Employer of Record in Argentina

Want to hire in Argentina without setting up a local company? You need an employer of record. Here’s why: Argentina’s labor laws are strict, expensive, and constantly changing. Social security costs alone run 24%–26.4% of salary. Severance payouts are brutal. And getting termination legally wrong? Courts side with employees every time. An EOR handles all of it while you focus on your team.

This guide covers what you need to know: how the EOR model works, what Argentine employment law actually requires, what it costs, and how to pick the right partner.

How Does an Employer of Record Work in Argentina?

An employer of record (EOR) is a third-party organization that becomes the legal employer of your workers in Argentina. When you use an employer of record in Argentina, the EOR takes on all legal and administrative responsibilities for employment, while you maintain day-to-day management of the employee’s tasks, schedule, and output.

The EOR Model Explained

Here’s how it actually works. The EOR signs the employment contract with the worker under Argentine labor law. It registers the employee with AFIP (the Argentine Federal Administration of Public Revenue), enrolls them in the mandatory social security system, and manages monthly payroll — including income tax withholdings, social security contributions, and aguinaldo calculations. The EOR also handles statutory benefits such as annual leave, sick leave, and maternity leave.

Your company signs a service agreement with the EOR. You pick the candidate, set the salary, define the role, and manage performance. The employee works for you. The EOR just makes sure everything’s compliant with Argentine law.

What the EOR Handles

A reliable employer of record in Argentina manages the following:

• Drafting and executing locally compliant employment contracts
• Registering the employee with AFIP and social security authorities
• Calculating and paying monthly gross-to-net salary
• Withholding and remitting income tax (Impuesto a las Ganancias) and social security
• Administering aguinaldo (13th-month salary) payments in June and December
• Managing statutory leave entitlements (annual, sick, maternity, paternity)
• Providing mandatory workers’ compensation insurance (ART)
• Processing termination and severance in accordance with Law No. 20.744

What You Retain Control Over

Even though the EOR is the legal employer, your company retains complete control over the employee’s work. You decide what projects they work on, set performance goals, schedule meetings, and determine promotions. The employment relationship is administrative on the EOR’s side and operational on yours.

Ready to start building your team in Argentina? Request a proposal from Remote People and get a customized quote within 24 hours.

Argentina Employment Law: What Employers Need to Know

Argentina’s employment framework is primarily governed by the Labor Contract Law (Ley de Contrato de Trabajo, Law No. 20.744) and the collective bargaining agreements (convenios colectivos de trabajo) that cover most industries. In 2024, the government enacted Ley Bases 27.742, which introduced significant reforms to probation periods, severance structures, and hiring flexibility. Any company hiring employees in Argentina — whether directly or through an EOR — must comply with these regulations.

Employment Contracts

Argentine law favors indefinite-term employment contracts, as outlined in the Global Legal Insights Argentina Employment Law overview. Fixed-term contracts are permitted but must be justified by the temporary nature of the work and cannot exceed five years. If a fixed-term contract is not properly justified or is renewed repeatedly, it is automatically reclassified as indefinite. All employment contracts must be in writing and registered with the relevant authorities.

Probation Period

Under Ley Bases 27.742 (effective July 9, 2024), the standard probation period for indefinite-term contracts is six months. Collective bargaining agreements may extend this period to eight months for companies with 6–100 employees and up to 12 months for companies with five or fewer employees. During the probation period, either party can terminate the relationship without severance, provided 15 days’ notice is given.

Working Hours and Overtime

The standard working week in Argentina is 48 hours, with a maximum of 8 hours per day. Night shifts (9:00 PM–6:00 AM) are capped at 7 hours. Mixed shifts are limited to 7.5 hours.

Overtime is strictly regulated. The maximum overtime is 3 hours per day, 30 hours per month, and 200 hours per year. Overtime pay rates are:

• Weekday overtime: 150% of the regular hourly rate
• Weekend and public holiday overtime: 200% of the regular hourly rate

Minimum Wage

Argentina’s minimum wage (Salario Mínimo Vital y Móvil, or SMVM) is set by the National Council on Employment, Productivity, and Minimum Wage and is adjusted periodically to account for inflation. As of March 2026, the SMVM is ARS 352,400 per month for full-time workers, with scheduled increases through August 2026 (reaching ARS 376,600). The hourly rate for daily workers is approximately ARS 1,734.

Source: Argentina Labor Contract Law No. 20.744, Articles 150–159 (annual leave), 208–213 (sick leave), 177–179 (maternity leave)

Employer Costs and Payroll Taxes in Argentina

Ready for the numbers? Beyond gross salary, employers must account for social security contributions, workers’ compensation insurance, life insurance, and the mandatory aguinaldo. The total employer burden typically adds 40%–50% on top of the base salary. This is not optional.

