Employer of Record en Argentina

Using an Employer of Record in Argentina

An Employer of Record (EOR) in Argentina allows foreign businesses to hire local talent without establishing a legal entity in the country. The EOR provider acts as the legal employer, managing local compliance, payroll, taxes, and benefits. The foreign company sources the candidate and manages their day-to-day work. By using an EOR, companies can focus on their core business while being sure that local employment is handled compliantly.

The three pillars of Rivermate’s EOR service are:

• Local HR experts with in-depth market experience and knowledge of employment laws.
• A network of in-country partners offering competitive benefits.
• The Rivermate platform that simplifies managing the employment relationship.

Argentina labor market: At a glance

The hiring market
Greatest hiring activity:	Buenos Aires serves as the primary economic and tech hub, alongside active regional centers like Rosario, Mendoza, Córdoba, and La Plata.
Hiring timelines:	Locals: 1-3 weeks once documentation and medical clearance are completed. Foreign nationals: variable, depending on route, may take up to 4 months
In-demand sectors:	Professional and business services, technology development, software engineering, energy and natural resources, mining (lithium extraction).
Sectors with skills shortages:	Specialized software engineering, data science, mining specialists, geologists, project managers.

The salary market
Employer tax contributions:	About 24%-26.4% on top of gross salary plus ART insurance (variable depending on risk assessment) plus mandatory allowances per local rules.
Monthly minimum wage:	Subject to periodic updates to adjust for inflation. As of 1 October 2026: ARS 391,200/month.
Average gross monthly salary:	Average gross monthly ARS 2,256,861
Personal income tax rates:	Progressive tax brackets, applied on cumulative net taxable income, currently defined as:

ARS 0 - 2,168,491.89: 5% ARS 2,168,491.89 - 4,336,983.77: 9% ARS 4,336,983.77 - 6,505,475.65: 12% ARS: 6,505,475.65 - 9,758,213.49: 15% ARS: 9,758,213.49 - 19,516,426.99: 19% ARS 19,516,426.99 - 29,274,640.48: 23% ARS 29,274,640.48 - 43,911,960.73 : 27% ARS 43,911,960.73- 65,867,941.10: 31% ARS 65,867,941.10 and above: 35% |

A note on personal taxation in Argentina: Tax brackets and personal deductions in Argentina are adjusted automatically every six months (in January and July) using the Consumer Price Index (CPI) to counteract high inflation and prevent bracket creep; a practice that has been established in order to prevent the severe distortion of employees’ real purchasing power by rising prices. The next update is scheduled for January 2027.

What will it really cost to hire in Argentina

In Argentina, Rivermate drafts all employment contracts and defines all salary structures in the local currency - Argentine Pesos (ARS). Because of high inflation, salary reviews are typically more frequent than in other countries and are often a necessity in order to retain talent. Local experience shows that many foreign employers hiring in Argentina perform salary adjustments at least once or twice a year to maintain market competitiveness.

Base salaries

To account for rising inflation, minimum wages are defined on a monthly basis. As of 1 October 2026, the minimum wage is set at ARS 391,200/month. From 1 November 2026, it will change to ARS 398,800 while from 1 December 2026 it will be raised to ARS 406,400.

According to the Secretariat of Labor and its July 2026 labor statistics, the private registered sector’s average gross monthly salary stands at ARS 2,256,861. However, EOR employees often command higher salaries in certain roles. For example, Senior Developers may earn anywhere upwards of ARS 2.5 and as much as ARS 4 million or more.

Employer cost

Unlike many jurisdictions where employer taxes and contributions are calculated as a flat percentage of the gross salary, payroll calculations in Argentina include the application of additional rules (such as employer company size) to accurately calculate contribution amounts. This makes local payroll processing highly complex.

The main challenge isn't only in calculating and paying employer contributions, but also in keeping up with regulatory changes that affect them. Although contribution rates are relatively stable, other factors - such as minimum wages or contribution ceilings - change multiple times a year.

Both employers and employees contribute to Argentina’s social security and national healthcare systems. The total general employer contribution is approximately 24% to 26.4% of the gross salary (plus additional variable Work Risk Insurance), split across the following funds:

Fund / Contribution Type	Employer rate
Unified employer contribution	18% (SMEs with annual sales up to MiPyMe thresholds) or 20.4% (larger employers with annual sales exceeding MiPyMe thresholds). Note: EOR providers are classified as service entities and pay at the 20.4% rate
National Health Insurance (Obra Social)	~6.0%
Work Risk Insurance (ART - Aseguradora de Riesgos del Trabajo)	Variable, according to risk assessment
TOTAL	~24% - 26.4% + ART insurance

Employee contributions are around 17% of the gross pay.

Statutory premiums, benefits and allowances

The standard legal workweek in Argentina is up to 48 hours, typically spread over six days (Monday to Saturday noon).

Overtime performed on weekdays and Saturdays up to 1:00 pm carries a 50% premium. Overtime after 1:00 pm on Saturday, overtime on Sunday or on a public holiday carries a 100% premium.

