If you're considering expanding your business in Argentina, you should consider partnering with an Employer of Record. An Argentina EOR assumes all employment risks and responsibilities for your company to compliantly hire and expand in the country. This entails managing an employee’s payroll, taxes, and compliance with local labor laws. While your company retains control over day-to-day employee activities, an EOR assumes the role of the legal employer, and offloads administrative responsibilities off your shoulders. 

Learn more: Top 9 Remote Hiring Tips for Global Recruiters.

Argentina has some of the world's most employee-friendly labor laws, similar to France, Germany, and Brazil. In 2024, it scored 78 on the Labor Rights Index, surpassing the Latin America and Caribbean average of 73.

For employers unfamiliar with Argentina’s labor regulations, compliance can be challenging and may slow hiring. Minimum wages, working hours, and payroll policies are frequently updated based on economic conditions. Labor unions play a key role in shaping employment terms through Collective Bargaining Agreements (CBAs).

Unlike the United States, where unions have less influence and paid time off isn’t federally mandated, Argentina requires paid leave and enforces strong labor protections.

Expanding into Argentina is easier with an Employer of Record (EOR) like Gloroots. We help onboard local talent in under a day, managing payroll, taxes, and compliance while ensuring full legal adherence. This allows you to focus on growth and talent management without administrative hurdles.

Read More Hiring in Argentina: Key Strategies for Navigating the Job Market

The cost of Argentina EOR/PEO services in Argentina may differ based on various factors, such as the number of employees, the extent of services needed, and the intricacy of the project. The pricing structure for Argentina EOR/PEO services usually involves a monthly fee per employee or a percentage of the employee's salary. Extra charges may apply for additional services or customization.

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Key Metrics For Foreign Employer 

Argentina ranks 30th globally for skill proficiency in Coursera’s Skills report. The country is touted to be a leading provider of technology skills in the LATAM region. The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Argentina.

Source: The Global Talent Competitiveness Index 2023‍

Through the Gloroots’ Recrew platform, you can discover amazing talent in Argentina.

The term "misclassification of employees" refers to the inaccurate classification of workers by their employers. Misclassification occurs when an employer categorizes a worker as an independent contractor or exempts them from certain employment laws and benefits, even if the worker should be classified as an employee and entitled to legal protections, benefits, and rights. 

Utilizing a PEO/EOR in Argentina helps mitigate the risks associated with misclassification by ensuring compliance with labour laws, proper employee classification, accurate payroll processing, and access to comprehensive benefits. This enables businesses to focus on their core operations while entrusting employment-related responsibilities to experienced professionals.

Labour relationships in Argentina are mainly governed by the National Constitution, international treaties and conventions, the Labour Contract Law No. 20,744 (“LCL”), Collective Bargaining Agreements (“CBAs”), individual agreements with the employees, general internal policies and customs in the workplace. Familiarize yourself with these laws to ensure compliance in areas such as minimum wage, overtime, and employee rights.

Employment contract

In Argentina, it is obligatory to formalize employment contracts in writing, whether they are fixed-term or indefinite-term agreements. When creating employment contracts in Argentina, there are several crucial factors to consider:

1. Compensation: It is vital to include a section in the contract that clearly defines the employee's compensation. This section should provide a concise breakdown of the various forms of remuneration, such as salary, bonuses, commissions, and any other benefits. By incorporating this information into the contract, both the employer and employee can have a transparent understanding of the compensation package, reducing the likelihood of future misunderstandings or conflicts.

2. Payment Schedule: It is important to specify the frequency of payment in the contract. This may involve indicating whether payments will be made on a monthly or bi-weekly basis, ensuring clarity and predictability for both parties.

3. Benefits: When drafting employment contracts, it is crucial to explicitly outline the benefits that will be provided to the employee. These benefits can encompass health insurance, retirement plans, vacation days, sick leave, and any other supplementary benefits or allowances.

By addressing these key aspects in the employment contract, employers and employees in Argentina can establish a solid foundation that promotes transparency, fairness, and compliance with legal requirements.

This might sound overwhelming—but it doesn’t have to be. A solution like Gloroots eliminates the barriers for you. With Gloroots’ Employer of Record offering, hiring and managing employees globally is a piece of cake.

Get an overview of what you need to know when hiring in Argentina.

Working time

The standard working hours in Argentina is typically 8 hours per day or 48 hours per week. This means that the regular working day is usually 8 hours, from Monday to Friday.

