How to hire employees in Argentina

Argentina's vibrant economy and strategic South American location position it as an enticing destination for sourcing skilled talent from a variety of fields, including technology, agriculture, and services. For businesses eyeing expansion or talent acquisition, understanding Argentina's unique job market nuances and stringent employment regulations is crucial.

This guide is crafted to shed light on the complexities of hiring in Argentina, offering a roadmap from identifying recruitment opportunities to ensuring adherence to local legal frameworks. It's aimed at equipping organizations with the knowledge to seamlessly integrate into Argentina's rich labor market, thus driving growth and harnessing the potential of its skilled workforce.

What you need to know before hiring employees in Argentina

Job market in Argentina

Navigating Argentina's job market reveals a landscape ripe with innovation and opportunity, especially within its burgeoning tech sector. In 2023, the hiring rate for technology roles surged by 286%, a testament to the country's vibrant startup ecosystem fueled by robust venture capital investments. This dynamic environment is further enhanced by Argentina's welcoming approach to digital nomads, offering a unique visa that attracts global talent and enriches the local digital workforce.

For employers, eyeing Argentina, understanding this market is crucial. The country's tech talent is not just growing; it's thriving, driven by a workforce optimistic about technology's impact on their careers. Argentina stands as a beacon of digital transformation in Latin America, presenting a fertile ground for businesses ready to invest in digital skills and innovation.

As we look to 2024, Argentina's job market is poised for further evolution, promising exciting opportunities for those ready to dive into its tech-driven economy. Engaging with Argentina's talent means tapping into a pool of skilled, enthusiastic professionals eager to drive technological advancement. For businesses aiming to stay ahead, Argentina offers a unique blend of talent, innovation, and growth potential.

Argentina hiring trends

• Evolving Job Market: Post-pandemic, Argentina sees growth in construction, industrial, agriculture, tourism, and food sectors, creating formal jobs and diversifying the economy as per the latest Manpower Employment Outlook Survey.
• Increased Hiring Expectations: Agriculture, construction, manufacturing, and digital sectors report a significant rise in hiring, per the Manpower Employment Outlook Survey.
• Demand for Skills: There's a high demand for skills in operations, IT, manufacturing, and digital marketing within the expanding fintech, e-commerce, and energy sectors, as well as in healthcare and the knowledge economy.
• Soft Skills Priority: Argentine employers now prioritize soft skills such as responsibility, teamwork, and problem-solving, indicating a shift towards a more adaptable workforce.
• Service Sector Employment: With 72.4% of employment in the service sector as of 2021, Argentina is moving towards a service-oriented economy, offering numerous opportunities for innovation and business growth.
• Diverse and Talented Workforce: Engaging with the Argentine job market opens opportunities in a rich ecosystem of diversity, talent, and potential.

How to hire employees from Argentina

1. Set up an entity in the country

Embarking on setting up a local entity in Argentina represents a commitment to the market, offering you complete control over your hiring practices and operational directives. This route is particularly appealing for organizations equipped with the necessary resources and management depth to sustain a significant employee base within the country. It involves investing in local assets and adopting a multi-currency payment system to accommodate offshore employees, making it an ideal strategy for companies with a long-term vision and dedication to the Argentine landscape.

2. Hire independent contractors

For those seeking flexibility and specific expertise for project-based initiatives, engaging with independent contractors in Argentina presents a streamlined and efficient option. This approach allows for a lighter legal and compliance footprint, with contractors operating as self-employed entities under a clearly defined contract term. It's a smart choice for businesses looking to quickly adapt to project demands and market changes, offering specialized skills without the long-term commitments.

3. Partner with an EOR in the country

Partnering with an Employer of Record (EOR) in Argentina offers a seamless bridge to the local talent pool without the complexities of establishing a legal entity. An EOR acts as your legal proxy in Argentina, managing the intricacies of hiring, payroll, and compliance, freeing you to focus on the strategic management of your team's work. This model is particularly advantageous for firms aiming for a rapid market entry or expansion in Argentina, ensuring compliance and operational efficiency from the get-go.

Compliance risk while hiring in Argentina

Hiring in Argentina presents compliance risks including stringent labor laws, complex tax regulations, and mandatory social security contributions. Navigating these can be challenging due to frequent legal changes and regional differences. 

