Using an Employer of Record in Argentina

Knowing how to hire and pay employees in Argentina can be complex due to the evolving labor and employment laws that businesses need to comply with. 

But partnering with an Employer of Record (EOR) in Argentina can help streamline the process. An EOR may support the hiring process to onboard, pay, and manage local talent, without setting up a local entity.

Ready to build a team in Argentina? Speak to Payoneer Workforce Management today to find out more about our services as an EOR in Argentina. Or, keep reading to learn more about managing your Argentina payroll.

How to hire employees in Argentina

Companies hire and pay employees in Argentina in three ways.

1. Set up a legal entity: This route involves incorporating a company in Argentina and then hiring employees through that local presence. In some cases, this makes sense. However, incorporation takes time, money, and admin effort, lessening the appeal for employers who want to hire fast.

2. Hire independent contractors or freelancers: Contractors and freelancers can be commissioned to work for you outside of a legal entity. If your work is short-term and/or project-based, this could be a good route, just be aware the risk of misclassification and penalties.

3. Hire employees through an EOR in Argentina: An Employer of Record service enables businesses to hire and pay employees in Argentina without a local entity. In many cases, this is a quicker and more straightforward route to building a global team.

Payoneer Workforce Management enables compliant onboarding and engagement of talent in 160+ countries without having to set up a legal entity. We assist you in mitigating compliance risk and mitigating risks associated with contractor misclassification.

How to onboard employees in Argentina

If you’ve onboarded an international employee before, you’ll know it to be a hands-on experience. Global employees often need extra assistance while integrating them into your company, plus the necessary devices and equipment to be shipped to their homes. 

The typical steps of onboarding process include:

• Payroll and benefits enrollment: Ensure that local employees are registered for payroll and benefits in alignment with applicable regional requirements.
• Device provisioning and setup: Confirm that the local hire receives the necessary equipment and technical support to perform their role effectively.
• Orientation: Schedule an induction session within the first week to familiarize the new team member with company policies, onboarding steps, and the responsibilities tied to their position.
• Team and colleague introductions: Arrange opportunities for the local hire to meet their immediate team as well as key stakeholders across the organization.

Payoneer Workforce Management supports the onboarding process of local workers and enables companies to compliantly engage talent across borders through its technology platform.

Pay employees in Argentina

Employees in Argentina are paid in Argentine Peso (ARS), usually on the last working day of the month. They should receive at least the legal minimum wage of ARS 317,800 per month.

When you pay employees in Argentina, you also pay 2 bonus payments:

1. The 13th-month bonus is paid in 2 installments, in June and December. The bonus payout is calculated using the best remuneration over the previous 6-month period, including other bonuses and meal allowances.
2. The vacation bonus is paid with an employee’s salary during the vacation period. It is calculated based on the average daily earnings over the past year, multiplied by the number of vacation days granted.

Taxation

As part of the Argentina payroll process, employees pay income tax at a progressive rate from 5% to 35%. 

Both public health insurance and social security contributions are also mandatory for the employer and the employee. These contributions fund various social security benefits, including pensions, healthcare, unemployment benefits, and other social assistance programs.

An Employer of Record in Argentina simplifies paying employees in Argentina while staying compliant with local law. Payoneer Workforce Management’s unified, all-in-one platform gives you a single dashboard to manage a global workforce. We help you set up localized benefits as per local laws and requirements.

Employment laws in Argentina

Anyone employing workers in Argentina has to comply with all local laws and regulations. Important employment laws to be aware of include:

• Working hours: Employees in Argentina work 8 hours per day, up to a maximum of 48 hours per week.
• Overtime limits: Employees may be asked to work overtime. However, they cannot work more than 3 extra hours per day, 30 extra hours per month, and 200 extra hours per year.
• Overtime pay: Overtime is paid at 1.5 times regular pay on weekdays and 2 times regular pay on weekends and holidays.
• Probationary period: The probation period in Argentina can last a maximum of 6 months.

Stay compliant with local labor laws using Payoneer Workforce Management’s infrastructure.

Minimum wage in Argentina

The minimum wage in Argentina is ARS 317,800 per month.

Legal requirements for minimum wage are subject to change. One may check the Argentine government’s website for an up-to-date figure.

Employment contracts in Argentina

In most cases, employers may not be legally required to provide full-time or permanent employees with a written contract, according to Argentina’s labor law. However, a written contract is mandatory for part-time or temporary staff.

In any case, employers must keep a book (stamped and numbered by the Ministry of Labor) that contains critical employee information, including:

• The worker’s name
• Their marital status
• Remunerations owed or received.

