Employer of Record in Argentina

Discover how partnering with an Argentina employer of record can simplify the hiring process and help you save on employment costs.

From $199/month per employee

Key Takeaways

Hiring through an Employer of Record (EOR) enables companies to enter the Argentine market quickly without establishing a local entity, significantly reducing time and administrative burden.
Argentina offers a skilled, educated workforce with competitive labour costs and favourable time zone alignment for businesses.
EOR providers in Argentina ensure compliance with complex local labour laws, including payroll, benefits, taxes, and contract requirements.
Partnering with an EOR mitigates risks related to employment misclassification, regulatory changes, and severance obligations during workforce transitions.

Argentina presents compelling opportunities for international businesses seeking to expand into South America. The country ranks as the second-largest economy in South America, with a GDP of approximately $487 billion as of 2023. Argentina offers a highly educated workforce, with literacy rates exceeding 99% and a strong tradition of higher education.

International businesses find Argentina attractive due to its competitive labor costs compared to North American and European markets. The country’s workforce demonstrates strong technical skills, particularly in sectors like technology, agriculture, and manufacturing. Argentina’s time zone alignment with North American business hours facilitates smoother communication for companies operating across continents. Government incentives for foreign investment, including tax benefits and reduced bureaucratic barriers, further enhance Argentina’s appeal as a business destination.

However, businesses must understand Argentina’s regulatory environment and frequent economic fluctuations when planning expansion strategies. Companies that work with experienced local partners or professional service providers such as Employers of Record (EORs) can successfully overcome these challenges and capitalize on Argentina’s significant market opportunities.

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How to Hire Employees in Argentina

Argentina boasts a workforce of over 21 million people, with strong representation in professional services, manufacturing, and technology sectors. Argentine workers typically possess excellent language skills, with many professionals fluent in English, making international collaboration more seamless.

The unemployment rate in Argentina fluctuates between 6% and 10%, providing companies with access to available talent across various skill levels. Major cities like Buenos Aires, Córdoba, and Rosario serve as primary employment hubs, offering concentrated pools of skilled professionals. Argentina’s educational system produces graduates with strong technical and analytical capabilities, particularly in engineering, information technology, and business administration.

Companies have three primary options for hiring employees in Argentina. Each approach offers distinct advantages and considerations that businesses must evaluate based on their specific needs and long-term expansion goals.

Setting Up a Local Entity

Establishing a legal entity in Argentina requires companies to complete several regulatory steps and meet specific requirements. Foreign companies typically choose between establishing a subsidiary (Sociedad Anónima) or a branch office, depending on their business objectives and operational scope. The incorporation process involves registering with the Public Registry of Commerce, obtaining tax identification numbers, and securing necessary business licenses.

Companies must appoint local directors and maintain registered offices within Argentina when establishing subsidiaries. Incorporation in Argentina typically takes three to six months, depending on document preparation and regulatory approval processes. Companies must also establish banking relationships, secure accounting services, and implement payroll systems before hiring their first employees. This approach provides maximum control over operations but requires significant upfront investment and ongoing administrative commitment.

Working with an Employer of Record (EOR)

An EOR provides companies with a solution for hiring Argentine employees without establishing local entities. EOR providers serve as the legal employer for hired staff while companies maintain operational control over day-to-day work activities. This arrangement enables rapid market entry and reduces administrative burdens associated with direct employment.

EOR services handle payroll processing, tax compliance, benefits administration, and employment contract management on behalf of client companies. Companies can begin hiring Argentine employees within weeks rather than the months required for entity establishment. EOR arrangements work particularly well for companies testing new markets, hiring small teams, or seeking to minimize regulatory complexity.

Hiring Independent Contractors

Independent contractor arrangements offer companies flexibility when engaging Argentine talent for specific projects or specialized services. Argentine law recognizes independent contractor relationships, but companies must carefully structure these arrangements to avoid misclassification issues. Contractors must register as autonomous workers (trabajadores autónomos) and handle their tax obligations and social security contributions.

Companies working with independent contractors should establish clear project scopes, deliverables, and payment terms in written agreements. Contractors typically invoice companies monthly and handle their equipment, workspace, and professional development expenses. This arrangement works well for short-term projects, consulting services, or specialized technical work.

