Employer of Record in Argentina
Hiring in Argentina at a glance
Argentina offers deep technical and professional talent across software, fintech, agritech, energy, and shared services. Buenos Aires anchors a vibrant startup scene, with Córdoba, Rosario, and Mendoza adding strong engineering and operations capacity. For global employers, the appeal is clear: sophisticated talent, strong university pipelines, and time-zone alignment with North America and Europe.
The complexity lies in Argentina’s labor law (Ley de Contrato de Trabajo – LCT), inflation-indexed compensation practices, frequent statutory updates, and multi-layered payroll and social security contributions. Entity setup, bank onboarding, and ongoing filings demand sustained in-country expertise.
Gloroots removes friction. As your Employer of Record (EOR), we hire in days instead of months, run compliant payroll, manage statutory benefits and social security, and keep you aligned with global compliance best practices—so you focus on building teams, not bureaucracy.
What are the key facts about Argentina’s economy and workforce?
Argentina is one of Latin America’s largest economies and a regional hub for software development, creative industries, agribusiness, and energy (Vaca Muerta shale). Universities such as UBA, ITBA, UNCórdoba and UNR feed strong STEM and finance talent into multinational and startup ecosystems.
Highlights
- Industries: Software/IT services, fintech, agritech, oil & gas, food processing, shared services (F&A, CX), media/creative.
- Trade & Nearshore: Time-zone proximity to the US; growing EU links; dynamic outsourcing and GBS footprint.
- Education: High tertiary enrollment and reputable STEM programs; strong English in tech/GBS roles.
- Hubs: Buenos Aires (tech/finance/creative), Córdoba (engineering/GBS), Rosario (manufacturing/IT), Mendoza (energy/operations).
Contact us to access Argentina’s talent compliantly.
What is the work culture and talent pool like in Argentina?
Argentina blends European-influenced business norms with entrepreneurial drive. Teams value direct communication, relationship-building, creativity, and problem-solving. Younger professionals expect flexibility, remote/hybrid options, USD-linked compensation mechanisms, and career mobility.
White-collar strengths
- Software engineering, data, product & UX.
- Finance, FP&A, compliance, and shared services.
- Creative industries (design, media, content).
- Energy and industrial engineers.
Workforce Snapshot (Argentina)
What are the Work visas in Argentina: Types and how Gloroots helps?
Main categories
- Temporary Work Residence (Residencia Temporaria por Trabajo) – Standard employment authorization sponsored by an Argentine entity.
- Intra-Company Transfer – For multinational transfers to local branches.
- Mercosur Residence – Streamlined residence/work routes for Mercosur and associated nationals.
- Specialized/CEO/Executive routes – For senior leadership or scarce skills.
- Short-term technical assistance – Limited-duration assignments/visits.
Gloroots support
- Acts as legal employer to sponsor eligible permits.
- Prepares compliant employment terms and salary proofs.
- Coordinates filings with Dirección Nacional de Migraciones and consulates.
- Handles renewals, local registrations (CUIL), and onboarding timing.
Direct vs EOR – Visa sponsorship
Q. What is the process of setting up an entity in Argentina?
Direct entity setup
- Choose structure (commonly S.A. or S.R.L.); draft bylaws.
- Register with IGJ (Buenos Aires) or provincial registry.
- Obtain CUIT (tax ID), open corporate bank account.
- Register for AFIP taxes and ANSES social security; enroll as employer.
- Set up payroll, ART (work risk insurer), and labor books.
Typical timelines: 6–12+ weeks for incorporation, tax registrations, employer setup, and banking (can vary by province/bank).
Using Gloroots EOR
- Hire in 2–5 days through Gloroots’ local entity.
- Gloroots runs payroll, contributions, contracts, and filings.
- No corporate tax filings, audits, or local directors needed.
Direct entity vs. Gloroots EOR
Q: What are the key employment laws in Argentina that employers should know?
