Global HR Compliance in Argentina

Argentina is Latin America’s third-largest economy and a major hub for agriculture, energy, manufacturing, and services. The country’s vast natural resources underpin strong agribusiness, mining, and oil and gas sectors, while Buenos Aires has become a centre for technology, software development, and professional services. For international companies, this mix of heavy industry and skilled knowledge work makes Argentina a key market for regional expansion.

Hiring in Argentina, however, comes with significant compliance challenges. Labour law is detailed and protective of employees, with strict rules on contract terms, notice, severance, and union rights. Employers must also account for high social security contributions, mandatory bonuses, sectoral minimum wages, and foreign exchange restrictions that complicate payroll. These rules make Argentina one of the most regulated labour markets in the region.

This guide sets out the essentials of hiring and managing staff in Argentina, covering employment agreements, payroll and taxation, benefits, leave, working hours, and termination. It is designed to help international employers structure workforce engagements that are both cost-efficient and compliant in a jurisdiction where opportunities are substantial but regulation is tight.

Employment Agreements in Argentina

Indefinite-term contracts

Indefinite employment contracts are the default under Argentina’s National Employment Law (NEL). Employment is presumed to continue until the employee qualifies for retirement, unless a valid fixed-term arrangement is proven.

Key points:

A trial period of up to three months applies.
During probation, either party may terminate the contract with 15 days’ notice, without severance liability beyond wages owed.
After probation, dismissal without cause obliges the employer to pay statutory severance compensation, in addition to notice pay.

Fixed-term contracts

Fixed-term agreements are permitted only when the temporary nature of the work can be justified. They must:

Be in writing, with a defined end date and justification.
Not exceed five years in duration.
Not be used repeatedly to cover ongoing work; otherwise, they are automatically reclassified as indefinite.
Require advance notice of termination between one and two months before expiry. If notice is not given, the contract converts to indefinite.

Compensation rules:

If terminated early without cause, the employee is entitled to standard severance plus wages through the agreed end date.
If the contract runs its course, no severance is due unless the term exceeded one year, in which case the employee must receive 50% of the regular severance amount.
Fixed-term contracts have no probation period.

Collective agreements

Argentina has a highly unionised workforce. Collective bargaining agreements (CBAs) govern minimum wages, benefits, and working conditions across industries. In practice, CBAs often set standards above the statutory minimums. Employers must review the applicable sectoral CBA before finalising employment terms, as individual contracts cannot undercut its provisions.

Notice Periods in Argentina

Notice obligations are strictly regulated and depend on who initiates termination and the employee’s length of service.

Employee resignation: 15 days’ written notice is required.
Employer dismissal:
- 15 days for employees with less than 3 months of service
- 1 month for employees with 3 months to 5 years of service
- 2 months for employees with more than 5 years of service
- In small enterprises, the maximum notice is capped at 1 month regardless of seniority

If notice is not given, the employer must pay compensation in lieu. The notice must be in writing and clearly state the grounds for termination. If the grounds are contested, the employer bears the burden of proving valid justification.

Working Hours and Overtime in Argentina

Standard working hours

The statutory limit is 8 hours per day and 48 hours per week. Specific caps apply depending on working conditions:

Day work: up to 44 hours per week
Night work (between 9 p.m. and 6 a.m.): up to 42 hours per week
Hazardous or unhealthy work: up to 36 hours per week

Overtime rules

Overtime is permitted when business needs justify it but is capped by law. Overtime pay rates are:

50% premium for hours worked beyond the statutory daily or weekly limit on weekdays
100% premium for hours worked after 1 p.m. on Saturdays, and on Sundays or public holidays

Part-time employees are not permitted to perform overtime. Employers must keep accurate records, and repeated reliance on overtime may attract scrutiny from labour inspectors.

Leave Entitlements in Argentina

Annual leave

Employees are entitled to paid annual leave after completing at least six months of service in a 12-month period. The duration depends on seniority:

14 calendar days: less than 5 years of service
21 calendar days: 5 to 10 years of service
28 calendar days: 10 to 20 years of service
35 calendar days: more than 20 years of service

Annual leave must generally be taken in a single continuous block. If the employment relationship ends before leave is taken, the employee is entitled to compensation for unused days.

