Guide to employment, payroll and benefits in

Argentina

Rivermate offers complete payroll, benefits and compliance services for

Argentina

01. Overview

Last updated: 

August 19, 2021

Currency
Argentine Peso
Capital
Buenos Aires
Ease of doing business
59
Language
Spanish
Population
45195774
GDP growth
2.85%

02. Grow your team in

Argentina

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Argentina

, particularly if you don't have established local relationships. You can hire employees in

Argentina

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Argentina, formally the Argentine Republic, is a South American country in the southern hemisphere. The majority of the Southern Cone is shared with Chile to the west, and it is also bordered to the north by Bolivia and Paraguay, to the northeast by Brazil, to the east by Uruguay and the South Atlantic Ocean, and to the south by the Drake Passage. Argentina is the world's largest Spanish-speaking nation, with a total area of 2,780,400 km2. After Brazil, it is the second-largest nation in South America, the fourth-largest in the Americas, and the eighth-largest in the world. Argentina is divided into twenty-three provinces and one autonomous region, Buenos Aires, which serves as the country's federal capital. The provinces and the capital have their own constitutions, but the country as a whole is governed by the federal government. Argentina asserts jurisdiction over the Falkland Islands, South Georgia, and the South Sandwich Islands, as well as a portion of Antarctica. Human presence in modern-day Argentina can be traced back to the Paleolithic period. In pre-Columbian times, the Inca Empire spread to the northwest of the region. The country's origins can be traced back to the 16th century Spanish colonization of the area. Argentina arose from the Viceroyalty of the Ro de la Plata, a Spanish overseas viceroyalty established in 1776. The declaration of independence and subsequent struggle for independence sparked a long civil war that lasted until 1861, resulting in the country's reorganization as a federation. Following that, the country enjoyed relative peace and stability, with many waves of European immigration, mostly Italians and Spaniards, dramatically reshaping the country's cultural and demographic outlook; 62.5% of the population has full or partial Italian heritage, and Argentine society has important ties to Italian culture. Argentina had the world's highest real GDP per capita in 1895 and 1896, according to the Maddison Historical Statistics Project, and was regularly in the top ten until at least 1920. It is currently ranked 71st in the world. Argentina descended into political turmoil and economic stagnation following the Great Depression in the 1930s, pushing it back into underdevelopment, despite remaining among the world's top fifteen wealthiest countries for decades. After President Juan Perón died in 1974, his widow and vice president, Isabel Martnez de Perón, took over as president. In 1976, she was deposed by a military dictatorship. Thousands of political opponents, dissidents, and leftists were persecuted and assassinated by the military government during the Dirty War, a time of state repression and civil unrest that lasted until Ral Alfonsn was elected president in 1983. Argentina is ranked second highest in Latin America after Chile in terms of Human Development Index.

04. Public holidays

05. Types of leave

Paid time off

The length of annual leave is determined by the employee's seniority.

14 days off for employees who have less than 5 years of experience.

21 days off for employees who have over 5 years but less than 10 years of experience.

28 days off for employees with more than 10 years but less than 20 years of experience.

35 days off for employees who have over 20 years of continuous employment.

Public holidays

There are eighteen national holidays in Panama. In the event that a holidays falls at the end of the week, this holiday is moved to the following Monday.

Sick days

Employees who have worked for less than 5 years are entitled to 3 months of paid maternity time. Many that have worked for the company for more than 5 years are entitled to 6 months of paid sick time. Those of dependents have double time off.

Maternity leave

Maternity leave is usually broken into 45 days before the birth and 45 days after the birth, although it is not necessary. Before giving birth, you must wait at least 30 days.

Paternity leave

Fathers are entitled to two days of paid paternity leave.

Parental leave

There are curently no provisions in the law regarding parental leave in Argentina.

Other leave

10 days of marriage leave.

Bereavement Leave: For the death of a partner, infant, or father, 3 days of leave is granted, and for the death of a relative, 1 day is granted.

Employees who have exams for university or high school are entitled to two days (with a capacity of 10 total).

06. Employment termination

Termination process

Termination must be justified and preceded by notice, unless it is mutually agreed upon, caused by economic considerations, or the employee has failed to complete work or committed significant misbehavior.

Notice period

When an employee is on probation, they are entitled to fifteen days notice prior to being terminated. A month's notice is required when an employee has worked for the company for more than three months but less than five years. Finally, if an employee has been with the organization for more than five years, they are entitled to two months' notice.

Severance pay

Each year of employment entitles employees to one month's pay. If an employee is let go for economic reasons, they are entitled to receive half a month's pay for each year of service.

Probation period

The probation period in Argentina is fixed at three months.

07. Working hours

General

A typical workweek is 48 hours long, or eight hours per day. Work cannot exceed nine hours per day or forty-eight hours per week. Employees working in hazardous or unhealthy conditions are not permitted to work more than six hours per day or 36 hours per week.


Additionally, all employees must be provided with a 12-hour rest period between workdays.

Overtime

Excessive overtime should not exceed three hours per day, thirty hours per month, or two hundred hours per year. Employees earn an additional 50% for overtime work and 100% for work performed on holidays or after 1 p.m. on Saturdays.

08. Minimum wage

General

The monthly minimum wage in Argentina is $27,216.00 ARS (281 USD). On August 1, 2021, the minimum wage will increase to $28,080.00 ARS (290 USD), and then to $29,160.00 (302 USD( ARS on September 1, 2021.


Additionally, a 13th month bonus is required. The bonus is paid in halves by June 30 and in full by December 18. It is titled "Sueldo Complementario Annual."

09. Employee benefits

General

In Argentina, the obligatory health insurance given to workers via private businesses and organized by labor unions covers what is set by the PMO (Compulsory Medicare Program). Employers contribute 6%, while workers pay 3% on top of their basic wage.

The PMO includes maternity and child insurance, oncology, main assistance (emergencies), a dental plan, medicines, prosthesis, and rehabilitation programs.

Secondary help includes medical visits, examinations, operations, hospitalization, and treatments. Employees are also entitled to paid time off in the following situations:


10 days' leave for mariage

3 days' leave for the death of a child, parent, or spouse

1 day's leave for the death of a sibling


Although meal tickets are optional, they are a typical perk given to workers in Argentina and are completely paid for by employers on a monthly basis along with the monthly pay. The amount paid to workers varies based on their profession, although it is typically not more than one-sixth of their monthly income.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Argentina

to hire a team takes time, money, and effort. The labor law in

Argentina

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Argentina

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Argentina

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Argentina

via our Employer of Record / PEO solution.

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