Payroll compliance in Argentina
Argentina, Latin America’s third-largest economy, has focused in recent years on developing a stable economy and political environment. This has attracted inbound investment and entity establishment in the country.
Labour laws in Argentina are constituted in the Argentine Constitution, international treaties and conventions and, in most cases, by the country’s Labour Contract Law (Law No. 20,744). The rights and interests of workers in Argentina are also covered by the Labour Risk Law and collective bargaining agreements between labour and management.
- Most salaries are paid monthly in Argentina. In addition, there is a mandatory bonus paid to employees every June and December of 50% of the highest monthly wage received by the employee during the previous six-month period. This is referred to as the semi-annual bonus, thirteenth salary, or aguinaldo.
- Income tax rates in Argentina range from 5% to 35%, depending on income level. Monthly contributions must be made between the 9th and 11th of every month to the tax authority.
- Both employees and employers must make contributions towards the cost of Argentina’s health system, and to fund future retirement pensions for employees. For employees these together amount to 17% of gross salary.
- Employees who have worked for an employer for more than five years must be given two months’ notice on termination in Argentina.
- There are no restrictions on the employment of foreigners in Argentina, provided they hold the appropriate visas. Companies that intend to hire foreigners must be registered with the National Registry of Sponsoring Entities, which is a division of Argentina’s Department of Immigration, and allows the companies to register as sponsoring entities.
If you’re doing business in Argentina and are looking to learn more about Argentina’s labour laws, incorporation procedures, tax implications and compliance requirements, request a copy of our full country profile, Doing business in Argentina.