Employers must adhere to strict rules regarding contract types, working hours, minimum wage, termination procedures, and employee benefits. Non-compliance risks penalties, fines, and legal disputes. Partnering with local experts or employing an Employer of Record (EOR) can mitigate these risks, ensuring adherence to Argentine employment laws and regulations.

Key Aspects of Argentina Labor Law

Employment Contract:

Exploring the employment law in Argentina uncovers a variety of contract types designed to accommodate the diverse needs of the workforce and employers. The following are the types of contracts valid in Argentina 

• Indefinite-Period Contracts: The cornerstone of employment relationships, these contracts symbolize a long-term commitment, only concluding through mutual consent or due to specific actions like voluntary resignation or dismissal for cause.
• Fixed-Term Contracts: Ideal for projects with a definitive timeline, these contracts offer flexibility, capping at a five-year maximum, perfectly suited for temporary initiatives or seasonal peaks.
• Part-Time Contracts: Catering to roles requiring less than the conventional work hours, these agreements cap the work week at 32 hours, offering a balance for roles that don't demand full-time commitment.
• Temporary Employment Contracts: Reserved for exceptional circumstances, these short-term contracts are adaptable, with a span of up to six months within a year or up to a year within a three-year timeframe, ensuring agility in workforce planning.
• Learning Contracts: A bridge to the future, aimed at 16 to 28-year-olds, these contracts, lasting 3 to 12 months, are a pathway to gaining essential skills for eventual permanent roles.

Working Hours 

In Argentina, the customary work schedule encompasses 8 hours daily or 48 hours weekly. This standard translates to an 8-hour workday stretching from Monday through Friday.

Overtime: 

When there's no specific guidance from a collective bargaining agreement, overtime compensation is generally paid at 1.5 times the standard hourly rate. For work performed on holidays or designated rest days, the rate for overtime pay typically increases to double, or 2 times the standard hourly wage.

Minimum Wage: 

As of August 1, 2023, the minimum wage in Argentina has been set at ARS 112,500.00 per month.

Payroll laws in Argentina 

Employers are required to process payroll on a monthly basis, ensuring timely and regular payment to their employees.

Employment benefits in Argentina 

Leave Policies in Argentina

1. Paid Time Off:

Upon completing one year of service with the employer, employees are entitled to five days of paid vacation leave.

2. Public Holidays:

Argentina recognizes 12 public holidays throughout the year, during which employees are entitled to take paid leave.

3. Sick Days:

In Argentina, the duration of sick leave an employee qualifies for is determined by their length of employment with the company. Additionally, the specifics of the sick leave policy differ depending on whether the illness or injury is work-related.

For work-related illnesses or injuries, it's the employer's duty to pay for the first 15 days of the employee's salary. After this initial phase, insurance coverage kicks in to handle any further financial obligations.

Should an employee's sickness extend past a 12-month timeframe, employers have the right to halt salary payments but are required to keep the job position available for another 12 months.

4. Maternity Leave:

In Argentina, female employees are entitled to mandatory paid maternity leave, and it is illegal for employers to terminate their employment due to pregnancy or childbirth reasons. Should a termination occur, the employer must demonstrate that the dismissal was for reasons unrelated to pregnancy or childbirth.

Compensation during maternity leave is provided through social security contributions made by the employee. The duration of maternity leave is 90 days, typically divided into 45 days before the expected delivery date and 45 days post-delivery.

5. Paternity Leave:

Male employees are granted two days of paid leave for paternity purposes.

Public Health Insurance 

Argentina's healthcare system encompasses public healthcare, social security programs (Obras Sociales), and private care. As of 2021, about 10% of Argentinians were enrolled in multiple schemes. Public healthcare, serving those without alternative insurance, covered nearly 40% of beneficiaries. Social security plans, intended for formal workers and their families, accounted for over 60% of healthcare recipients. Less than 20% relied on private schemes. The majority of social security beneficiaries were part of the national scheme, with provincial programs and plans for retirees also playing significant roles, showcasing Argentina's multifaceted approach to healthcare coverage.

Filing tax in Argentina 

Income Tax:

In Argentina, the income tax regime is progressively structured, ensuring a fair and equitable approach to taxation. For example, incomes up to ARS 173,834.61 are taxed at a 5% rate, while higher earnings fall into progressively higher tax brackets, reaching up to a 35% rate for the highest incomes. This system guarantees that individuals contribute to the public coffers in a manner that is proportionate to their financial capacity. For an in-depth exploration of Argentina's tax rates and obligations, we invite you to consult our detailed guide.

