Argentina Labor Law Guide for Hiring Employees and Contractors
Argentina’s economy, as of 2023, recorded a GDP of approximately $640 billion USD, making it one of the largest economies in South America. The country’s economy is diversified, with key sectors including agriculture, automotive manufacturing, energy, and services.
Argentina is one of the world’s leading exporters of soybeans, corn, and wheat, and has a robust industrial base. The services sector, particularly financial services and technology, is also significant.
The official currency of Argentina is the Argentine Peso (ARS).
Minimum Wage
ARS 262,432.93 per month (Aug 2024)
Overtime Wage
150% of the regular hourly rate (200% on weekends or holidays)
Meal Breaks
30 minutes to 2 hours
Rest Breaks
15 minutes
Working hours
8 hours per day, 48 hours per week
Salary Payment Cycle
Monthly or bi-monthly
Payroll Taxes
Social security, Healthcare
Paid Vacation
14 to 35 days, depending on seniority
Overtime Hours
More than 48 hours per week
Night Shift Hours
130% of the regular hourly rate
Holidays
15
No Work Days
Sunday
In Argentina, businesses must establish a legal entity to hire employees. The process to set up a business entity typically takes 30 to 60 days and can cost between ARS 150,000 and ARS 300,000, depending on the type of entity and legal services required.
Employment contracts are mandatory and must be written, specifying terms such as job role, salary, working hours, and conditions for termination. Employers must comply with the Labor Contract Law (Ley de Contrato de Trabajo), which governs employment relationships. Contractors are treated differently under Argentine law, with fewer protections compared to employees.
Argentina has a national minimum wage law. As of 2024, the minimum wage is set at ARS 262,432.93 per month. The minimum wage is reviewed and adjusted periodically by the government.
There are no regional variations in the minimum wage, but certain sectors may have different wage agreements. Employers are also required to pay a 13th-month bonus (Aguinaldo), which is an additional monthly salary paid in two installments, in June and December.
The standard working hours in Argentina are 8 hours per day and 48 hours per week. Overtime is permitted but must be compensated at 150% of the regular hourly rate, or 200% if the overtime is performed on weekends or public holidays.
Night shifts, which are defined as work performed between 9 p.m. and 6 a.m., are compensated at 130% of the regular hourly rate. The minimum legal working age in Argentina is 16 years, with strict regulations on child labor. Workers under 18 are not allowed to work night shifts or in hazardous conditions.
Employers in Argentina must make several payroll deductions:
Social Security: Employers contribute approximately 27% to 32% of the employee’s salary to social security, which includes healthcare, pensions, and other social benefits.
Healthcare (Obra Social): Employers are required to contribute to the healthcare system, which provides medical coverage for employees.
The current income tax regime in Argentina is progressive, with the following tax rates:
Income Level (ARS per year) | Tax Rate |
Up to 399,500 | 5% |
399,501 to 799,000 | 9% |
799,001 to 1,199,500 | 12% |
1,199,501 to 1,599,000 | 15% |
1,599,001 to 1,999,500 | 19% |
1,999,501 to 2,399,000 | 23% |
2,399,001 to 2,799,500 | 27% |
2,799,501 to 3,199,000 | 31% |
Above 3,199,000 | 35% |
Argentine labor laws mandate several types of leave:
Paid Vacation: Employees are entitled to 14 to 35 days of paid vacation, depending on their length of service.
Maternity Leave: 90 days of paid maternity leave (45 days before and 45 days after childbirth).
Paternity Leave: 2 days of paid paternity leave.
Sick Leave: Employees are entitled to up to 3 months of paid sick leave, or 6 months if they have over 5 years of service.
The following table lists the mandated holidays in Argentina:
Holiday | Date |
New Year’s Day | January 1 |
Carnival | February (Monday and Tuesday before Ash Wednesday) |
Truth and Justice Memorial Day | March 24 |
Good Friday | Varies |
Labor Day | May 1 |
May Revolution Day | May 25 |
Independence Day | July 9 |
San Martín Day | August 17 |
Cultural Diversity Day | October 12 |
National Sovereignty Day | November 20 |
Immaculate Conception Day | December 8 |
Christmas Day | December 25 |
Employers in Argentina are required to provide several benefits:
Social Security: Includes healthcare, pensions, and other social services.
Aguinaldo (13th-Month Bonus): A mandatory annual bonus paid in two installments, in June and December.
Gratuity: Employees who are terminated without just cause are entitled to severance pay based on their years of service.
Healthcare (Obra Social): Medical coverage provided through employer and employee contributions.
Argentina does not follow At-Will Employment laws. Termination must be justified under the Labor Contract Law, and employers must follow specific procedures, including providing written notice and severance pay if applicable.
Notice Period: Generally, 15 days’ notice for employees with less than 5 years of service, and 30 days for those with more than 5 years.
Termination Benefits: Employees terminated without just cause are entitled to severance pay, which includes one month’s salary for each year of service, plus any accrued benefits.
Legal Challenges: Employees can challenge their termination in labor courts. If the court rules in favor of the employee, they may be awarded reinstatement or additional compensation.
Employers can legally terminate employees for just cause, including poor performance, misconduct, or redundancy. However, the reasons must be clearly documented, and the employer must adhere to the legal termination process.
This guide provides a comprehensive overview of the labor laws in Argentina, helping businesses navigate the complexities of hiring and managing employees in the country.