Regulated primarily by LCT (Ley 20.744) and collective bargaining agreements (CBAs). Standards are protective and indexation/inflation often influences compensation practices.
Key rules
- Employment contract: Written; Spanish; include salary (and indexation mechanics if used), role, hours, probation.
- Probation: Up to 3 months.
- Working hours: Typically 48 hours/week (sectoral variations).
- Overtime: Premiums (commonly 150% weekdays; 200% weekends/holidays) per applicable CBA.
- Minimum wage: Adjusted periodically; sectoral CBAs may set higher floors.
- Annual leave: 14–35 calendar days based on tenure (increasing with years of service).
- Public holidays: National calendar; premium pay if worked.
- Sick leave: 3–12 months depending on tenure and family status (paid), per LCT.
- Maternity leave: 90 days (typically 45 before/45 after birth), paid.
- Paternity leave: Paid leave (days vary; CBAs can improve).
- Termination & severance: Seniority-based formula (generally 1 month’s salary per year of service, caps/variations apply), plus accrued items.
Employment law: Direct vs EOR
Q: What are the risks of misclassification in Argentina?
Treating an employee as a “contractor” where subordination, schedule control, and economic dependence exist can lead to reclassification. Consequences include retroactive social security, tax withholdings, penalties, fines, severance back-pay, and court claims.
Indicators of employment
- Fixed hours, manager supervision, tools/equipment provided.
- Core/continuous duties inside the org.
- Exclusivity or one-client dependency.
- Pay structured like salary (not deliverables).
Gloroots safeguards
- Role-by-role risk triage; recommend EOR employment or strong Contractor-on-Record governance.
- Compliant payroll, social security, tax, and benefits—no back-pay shocks.
- Ongoing monitoring to prevent scope creep into employment territory.
Misclassification: Direct vs EOR
Learn more about understanding misclassification and contractor misclassification.
Q: How does an EOR help you run payroll in Argentina?
Payroll pillars
- Cycle: Monthly; 13th salary (Aguinaldo) paid in two installments (June/December).
- Payslips: Spanish, itemized; inflation adjustments and CBA increments often apply.
- Social security: Employer and employee contributions across pension, health, unemployment, and labor risk insurance (ART).
- Statutory extras: Overtime premiums, paid holidays, tenure-based leave, meal/transport benefits per CBA, allowances.
Gloroots payroll engine
- Gross-to-net calculations with CBA mapping.
- Withholding & remittance of social charges and taxes.
- Bilingual payslips; payroll registers; audit-ready files.
- Integration of leave, overtime, Aguinaldo, and allowances.
Payroll: Direct vs EOR
Q: How does tax compliance work in Argentina?
Employee taxation (high level)
- Income tax (Impuesto a las Ganancias – 4th category): Progressive; employer withholds at source based on AFIP tables and employee declarations (family charges/deductions).
- Employee social contributions: Pension, healthcare (Obra Social), and others (deducted via payroll).
Employer contributions (illustrative)
- Employer social security on payroll covering pension, healthcare, life insurance, labor risk (ART separate/premium-based), and other statutory funds. Rates vary by sector/location and are updated periodically.
Gloroots role
- Applies current AFIP tables, CBAs, and caps.
- Withholds/remits taxes and social charges accurately.
- Produces compliant reports and year-end certificates.
Tax compliance: Direct vs EOR
Q: What benefits and entitlements do employees in Argentina receive?
Statutory entitlements
- Aguinaldo (13th salary): 2 installments (June/December).
- Annual leave: 14–35 days (tenure-based).
- Public holidays: Premium pay if worked.
- Sick leave: Extended paid periods per tenure/family status.
- Maternity/Paternity: Paid statutory leave (CBAs may enhance).
- Health coverage: Through Obra Social (via contributions).
- Severance: Tenure-based formula on dismissal without cause.
Popular supplemental benefits
- Private health/dental upgrades, meal/transport cards, internet/WSH stipends (remote), wellness, training, and equity for senior/tech roles (equity consulting).