Other Tax and Social Security Contributions:

In Argentina, the payroll tax structure embodies a commitment to employee welfare, with both employers and employees contributing to social security, including pension, Medicare, and insurance. Employers face a progressive corporate income tax, ensuring contributions reflect earnings. Employee deductions for pension, health, and public insurance (PAMI) provide crucial support. This shared investment fosters a secure future, building trust and transparency within the workplace. Our guide offers insights into navigating these contributions, reinforcing the employer-employee bond in Argentina's business landscape.

Business culture in Argentina

Understanding the landscape of business culture in Argentina is critical for international firms considering this dynamic market. The business norms in Argentina encompass:

• Argentina combines European and Latin American influences, with a diverse economy emphasizing agriculture, manufacturing, and a growing tech sector.
• Typically hierarchical, with a clear chain of command. Respect for seniority is crucial.
• Paternalistic yet personal, with a focus on employee well-being and loyalty. Centralized decision-making is common.
• Valued for relationship-building, often extending beyond scheduled times. Punctuality may vary.
• Collaboration and consensus are emphasized, underpinned by personal relationships and trust.
• Direct but respectful, with importance placed on expressiveness and non-verbal cues.
• Increasing roles in leadership, though challenges with gender equality persist.
• An essential aspect of business, with late dinners common for deepening business relationships.

Top sectors to hire from in Argentina

Software and Data

This sector's growth is significantly influenced by Argentina's robust emphasis on higher education and technical prowess, positioning it as a prime candidate for software development and data analysis outsourcing.

The technical talent pool, particularly software engineers, is expected to continue playing a critical role in Argentina's tech landscape, underpinning the sector's expansive potential in 2024.

Social & Leisure

Supported by government incentives and flexible remote work laws, this sector is poised for considerable expansion, offering diverse opportunities for engagement and investment.

The sector's adaptability and growth make it a vibrant area for hiring, capitalizing on Argentina's evolving lifestyle and leisure preferences.

E-commerce & Retail

Demonstrates vigorous growth, propelled by favorable regulatory frameworks and the availability of a skilled workforce, indicating a promising sector for recruitment and business development.

The blend of policy support and talent availability positions Argentina as an appealing venue for e-commerce and retail startups, anticipating continued growth into 2024.

Top cities to hire from Argentina

Buenos Aires:

‍‍As the economic heart of Argentina, Buenos Aires thrives on a service-driven economy, which constitutes approximately 74% of its GDP. The city is renowned for its robust finance sector, alongside flourishing tourism and hospitality, trade, real estate, and transportation industries.

Rosario:

Standing as Argentina's third-largest city, Rosario is a vibrant job market with a strong focus on the automotive industry, software development, textiles, and telecommunications. These sectors represent the core of Rosario’s employment landscape, offering diverse opportunities.

Cordoba:

Known for its diverse labor market, Cordoba is among Argentina’s most significant cities for job seekers. Key areas of employment include mechanical engineering, commerce, software development, and tourism. This variety makes Cordoba an attractive destination for professionals with varied expertise.

Hire in Argentina compliantly with Gloroots

Hire in Argentina compliantly with Gloroots. Gloroots, serving as an Employer of Record (EOR) in Argentina, simplifies the process of candidate onboarding, facilitating swift initiation of operations while adhering to both local and international compliance standards. Designed to suit businesses of varying sizes, Gloroots offers an efficient solution for managing payroll, administering benefits, and overseeing tax obligations without the need for establishing a local entity. This service empowers companies to focus on effectively assembling a remote team within Argentina. For further information on how Gloroots can support your hiring needs in Argentina, please reach out to us.

Frequently Asked Questions 

What is the minimum wage in Argentina?

As of August 1, 2023, the minimum wage in Argentina is set at ARS 112,500.00 per month. To know more click here

What is the standard workweek in Argentina?

The standard workweek in Argentina is typically 8 hours per day or 48 hours per week, from Monday to Friday.

Can I hire remote employees in Argentina through Gloroots?

Yes, Gloroots enables you to hire and manage remote employees in Argentina efficiently, allowing you to concentrate on operational success while we handle the administrative and compliance aspects.

Do I need to establish a local entity to hire in Argentina?

No, with Gloroots acting as your Employer of Record (EOR) in Argentina, you can hire compliantly without the need to set up a local entity, simplifying the process of building a team in Argentina.