However, companies must avoid creating employer-employee relationships through contractor arrangements. Providing office space, setting fixed working hours, or exercising direct supervision over contractors can trigger employment law obligations. Argentine labor authorities actively monitor contractor relationships and may reclassify arrangements that resemble traditional employment. Companies should consult with local legal experts to ensure proper contractor classification and compliance.

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The following sections will explore EOR services in greater detail and explain how these providers support international expansion in Argentina.

Hiring through an Employer of Record

The following sections will explore EOR services in greater detail and explain how these providers support international expansion in Argentina.

Using an Employer of Record in Argentina

An EOR serves as the legal employer for a client company’s workforce while the client company retains operational control over its employees’ daily activities and responsibilities. The EOR handles all legal employer responsibilities while companies focus on their core business activities and employee management.

An EOR in Argentina typically offers the following services:

Payroll Management: The EOR manages employees’ payroll, ensuring accurate salary calculations, tax withholdings, and quick payments to employees.
Tax Compliance: EOR providers manage all employer tax obligations, including social security contributions, healthcare premiums, and other mandatory payments to Argentine authorities.
Benefits Administration: EORs also administer mandatory benefits like vacation time, sick leave, and statutory bonuses, while also coordinating any additional benefits that client companies choose to provide.
Contract Management: This involves drafting employment agreements that comply with Argentine labor law requirements and protect both employer and employee interests.
Employee onboarding: EORs ensure new hires complete all necessary documentation and understand their rights and responsibilities under Argentine employment law.
Compliance: Compliance with local labor laws represents the foundation of EOR services, as providers monitor regulatory changes and adjust practices accordingly to maintain full compliance.

How Much Does an Argentina EOR Cost?

Fees usually appear as a monthly charge per employee and cover onboarding, payroll management, and other HR duties. In most cases, these costs are lower than operating a full subsidiary in Argentina.

Pricing hinges on the size of your workforce, the range of services you need, and whether the EOR offers any extra benefits. Some providers roll health coverage and retirement contributions into an all-inclusive rate, while others bill them separately. Ask for transparent pricing to avoid unexpected charges.

Employment Contracts in Argentina

Employment contracts in Argentina are regulated by the Employment Contract Law (Ley de Contrato de Trabajo, Law No. 20,744). The law sets forth a number of requirements and protects workers’ rights in very strict ways. An employment contract is, by its nature and without the need for specific stipulation, considered an indefinite-term contract. Unless the employer and the employee agree to another form of valid contract in writing, permissible by law, the relationship will be governed by this assumption. Contracts of a fixed term, seasonal, part-time, telework, or special modality must be in writing; indefinite-term contracts may be written or verbal.

Contracts must at least meet statutory minimums and a collective bargaining agreement (CBA) if applicable. Terms less favorable than those in law or a CBA are invalid. Employers need to register their employees with Argentina’s Customs Collection and Control Agency (ARCA), which replaced AFIP in October 2024, for tax and social security and related requirements upon entering into the employment relationship. Contracts are usually written in Spanish. If in writing, contracts usually set out the role and job description, salary, working hours, probation period and termination conditions.

Probation Periods in Argentina

The probationary period (periodo de prueba) in Argentina allows both the employer and the employee to evaluate the suitability of the employment relationship before it becomes permanent. After the Ley Bases labor reform, the probationary period in Argentina for work contracts that entered into force on or after 9 July 2024 is equal to 6 months.

An employment contract may be unilaterally terminated by either the employer or the employee during the probationary period with a 15-day notice period and without payment of severance, while social security must still be paid.

Probation period length is:

6 months: for the vast majority of contracts.
Up to 8 months: when the parties extend it through a CBA, and if the company size is between 6 and 100 employees.
Up to 1 year: when the employer and the employee extend it through a CBA, and if the company has 5 or fewer employees.

Social Security in Argentina

Argentina has a compulsory employee social security system that is paid for by both the employee and the employer. The employee withholding is currently about 17% of gross salary and consists of, in broad terms, 11% for pensions, 3% for health (Obra Social) and 3% for other social services (including PAMI for retirees/pensioners).

The employer contribution is about 24% to 26.4% of the employee’s gross salary (depending on the activity/type of the company and size of the company, for example, service/trade or above/below certain thresholds). The breakdown of the employer contribution is to retirement/pension funds, health (Obra Social), family allowance, unemployment funds and related social services.

