Planning to hire employees in Argentina? Here’s a quick guide

Team expansion in Argentina is an exciting opportunity. The country has a rich pool of talented professionals, particularly in finance, tech, and creative industries. 

However, if you plan to hire in Argentina, you will face a set of rules, legal requirements, and cultural nuances. When planning to hire employees in Argentina, you must understand these aspects before proceeding. 

From understanding mandatory benefits to navigating labor contracts and payroll obligations, the hiring process in Argentina might feel overwhelming. 

This guide walks you through everything you need to know about engaging talent in Argentina compliantly and confidently. 

Payoneer Workforce Management helps you navigate the local compliance, payroll management and more, while you can focus on core business operations. 

How to hire employees in Argentina

To engage talent in Argentina, you can choose from the following options:

1. Set up a legal entity in Argentina
   • Setting up a legal entity in Argentina requires incorporating a company or branch. 
   • The company has to register with ARCA and obtain an employer tax ID (CUIT – Código Único de Identificación Tributaria). 
   • The next step is registering employees with ANSES (National Social Security Administration) for payroll taxes, benefits, and social security. 
   • Companies have to register with the Ministry of Labor (Ministerio de Trabajo, Empleo y Seguridad Social) for registering employment contracts, setting up payroll, and maintaining workbooks. 
   • The whole process is time-consuming and involves significant expenses as well. However, with this setup, a company can have direct control over the business operations. 

2. Hire independent contractors
   • Employers can hire contractors/freelancers in Argentina, particularly for short-term projects, requiring specialized skills. 
   • These contractors work under a service contract, mentioning the work, the deadline, and the remuneration. Independent contractors do not have employment contracts. 
   • As independent contractors are hired for specific projects, they don’t have the rights of employees. 
   • They are a cost-effective solution compared to employees. 
   • Although flexible, misclassifying the contractors can lead to fines and penalties.

So, businesses may consider using an Agent of Record (AOR) for a better and simpler way to engage international contractors.

3. Partner with an Employer of Record (EOR)
   • Using an EOR, as offered by Payoneer Workforce Management, can be a convenient option if you want to engage and manage employees in Argentina, without setting up a local entity. 
   • By engaging with talent via this platform, you get support for payroll management, employer contributions, employment contracts, benefits, taxes, and more. 

Where to find employees in Argentina?

When you are planning to hire in Argentina, you have to know about the popular modes and platforms for finding the most suitable talent. Some popular options to find employees in Argentina include:

Job boards

• There are excellent scopes for finding the best employees in Argentina via various job boards. Some of the most popular options are:
  • Zonajobs
  • Bumeran
  • Indeed Argentina
  • Computrabajo

Professional networking

• LinkedIn is one of the best and key platforms to find employees in Argentina in multiple domains. 

Recruitment agencies

• Recruitment agencies help in finding the right employee for a specific job profile.
• These agencies are deeply connected to the local job market with updated databases of screened professionals. 
• Registering with multiple recruitment agencies enhances the chances of finding the most suitable employee in Argentina.  

However, recruitment agencies typically charge high fees and may take a lot of time find role-relevant candidates.

An EOR’s support

• With the support of an EOR platform such as Payoneer Workforce Management, you may engage talent with ease. 
• The EOR provider offers a great balance between ease of working and compliance. It also helps you with handling taxation and payroll, along with supporting legal compliance and regulations adherence. 

Onboarding employees in Argentina

On finding the right talent, it is time for onboarding. The onboarding process in Argentina involves strict compliance with local labor laws, including registration with tax and social security authorities. 

Here are the typical steps to the onboarding process in Argentina:

1. Registration with ARCA (formerly AFIP) before the first day of work.
2. Registering the new employee in the ‘Special Payroll Book’, overseen by the Ministry of Labor. This is for registering employment contracts, setting up payroll, and maintaining workbooks.
3. Obtaining CUIT. This is the employee’s unique labor identification number. 
4. There should be a written and signed employment contract, complying with Argentine Labor Laws and employment regulations in Argentina. 
5. Mandatory data collection, including full name, date of birth, address, marital status, national ID, and tax ID (CUIT).
6. Enrollment in Workers’ Compensation Insurance. 
7. Device setup is necessary so that the local hire receives proper equipment and technical support to work efficiently. 
8. The next step is setting up an orientation session to familiarize the new member with onboarding steps, company policies, and the responsibilities of the employee. 
9. Introduction with team mates, colleagues, and seniors for better communication and networking. 
10. Employee training is an integral part of employee onboarding in Argentina. 

