Effortless Hiring in Argentina

Types of Employment Contracts

• Employment relationships in Argentina are primarily governed by the Labor Contract Law No. 20,744. Key aspects include:
• Indefinite Term Contracts: Presumed unless explicitly stated otherwise.
• Fixed-Term Contracts: Must be in writing and cannot exceed five years in duration. If three successive contracts are made, they cannot exceed a total of 33 months; otherwise, the contract converts to an indefinite one.
• Probationary Period Contract: A standard probationary period is up to three months, during which either party can terminate the contract without cause, provided a 15-day notice is given.

Onboarding Process

• Employers must provide a written employment contract before the employee commences work. This contract should detail:
• Job responsibilities.
• Remuneration.
• Working hours.
• Notice periods.
• Employers are also obligated to register employees with the Social Insurance Institution (ANSES) and ensure compliance with occupational health and safety regulations.

Payroll Frequency

• Employees are typically paid monthly, with payments due by the fourth business day of the following month.

Minimum Wage

• As of the latest update, the minimum wage is set at ARS 38,940 gross per month.

Overtime

• Overtime is compensated at:
• 150% of the regular rate on weekdays.
• 200% for work done after 1 PM on Saturdays, Sundays, or public holidays.
• Overtime is limited to a maximum of 3 hours per day or 30 hours per month.

13th Month Salary

• Known as "Aguinaldo," this mandatory bonus is paid in two installments: one before June 30 and the other by December 18.

Employee Contributions

• Employees contribute to various funds:
• Pension Fund: 11% of gross salary.
• Health Insurance: 3% of gross salary.
• Total contributions amount to approximately 14% of gross salary.

Employer Contributions

• Employers contribute significantly more:
• Pension Fund: Approximately 10.77% of gross salary.
• Health Insurance: Approximately 4.5% of gross salary.
• Family Allowances: Approximately 7.5% of gross salary.
• National Employment Fund: Approximately 1.5% of gross salary.
• Total employer contributions are around 25.5% of gross salary.

Income Tax

• Progressive rates ranging from:
• 5% to 35%, depending on income levels.

Types of Leave in Argentina

1. Annual Leave

• Employees are entitled to:
• 14 days for those with less than five years of service.
• 21 days for five to ten years of service.
• 28 days for ten to twenty years of service.
• 35 days for over twenty years of service.

2. Sick Leave

• Employees are entitled to:
• Up to 3 months for those with less than five years of service.
• Up to 6 months for those with more than five years.
• These periods double if the employee has dependents.

3. Maternity Leave

• Female employees are entitled to:
• A total of 90 days, typically divided into 45 days before and 45 days after childbirth.
• Paid at 100% by the Social Security system.

4. Paternity Leave

• Male employees are entitled to:
• 2 consecutive days.

5. Marriage Leave

• Employees receive:
• 10 consecutive days for marriage.

6. Bereavement Leave

• Employees are entitled to:
• 3 days for the death of a spouse, child, or parent.
• 1 day for the death of a sibling.

Mandatory Benefits

1. Health Insurance: Both employers and employees contribute to health insurance schemes.
2. Pension Contributions: Mandatory contributions to the national pension system.
3. Life Insurance: Employers are required to provide life insurance coverage.

Supplemental Benefits

Employers may offer additional benefits such as meal vouchers, transportation allowances, and supplementary health coverage to attract and retain talent.

Notice Periods

• For termination without cause:
• 15 days during the probationary period.
• 1 month for employees with up to five years of service.
• 2 months for those with more than five years.

Severance Pay

Severance pay is equivalent to one month's salary for each year of service, calculated based on the highest monthly salary received during the last year of employment.

Just Cause Dismissal

No severance is owed if termination is due to just cause; however, the employer must provide a written explanation.