Hire employees in Argentina using an Employer of Record

Argentina requires 14-month salaries, not 12. Miss this and you'll owe back payments plus penalties when employees find out about their missing aguinaldo (Christmas bonus). Most companies discover this after they've already hired someone and structured their budget wrong.

Employment law here strongly favors workers. Fire someone incorrectly and you're facing 3-12 months of severance plus legal fees. Get the contract classification wrong and labor courts will side with the employee – every time.

You've got three ways to hire legally in Argentina:

Option 1: Set up your own entity

• Cost: $25k-60k upfront, $8k-15k annual maintenance
• Timeline: 4-6 months minimum
• Complexity: Tax registration, labor ministry filings, union notifications, payroll infrastructure
• Makes sense when: Hiring 25+ people long-term, permanent market presence

Option 2: Hire contractors

• Cost: None upfront, but major misclassification risks
• Timeline: Immediate
• Risks: Back taxes, social security penalties, automatic employee conversion
• Makes sense when: Short projects under 6 months, specialized consulting
• Note: Hire with Columbus handles compliant contractor agreements too

Option 3: Use an employer of record (Recommended for most)

• Cost: $179/month per employee
• Timeline: 2-3 days to hire
• Complexity: None – we handle everything
• Makes sense when: 1-25 employees, testing markets, multi-country teams

If you're hiring 1-5 people, entity setup costs more than 4-5 years of EOR fees ($179/month = $2,148/year per employee vs $40k+ entity setup). An EOR like Hire with Columbus handles employment contracts, 14-month salary calculations, union compliance, tax filings, and benefit administration. You get compliant hiring without the legal overhead.

Ready to hire in Argentina without the compliance headaches? Get started with Hire with Columbus.

What employment types can you use?

You've got three ways to bring someone onboard in Argentina. Here's how the costs and risks compare.

Setting up your own entity costs around €25,000 upfront and takes 4-6 months. Hiring contractors seems fast but misclassification fines hit €50,000 plus back taxes. Using an EOR like Hire with Columbus? You're hiring in 3 days for $179/month per employee.

How can you hire in Argentina?

Setting up your own entity makes sense if you're planning 20+ employees long-term. You'll need full tax registration, payroll systems, and local HR infrastructure. The bureaucracy is intense - expect multiple government offices and tons of paperwork.

Hiring contractors works for specialized short-term projects, but Argentina's labor laws are strict. If someone works regular hours, uses your equipment, or follows your processes, they're legally an employee. The fines aren't worth the risk.

Using an EOR is the sweet spot for most companies. Hire with Columbus becomes the legal employer while you manage day-to-day work. For 5 employees, you're paying $895/month instead of that €25k+ entity setup.

Employment contract types in Argentina

Once you've chosen your hiring approach, you need the right contract type. Argentina offers several options, but most companies stick with permanent contracts for core roles.

Permanent contracts (indefinite term) are your go-to for full-time employees. No end date, full benefits, and the strongest legal protections for workers. They're harder to terminate but give you the most control over how work gets done.

Fixed-term contracts work for specific projects or temporary coverage. Maximum 5 years total (including renewals). After that, they automatically convert to permanent. You can't use these to avoid permanent contract obligations - Argentine courts will see right through that.

Part-time contracts give employees the same hourly rights as full-timers, just fewer hours. Anything under 35 hours per week counts as part-time. They get proportional vacation days and benefits.

Seasonal contracts cover work that naturally fluctuates - think tourism or agriculture. These have specific start and end dates tied to business cycles. You can't use them for regular year-round work.

Trial periods apply to all contract types - 3 months for most roles, 6 months for executives. During this time, either party can terminate with minimal notice. After the trial period ends, full termination protections kick in.

Most companies hiring through Hire with Columbus choose permanent contracts for their core team. We handle all the contract drafting, ensure compliance with local labor laws, and manage any modifications you need. The paperwork complexity disappears - you focus on managing performance while we handle the legal requirements.

Contractor agreements are also available through our platform if you need genuine freelance work. We structure these to avoid misclassification risks and handle compliant payments in pesos or USD.

How does payroll and taxation work?