Once agreed upon, both employer and employee may be obligated to adhere to the terms and act in good faith. 

Payoneer Workforce Management helps you onboard talent quickly and securely with localized contracts and payroll. Speak to us for EOR in Argentina.

Leave policy in Argentina

In Argentina, employers must offer leave, including vacation time, public holidays, sick leave, and more.

Vacation leave and public holidays

In Argentina, minimum vacation leave allowances are based on employee tenure.

Tenure	Vacation leave
Less than 6 months	1 day off for every 20 days worked (prorated)
6 months to 5 years	14 days
5 to 10 years	21 days
10 to 20 years	28 days
More than 20 years	35 days

Vacation leave is earned in October, and employees have until April 30th of the following year to use their quota. Some employers allow leave to be carried forward, but it’s best practice to set an expiry date of April 30th on all unused leave. Argentina also observes 19 public holidays

Sick leave 

Employees in Argentina are entitled to 3 months of sick leave per year. However, this can be extended to 6 months for employees with tenures longer than 5 years.

Maternity and paternity leave

New mothers can take 90 days of maternity leave, while fathers receive 2 days of paternity leave.

Other leave

Employees in Argentina are also entitled to compassionate leave (1 to 3 days, depending on their relation to the deceased) and wedding leave (10 days).

Work permit in Argentina

The rules and regulations for a work visa or work permit in Argentina may depend on the individual’s country of origin. So, it’s advisable to check Argentina’s government site for more information.

Background check in Argentina

Performing a background check on prospective new hires is important for due diligence. Employers typically choose to qualify the candidate’s education level, employment history, references, and criminal record. Additional checks may also be available, depending on local law. 

An EOR in Argentina may assist with organizing background checks and getting consent from each candidate before a check is performed.

Employment termination in Argentina

In Argentina, employees are protected from unfair dismissal. Contracts may only be terminated on valid grounds, including:

• An employee’s resignation
• Mutual agreement to end the contract between the employee and the employer
• Termination during the probationary period
• Termination by the employer due to employee misconduct, performance issues, or absence without leave
• In the event of redundancy.

If a contract is terminated on valid grounds, employers must provide at least 15 days’ notice. 

If an employee wants to leave their post, they must provide 1 month’s notice if they’ve worked at the company for less than 5 years, and 2 months’ notice if they’ve worked there for more than 5 years.

Severance pay is owed to employees where the dismissal is unjustified. Severance pay is calculated as 1 month’s salary for every year of tenure or any fraction exceeding 3 months.

Company registration in Argentina

If you plan to hire a large team in Argentina or want to work directly with Argentine businesses, local incorporation might be a smart move. Registering a company in Argentina gives you full operational control of hiring, paying, and managing teams in Argentina. It also allows you to build a branded presence in the country to win new business.

Information on how to register a company in Argentina can be found on government websites, via the country’s customs and tax collection agency, Agencia de Recaudación y Control Aduanero (ARCA), and the Ministry of Justice.

If you want to hire fast and scale globally (without the admin), look to an Employer of Record in Argentina instead. With Payoneer Workforce Management, expand into 160+ countries without setting up a local entity.

Global PEO in Argentina

A Professional Employer Organization (PEO) in Argentina can support HR and payroll functions, but requires you to have a legal entity in-country. 

On the other hand, an Employer of Record in Argentina does not require a legal entity and instead acts as the legal employer for the local team. This often makes it the better choice for companies new to the Argentine market.

Payoneer Workforce Management’s Employer of Record services in Argentina

Payoneer Workforce Management helps growing companies onboard, pay, and manage employees in Argentina without setting up a local entity. 

As your EOR in Argentina, we offer assistance with employment contracts, benefits administration, taxes, and payroll, while you retain control over daily operations.

Book a demo to learn more about Payoneer Workforce Management.

FAQs

1) What is an Employer of Record in Argentina?

An Argentina Employer of Record is a third-party organization that legally employs local talent on your behalf. The EOR helps manages payroll, taxes, and employment contracts, so you can onboard talent without a local entity.

2) How much does it cost to hire Argentine talent?

Employers can expect to pay around 32.4% an annual salary of USD 60,000. Employment costs can vary depending on the employee’s salary and other local factors. Try our cost calculator tool to understand employment cost estimates.

3) Why hire Argentine talent with an EOR?

Payoneer Workforce Management offers Employer of Record in Argentina, which enables you to engage local talent without setting up a local entity. We offer a transparent pricing structure and enable organizations to pay talent across the globe in 70+ currencies. Get in touch for details.