There are monthly salary thresholds for the employee’s social security contributions, being a minimum and a maximum contribution base. If the salary is above the cap, it is only partially included in the calculation of the employee deductions.

Working Hours in Argentina

In Argentina, the duration of the normal working day and work week is regulated to protect the health of employees and ensure their well-being. The maximum number of working hours for an employee per week is 48 hours, and per day is 8 hours.

Overtime is compensated at a rate of 150% of the regular hourly wage if it is done on a weekday. Work on Saturdays after 1:00 p.m., Sundays, and statutory holidays is compensated at a rate of 200% of the regular hourly wage. The daily overtime working time may not exceed 3 hours. The number of overtime hours may not exceed 30 hours per month or 200 hours per year.

Exceptions are also made for different types of work. When performing hazardous or hard work (such as mining), the maximum working hours are reduced to 6 hours per day and 36 hours per week. When performing night work, work that is performed between 21:00 and 06:00, the maximum working hours are set to 7 hours per day.

Employees have the right to rest. At least 12 consecutive hours must elapse between two workdays. Furthermore, there is a weekly rest period, which runs from Saturday at 13:00 to Sunday.

Exceptions to the rules on working hours may apply to highly qualified employees, such as senior executives and managers. The daily limit of working hours can also be increased to 9 hours on certain days, but on other days, there must be shorter working hours so that a maximum of 48 hours of work a week is not exceeded.

Public Holidays

Argentina has numerous public holidays throughout the year, including both fixed-date holidays and movable observances. Major holidays include New Year’s Day, Carnival (Monday and Tuesday before Ash Wednesday), Good Friday, Labor Day (May 1), May Revolution Day (May 25), Flag Day (June 20), Independence Day (July 9), Death of General San Martín (August 17), Columbus Day (October 12), and Christmas Day.

Work Permits/Work Visas in Argentina

Foreigners in Argentina must possess a valid work visa or permit to work. MERCOSUR citizens are subject to simplified procedures. Nationals from non-MERCOSUR countries must apply through the National Directorate of Migrations (DNM). Normally, an Argentine employer must sponsor the employee as a petitioner and be registered with the National Registry of Petitioners of Foreigners (RENURE).

The applicant must normally submit a valid passport, employment contract, criminal record check and entry permit. The work visa is generally valid for one year and can be renewed multiple times. After a few years, it is possible to apply for permanent residency.

Argentina has a digital nomad visa. This allows foreigners who work remotely for a company that is not based in Argentina to stay for up to 6 months, with extensions available. The visa does not allow work for local companies.

Remote People can guide companies through the visa process. We can help employers with visas so their company can remain in compliance with immigration regulations and their foreign employees can begin working as soon as possible.

Employee Leave in Argentina

Paid Leave

Employees are entitled to paid annual leave. The amount of paid annual leave is dependent on employee seniority as follows:

Employees with less than five years of service: 14 calendar days
Employees with 5 to 10 years of service: 21 calendar days
Employees with 10 to 20 years of service: 28 calendar days
Employees with over twenty years of service: 35 calendar days

Parental Leave

Fathers are entitled to paid parental leave, commonly known as paternity leave. Upon the birth of a child, the employee is granted two consecutive days of paid leave.

Maternity Leave

According to a new labor reform law called Ley Bases, maternity leave is extended to all pregnant workers. Pre-birth leave may be reduced to a minimum of 10 days, and the rest must be taken after childbirth. The pregnant worker has job stability, as a right acquired by law, from the time the employer is notified of the pregnancy.

If the illness is due to pregnancy or childbirth, the employee who cannot return to work after maternity leave has the right to the benefits of sick leave with pay, according to Article 208 of the Employment Contract Law.

Other Leave

Argentine law provides other types of paid leave. A worker has 10 calendar days of leave for marriage, three days for the death of a spouse, child or parent, and one day for the death of a sibling. Two days of leave per exam are also provided to those workers who follow secondary or university studies, up to 10 days per year.

13th-Month Pay in Argentina

Employees in Argentina receive a 13th-month pay, or Sueldo Anual Complementario (SAC). It is provided in two installments per year (June and December) and is equivalent to 50% of the employee’s highest gross monthly salary over the last six months.

