EOR Service in Argentina

Shraddha Saxena

Hire, Onboard and Pay Employees in Argentina Quickly and Efficiently

Hiring in Argentina at a glance

CURRENCY
Argentine Peso
working hours
40 hours, typically spread across five working days.
public/bank holidays
10
capital
Buenos Aires
language
Spanish
date format
DD/MM/YYYY
remote workers
1.2M
tax year
Calendar year (January 1 to December 31)
minimum hourly salary
No minimum wage
CURRENCY
Argentine Peso
public/bank holidays
10
capital
Buenos Aires
language
Spanish
date format
DD/MM/YYYY
tax year
Calendar year (January 1 to December 31)
payroll frequency
Monthly
GDP
$487.23B (2021)
working hours
40 hours, typically spread across five working days.

Employer of Record in Argentina

If you're considering expanding your business in Argentina, you should consider partnering with an Employer of Record (EOR). An Argentina EOR assumes all employment risks and responsibilities for your company to compliantly hire and expand in the country. This entails managing an employee’s payroll, taxes, and compliance with local labor laws. While your company retains control over day-to-day employee activities, an EOR assumes the role of the legal employer, and offloads administrative responsibilities off your shoulders. 


Why use Argentina EOR?

Argentina’s labor law is similar to many employee-friendly countries such as France, Germany and Brazil. Argentina scores strongly (78 points) on the Labor Rights Index, 2022 - 6 points above the global average. 

For employers unfamiliar with Argentina’s local labor laws, navigating the rough waves of compliance laws will slow their hiring. Laws governing minimum wages, working hours, and payrolling are set and changed based on macroeconomic conditions. Labor unions have a strong say in setting these terms leading to the formation of Collective Bargaining Agreements.

This scene is unlike the systems in business-friendly countries. For example, labor unions in the USA do not have much bargaining power. And there are no federally-mandated provisions for paid time-offs in the USA - it is up to the employer to provide paid time-offs. In contrast, Argentina has strong labor unions - employees have rights to collect bargaining agreements. Paid time-offs are mandatory for compliance.

Partner with an Argentina Employer of Record (EOR) like Gloroots to onboard local talent in under a day. With a single partner to manage payroll, taxes, your HR operations become less confused and more streamlined. The Argentina EOR  will ensure full compliance with local employment obligations and you can fully focus on core business functions and growth plans.


EOR Costs in Argentina

The cost of Argentina EOR/PEO services in Argentina may differ based on various factors, such as the number of employees, the extent of services needed, and the intricacy of the project. The pricing structure for Argentina EOR/PEO services usually involves a monthly fee per employee or a percentage of the employee's salary. Extra charges may apply for additional services or customization.

Key Metrics For Foreign Employer 

Argentina ranks 30th globally for skill proficiency in Coursera’s Skills report. The country is touted to be a leading provider of technology skills in the LATAM region. 

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Argentina.

Factors Global Ranking Interpretation
Rule of law 93 Indicates effectiveness of law enforcement
Labour-employer cooperation 118 Indicates positive labor-employee relationships
Reading Maths, and Science 68 Indicates average scores in OECD's survey of 15-year old students
University Ranking 28 Indicates average QS rankings
Labour productivity per employee 58 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 73 Indicates findability of skilled talent
Workforce with tertiary education 61 Indicates % of workforce with PG degrees
Digital Skills n/a Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots’ Recrew platform, you can discover amazing talent in Argentina.

Why work in Argentina?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Risks of misclassification

The term "misclassification of employees" refers to the inaccurate classification of workers by their employers. Misclassification occurs when an employer categorizes a worker as an independent contractor or exempts them from certain employment laws and benefits, even if the worker should be classified as an employee and entitled to legal protections, benefits, and rights. 

Utilizing a PEO/EOR in Argentina helps mitigate the risks associated with misclassification by ensuring compliance with labour laws, proper employee classification, accurate payroll processing, and access to comprehensive benefits. This enables businesses to focus on their core operations while entrusting employment-related responsibilities to experienced professionals.

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Employing in Argentina

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Tax and Social Security contribution:

Both employees and employers make contributions to the social security system. As part of the social security program, it is mandatory for employers to provide their employees with contributions towards the pension fund system, Medicare coverage, life insurance, and labor risk insurance. 

Employers are required to pay a corporate income tax. The nation follows a progressive taxation model, wherein the tax rate on income rises proportionally with the company’s earnings. 

