What global businesses need to know about payroll in Argentina
Argentina is South America’s second-biggest economy, despite its long history of political and economic instability. In April 2024, a surge of inflation peaked at nearly 300%, but since then, rates have dropped dramatically and given businesses and employees some much-needed consistency.
But this economic turbulence, amid austerity reforms by President Javier Milei, has actually presented an opportunity for foreign businesses looking for expansion opportunities. As of March 2023, there were 236 Argentinian pesos to £1; 200 pesos to $1; and 212 pesos to €1. But fast forward just two years and the rates have skyrocketed to 1,375 pesos to £1; 1,064 pesos to $1; and 1,156 pesos to €1. In other words, the devaluing of the peso (which is still gradually continuing) is making Argentina a place where foreign currency can go a very long way.
Add in a literate, well-educated and enthusiastic workforce; strong trade links with Spain and the rest of the Americas; and a diverse range of exports from cars to corn – and suddenly Argentina looks like a better opportunity than the news headlines might suggest. Here’s what you need to know about running payroll in Argentina and other key employment requirements.
Getting Started
Argentina is a much more welcoming country to foreign business than its layers of bureaucracy and paperwork might suggest. Although, it can take some time to get a business entity up and running.
The first step of the somewhat complex process of starting a business in Argentina is to decide which type of corporate entity to establish. There are four options: corporations (S.A.), limited-liability partnerships (S.R.L.), foreign branches, and general partnerships, although the latter rarely applies to foreign businesses. The required start-up capital varies between each of these: foreign branches and S.R.Ls don’t need any start-up capital, while an S.A. requires a minimum of ARS 100,000.
The multitude of procedures that must be completed as part of the set-up process include:
- Company name verification with the Office of Corporation
- Certification of partner signatures
- Deposit of at least 25% of initial capital with National Bank of Argentina
- Publish company notice in Boletin Oficial
- Have company books ‘rubricated’ by General Inspection of Justice
- Obtain a Fiscal Code and a Tax Identification Number from the National Tax Office
- Register for local ‘turnover tax’ and with the Social Security System (SUSS)
- Take out employee insurance
- Rubricate wage books with the Ministry of Labor
While this is a complex process that can take a number of months, the good news is that the fees involved at each step are very small (and in some cases free). Overall, the process is therefore inexpensive as a whole.
Employment Considerations
Argentina is one of the few countries that gives a full scope of employee rights to all employees regardless of contract type. It also limits the tenure of fixed-term contract workers, who can be hired for a maximum of five years. Temporary workers have a six-month maximum stay. Companies are often rewarded for hiring previously unemployed or disabled people.
Technically speaking, written employment contracts aren’t required in Argentina, but that is only because its employment law is comprehensive and detailed in every area. To comply with the laws, employers should register employees in their labor books and for taxation, and conduct all salary, tax and social security requirements. Collective bargaining is common in Argentina and can even be applied to individual companies as well as whole industries.
Most salaried employees are paid at the end of each calendar month, but those who earn on a per-hour, per-day, or per-project basis should be paid either every week or every other week.
Working hours in Argentina are a maximum of eight per day and 48 per week. Some people will work six full days a week, and some others will only work a morning shift on Saturdays. Traditionally, the working day is split into two four-hour sections, sandwiching a long ‘siesta’ between 12:30pm and 4pm. However, this is now less common in big cities like Buenos Aires, and more the preserve of smaller towns and rural areas.
Overtime is limited to three hours per day, 30 hours per month and 200 hours per year; overtime pay is 150% of normal rate, rising to 200% for work after 1pm on Saturdays or at any time on Sundays or public holidays.
Probation periods can run up to a maximum of three months. Notice periods are 15 days during the probation period, then one month, rising to two months after five years’ service.
Compensation, Bonuses and Severance
Due to the very high levels of inflation in Argentina, the national minimum wage is being constantly revised: since 2023, the rate has been increased almost every month. As of March 2025, it stood at ARS 296,832 per month (approx. £220; $280; €260), which is more than nine times what it was as recently as the end of 2021. With the frequent rate of changes likely to continue, payroll teams should ideally double-check the rate before each and every payroll cycle.
