January 31, 2022
Argentina is a country known for its rich cultural heritage and diverse geography. As the second-largest country in South America after Brazil and the eighth-largest country in the world, Argentina offers plenty of opportunities for both tourists and businesses. In this article, we will focus on the employment regulations and payroll system in Argentina, including minimum wage, benefits, taxes, and termination procedures.
The employment laws in Argentina are governed by collective bargaining, international treaties, and various legal statutes, which are implemented by the national Ministry of Labor Law. The official language for employment contracts in Argentina is Spanish. Here are some key employment conditions and regulations to keep in mind if you are hiring employees in Argentina:
Employees in Argentina need to contribute towards their Pension Fund, Family Allowance, and Social Contributions (14%) and 3% towards health insurance. Income tax for employees follows a progressive model, ranging from 5% to 35% depending on the income.
When it comes to payroll in Argentina, employers and employees must contribute to various categories of taxes and benefits. Here are some key points to keep in mind:
If an employee decides to resign, they must give a 15-day notice period. However, if an employee is terminated for cause, no notice period is required.
In the case of an employee being terminated without just cause, they are entitled to a severance payment. The amount of severance varies based on the length of the employee's stay at the company, but it typically amounts to one month's salary for each year of service.
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If you are hiring employees or contractors in Argentina, it's essential to understand these policies and ensure compliance with local laws. Book a demo at https://niural.com or DM us to learn more about compliant payroll and hiring practices in Argentina.
Follow @niuralhq for more insights on compliant payroll globally.
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