Employment Regulations in Argentina

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:

• Probationary period: Employees in Argentina are typically provided with a probationary period that ranges from three to twelve months.
• Leaves: There are three kinds of mandatory leaves provided to employees in Argentina, including annual leave (14 days), sick leave (up to 120 days), and maternity leave (12 weeks).
• Payroll cycle: The payroll cycle in Argentina is monthly.
• Minimum wage: The minimum wage in Argentina, including retirement benefits, is ARS 38,940 per month.
• Overtime: Overtime is paid at a rate of 50%, except for work done past 1 pm on Saturdays, Sundays, or public holidays, for which the rate is 100%. However, overtime must not exceed 3 hours a day or 30 hours a month.
• 13th month pay: 13th month pay is mandatory in Argentina and is paid in two installments, one part due before 30th June and the other part by 18th December.
• Benefits: Employees in Argentina are typically paid benefits such as Pension Fund, Life Insurance, Health Insurance, Labor Risk Insurance, Maternity Leave, and Paternity Leave.

‍

Payroll 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:

• Payroll taxes for employers: Employers in Argentina need to pay payroll taxes across several categories, including Pension Fund, Family Allowance, and Social Contributions (19.5%), health insurance (6%), Life Insurance, and Labor Risk Insurance, bringing the total cost on the employer to 25.5% or more.
• Payroll taxes for employees: 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.
• VAT rate: The standard VAT rate in Argentina is 21%, with a reduced rate of 10.5% for certain industries.

Termination Procedures in Argentina

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.

‍

‍

‍