Employer of Record in Argentina

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

Businesses can only operate smoothly in Argentina if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Argentina below, to avoid any compliance issues.

Employment Contract Requirements

In Argentina, employment contracts and employer-employee relations are primarily governed by the Labour Contract Law, collective bargaining agreements, and individual agreements with employees. Some key elements of employment contracts in Argentina are:

• Contracts must be in Spanish and can be bilingual
• Name
• Start date
• Length of the employment
• Job description
• Termination conditions
• Payment terms

Onboarding Process

We can help you get a new employee started in Argentina quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Probation Period in Argentina

In Argentina, a probationary period can last up to a period of 3 months. During this period, the contract may be terminated at any time by either party.

In Argentina, the standard workweek is capped at 48 hours, with a daily maximum of 8 hours for most employees. Overtime is strictly regulated, limited to 3 hours daily, 30 hours monthly, and 200 hours annually, with premium compensation required (150% of regular pay for weekday overtime and 200% for weekends/holidays). Employers must ensure workers receive adequate rest periods, including 12 continuous hours between workdays and 35 continuous hours of weekly rest. This weekly rest period may extend from 1 p.m. on Saturday to midnight on Sunday. Night workers benefit from reduced maximum hours (7 instead of 8).

While certain managerial positions are exempt from overtime requirements, most workers are protected by these regulations, with employers facing penalties for non-compliance.

As of August 2025, Argentina's monthly minimum wage is ARS 322,000, with an hourly rate of ARS 1,610. This adjustment is part of a series of scheduled increases set by the government to address inflation and improve workers' purchasing power. The increases are as follows:

• April 2025: ARS 302,600 per month / ARS 1,513 per hour
• May 2025: ARS 308,200 per month / ARS 1,541 per hour
• June 2025: ARS 313,400 per month / ARS 1,567 per hour
• July 2025: ARS 317,800 per month / ARS 1,589 per hour
• August 2025: ARS 322,000 per month / ARS 1,610 per hour

These adjustments are part of the government's efforts to address inflation and improve workers' purchasing power. However, despite these increases, the real value of the minimum wage continues to be affected by high inflation rates.

Setting up a local legal entity in Argentina can be time-consuming and expensive. It often involves complex paperwork, local representation, banking, registrations, and ongoing tax filings, which isn't cost-effective if you're simply looking to hire a few employees or test the market. An Employer of Record removes these barriers entirely. Instead of spending months establishing a presence, an EOR lets you hire and onboard employees within days while staying fully compliant.

This enables faster market entry and greater agility. Whether you’re launching a pilot program, supporting a regional client, or adding specialized talent, you don't need to commit to long-term infrastructure to explore new business opportunities. The EOR handles local employment logistics while you retain day-to-day oversight of your hires. This model lets you scale up or down based on business needs, giving you more flexibility with less overhead and risk.

Managing payroll in Argentina presents significant challenges for employers due to the complex tax system and substantial employer contributions that can reach nearly 30% of employee salaries. Employers must navigate a progressive income tax system with rates from 5% to 35%, handle monthly social security contributions, and ensure compliance with strict reporting deadlines that vary based on tax identification numbers.

The mandatory 13th-month salary (aguinaldo) and detailed record-keeping requirements add further complexity to payroll operations. The aguinaldo must be paid in two semi-annual installments, due by June 30th and December 18th, with each installment equal to 50% of the highest monthly wage earned during the previous 6-month period. Using payroll management software can help employers consolidate payroll data, automate calculations, and stay compliant with Argentina's frequently changing tax regulations, reducing the risk of costly penalties and administrative burdens.

One of the biggest risks in global hiring is payroll mismanagement. In Argentina, even small errors in tax reporting or social contribution payments can trigger audits, fines, or reputational damage. For companies without in-country expertise, the risk isn’t worth taking. An Employer of Record removes this burden by owning the legal responsibility of payroll, executing every step with built-in compliance.

Key Ways an EOR Supports Payroll in Argentina:

• Mitigates Compliance Risk: Oversees all legal obligations for payroll, tax filings, and recordkeeping.
• Local Regulatory Expertise: Interprets and applies Argentina’s latest labor and tax changes in real time.
• Free Processing: Reduces mistakes in wage calculations and reporting through built
• Payroll Record Management: Maintains compliant payroll audit trails and documentation for each employee.