Employer Social Security Contributions

Employer contribution rates depend on the company’s economic sector and annual revenue. Companies primarily engaged in services or trade with annual sales exceeding specified thresholds (ARS 19,012,110,000 for services; ARS 66,319,160,000 for trade) pay 26.4% of gross salary. All other companies pay 24%. These contributions are uncapped — they apply to the full gross salary with no ceiling.

Employers are exempted from paying social security contributions on the first ARS 7,003.68 per month per employee.

Source: PwC Argentina Tax Summary — Social Security Contributions

In addition to core social security, you’ll owe:

• Workers’ Compensation Insurance (ART): Approximately 2.4%–5% of payroll, depending on industry risk level – Life Insurance: 0.5% of payroll – Occupational Disease Trust Fund (FFEP): A fixed ARS amount per employee

Employee Social Security Contributions

Employee contributions are withheld from gross salary and are subject to a monthly cap that is adjusted for inflation. As of December 2025, the cap is ARS 3,731,212.01 per month (increased by 50% in June and December due to aguinaldo).

Source: PwC Argentina Tax Summary — Employee Social Security

Income Tax (Impuesto a las Ganancias)

Argentina applies a progressive income tax on employees’ salaries. Employers are responsible for withholding this tax on a monthly basis. Tax brackets and thresholds are adjusted semi-annually (January and July) in line with the Consumer Price Index (CPI). The current brackets for fiscal year 2025 (applicable through mid-2026 adjustment) are:

Source: PwC Argentina Tax Summary — Personal Income Tax 2025

13th Month Salary (Aguinaldo)

The aguinaldo is a mandatory 13th-month salary paid in two semi-annual installments. The first installment is due before June 30 and the second before December 18 each year. Each installment equals 50% of the highest monthly gross salary earned during the preceding six-month period. Standard payroll taxes and social security contributions apply to aguinaldo payments. For budgeting purposes, the aguinaldo adds approximately 8.33% to annual salary costs.

Total Employer Cost Summary

Sources: PwC Argentina Tax Summary; Argentina Labor Contract Law No. 20.744

Termination and Severance Rules in Argentina

Argentina doesn’t make firing people easy — or cheap. It’s one of the most regulated and expensive aspects of local employment law. Get it wrong, and Argentine labor courts will side with the employee. This alone is a major reason why businesses turn to an EOR.

Notice Periods

Argentine law requires the employer to provide written notice before termination without cause:

• During probation: 15 days’ notice – Up to 5 years of service: 1 month’s notice – Over 5 years of service: 2 months’ notice

If the employer doesn’t provide the required notice, they must pay compensation in lieu of notice equal to the salary the employee would have earned during the notice period.

Severance Pay for Termination Without Cause

When you terminate an employee without just cause, you’ll owe several things:

Seniority compensation (indemnización por antigüedad): One month’s salary for each year of service or fraction exceeding three months. The salary used for calculation is capped at three times the average salary published by the applicable collective bargaining agreement. Regardless of tenure, the minimum severance is one month’s salary.

Integration month (integración del mes de despido): If the dismissal doesn’t occur on the last calendar day of the month, the employer must pay the remaining days to complete that month.

Payment in lieu of notice (preaviso): If proper notice wasn’t given, the employer must pay the equivalent salary for the notice period that should have been served.

Accrued benefits: All pending proportional vacation pay, aguinaldo, and any other accrued but unpaid benefits must be settled.

Termination With Just Cause

Termination with just cause (despido con justa causa) doesn’t require severance compensation. But here’s the catch: you need to clearly document the cause, and Argentine labor courts set a high bar for what counts. Common grounds include serious misconduct, breach of contract, or abandonment of the workplace. Even with just cause, accrued salary, vacation, and proportional aguinaldo must still be paid.

Employee Resignation

Employees who resign must provide 15 days’ notice. If they don’t, the employer may deduct the corresponding salary amount. Resigning employees aren’t entitled to severance compensation.

Public Holidays in Argentina (2026)

Argentina observes 16 national public holidays in 2026. Employees who work on a public holiday are entitled to compensation at 200% of their regular rate. In addition to the fixed holidays listed below, the government typically designates bridge holidays (feriados puente) to create long weekends — in 2026, these fall on March 23, July 10, and December 7.

Source: Argentine Government — Feriados Nacionales 2026

Benefits of Using an Employer of Record in Argentina

An EOR in Argentina eliminates several expensive headaches that come with building a local presence from scratch.

Speed to Hire

Incorporating a subsidiary in Argentina (Sociedad Anónima or SRL) typically takes 2–4 months. Add in opening a corporate bank account, registering with AFIP, and building payroll infrastructure, and you’re looking at months before you can hire a single person. An EOR can onboard your first employee in as little as 48 hours because the legal entity and infrastructure are already in place.

