Quick facts

‍

‍

Argentina, the second-largest economy in South America, is known for its agricultural exports, manufacturing, and rich cultural heritage. The labor market is highly regulated, with comprehensive laws ensuring employee rights, including fair contracts, social security, and employment benefits. Argentina's economic challenges in recent years have influenced its labor laws and tax policies.

‍

‍

Employment Contracts

Employment contracts in Argentina can be written, oral, or tacit. However, fixed-term and temporary contracts must be in writing and are typically created in Spanish to avoid issues during litigation.

‍

‍

Probation Period

Trial periods are limited to 3 months for indefinite term contracts. During this period, the employer may terminate the employee without severance, provided they give 15 days' notice and settle any due wages.

‍

‍

Working Hours

The standard working week is 48 hours, with a maximum of 8 hours per day. Special provisions include:

‍

• 44 hours per week for daytime work.
• 42 hours per week for night shifts.
• 36 hours per week in hazardous environments.

‍

Overtime rates are:

‍

• 50% extra pay for work between Monday and Saturday (up to 1 PM).
• 100% extra pay for work beyond this time or on public holidays.

‍

‍

Vacation Days

Employees are entitled to paid leave after 6 months of continuous service. The length of leave depends on seniority:

‍

• 14 days: Less than 5 years of service.
• 21 days: 5–10 years of service.
• 28 days: 10–20 years of service.
• 35 days: Over 20 years of service.

‍

‍

Sick Leave

For non-work-related illness or injury:

‍

• 3 months of paid leave if employed for less than 5 years.
• 6 months of paid leave if employed for more than 5 years.

‍

For work-related injuries or illnesses, coverage extends up to 12 months, including treatment, rehabilitation, and compensation through employment risk insurance.

‍

‍

Wages and Salary Payment

Salaries are paid monthly:

‍

• Payments must be made within 4 days of the following month for salaried employees.
• Hourly employees are paid weekly or bi-weekly.

‍

Employees are also entitled to a 13th-month salary, paid in two installments: one before June 30th and another before December 18th.

‍

In the end of 2024, the national minimum wage was ARS 271,571 per month.

‍

‍

‍

Public Holidays

Argentina recognizes 15 paid public holidays, including:

‍

• January 1: New Year’s Day
• May 1: Labour Day
• July 9: Independence Day
• December 25: Christmas

‍

Holidays falling midweek are often transferred to the nearest Monday.

‍

‍

Employer Taxes

Employers contribute:

‍

• 19.5% of the employee’s gross salary to the Pension Fund, Family Allowance Fund, and Social Services.
• 6% to Social Health.

‍

‍

Employee Taxes

Employees contribute:

‍

• 14% of gross salary to social security.
• 3% to Social Health.Income tax:
• Salaries up to ARS 404,062 per month are exempt.
• Salaries above this are taxed at 35% on amounts exceeding the threshold.

‍

‍

Notice Period

Notice periods vary by tenure:

‍

• 15 days for less than 3 months of service.
• 1 month for 3 months to 5 years of service.
• 2 months for more than 5 years, except in small enterprises, where the maximum notice is 1 month.

‍

‍

Termination and Severance Pay

Termination rules depend on the reason:

‍

1. Conduct-based dismissal: No notice or severance required.
2. Economic-based dismissal: Severance equals half a month’s salary per year of service, with notice.
3. Unjustified dismissal: Severance equals 1 month’s salary per year of service, with notice or payment in lieu.