Argentinian employees are entitled to the 13th-month ‘Aguinaldo’ bonus, in line with most of the rest of Latin America. This is paid in two halves, the first at the end of June, and the second at least one week before Christmas. Each installment is 50% of the highest monthly wage that an employee earned in the previous six months: this means that amounts are likely to rise in line with inflation and new minimum wage rates.
Bonuses are common in the tech and finance sectors of Argentina. Bonuses are initially given at the discretion of the employer; however, once established, they can become a mandate by law. Companies should be sure to detail exactly what bonus policy will be in employee contracts, as bonus payouts have been the basis for many legal claims in Argentina. It is also common to provide a range of employee benefits, including compensation for commuting and transportation, meal vouchers, gym memberships, internet and phone subscriptions, and private health insurance cover.
Argentinian companies can terminate employment for any reason at any time, but are required to remit severance pay to anyone with at least three months of service. Additionally, anyone who has at least five years’ service should get at least a month’s notice in this situation.
Severance should be paid at one month’s salary per year of employment, at the highest rate they earned during the course of their tenure, up to a maximum of three months’ salary. Any partial year where more than three months have been worked is considered a full year for the purposes of this calculation.
Tax and Social Security
While the income tax bandings in Argentina have remained the same in recent years, the thresholds between each band have been revised substantially. As of 2025, the lowest band of 5% applies to the first ARS 1.2 million (approx. £875; $1,130; €1,040) earned each year. The highest of 35% applies to all earnings in excess of ARS 36.45 million (approx. £26,500; $34,300; €31,500). Non-residents are charged on their income sourced in Argentina at the same rates.
Corporation tax is applied across three bands, depending on the amount of taxable income a business generates, and these thresholds have also been revised. The initial rate is 25%, rising to 30% for taxable income above ARS 34,703,523.08 (approx. £25,200; $32,600; €30,000), and then 35% on taxable income above ARS 347,035,230.79 (approx. £252,000; $326,000; €300,000). VAT, applicable on the sales or imports of most products and services, is currently 21%.
Social security contributions are relatively high in Argentina, and currently run as follows:
- Pension fund: 12.16% employer, 11% employee
- Health insurance: 6% employer, 3% employee
- National Employment Fund: 6% employer
- Injury Insurance: 2%-5% employer
- Social Security: 3% employee
Holidays and Leave
Argentina has 16 days of public holidays each year. However, holidays that fall midweek are often moved to the previous or following Monday to make for long weekends.
Paid leave entitlement starts at one day for every 20 days worked over the first six months, after which employees receive two weeks per year. This entitlement increases to three weeks after five years’ service, four weeks after ten years and five weeks after 20 years.
Maternity leave is 90 days at full salary, paid by social security. The 30 days prior to the due date are mandatory, and the other 60 days are taken either before or after this period at the discretion of the mother. Taking 45 days either side of the due date is commonplace. Paternity leave is two days, paid in full by employers.
Paid sick leave is 100% of salary, covered by employers, for a maximum of three months – or six months for employees with at least five years’ service. If the absence is work-related (i.e. injury or accident), Employment Risk Insurance kicks in. The employer must also keep the position open exclusively for that employee for up to 12 months, and that employee has the right of first refusal for the position. Severance pay rules apply if employers are unable to do this.
Employees are also entitled to receive ten days of continuous leave after getting married. The death of an immediate family member entitles an employee to three days’ continuous leave, and one day for a sibling. If an employee has a school exam, employers are required to give two continuous days’ leave with a maximum of 10 days per year.
Argentina Payroll: A Summary
With minimum wage and bonus entitlement amounts rising almost continuously, and a host of other cultural specifics, keeping on top of payroll in Argentina can be fiendishly difficult without access to reliable local expertise. This is where a global payroll partner can help, connecting you to Argentinian payroll specialists who are abreast of all the latest changes, so that you can keep your organization compliant across every payroll cycle.
This article is for informational purposes only and not intended to convey or constitute legal or any other advice. It is not a substitute for advice from a qualified professional. Click here to see more country payroll guides from CloudPay