Employee Termination and Severance in Argentina

Termination is strictly controlled in Argentina. For dismissal without just cause, notice is required (one month if the employee has worked for less than five years for the employer, two months otherwise) and severance equal to one month of the employee’s highest salary for each year of service (at least one month’s pay, whether calculated as severance or not).

Termination with just cause (such as serious misconduct) does not require severance, but the employer’s burden of proof is heavy and just cause dismissals are often litigated.

Minimum Wage in Argentina

Argentina’s monthly minimum wage is ARS 322,000 effective from August 2025.

Payroll and Income Taxes in Argentina

Argentina: Progressive income tax from 5% to 35% (2025 top rate applies to annual income over ARS 53,153,257). Income tax is withheld from salaries by the employer and is payable monthly. Employees contribute about 17% of their gross salary to social security. Employers pay 26.9-29.9% depending on the size and sector of the company.

As of October 2024, AFIP, the tax authority, was replaced by ARCA (Agencia de Recaudación y Control Aduanero). The new agency collects taxes, customs and social security.

Hiring Contractors in Argentina

Employers must be careful to distinguish between independent contractors and employees and not misclassify. Contractors can register as monotributista (simplified tax regime) or responsable inscripto (general regime) based on income.

The contractor invoices for their services and usually charges 21% VAT. A true independent contractor has several clients and control over how work is done. A misclassified contractor could be reclassified as an employee at the employer’s expense for back pay.

Workers' Compensation in Argentina

By law, all employers must have workers’ compensation insurance coverage through an Aseguradora de Riesgos del Trabajo (ART), which provides medical care, wage replacement, and rehabilitation to employees who are injured on the job or suffer work-related illnesses.

Employers make monthly payments to an ART; premium rates are industry and job-dependent and related to the risk of the work performed. Not having ART coverage is a criminal offence, which may leave an employer completely liable for any workplace accidents.

Why Hire in Argentina with an EOR?

Companies gain significant advantages when hiring in Argentina through an EOR rather than establishing their entities or managing employment relationships directly. Here are some advantages:

Cost savings: With EOR services, companies do not need expensive entity establishment, ongoing legal compliance management, and dedicated local HR infrastructure. Companies can begin hiring immediately without the three to six-month entity establishment timeline and associated legal costs.
Risk reduction: Experienced EOR providers maintain current knowledge of Argentine employment law and ensure full compliance with all regulatory requirements. These providers monitor legal changes and adjust practices accordingly, protecting client companies from costly compliance violations or employment disputes.
Faster market entry: EORs allow companies to test Argentine markets and hire key talent quickly. This approach proves particularly valuable for companies uncertain about long-term expansion commitments or those seeking to evaluate market opportunities before making larger investments.
Administrative efficiency: EORs allow companies to focus on core business activities while the providers handle payroll processing, tax compliance, and employment administration tasks.

How to Choose an EOR in Argentina

Companies should evaluate the following factors when selecting an EOR partner for Argentine operations.

Service Scope

Companies must understand exactly which services each EOR provider offers and how these align with their needs. Some providers offer comprehensive services, including payroll, tax compliance, benefits administration, contract management, and employee relations, while limited-service providers may focus on specific areas.

Technology Platform

Companies also need to understand how EOR providers manage employee data, payroll processing, and client communications. Modern platforms offer self-service portals, real-time reporting, and integration capabilities with existing HR systems.

Compliance Expertise

Companies need to verify potential providers’ expertise to ensure they have current knowledge of Argentine employment law and demonstrate successful compliance track records. Companies should request references from existing clients and evidence of professional certifications or legal partnerships that validate EOR expertise.

Pricing Structure

This requires understanding all costs associated with EOR services, including setup fees, monthly per-employee charges, and additional service costs. Transparent pricing models help companies budget accurately and avoid unexpected expenses. Companies should compare pricing across multiple providers while considering service quality and scope differences.

Expand into Argentina Easily with Remote People’s Employer of Record in Argentina

Hiring in Argentina doesn’t have to be complicated. With Remote People’s Employer of Record (EOR) service, you can onboard employees, manage payroll, and stay fully compliant—without setting up a local entity. We handle the legal and administrative work so you can focus on growing your team.

Whether you’re testing the market or scaling fast, our Argentina EOR service makes hiring simple and stress-free.