Your €60,000 employee actually costs €82,800 per year in Argentina. Here's the breakdown of what makes employment so expensive here.

Tax brackets and income tax

Argentina's income tax system is progressive, and the rates changed in early 2025 to account for inflation adjustments. Your employees will pay these rates on their monthly salary:

The good news? Most international hires fall into the lower brackets. Someone earning €60,000 annually pays about 10.2% effective income tax rate.

But income tax is just the beginning. The real cost comes from employer contributions.

Social security contributions breakdown

Argentina requires both employee and employer contributions to various social programs. Here's what gets deducted from each paycheck and what you pay on top:

*Work Risk Insurance rates vary by industry risk level. Office workers typically pay 1.2%, while construction or manufacturing can hit 8.5%.

Your employee takes home about 83% of their gross salary after taxes and contributions. You pay an additional 22.7-30% on top of their gross salary.

Payment schedule and mandatory bonuses

Argentina follows a strict monthly payment schedule with some unique requirements that catch international employers off-guard.

Monthly salary payments:

• Must be paid by the 4th business day of the following month
• Cannot be delayed without penalties starting at €500 per employee
• Requires detailed pay slips showing all deductions

Mandatory 13th month bonus (Aguinaldo): Argentina requires two additional salary payments per year, paid in June and December. Each equals 50% of the employee's best monthly salary from the preceding six-month period.

Vacation bonus: Employees get an additional payment equal to their regular salary when they take their annual vacation. This isn't optional - it's required by law.

So that €60,000 annual salary? Add 16.7% for the 13th month payments and vacation bonus. Your actual salary cost jumps to €70,000 before employer contributions.

Total employment cost example

Let's break down the real cost of hiring someone at €60,000 annual salary:

Most companies budget just the base salary and get shocked when the first payroll runs. Factor in at least 55-60% above base salary for total employment costs.

Payroll cycle and deadlines

Argentina's payroll system runs on strict deadlines with hefty penalties for mistakes or delays.

Monthly cycle:

• Payroll must be processed by the 25th of each month
• Tax withholdings filed by the 15th of the following month
• Social security contributions due by the 15th of the following month
• Employee payments by the 4th business day of the following month

Quarterly filings:

• VAT and additional tax filings due by the 20th of the month following each quarter
• Annual tax reconciliation due by April 30th

Common penalty triggers:

• Late salary payment: €500+ per employee per day
• Missed tax filing: 2-10% of amount due plus interest
• Incorrect social security contributions: Up to €2,000 per employee
• Missing pay slip details: €300 per employee

The deadlines don't shift for holidays or weekends - you need to plan ahead.

Common payroll mistakes

Most international companies make the same errors when running Argentina payroll themselves:

Miscalculating the 13th month bonus: This isn't 1/12th of annual salary. It's based on the highest monthly salary in each six-month period, including overtime and bonuses.

Wrong vacation bonus timing: The vacation bonus must be paid before the employee takes vacation, not with their regular salary. Employees can legally refuse to take vacation without this advance payment.

Industry risk classification errors: Misclassifying your industry for Work Risk Insurance can result in audits and back-payments. A software company classified as "manufacturing" paid €15,000 in penalties and corrections.

Missing provincial taxes: Some provinces have additional payroll taxes that aren't obvious. Buenos Aires Province adds 1.5% to employer costs that many companies miss.

Incomplete pay slips: Argentina requires specific information on pay slips including tax ID numbers, contribution breakdowns, and year-to-date totals. Missing details trigger fines.

Setting up payroll infrastructure

Running compliant payroll in Argentina requires significant local infrastructure:

Cost of doing it yourself:

• Local accounting firm: €800-1,200/month
• Payroll software (Argentina-compliant): €300-500/month
• Tax advisor: €400-600/month
• HR expertise needed: €50,000+ annual salary
• Compliance risk: Fines up to €10,000 for errors
• Total monthly cost: €2,000-3,000+ per month

With Hire with Columbus: $179/month per employee, fully compliant, zero risk. We handle all tax filings, social security contributions, bonus calculations, and pay slip generation. Your employees get paid on time, every time, with complete legal compliance.