Payroll Tax Contributor Rate
Unified Social Security Contribution

Social health fund

Labor Risk Insurance

Life insurance



Employer
20.4%

6%

2.41%

0.50%
Pension

Social health fund

Public health insurance (PAMI)



Employee
11%

3%

3%

Employee Income tax

In Argentina, the income tax system follows a progressive structure, which means that tax increases as the income rises. Employers must ensure that the deductions are accurately made. 

In Argentina, residents and non-residents are taxed at progressive income tax rates ranging from 5% to 35%.

Taxable income (ARS) Tax on column 1 (ARS) Tax on excess (%)
Over (column 1) Not over
0 173,834.61 - 5
173,834.61 347,669.23 8,691.73 9
347,669.23 521,503.84   24,336.85 12
521,503.84 695,338.47 45,197.00 15
695,338.47 1,043,007.68 71,272.19 19
1,043,007.68 1,390,676.90 137,329.34 23
1,390,676.90 2,086,015.35 217,293.26 27
2,086,015.35 2,781,353.85 405,034.64 31
2,781,353.85 and on 620,589.58 35

Separation

Termination 

In Argentina, it is mandatory for employers to furnish written notice to their employees when terminating their employment. Termination of employment can occur due to various reasons such as employee misconduct, economic circumstances, or inadequate job performance. It is crucial for employers to ensure that they provide precise information during the termination process as they are not permitted to alter the grounds for termination at a later stage.

The process of terminating employment in Argentina can prove to be a complex and intricate affair. The circumstances surrounding an employee's termination can have a significant impact on various factors, including severance pay.

Severance Pay

In Argentina, the amount of severance pay that employees receive upon being terminated without cause is dependent on their length of service and the specific circumstances surrounding their dismissal. 

In Argentina, when it comes to termination of employment, various forms of compensation may be involved. These can include:

1. Seniority Compensation: Employees are compensated based on their highest monthly salary, calculated according to the length of service.

2. Compensation in Lieu of Prior Notice: Payment made to the employee in lieu of the required notice period for termination.

3. Payment for Remaining Days in the Month: Compensation for the remaining days in the month following termination.

4. Compensation for Unused Vacation Time: Payment for any accrued but unused vacation days that the employee is entitled to.

5. Proportional Compensation for the 13th Month Salary: Calculation of the proportional amount of the 13th month salary, based on the duration of employment during the year.

6. Special Compensation for Union Delegates: Additional compensation provided to union delegates in recognition of their role and responsibilities.

7. Special Compensation for Pregnant Employees or Those on Sick Leave: Additional compensation granted to pregnant employees or employees on sick leave due to specific legal protections.

Adhering to these severance pay requirements is crucial for employers to comply with labor laws and avoid legal complications. Obtaining legal advice can guarantee precise execution of these regulations.

Notice Period

The length of notice periods is contingent upon the duration of the employee's tenure with the organization.

Year of service Notice period
Probationary period 15 days
Less than 5 years 1 month
5 or more 2 month

When terminating employees without prior notice, employers can compensate the employee with pay, corresponding to their notice period. For example, an employee who has served for more than 5 years can be terminated with one month’s pay and any severance pay, if required.

Probation period

The probationary period should not exceed three months.

Start Hiring in Argentina today

When hiring globally, ensuring compliance comes with its own set of battles. Employers must ensure all hiring and onboarding activities adhere to employment laws, payroll procedures, DE&I compliance, GDPR and similar data protection, etc. If you think it is hard to set up local entities and start hiring, keeping up with a dynamic compliance landscape is far harder. 

Gloroots helps you minimize all these efforts by providing a single window to manage all these tasks. Our in-house experts fully shield you from cross-border employment and payroll compliance risks. We do this by helping you with generating employment contracts, on-time payments, compliant benefits, while you focus only on screening talent. 

Our promise is a stress-free global employment experience for both you and your employee.

Contact our experts today to kickstart your global hiring campaign.

Grow your team in Argentina

Growing a team means hiring the right employees at the right time and for the appropriate positions. Employers in Argentina must have a local entity to handle compliance, payroll, tax, and benefits management. The complexity of employment regulations in Argentina makes compliance with employment laws demanding.

With Gloroots’s global Employer of Record (EoR) service, you can let Gloroots do the heavy lifting of payroll, tax, benefits, and compliance and concentrate on what matters to you most: your employees and company growth.

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Experience Seamless Hiring in Argentina?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Argentina.

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