal monthly salary of USD 2,500 to show how the formula scales with tenure.

Calculation Method

Severance for termination without cause is calculated as one month of the employee’s highest normal monthly salary per year of service, or for any fraction exceeding three months. The salary base includes regular compensation, commissions, and recurring bonuses earned in the 12 months preceding termination. Employees also receive a proportional aguinaldo payment for the partial period worked in their final semester.

Caps and Exceptions

The Argentine Supreme Court has established a per-year severance cap at approximately 67% of three times the average monthly salary defined by the applicable collective bargaining agreement. No severance is owed during the probation period (with proper notice after day 30) or for termination with just cause. Fixed-term contracts terminated early may trigger damages equal to the remaining contract value rather than standard severance.

Under Ley 27.742, damages for discriminatory dismissal claims are now capped at 50% to 100% of the standard severance amount, replacing the previously uncapped punitive framework. This reform provides greater cost predictability for employers while maintaining employee protections against unlawful termination (WIPO Lex).

Grounds for Termination

Argentine law recognizes two primary termination categories. Termination with cause (justa causa) requires documented serious misconduct, must follow a prior disciplinary procedure, and does not trigger severance obligations. Termination without cause (sin justa causa) requires full notice and severance payments as described above.

Certain employees receive enhanced protection. Pregnant employees and those on maternity leave cannot be terminated except in extraordinary circumstances; termination during pregnancy or within 7.5 months after birth triggers an additional year of severance compensation. Union representatives can only be dismissed with prior judicial authorization.

Employees who marry are protected from termination for 3 months before and 6 months after the marriage.

EOR vs. Other Hiring Models in Argentina

Choosing between an Employer of Record and setting up your own legal entity in Argentina comes down to timeline, upfront cost, ongoing administrative burden, and how quickly you can scale up or wind down. The table below lays out both paths side by side across setup time, cost, compliance risk, and flexibility so you can match the right model to the size and duration of your Argentina hiring plan.

The EOR model offers the fastest and lowest-cost entry point for companies testing the Argentine market or building small remote teams. You avoid the legal, accounting, and administrative overhead of entity formation while the EOR handles all payroll, tax filings, and statutory compliance from day one. For teams of 1 to 15 employees, the EOR fee is almost always more cost-effective than entity maintenance.

Establishing your own local entity becomes financially justified once you have 15 or more employees in Argentina, as the fixed annual maintenance cost ($8,000 to $15,000) is spread across a larger workforce. A local entity also provides eligibility for Argentine government contracts and grants direct control over HR policies, office infrastructure, and employee relations.

The choice ultimately depends on team size, market-entry timeline, and long-term commitment to the Argentine market. For rapid, low-risk hiring with full compliance, an EOR is the standard approach. For established or growing operations requiring local infrastructure, entity setup provides greater control and cost efficiency at scale.

Hiring through an EOR provides legal certainty and full compliance with Ley 20.744, while engaging independent contractors is only appropriate in some cases such as short-term project work, specialized consulting, and roles with genuine autonomy over work methods and schedule. The distinction matters because Argentine labor law presumes an employment relationship exists unless the contractor arrangement is genuinely independent and clearly documented.

Misclassification (treating a de facto employee as an independent contractor) can result in back taxes, unpaid employer social security contributions, penalties, and forced reclassification to employment status by Argentine labor authorities. The consequences are financial and reputational: AFIP may assess several years of unpaid contributions plus interest, and the employee gains retroactive rights to severance, leave, and benefits.

For ongoing team members, core business functions, and roles requiring supervision, an EOR employee is the compliant choice. For genuinely independent, project-based engagements, Remote People also offers a contractor management solution that handles compliant contractor payments, contracts, and classification risk.

The fundamental difference is entity ownership: an EOR serves as the legal employer and provides the local entity, while a PEO operates as a co-employer and requires you to already have an Argentine company. Argentina has no formal statutory framework regulating PEO arrangements, so most international providers in the country operate as EORs rather than PEOs.

An EOR is the correct choice for companies entering Argentina without local infrastructure that need to hire employees immediately. If you already have an established Argentine entity and want to outsource HR administration, payroll processing, or benefits management, a PEO-style arrangement may be relevant. In practice, the EOR model dominates international hiring into Argentina because most foreign companies lack an existing local presence.

For companies weighing these options, the deciding factor is simple: if you do not have an Argentine entity today and want to hire within weeks rather than months, an EOR is the path. If you already operate locally, consult with Argentine employment counsel about co-employment and outsourcing alternatives.

Public Holidays in Argentina

Argentina observes a defined set of official public holidays on which most private-sector employers must give staff a paid day off (Argentina.gob.ar Official Calendar). The table below lists the statutory holidays employers need to build into payroll calendars and leave planning for the year, along with the date rule for each.

Argentina observes 19 paid public holidays in 2026, including 3 government-decreed bridge days (feriados puente) that extend holiday periods into long weekends. Employees required to work on a public holiday are entitled to double their regular daily wage in addition to standard compensation. Movable holidays (feriados trasladables) are shifted to the nearest Monday to create long weekends, affecting payroll scheduling and project planning.

How to Get Started with an EOR in Argentina

Launching your Argentine team through an EOR follows a straightforward sequence:

• First, define the role description, responsibilities, and compensation package in USD or Argentine pesos.
• Second, select an EOR provider with established operations in Argentina, such as Remote People, and confirm their service scope and fee structure.
• Third, the EOR drafts a compliant employment contract under Ley 20.744 and shares it for your review and the employee’s signature.
• Fourth, AFIP and ANSES registration, payroll configuration, bank transfer setup, and obra social enrollment are completed by the EOR.
• Fifth, your new employee begins work within 1 to 2 weeks of contract signature, with the EOR managing all ongoing payroll, tax filings, and compliance.

Ready to build your team in Argentina? Contact Remote People for a free consultation on hiring costs, timelines, and compliance.