Sick leave

Employees are entitled to paid sick leave, with entitlements linked to length of service:

Up to 3 months per year for employees with less than 5 years of service
Up to 6 months per year for employees with more than 5 years of service

If the employee has dependants, these periods are doubled (6 and 12 months respectively). After paid sick leave is exhausted, the employee may take unpaid medical leave of up to 12 months, during which the employment relationship must be maintained.

Parental leave

Maternity leave: 90 days, typically 45 days before and 45 days after childbirth. The prenatal portion may be reduced to 30 days, with the balance added postnatally.
Paternity leave: 2 days of paid leave for the birth of a child.
Adoption leave: not expressly regulated at national level, though some CBAs include provisions.

Other family leave

Employees are entitled to:

10 days for marriage
3 days for the death of a spouse, child, or parent
1 day for the death of a sibling
2 days per examination, up to 10 per year, for secondary or university studies.

Termination and Severance in Argentina

Grounds for termination

Employment contracts may end by:

Resignation by the employee (with 15 days’ notice)
Dismissal with cause by the employer, in cases of serious misconduct or breach of duty — no severance is owed
Dismissal without cause, which requires notice and full severance compensation
Economic or force-majeure grounds, where reduced severance applies
Mutual agreement, formalised before a notary or labour authority

Severance pay

If an employer terminates employment without cause, the following payments are due:

Seniority compensation: one month’s best regular salary for each year of service (or fraction over three months)
Compensation in lieu of notice: if statutory notice is not given
Pro rata salary: wages up to the date of termination, plus any pending days to complete the month
Unused annual leave: payment for accrued but untaken leave
Statutory annual bonus (13th salary): proportional amount for the year of dismissal

If termination occurs on economic grounds (e.g. lack of work), severance is reduced to half a month’s salary per year of service.

Retirement and death

At retirement, employees are entitled to normal severance rules in addition to social security benefits.
In case of death, dependants are entitled to compensation equal to 50% of statutory severance.

Formalities

All terminations must be made in writing. Employers carry the burden of proof when dismissals are challenged. Agreements signed outside the supervision of a labour authority or notary are null and void.

Payroll and Taxation in Argentina

Payroll currency and payment

Wages must be paid in Argentine Pesos (ARS) into a local bank account. Payments in foreign currency are generally not permitted for regular payroll. Employers must strictly comply with Central Bank regulations on foreign exchange, which are subject to frequent changes.

Minimum wage

Argentina sets a statutory national minimum wage, known as the Salario Mínimo, Vital y Móvil. Due to high inflation, the minimum wage is frequently updated through decrees from the National Employment Council.

As of August 2025, the national monthly minimum wage is ARS 322,000.
The hourly minimum wage for a full-time employee is ARS 1,610.

It is crucial for employers to stay informed about these frequent adjustments. Furthermore, many sectors are governed by collective bargaining agreements (CBAs) that set minimum salary thresholds higher than the national statutory rate. Employers must comply with the higher of the two applicable rates.

Statutory bonuses

Employees are entitled to a mandatory bonus known as the Sueldo Anual Complementario (SAC), or 13th salary. This is equal to 50% of the highest monthly gross salary earned in the previous six months. It is paid in two installments:

The second installment is due in December.

The first installment is due in June.

Income tax

Employment income is subject to a progressive income tax, known as Impuesto a las Ganancias, which is withheld at source by the employer. The tax rates are progressive and can range up to around 35%, depending on the employee’s total taxable income, family situation, and applicable deductions. Employers are responsible for calculating, withholding, and remitting these amounts monthly to the Federal Public Revenue Administration (AFIP).

Social security contributions

All employees must be registered with the national social security system. Contributions cover pensions, health insurance, family allowances, and unemployment funds. The rates are subject to change and vary based on the employer’s industry and the size of the workforce.