Overtime

In Argentina, overtime is compensated at 1.5 times the regular wage on weekdays and 2 times on weekends or public holidays. Employees can work up to 3 overtime hours daily, 30 monthly, and 200 annually. Employers must track hours, ensure timely payment, and comply with collective bargaining agreements where applicable.

Public Holidays

The country observes 15 public holidays employees can take as paid days off.

Minimum Wage

As of February 2025, Argentina's minimum monthly wage is set at ARS 292,446.

Annual Leave

Paid Sick Leaves

In Argentina, employees are eligible for sick leave based on their tenure with the company. The policy for sick leave also varies based on whether the ailment or injury is related to work or not.

In a work-related illness or injury, the employer's responsible for covering the initial 15 days of the employee's salary. Once the initial period has elapsed, insurance will assume responsibility for any outstanding expenses.

In the event that an employee's illness persists beyond a 12-month leave period, the employer may discontinue payments while still being obligated to retain the employee for an additional 12 months. 

After the specified timeframe has elapsed, it is imperative for the employer and employee to engage in a conversation regarding long-term disability arrangements or severance pay. The decision will be based on the nature of the disability and the work that needs to be done.

Maternity leaves

Female employees are entitled to 90 days of paid maternity leave, typically divided into 45 days before and 45 days after childbirth. This leave is paid at 100% by the Social Security system.

Paternity leaves

Male employees are entitled to two days of paid paternity leave. 

Tax and Social Security contribution:

Employer Payroll Contributions

Employee Payroll Contributions

Employee Income tax

Termination 

In Argentina, it is mandatory for employers to furnish written notice to their employees when terminating their employment. Termination of employment can occur due to various reasons such as employee misconduct, economic circumstances, or inadequate job performance. It is crucial for employers to ensure that they provide precise information during the termination process as they are not permitted to alter the grounds for termination at a later stage.

The process of terminating employment in Argentina can prove to be a complex and intricate affair. The circumstances surrounding an employee's termination can have a significant impact on various factors, including severance pay.

Severance Pay

In Argentina, the amount of severance pay that employees receive upon being terminated without cause is dependent on their length of service and the specific circumstances surrounding their dismissal. 

In Argentina, when it comes to termination of employment, various forms of compensation may be involved. These can include:

1. Seniority Compensation: Employees are compensated based on their highest monthly salary, calculated according to the length of service.

2. Compensation in Lieu of Prior Notice: Payment made to the employee in lieu of the required notice period for termination.

3. Payment for Remaining Days in the Month: Compensation for the remaining days in the month following termination.

4. Compensation for Unused Vacation Time: Payment for any accrued but unused vacation days that the employee is entitled to.

5. Proportional Compensation for the 13th Month Salary: Calculation of the proportional amount of the 13th month salary, based on the duration of employment during the year.

6. Special Compensation for Union Delegates: Additional compensation provided to union delegates in recognition of their role and responsibilities.

7. Special Compensation for Pregnant Employees or Those on Sick Leave: Additional compensation granted to pregnant employees or employees on sick leave due to specific legal protections.

Adhering to these severance pay requirements is crucial for employers to comply with labor laws and avoid legal complications. Obtaining legal advice can guarantee precise execution of these regulations.

Notice Period

The length of notice periods is contingent upon the duration of the employee's tenure with the organization.

When terminating employees without prior notice, employers can compensate the employee with pay, corresponding to their notice period. For example, an employee who has served for more than 5 years can be terminated with one month’s pay and any severance pay, if required.

Probation period

The probationary period should not exceed three months.

When hiring globally, ensuring compliance comes with its own set of battles. Employers must ensure all hiring and onboarding activities adhere to employment laws, payroll procedures, DE&I compliance, GDPR and similar data protection, etc. If you think it is hard to set up local entities and start hiring, keeping up with a dynamic compliance landscape is far harder. 

Gloroots helps you minimize all these efforts by providing a single window to manage all these tasks. Our in-house experts fully shield you from cross-border employment and payroll compliance risks. We do this by helping you with generating employment contracts, on-time payments, compliant benefits, while you focus only on screening talent. 

Our promise is a stress-free global employment experience for both you and your employee.

Contact our experts today to kickstart your global hiring campaign.

Growing a team means hiring the right employees at the right time and for the appropriate positions. Employers in Argentina must have a local entity to handle compliance, payroll, tax, and benefits management. The complexity of employment regulations in Argentina makes compliance with employment laws demanding. With Gloroots’s global Employer of Record (EoR) service, you can let Gloroots do the heavy lifting of payroll, tax, benefits, and compliance and concentrate on what matters to you most: your employees and company growth.