The math is pretty clear - unless you're hiring 15+ people in Argentina, an EOR makes more financial sense than building your own payroll infrastructure.

What benefits and leave are required?

Argentina employees get 14 days minimum vacation in their first year, jumping to 21 days after five years of service. You can't just let them accumulate indefinitely either – unused vacation must be paid out at termination, and employees can demand payment for vacation time during employment if you're blocking their requests.

Here's what gets expensive fast: you're paying salary 14 times per year, not 12. The extra payments are called aguinaldo (Christmas bonus) – half in June, half in December. Miss these and you'll face labor court claims that can drag on for years.

Annual vacation

Vacation days increase with tenure, and the calculation gets tricky:

• 0-5 years: 14 calendar days
• 5-10 years: 21 calendar days
• 10-20 years: 28 calendar days
• 20+ years: 35 calendar days

Vacation pay is calculated on the best salary from the 12 months before taking leave. So if someone got a raise in March and takes vacation in April, you're paying the higher rate for their entire vacation.

Employees can split vacation into two periods maximum, and one period must be at least 14 consecutive days. You can't force them to take single days here and there.

Sick leave

Employees get paid sick leave that varies by tenure and family situation:

• Single employees: 3 months per year
• Employees with family: 6 months per year

For the first 3 days, you pay 100% of salary. After that, social security (ANSES) covers the cost, but you still handle the paperwork and initial payments. Employees need a medical certificate from day one if the illness lasts more than 3 days.

Chronic conditions get special treatment – employees can take up to 1 year of leave for serious illnesses, with social security covering most costs after the initial period.

Parental leave

Maternity leave is generous but creates real coverage challenges:

Maternity leave: 90 days (can start up to 45 days before due date), paid at 100% by social security. Plus job protection for 7.5 months after returning to work.

Paternity leave: 2 days for the birth, plus 90 days that can be transferred from the mother after the first 45 days of maternity leave.

Adoption leave: 90 days for children under 18, same pay structure as maternity.

The tricky part is managing the leave transfer between parents – you'll need clear policies on how much notice you require for these arrangements.

Public holidays 2025

Argentina has 19 public holidays in 2025. Work these days and you pay double salary:

Some holidays are "movable" – if they fall on Tuesday or Wednesday, they're moved to Monday to create long weekends.

Mandatory benefits

Beyond salary, you're paying significant social security contributions:

Employer contributions (total ~27% of gross salary):

• Social security: 10.17%
• Healthcare: 6%
• Family allowances: 4.44%
• Unemployment insurance: 1.5%
• Work injury insurance: 1.5-8.5% (varies by industry)
• Union contribution: 2%

Employee contributions (total ~17% of gross salary):

• Social security: 11%
• Healthcare: 3%
• Union dues: 2-3%

Healthcare is mandatory – employees must be enrolled in either the public system or a private obra social (health insurance). You can't opt out.

Severance and job protection

Argentina has strong job protection that affects your hiring costs:

Severance pay: One month salary per year worked, plus proportional aguinaldo and vacation. For employees with more than 5 years, add 50% extra.

Notice periods:

• Up to 5 years: 1 month
• 5+ years: 2 months

Fire someone without cause and you're paying severance plus notice period. The costs add up fast – terminating a 3-year employee costs roughly 4-5 months of salary.

Optional competitive benefits

To attract talent, many companies offer:

• Private health insurance beyond the mandatory coverage
• Meal vouchers (tax-advantaged up to certain limits)
• Transportation allowances
• Life insurance
• Additional vacation days
• Flexible work arrangements

Common benefit mistakes

Missing aguinaldo payments: The June and December bonuses aren't optional – they're 1/12 of annual salary each. Calculate based on the best salary from the previous 6-month period.

Vacation calculation errors: Using current salary instead of the best salary from the past 12 months. This mistake shows up in labor audits constantly.

Incorrect social security filings: Late or incorrect AFIP (tax authority) filings result in penalties of 2-10% of the contribution amount, plus interest.

Work injury insurance gaps: Choosing the wrong risk category for your industry can leave you liable for workplace accidents that should be covered by insurance.