In Argentina, work permits and visas are essential for employers hiring foreign workers. The process involves submitting applications, meeting eligibility requirements, and ensuring compliance with local labor regulations. Key visa types include the Temporary Worker Visa (23A or 23E), Mercosur Work Visa, Intra-Company Transfer Visa, and Highly Skilled Worker Visa.

Employers must follow the necessary procedures to sponsor foreign workers, including submitting required documentation and paying applicable fees. Processing times and application fees vary by visa type, with work visas typically taking 6-10 weeks to process, depending on if an entry permit is required or not. Residency applications take 5 to 7 months to process. The primary consular fee for work permits is USD 250 or euros, depending on the consulate. Careful planning is crucial for successful hiring and visa sponsorship.

Mandatory Leave Entitlement in Argentina

The annual leave entitlement in Argentina varies based on years of service. During the first 6 months, employees accrue 1 day of leave for every 20 days worked. After the first 6 months, employees are entitled to 14 calendar days of annual leave for their first 5 years of service. For employees with more than 5 years of service, the entitlement is 21 calendar days.

Public Holidays In Argentina

Argentina has the following national holidays:

Paid Time Off in Argentina

In Argentina the amount of leave entitlement increases with the length of continuous employment, up to a maximum of 35 calendar days and is accrued the following way:

1. New employees are entitled to 1 day of leave for every 20 days worked.
2. Employees with more than six months of continuous employment are entitled to 2 weeks (14 calendar days) of annual leave.
3. Employees who have worked for the same employer for 5"10 years are entitled to 21 calendar days leave
4. Employees who have worked for the same employer for 10"20 years are entitled to 28 calendar days leave
5. Employees who have worked for the same employer for more than 20 years are entitled to 35 calendar days leave

Maternity Leave In Argentina

Employees in Argentina are entitled to 90 calendar days of paid maternity leave. The mother must take at least 30 days before the birth of the child, and the Argentine Social Security system pays maternity leave at 100%.

Paternity Leave In Argentina

New fathers are entitled to 2 days of paid paternity leave which is to be utilized following the birth of their child. The employee will receive 100% of the salary during this period, and the employer will be responsible for this pay

Sick Leave In Argentina

Employees in Argentina are entitled to paid sick leave. Employee receives full pay during sick leave. The length of the leave depends on their seniority. Sick leave in Argentina is paid depending on the following:

1. Employees with less than 5 years of seniority are entitled to 3 months of sick leave. If the employee has dependants, the sick leave allocation is doubled.
2. Employees with more than 5 years of seniority are entitled to 6 months of sick leave. If the employee has dependants, the sick leave allocation is doubled.

Parental Leave In Argentina

There are no provisions for Parental leave in Argentina.

Marriage Leave

Employees are entitled to 10 day paid leave for their marriage. Marriage leave is paid at 100% by employer.

Bereavement Leave

Employees are entitled to 3 days of leave in the event of the death of a child, parent, or spouse, and one day of leave for the passing of a sibling.

In Argentina, benefits play a central role in attracting and retaining top talent. Employees often expect more than just a paycheck – they're looking for stability, healthcare coverage, pension plans, and other perks that show a company is invested in their well-being. If you're not familiar with what’s standard or required, you risk falling short. An Employer of Record helps bridge that gap by administering a locally competitive benefits package that meets both legal requirements and employee expectations.

An EOR doesn't just check boxes, they make sure your employees receive benefits that are timely, properly communicated, and well-managed from the moment they’re onboarded. From managing healthcare contributions to adjusting for regional differences in leave or bonus entitlements, an EOR acts as both a legal and operational partner. The result is a better employee experience, less administrative burden on your internal team, and greater confidence that your offer is aligned with what top candidates in Argentina actually want and need.

Termination Process in Argentina

Employers cannot terminate employees at-will, except during the probation period. Employers must provide a valid reason for termination, which can include:

• Severe misconduct
• Economic factors
• Mutual agreement
• Poor work performance

Notice Period in Argentina

In Argentina, the termination notice period for employees is contingent upon the duration of their service with the company. The notice periods are as follows:

• 15 days during the probation period (3 months)
• 30 days if the length of service is less than 5 years
• 60 days if the length of service is more than 5 years

Severance in Argentina

An employee who is terminated without valid reason is eligible for a statutory severance payment of one month's salary for each year of service, or a period longer than 3 months. This amount is calculated based on the employee's highest monthly regular compensation received in the last 12 months of work.