Benefits: Direct vs EOR
Q: What’s involved in hiring and onboarding employees in Argentina?
- Offer & contract (Spanish; include probation, role, pay).
- Registrations (employer already set via Gloroots; employee data collected for AFIP/ANSES).
- Payroll onboarding (bank details, family allowances, tax forms).
- Policies & OH&S (health/safety briefings; remote work policy if applicable).
- Equipment provisioning (Gloroots can source devices for EOR hires).
Hiring & onboarding: Direct vs EOR
Q: How do you successfully manage a workforce in Argentina?
- Transparent comms and inflation-aware compensation (e.g., periodic adjustments, USD-linked components where lawful).
- Competitive benefits; remote/hybrid policies.
- Clear goals, feedback, and growth plans; training budgets.
Gloroots support
- Market-aligned pay practices.
- Policy localization and benefits benchmarking.
- HR advisory for engagement and retention.
Management: Direct vs EOR
Q: What are the key steps and requirements in terminating employees in Argentina?
- Grounds: Without cause (severance applies) or with cause (documented misconduct; high bar).
- Notice: Statutory notice or pay in lieu.
- Severance: Generally 1 month’s salary per year of service (caps/variations by law/CBA); plus unused vacation, proportional Aguinaldo, and pending allowances.
- Probation: Reduced liabilities within first 3 months.
Termination: Direct vs EOR
Q. What is the offboarding process in Argentina?
- Written notice, exit meeting, and documentation.
- Final settlement (salary, Aguinaldo proportion, unused leave, severance if applicable).
- Contribution/tax updates, certificates, device return, and access revocation.
Offboarding: Direct vs EOR
Q: What costs and financial planning do you need with an Employer of Record in Argentina?
- Base salary (market/location/seniority).
- Employer contributions (social security, healthcare funds, ART).
- Aguinaldo accruals; inflation-linked adjustments; CBA increments.
- Equipment, stipends (internet, meals, transport) where applicable.
- Severance provisioning for prudence.
Gloroots financial model
- Single monthly invoice; integrated payroll management.
- Forecasting of adjustments and severance.
- Benefits design within budget (employee benefits; EOR fees).
Cost planning: Direct vs EOR
Q: What challenges might you face, and how do you solve them using an EOR in Argentina?
Key Hiring Challenges in Argentina
- Inflation & Salary Adjustments
- Rapid inflation requires frequent wage adjustments or USD-linked salary clauses.
- Challenge: Employers risk attrition if compensation is not adjusted proactively.
- Complex Payroll & Contributions
- Multiple contributions to AFIP, ANSES, Obras Sociales, and ART must be calculated precisely.
- Challenge: Administrative burden and high error risk.
- Union & CBA Influence
- Collective bargaining agreements may impose additional benefits beyond statutory law.
- Challenge: Misalignment leads to disputes or penalties.
- Termination & Severance
- Severance costs are high (typically 1 month per year of service).
- Challenge: Budget unpredictability and litigation risk.
- Entity Setup Delays
- Incorporation and employer registration with AFIP/ANSES take months.
- Challenge: Delayed hiring and missed opportunities.
How Gloroots Solves These Challenges
- Compensation Management: Provides market guidance, supports inflation-adjusted salary structures.
- Payroll Compliance: Automates deductions, filings, and remittances via eSocial equivalents.
- Union Alignment: Maps your workforce to the right CBA and ensures compliance.
- Severance Planning: Manages accruals and ensures compliant exit settlements.
- Fast Hiring: Enables hiring in days instead of months through our EOR entity.
Conclusion
Argentina offers world-class talent in software, finance, creative, agritech, and energy—yet demands precise compliance. With Gloroots as your Employer of Record in Argentina, you can:
- Hire in days without a local entity.
- Stay aligned with LCT, CBAs, and social security rules.
- Run accurate payroll with inflation-aware practices.
- Offer competitive, localized benefits.
- Scale confidently while we handle HR, payroll, and compliance.
Frequently asked questions
