How to hire and pay contractors in Argentina

Hiring international talent is one of the most strategic moves for companies looking to scale. Argentina is a preferred hiring destination due to its well-educated, remote-ready workforce, strong English proficiency, and favorable time zone alignment with North America and Europe. When companies choose to hire contractors in Argentina, they gain access to high-caliber professionals across industries like technology, design, marketing, and development, often at a more affordable cost.

However, expanding your workforce with Argentinian contractors requires understanding local labor rules, navigating classification standards, and setting up secure, reliable payment processes. With Payoneer Workforce Management, businesses can handle these steps efficiently and stay aligned with local regulations, all without establishing a legal entity in the country.

In this guide, we’ll walk you through how to hire and pay contractors in Argentina, with a brief overview of Argentinian labor laws and how Payoneer WFM streamlines the process from start to finish.

How to hire contractors in Argentina

To hire contractors in Argentina, your team needs a solid understanding of classification laws, labor context, contractor sourcing, and contract requirements.

1. Understand contractor vs employee classification

The distinction between an independent contractor and an employee in Argentina has legal and financial implications. Misclassifying a worker could expose your business to retroactive taxes, fines, or legal disputes. So, proper classification is critical.

Independent contractors in Argentina are classified as workers who:

• Operate autonomously and are not under direct supervision
• Work on a project basis with clearly defined deliverables
• Invoice for their services and manage their own tax responsibilities
• Do not receive employee benefits or labor protections

Employees in Argentina, on the other hand:

• Are hired under a local employment contract
• Receive benefits like paid leave, severance, and social security contributions
• Work under employer-provided schedules, tools, and direction
• Are protected under Argentina’s Employment Contract Act (Law 20,744)

Learn more about classification and the associated risks by reviewing Payoneer’s Ultimate Guide to Hiring International Contractors in Argentina.

2. Understand local labor laws

Although Argentina’s employment contract law, Ley de Contrato de Trabajo (Law 20,744), applies predominantly to employees rather than contractors, being familiar with these regulations helps companies build responsible hiring practices.

Here’s what employers should know:

• Minimum wage: Argentina’s minimum wage is increasing monthly and is set to continue until it hits AR$322,000 in August 2025. As labor unions continue to fight for higher wages, employers should keep a close eye on these changes. However, independent contractors often set their own rates that reflect their skills, experience, and market conditions.
• Working hours: While contractors typically manage their own schedules, employees work a maximum of eight hours a day and 48 hours per week, with a maximum of 30 hours of overtime.
• Public holidays and leave: There are at least 16 public holidays in Argentina (additional days are sometimes added to bridge them to the weekend), and employees receive 14 days of annual leave after six months of service. This increases the longer they stay at a company. 
• Termination: Employees are protected under specific termination rules, including notice periods and severance pay under certain conditions. Contractors can typically be terminated in line with the terms outlined in their service agreement.
• Contract terms: Employers must sign a contract to establish a professional relationship with their employees. It should define the scope of work, payment schedules, deadlines, intellectual property ownership, and dispute resolution procedures. This is the primary legal safeguard for both parties.

Despite not being employees, contractors in Argentina might still expect you to match some of the above, like working hours and public holidays.

3. Find and hire contractors

Once you understand the legal framework, the next step is finding qualified Argentinian contractors. Whether you’re hiring developers, designers, or marketers, Argentina has a strong pipeline of freelance and remote-ready professionals.

You can find talent on freelance platforms, like Upwork and Fiverr, utilize your professional network through LinkedIn, or advertise on local job boards, like Indeed Argentina, XPat Jobs, Monster, CareerJet, and Glassdoor. 

When choosing a contractor, be sure to request work samples and references, evaluate their fluency in English if they’ll be working with international teams, and verify past experience with similar clients or industries.

You should also draft a service contract that includes:

• Scope of work and deliverables
• Payment terms and currency
• Ownership of intellectual property
• Confidentiality or data usage policies

For help drafting contracts, explore Payoneer’s resource on what contracts should include.

How to pay contractors in Argentina

When your company is ready to pay contractors in Argentina, you’ll need to evaluate payment methods that are fast, flexible, and meet operational needs across borders.

1.  Determine how to pay

Businesses have several options when paying Argentinian contractors. Some methods are better suited for occasional work, while others support scalable workforce models.

The payment methods include:

• Bank transfers: Traditional, but can incur high fees and take several business days
• Online payment platforms: Useful for individual payments, but may lack bulk processing tools
• Workforce management platforms: Streamline payments, reporting, and contractor onboarding

Platforms like Payoneer WFM are designed for businesses managing multiple international contractors. Learn more about international payment solutions and how they support growing teams.

2. Ensure your Argentinian contractors have the right tax information

Argentinian contractors are responsible for their own taxes. They need to register with the local tax authority, AFIP, and pay income tax at rates ranging from 5% to 35%. They may also need to charge VAT at a standard rate of 21%.

As an employer, you may wish to provide this information to your contractors in Argentina. Your business should also collect and validate basic tax documentation to support compliance efforts.

Key items to collect include:

• Valid Argentine tax ID (CUIT)
• Proof of registration as a contractor (monotributista or autónomo)
• Legally compliant invoices

Employers must also report all payments made to independent contractors in Argentina to the tax authorities. This should be done monthly or quarterly, based on the number of payments made.

3. Pay your Argentinian contractor

The final step is issuing payments to your Argentinian contractors. A workforce management solution like Payoneer WFM simplifies this process by centralizing the payments across currencies and geographies.

When planning your contractor payment strategy, it’s important to consider hidden costs. Currency conversion spreads, bank intermediary charges, and local withdrawal fees can add up quickly, reduce the contractor’s take-home pay, or increase your overall costs if you cover them.

Using a platform that offers transparent pricing and localized payout options helps mitigate these expenses and supports smoother financial operations.

Why Payoneer WFM is the easiest way to hire and pay contractors in Argentina

Payoneer Workforce Management supports companies hiring contractors and employees in over 160 countries, including Argentina. Built for fast-growing startups and established enterprises, Payoneer WFM simplifies international hiring, payments, and contractor management without requiring a local legal entity.

With Payoneer WFM, your team can:

• Onboard Argentinian contractors in days, with local contract support
• Pay in 70 currencies from a single, unified platform
• Monitor invoices, time tracking, and payment status in one place
• Stay aligned with labor regulations and reduce misclassification risks
• Manage device logistics, visa support, and localized benefits where applicable

Payoneer also offers payment automation tools that make managing multiple global contractors more efficient and transparent.

Ready to hire and pay contractors in Argentina with speed and confidence? Speak to our team about streamlining your global workforce management today.

Argentina contractors FAQs

Who is a contractor in Argentina?

A contractor is an independent professional who provides services under a commercial contract. They work without being integrated into your company structure and are responsible for their own taxes.

What is Law 20744 in Argentina?

Law 20,744 is Argentina’s Ley de Contrato de Trabajo, their contract employment act that typically applies to full-time employees, not contractors. It defines labor rights, including paid leave, severance, and other protections. 

What is the 13^th-month pay in Argentina?

The 13th-month salary (aguinaldo) is a required benefit for employees, paid in two installments each year. Contractors, however, are only entitled to this if specified in their service contract.