Administering these benefits correctly requires local HR expertise (typically $60,000+ annually), benefits administration software, and constant legal updates. Miss a payment deadline or miscalculate severance, and you're facing labor court proceedings that can take 2-3 years to resolve.

Hire with Columbus handles all benefit administration, social security filings, and compliance monitoring for $179/month per employee. We calculate vacation pay using the correct salary periods, manage aguinaldo payments automatically, and ensure all social security contributions are filed correctly with AFIP.

What are the compliance requirements?

Written contracts aren't optional in Argentina. They're required by law. Verbal agreements will get you in trouble fast, opening the door to back payment claims and benefit disputes.

Employment contract requirements

You've got 30 days from an employee's start date to get their contract signed and filed. Miss this deadline and you're facing penalties up to ARS 2.5 million per violation.

Every contract needs these mandatory pieces: job description, salary, working hours, workplace location, and probation period terms. You also need to specify whether it's indefinite, fixed-term, or part-time, plus reference the applicable collective bargaining agreement.

Don't forget to register with the Ministry of Labor within 30 days. Skip this step and the whole contract can be deemed invalid, leaving you liable for additional compensation and benefits.

Probation periods

Most positions get three months for probation. You can stretch this to six months only if your collective bargaining agreement allows it.

During probation, termination is easier. Employees with less than one month need just one day's notice. Those with 1-3 months get one week's notice.

Once probation ends, full employment protections kick in immediately. That means longer notice periods, severance requirements, and just cause termination rules.

Working time regulations

The limits are 8 hours per day and 48 hours per week. Night shift workers (10 PM to 6 AM) get 7 hours per day and 42 hours per week max.

Overtime starts after 8 daily hours or 48 weekly hours. The first two hours of daily overtime cost you 150% of regular wage. Beyond that jumps to 200%. Weekend work is double time unless it's their regular schedule.

You must give employees 12 hours rest between shifts and 35 hours of weekly rest (usually Saturday afternoon through Sunday). Keep detailed time records because labor inspectors will ask for them.

Notice periods

Notice requirements change based on how long someone's worked and who's ending the employment:

These are minimums. Many collective bargaining agreements require longer notice periods, especially for senior positions or specialized roles.

Termination process

Firing without just cause means paying notice plus severance. Just cause terminations need solid documentation and must follow specific procedures in the Labor Contract Law.

Economic dismissals affecting multiple employees need prior approval from the Ministry of Labor. This process takes 60-90 days and requires detailed justification.

Union representatives and pregnant employees have special protection. You can't terminate them without extremely strong just cause and often need union or government approval.

Severance pay requirements

Severance depends on how long they've worked and why they're leaving:

This comes on top of notice pay, unused vacation, and the mandatory 13th-month bonus (aguinaldo). Wrongful termination can double these amounts.

Data protection compliance

Argentina follows GDPR-style rules under the Personal Data Protection Law. You need explicit consent for handling employee data and clear privacy policies.

Registration as a data controller with the National Directorate for Personal Data Protection is mandatory. Processing employee data without registration can cost you up to ARS 100 million in fines.

Cross-border data transfers need adequate protection mechanisms. Most companies use standard contractual clauses or rely on adequacy decisions for EU transfers.

Common compliance mistakes

Invalid employment contracts are the biggest trap. Missing mandatory clauses, wrong contract type classification, or failure to register with authorities can void the entire agreement.

Wrong termination procedures cost companies millions every year. Skipping required consultation periods, inadequate documentation for just cause, or miscalculating severance leads to labor court disputes.

Misclassifying employees as contractors is another expensive mistake. Labor authorities are cracking down hard, with penalties including back payments for all employment benefits plus fines.

Penalties for violations

Compliance failures in Argentina cost real money:

What these mistakes actually cost:

• Invalid employment contract: ARS 500,000-2.5 million fine plus contract void
• Wrong termination process: Double severance plus legal fees plus potential reinstatement order
• Missing mandatory contract clauses: Contract deemed invalid, back payments for all benefits owed
• Improper worker classification: ARS 1-10 million fine plus employment benefits backdated to start date
• Unregistered employment: ARS 2.5 million per employee plus social security penalties

Labor court proceedings in Argentina typically take 18-36 months and heavily favor employees. Legal fees alone can reach ARS 500,000-2 million per case.