Full Legal Compliance

Argentina’s labor laws are extensive and constantly updated. Ley Bases 27.742 reforms, inflation-indexed tax brackets, semi-annual minimum wage adjustments — staying on top of all this requires dedicated local expertise. An EOR handles it all and keeps you out of trouble with AFIP, labor courts, and regulatory fines.

Cost Efficiency

Running a local entity in Argentina involves ongoing costs: registered agent fees, local accounting and legal counsel, corporate tax filings, and regulatory compliance monitoring. For companies hiring fewer than 10–15 employees, an EOR almost always costs less than maintaining a subsidiary.

Reduced Risk in Termination

As outlined above, terminating employees in Argentina is expensive and legally complex. An EOR manages the termination process end-to-end, calculating the correct severance, ensuring proper documentation, and reducing the risk of labor court claims.

Looking to hire in Argentina without the complexity? get a free consultation — we handle payroll, compliance, and benefits so you can focus on your team.

EOR vs. Setting Up a Local Entity in Argentina

Choosing between an employer of record and incorporating a local subsidiary depends on your hiring volume, timeline, budget, and long-term plans in Argentina. Below is a side-by-side comparison to help you decide.

Source: Remote People analysis based on Argentina incorporation and labor law requirements

For most companies hiring their first employees in Argentina, an employer of record provides the fastest, most cost-effective, and lowest-risk path to compliance. As your team grows beyond 50 employees and your presence becomes permanent, transitioning to a local entity may make strategic sense — and a good EOR provider can help you plan that transition.

How to Choose the Right EOR Provider for Argentina

Not all employer of record providers are created equal. When evaluating an EOR for Argentina, consider these factors:

Local Entity Ownership

Some EOR providers operate through third-party partners or sub-contracted entities in Argentina. This adds friction and communication risks. Look for a provider that owns its local entity or has a long-standing, audited partnership with a local entity that is fully licensed and registered with AFIP.

Transparent Pricing

EOR pricing models vary. Some charge a flat monthly fee per employee; others take a percentage of gross salary. Percentage-based pricing gets expensive fast for senior roles. Ask for a complete cost breakdown, including social security, ART, aguinaldo, and any administrative fees. Compare providers on the Remote People pricing page for a transparent view.

Payroll Accuracy and Timeliness

Running payroll in Argentina is genuinely complex. Monthly inflation adjustments, semi-annual aguinaldo calculations, and variable ART rates all create opportunities for mistakes. Ask potential EOR providers about their payroll processing timelines, error rates, and how they handle corrections.

Termination Expertise

Given the high cost and legal complexity of terminations in Argentina, your EOR should have deep experience handling dismissals, severance calculations, and (if necessary) labor court proceedings. Ask for case studies or references.

Benefits Administration

Beyond statutory requirements, many Argentine employees expect supplementary benefits such as private health insurance (prepaga), meal vouchers, and gym memberships. A good EOR can help you design a competitive employee benefits package for Argentina that attracts top talent.

Argentina Market Overview: Why Companies Are Hiring Here

Argentina attracts international hiring for solid reasons. The country produces approximately 130,000 university graduates per year, many in engineering, technology, and business fields. Buenos Aires consistently ranks among the top cities in Latin America for English proficiency, and the country’s time zone (UTC−3) lines up well with North American and European business hours.

The cost advantage is real. The average monthly salary in Argentina is approximately USD 1,500–1,700, which is a fraction of what you’d pay for equivalent roles in the United States, Canada, or Western Europe without sacrificing quality. You’ll find strong technical talent, professionals who understand Western business practices, and people who actually get the work done.

Worth noting: misclassification risk is real if you hire contractors in Argentina. Converting contractors to full-time employees through an EOR is the safest path. For broader context on how EOR services compare across providers, see our best employer of record comparison.

Getting Started: Hire in Argentina with an Employer of Record

The hiring process through an employer of record moves fast:

1. Select your candidate. Identify the person you want to hire and agree on compensation, role, and start date. 2. Share details with your EOR. Provide the employee’s information, salary, benefits package, and job description to your EOR provider. 3. EOR drafts the employment contract. The contract is prepared in compliance with Argentine labor law, including all mandatory clauses and benefits. 4. Employee signs and onboarding begins. The EOR registers the employee with AFIP and social security, enrolls them in ART and health insurance, and processes the first payroll. 5. Ongoing management. The EOR handles monthly payroll, tax withholdings, aguinaldo payments, leave tracking, and regulatory updates. You manage the employee’s day-to-day work.

From candidate selection to first day, the whole thing takes 2–5 business days with an experienced EOR in Argentina.

Contact Remote People today today to hire your first employee in Argentina. We handle payroll, taxes, benefits, and termination so you can focus on building your team.