Basic Facts

The Republic of Argentina is located in South America. The country’s name comes from the Latin word for silver, Argentum. Argentina is a great source of valuable minerals. The Andes separates the country from Chile in the west and borders Bolivia and Paraguay in the north, Brazil, Uruguay, and the South Atlantic Ocean to the east. As the eighth-largest country in the world, Argentina also claims a portion of Antarctica and several islands in the South Atlantic including the British-ruled Falkland Islands (Islas Malvinas).

The Republic of Argentina is made up of 23 provinces. The country benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Argentina.

Capital :
Buenos Aires
Currency :
Argentine Peso (ARS, $)
Languages spoken :
Spanish
Population :
46.23 million (2022 est.)
Minimum wage 2023 :
ARS 156,000
Cost of Living index :
$$ (105 of 139 countries)
Payroll Frequency :
Monthly
VAT - standard rate :
21%
GDP - real growth rate :
5.2% (2022 est.)

Statutory Holidays

The national holidays mentioned below are valid for the year 2024.

 

Date
Holiday Name
Extra Information
January 1
New Year’s Day
February 12-13
Carnival
Movable - The Monday and Tuesday before Ash
March 24
Truth and Justice Day
March 28-29
Holy Thursday and Good Friday
Movable - The Thursday and Friday before Easter
April 1-2
Malvinas War Veterans Day
May 1
Labor Day
May 25
Revolution Day
June 17
Martín Miguel de Güemes' Day
June 20-21
Flag Day/General Belgrano Memorial Day
July 9
Independence Day
August 17
Passage to Immortality of Gral. José de San Martín
Movable - The third Monday in August
October 11-12
Day of Respect for Cultural Diversity
Movable
November 18
National Sovereignty Day
Movable
December 8
Immaculate Conception of Mary
December 25
Christmas Day

Contract Sharing Time


The approximate time for sharing the contract with an employee in Argentina is 10 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

What You Need To Know


  • A complimentary annual salary and vacation pay are paid to all qualifying employees.
  • During the notice period, the worker has the right, without reduction of their salary, to enjoy a leave of two hours a day within the legal working day.
  •  A complimentary annual salary is understood to be 1/12th of the total remuneration and is paid in two installments. The first installment is due on June 30 and the second is due on December 18 of each year.
  • The worker receives remuneration during the vacation period determined by dividing by 25 the amount of the salary received at the time of its granting.
  • Both employers and employees must show their willingness to use this form of work and must present their consent in writing.

Labor Conditions


Working Hours

The duration of work may not exceed eight hours a day or 48 hours a week, for any person employed as an employee in public or private operations, even if they do not pursue profit. The limitation established by law is maximum and does not prevent a shorter duration of work. There are exceptions for schedules, ages, regions, industries, and so on. The entire night workday may not exceed seven hours, understood as that which occurs between the 21st hour of one day and the sixth hour of the next.

 

Overtime

Overtime work hours should not exceed three hours per day, 30 hours per month, and 200 hours per year. In no case the overtime hours limits may be exceeded.

The employer must pay the worker who provides services in additional hours, with or without authorization from the competent administrative body, a surcharge of:

  • a) 50% calculated on the usual salary, if it is common days; and
  • b) 100% on Saturdays after 13 hours, Sundays, and holidays.

 

Probation Period

The employment contract for an indefinite period is deemed to have been held on trial during the first three months of validity. Either of the parties may terminate the relationship during that period without expression of cause, without the right to compensation due to termination, but with the obligation to provide prior notice. An employer cannot hire the same worker, more than once, using the trial period. If so, it will be considered by law that the employer has waived the trial period.

Termination Notice Period

The employment contract may not be dissolved by the will of one of the parties, without prior notice, or, failing that, compensation in addition to that which corresponds to the worker for their job duration, when the contract is dissolved by the will of the employer. The notice, when the parties do not fix it for a longer term, must be given as follows:

Employment Conditions Notice Period
Initiated by the employee 15 days
Initiated by the employer
During the trial period 15 days
Fixed-Term Contract Minimum 1 month, maximum 2 months unless it is for a specific period within 1 month.
Job Duration within 5 years 1 month
Job Duration is more than 5 years 2 months

The notice will be valid from the date of its notification.

Leave / Time Off

Annual Leave

The worker will enjoy a minimum and continuous period of paid annual rest for the following periods:

Employment Duration Annual Leave
Less than 5 years 14 calendar days
5-10 years 21 calendar days
10-20 years 28 calendar days
More than 20 years 35 calendar days

The date of December 31 of the applicable year is counted to determine the job duration. The worker must have provided services during at least half of the business days included in the respective calendar year or work anniversary to be entitled each year to the annual leave.

Sick Leave

The worker has the right to sick leave as follows:

  • Up to three months a year if the seniority on the job is less than five years;
  • Up to six months if the seniority is greater than five years.

A medical certificate has to be provided from the first day of sickness. 

Parental Leave

The working woman who, in force in the employment relationship for at least one year, has a child and continues to reside in the country, may choose between the following situations:

  • Continue their work in the company, in the same conditions in which she had been doing it;
  • If the mother has a sick minor child in her care, she may rescind her employment contract, receiving compensation, or the greater benefits that arise from the professional statutes or collective labor agreements. In this case, the compensation is equivalent to 25% of the worker’s remuneration paid by the employer, which may not exceed a minimum living wage per year of service or fraction greater than three months;
  • Stay on an unpaid leave of absence for a period of not less than three months nor more than six months.