Paid annual vacation increases with employee seniority and starts with 14 calendar days (applicable up to 5 years of service), then 21 calendar days (5-10 years of service), 28 calendar days (10-20 years of service) and 35 calendar days (over 20 years of service). One Argentine peculiarity is that vacation pay is calculated using a statutory formula that generally results in a higher daily rate than ordinary salary.

Employees with up to 5 years of service are eligible for up to 3 months of fully paid sick leave (6 months if they have dependents). For service over 5 years, this extends to 6 months (12 months for those with dependents).

Maternity leave is set at 90 days and is paid by the state. Paternity leave eligibility is 2 paid days, covered by the employer.

Argentina mandates the payment of a 13th-month salary (Aguinaldo). This annual bonus is paid in two installments, one on June 30th and another on December 18th. Each of the two installments equals 50% of the highest monthly salary earned by the employee during the previous six months.

Furthermore, under currently applicable law, employers engaging remote workers must either provide their equipment or compensate employees for using their own. Employers must also compensate employees with an allowance for additional connectivity and service expenses. Rivermate’s practice shows that while there is no statutory national required amount, a common monthly allowance of USD 25-30 can be observed. It is important to note that the legal framework governing this requirement is scheduled to be repealed in January 2027.

Additional benefits

Even though all employees are automatically enrolled in the statutory social health fund in Argentina (Obra Social), many employers subsidize or facilitate enrollment in private healthcare plans, thus providing employees with the additional benefit of access to premium private clinics, in order to enhance the total compensation package.

Calculate employment costs

Hiring in Argentina in practice

Easier to navigate	More challenging to navigate
🟢 High demand for hiring in tech, software, energy and business services.	🔴 A high-inflation environment requiring frequent salary reviews.
🟢 Large talent pool; educated professional workforce with strong technical skills.	🔴 Statutory employer contributions add 24%-26.4% on top of gross salary. Multiple mandatory bonuses applicable as well.
🟡 Complex payroll rules and calculations.	🔴 Employees expect remote work, supplementary private health insurance, and inflation-aligned salary reviews.

Hiring foreigners in Argentina

Argentina generally maintains no quotas on the employment of foreign nationals. Nevertheless, formal work authorizations are strictly required ahead of onboarding a foreigner.

Available work permit routes include:

• MERCOSUR Temporary Residency: Nationals from MERCOSUR countries as well as associate member states usually benefit from simplified residency and work permit procedures.

• Temporary Residency Visa: A standard work visa for third-country nationals, sponsored by a local employer (or an EOR). Before submitting an entry permit application to the authorities, the sponsoring employer must be registered with RENURE, the national immigration registry.

Even though permanent residency holders have the right to undertake employment in Argentina, an EOR hiring permanent residents is still required to verify the existing documentation and complete onboarding registrations. Our local experts warn against foreign businesses assuming that permanent residence holders can start working without any registrations; it is recommended to check ahead of time which administrative steps must be completed before the start date.

Compliance risks for employers in Argentina

Probationary periods

The statutory probationary period in Argentina is set at six months (last amended from three months per Law No. 27.742 in 2024). For the duration of the probation, either party may terminate without cause and without severance. A previously valid 15-day notice period requirement during probation has been abolished.

Notice periods and terminations

In cases of termination without just cause, notice periods are 1 month (for service up to 5 years) or 2 months (for service exceeding 5 years).

The local law broadly defines terminations as justified or unjustified with justified terminations requiring proof. Any dismissal for cause must be done in writing with a specific cause stated precisely; this dismissal letter is one of the most important documents in an exit procedure.

Severance pay

Dismissal without just cause triggers a statutory severance in an amount equivalent to one month’s salary for each year of service. In cases of incomplete years, should the period exceed three months it is rounded to a full year. The basis for calculation is the employee’s best monthly, normal and customary remuneration accrued during the last year, with certain pay elements excluded from it.

Benefits of hiring employees through an EOR in Argentina

Navigating Argentina’s multi-layered payroll calculations, mandatory bonus schedules, and strict labor laws presents significant administrative hurdles. Additionally, a new entity setup takes around three months but employee hiring may be time-sensitive. Partnering with an Employer of Record allows foreign businesses to compliantly onboard talent in Argentina within weeks. They retain the full day-to-day operational management while the EOR ensures adherence to local labor laws, social security remittances, tax withholdings and mandatory benefit payouts.

Ready to hire in Argentina?

Finding the right candidate in Argentina is only the first (and often easiest) step. From managing onboarding medical checks, processing payroll, paying taxes and ensuring benefits are handled compliantly, Rivermate handles the complexities so you can hire with confidence. If you have found your ideal candidate in Argentina, Talk to an Argentina Hiring Expert today.

Sources:
AFIP/ARCA: Tax rates and brackets
Minimum Wage
Labor Statistics, August 2026
Employment Contract Law
Law 27742
Law 27802