Employer Contribution: Approximately 20% to 25% of gross payroll.
Employee Contribution: Approximately 17% of gross salary.

Employers are responsible for deducting the employee’s share and remitting both the employer and employee portions to the relevant authorities.

Reporting and compliance

Payroll records must be kept in Spanish and submitted electronically to the AFIP. Non-compliance, including delayed remittances or underpayment of taxes and social security, can lead to significant fines, interest, and potential legal action.

Employee Benefits in Argentina

Statutory benefits beyond salary

13th salary (Sueldo Anual Complementario – SAC): paid in June and December, equal to half the highest monthly salary in the previous six months.
Public holiday pay: all national holidays are paid in full, with premium rates if worked.
Union-driven allowances: collective bargaining agreements (CBAs) often add sector-specific entitlements, such as transport subsidies or meal vouchers, which are legally enforceable once included.

Social security coverage

Argentina’s mandatory contribution system funds:

Health insurance (obras sociales), administered by unions or insurers and tied to employment.
Pensions and retirement benefits under the state regime.
Family allowances, such as child benefits or school support, based on income thresholds.
Unemployment protection, financed by employer contributions.

Common voluntary benefits

International and larger domestic employers often provide supplemental perks to remain competitive, including:

Private medical insurance to top up the statutory obras sociales system.
Group life and accident insurance.
Transportation or meal subsidies beyond statutory CBA levels.
Training, education assistance, or professional development support.
Performance or retention bonuses beyond the mandatory SAC.

Hiring Models in Argentina

Employers must choose a legally valid structure for engaging staff in Argentina. The main options are:

Direct employment through a local entity

Setting up a subsidiary or branch allows full control over hiring, payroll, and compliance. However, it requires registration with local authorities, appointment of legal representatives, and ongoing filings with AFIP and social security. This route suits employers with long-term operations but involves high cost and administrative overhead.

Employer of Record (EOR)

An Employer of Record allows companies without a local entity to hire staff quickly and compliantly. The EOR becomes the legal employer in Argentina, handling contracts, payroll, taxation, and social security contributions. This model is often chosen for market entry, pilot projects, or when immigration sponsorship is required.

Independent contracting

Engaging individuals as independent contractors is legally possible but carries high risk. Argentine labour courts and tax authorities scrutinise contractor arrangements, and if the relationship reflects subordination (fixed hours, ongoing tasks, company tools), it may be reclassified as employment. Reclassification triggers liability for back pay, social security, and severance.

Labour leasing

Local labour supply agencies may employ staff and second them to client companies, but this is tightly regulated. Laws impose limits on assignment duration, require equal pay with direct employees, and subject arrangements to collective bargaining agreements.

Choosing a model

The choice depends less on employer preference than on regulatory sustainability. Entity-based employment provides permanence but is costly to establish. EOR offers speed and compliance. Contractor engagement may seem flexible but is risky. Labour leasing can work in limited scenarios but is bound by strict rules.

Intellectual Property (IP) Rights in Argentina

By default, intellectual property created by an employee in the course of their duties belongs to the employer, provided that the work is directly connected to the employee’s contractual role and resources. However, disputes often arise if the employment contract does not clearly define scope and ownership.

Key considerations for employers:

Employment contracts should include explicit clauses assigning all IP developed during employment to the employer, covering inventions, software, designs, and confidential information.
Independent contractors retain ownership of IP unless the contract transfers rights. Failure to secure an assignment clause can leave the contractor holding legal title.
Moral rights under Argentine law remain with the individual author and cannot be waived, though employers can secure broad usage rights.
Patentable inventions made using company resources or fulfilling job duties must be assigned to the employer, but employees may be entitled to additional compensation if the invention goes beyond normal duties.
Confidentiality and non-compete clauses are enforceable when proportionate and reasonable, and they are essential in protecting trade secrets.

For foreign companies outsourcing work or hiring staff in Argentina, clear contractual language is the only reliable way to ensure that IP created locally is transferred to the business and enforceable internationally.