 

Maternity Leave

The work of female personnel is prohibited during the 45 days prior to childbirth and up to 45 days after it. However, the beneficiary may choose to have her pre-delivery leave reduced, which in such a case may not be less than 30 days. The remainder of the total leave period is accumulated with the postpartum rest period. In the case of pre-term birth, the entire period of leave that has not been enjoyed before delivery is added to the subsequent rest, in order to complete the 90 days. Until the ANSES (Administración Nacional de la Seguridad Social) maternity benefit becomes effective, the employer must continue to pay the worker’s salary.

 

Paternity Leave

Fathers enjoy two consecutive days of holiday paid by the employer. 

Other Types of Paid Leave

The following forms of employer-paid leave are granted:

Leave Number of Days
Marriage leave 10 days
Death of the spouse or a partner, child, or parents 3 consecutive days
Death of a brother 1 day
Take an exam in high school or university 2 consecutive days per exam, with a maximum of 10 days per calendar year 

Unpaid Leave

There is no provision of unpaid leave.

Statutory Benefits

The statutory benefits contributions are paid as follows:

Category

Employer Contribution Rate

Employee Contribution Rate

Pension

16%

11% (all to pension)

Social Health/Social Work

6%

3%

PAMI (Programa de Atención Médica Integral)

2%

3%

National Employment Fund

1.5%

Labor Risk Insurance (Aseguradora de Riesgos del Trabajo, ART)

2.41%*

n/a

Mandatory Life Insurance

0.03%**

n/a

Occupational Disease Trust Fund (FFEP)

ARS 100

n/a

 

Health Insurance

Employees and pensioners pay 3%, employers pay 6% of gross monthly covered earnings. Private-sector employers pay an additional 1.58% or 1.59% of gross monthly covered earnings, depending on the economic sector. 

There is no limit to duration, except in the event of hospitalization for psychiatric treatment. Pharmaceutical products are free during pregnancy, childbirth, and postnatal care; for children younger than age one; during hospitalization; and for chronic diseases.

Compulsory health funds (obras sociales) provide health insurance to employees through membership. Though unionized employees are allocated a default health insurance program, they may choose to pay extra contributions for added coverage (over the mandatory 3% contribution). For new hire employees covered by a collective bargaining agreement (CBA), new legislation (Decree no. 438/2021) has eliminated the employees’ ability to opt-out of the obra social for their industry during the first year of employment

Other Insurances

Accident Insurance

 

Work injuries are an employer-liability system through private carriers. Public- and private-sector employers can self-insure if they meet certain solvency requirements and can guarantee medical care services.

For a total disability (at least a 66% assessed loss of work capacity), a lump sum of 53 times the employee’s monthly base earnings multiplied by the quotient of 65 divided by the employee’s age when the disability began is paid. Additional Lump-sum Cash Benefits (Compensación adicional de pago único) are also paid for total and partial disabilities. 

Occupational Hazards Insurer, ART

The employer is required by law to hire an Occupational Hazards insurer (ART) or to self-insure to cover all its employees in case of accidents at work or professional illnesses.

The ARTs are private companies that aim to provide the benefits provided by the Work Risk Law. Every worker has the right to enjoy an ART.

Unemployment Insurance

 

Unemployment benefits can be claimed if the employee finds themselves unemployed having been a worker in a dependency relationship fired without just cause, due to termination of the contract or for external causes but are covered by the Labor Contract Law 24.013.

Employers contribute 1.5% to the National Employment Fund. Employees do not pay any contribution.

The contribution conditions are:

  • a) Being in a legal situation of unemployment for causes not attributable to the worker;
  • b) For permanent workers, to have at least six months of work with contributions in the last three years prior to dismissal or termination of the contract;
  • c) For temporary and seasonal workers to have worked less than 12 months in the last three years and more than 90 days in the last year, before the end of the job.

Public Pension

Employers contribute to Pension Fund through a single social security contribution of 16%.

The retirement age for men is 65 years of age and for women is 60 years of age.

The pension system includes universal, complementary, disability, death, and old-age benefits.

 

Women’s Pension Program (SIPA)

This benefit is provided under the newly consolidated Argentine Integrated Pension System (SIPA), financed through a solidarity-based pay-as-you-go system. As of August 1, 2021, women can earn the equivalent of one year of social security contributions for every child they have raised, or the equivalent of two years per child who has been adopted or has a disability. The contribution increases to the equivalent of three years per child if the woman previously received a low-income child subsidy.

 

Other Statutory Benefits

Death Benefit

In the event of the death of the worker, the employer must pay the worker’s dependents compensation equivalent to one month’s salary for each year of service or a fraction greater than three months, based on the best monthly, normal and usual remuneration accrued during the last year or during the time of service provision.

 

Spouse and Orphan’s Benefit

A lump sum plus an additional lump-sum benefit is paid. The total lump sum is split equally among eligible survivors, including the spouse and orphans younger than 21 years old (25 years old if a student; no age limit if disabled).

 

Family Allowances

Employers contribute to Family Allowances through a single social security contribution of 19.5%. Employees do not contribute anything. The employer’s contributions also finance cash maternity benefits.

The Family Allowance Fund entitles an employee to receive a tax-free monthly allowance for their spouse and children including the education of the latter, provided the employee’s family salary is not higher than ARS 155,328 and none of its members individually receive a salary higher than ARS 77,664.

Disclaimer

The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.