An Employer of Record (EOR) can help you manage statutory leave, social security contributions, payroll, and employment contracts while staying compliant with local labor laws.

Key employment laws in Argentina

Employment in Argentina comes with following the country’s legal framework, consisting of multiple interconnected regulations and statutes. Some of the prominent employment laws and regulations in Argentina are as follows:

• Labor Contract Law (LCL) 20,744: This is the comprehensive employment legislation in Argentina governing all aspects of employment relationships in the country. 
• Employment Law 24,013: This law in Argentina regulates proper employee registration, employment promotion, and sanctions for unregistered work. 
• Occupational Risk Law 24,557: This law governs workplace accident insurance and compensation. 
• Trade Union Law 23,551: This law regulates the union organization, operations, and collective bargaining rights of trade unions. It also offers protection for union representatives. 
• Health Insurance Act 23,660: This act sets forth the measures to establish appropriate medical and healthcare services to employees and their families. 

Along with knowing the employment regulations in Argentina, here are some other things that you need to know while engaging employees in Argentina. 

Employment contracts

Employment contracts in Argentina have to be written and must be registered with the Ministry of Labor and ARCA (formerly called AFIP) within a specified timeframe. 

Here are some contract types recognized by the Argentine Law.

• Indefinite term
• Definite (or Fixed) term
• Seasonal
• Part-time

The employment contract must contain the following details:

• Name of the employee and the employer
• Job title along with job description
• Start date with probation period
• Working hours
• Employment terms
• Compensation and benefits
• Leaves and holidays
• Notice period
• Termination terms

Employee benefits

Employees in Argentina are entitled to various employee benefits. Some of the prominent ones are as follows:

Working hours in Argentina

Argentina’s Law mandates an 8-hour workday and a maximum of 48 hours weekly limit for commercial and industrial employees. 

Overtime in Argentina

Any employee working beyond the stipulated 8 hours per day or 48 hours weekly is entitled to overtime in Argentina. 

Overtime limits are as follows:

• 3 hours per day
• 30 hours per month
• 200 hours per year

Compensation rate for overtime is as follows:

Employers in Argentina have to adhere to tax and social security obligations. AFIP is the official body responsible for tax collection in Argentina, which is now undergoing restructuring towards ARCA. 

Individual progressive income tax ranges from 5% to 35%.

Additionally, a 6% employer contribution and a 3% employee retention contribution are mandatory for health insurance.

Termination and severance pay in Argentina

Employers in Argentina can terminate employees on valid grounds. Employees are protected from unfair dismissal. Here are the grounds on which termination of employees is possible in the country:

• Mutual agreement between the employee and the employer
• Employee resignation
• Termination during the probationary period
• Termination by the employer due to performance issues, misconduct, redundancy, absence without leave, etc.

Notice period

Here is a breakdown of the notice period in Argentina:

• Notice period during probation: 
  • 15 days. It is the same for the employee and the employer

• Notice period after probation:
  • 15 days for the employee
  • For the employer:
    • 1 month when the worker’s employment tenure does not exceed 5 years. 
    • 2 months when the worker’s employment tenure is more than 5 years.

Severance pay

• Severance pay is only payable in Argentina in case of unjustified dismissal.
• Payment of severance pay is 1 month’s salary for every year or any fraction exceeding 3 months.

Explore Payoneer Workforce Management in Argentina

Payoneer Workforce Management helps to streamline the process of engaging talent in Argentina. Offering EOR services in more than 110+ countries globally and supporting 70 currencies, it offers support for workforce management in Argentina. 

Book a demo today!

FAQs

1. What is the current minimum wage in Argentina?

The Argentine government set a minimum wage at ARS 317, 800 in the country. 

2. Is an annual bonus provided to employees in Argentina?

Yes, employees in Argentina are entitled to an annual bonus. The 13th payment is divided into two instalments. The first instalment is paid in June and the second in December. 

3. What is the salary pay date in Argentina?

The salary pay date in Argentina is the last working day of the month. 

4. Is there a leave carry-forward policy in Argentina?

In Argentina, leaves are earned in October, and they expire on 30th April of the following year. Though some companies offer some carry-forward, there are no legal issues when they do not carry forward more than the next PTO period. It is best to remove leaves on 30th April. 

5. What are the working hours and overtime limits in Argentina?

In Argentina, the stipulated working hours are not more than 8 hours per day, and 48 hours per week maximum. The overtime limits are 3 hours per day, 30 hours per month, and 200 hours per year.