Hire with Columbus ensures every contract and termination follows Argentina law exactly. Our local legal team handles registration, maintains compliant documentation, and manages termination procedures to avoid these costly mistakes entirely.

What has changed recently?

Argentina's employment rules have shifted pretty dramatically in 2025, and if you're planning to hire here, you need to know what's actually happening on the ground right now.

The most immediate change is the monthly salary adjustment system that kicked in January 2025. Salaries now adjust automatically based on inflation indices published by INDEC (Argentina's statistics institute), which hit 18.2% annually as of September 2025. This means your payroll costs aren't static anymore. They're moving monthly, and you need systems that can handle these adjustments without creating compliance headaches.

New labor law amendments

The Ley de Contrato de Trabajo got some major updates in March 2025 that affect how you structure employment contracts. Remote work provisions are now mandatory in all employment agreements, even for primarily in-office roles. You must specify the employee's right to request remote work arrangements and your process for evaluating these requests.

Overtime calculations changed too. The previous 50% premium for the first two hours and 100% thereafter is now a flat 60% premium for all overtime hours. It sounds simpler, but it actually increases your costs if you regularly need employees to work extra hours.

Tax and contribution rate changes

Social security contributions jumped in July 2025. Employer contributions increased from 23% to 25.5% of gross salary, while employee contributions stayed at 17%. You're now looking at this:

The income tax brackets also shifted upward to account for inflation, but not proportionally. The first bracket now starts at ARS 2,800,000 annually (up from ARS 2,200,000 in 2024), but the rates increased:

Severance payment updates

Severance calculations got more expensive in 2025. The standard one month per year of service remains, but there's now a mandatory "economic adjustment coefficient" applied to severance payments. As of October 2025, this coefficient is 1.34, meaning severance payments are 34% higher than the base calculation.

For employees with more than five years of service, there's an additional "stability bonus" equal to 15% of the total severance amount. This stacks with the economic adjustment, making long-term employee terminations way more costly.

New mandatory benefits

Starting August 2025, all employers must provide a "connectivity allowance" for employees who work remotely more than 20% of their time. The minimum amount is ARS 45,000 per month (about $47 USD at current exchange rates), and it's subject to the same monthly adjustments as salaries.

Mental health coverage became mandatory in June 2025. All health insurance plans must now include psychological therapy coverage (minimum 12 sessions annually) and psychiatric consultations. If you're providing private health insurance beyond the standard obra social, expect premium increases of 8-12%.

Digital compliance requirements

Argentina launched its new digital employment platform, "Trabajo Digital," in April 2025. All employment contracts, amendments, and terminations must be registered through this system within 72 hours. The penalties for late registration are steep: ARS 150,000 per employee per incident.

The platform also requires monthly reporting of salary adjustments, overtime hours, and remote work arrangements. Miss a monthly report, and you're looking at ARS 75,000 in fines plus potential labor inspection visits.

Currency and payment changes

The government introduced new foreign currency payment restrictions in February 2025. If you're paying salaries from outside Argentina, payments above USD 3,000 monthly must go through the official exchange rate (currently about 30% less favorable than the blue rate). This effectively increases your payroll costs if you're paying in USD.

There's also a new "currency stability tax" of 2% on all salary payments made in foreign currency or converted from foreign currency. This applies even if the employee receives pesos. If the source is foreign currency, you pay the tax.

What this means for international employers

These changes make Argentina more complex and expensive for direct employment. The monthly salary adjustments alone require sophisticated payroll systems that most international companies don't have. Add in the digital reporting requirements, higher contribution rates, and currency restrictions, and you're looking at serious administrative overhead.

An EOR like Hire with Columbus handles all these moving pieces automatically. We adjust salaries monthly based on the official indices, handle the digital platform reporting, and manage the currency compliance requirements. At $179/month per employee, it's often cheaper than trying to build these capabilities internally, especially when you factor in the penalty risks for getting any of these new requirements wrong.

The regulatory environment is clearly moving toward more protection for employees and more obligations for employers. If you're planning to hire in Argentina, having local expertise isn't optional anymore. It's essential for avoiding costly compliance failures.