Employment in Argentina is governed by the Employment Contract Law (Ley de Contrato de Trabajo 20.744), recently reshaped by the Ley Bases (2024) and the Labour Modernisation Law 27.802 (2026), with collective agreements setting pay scales for most sectors. Here is what employers need to know about leave, pay, tax and ending employment.
The Employment Contract Law sets minimum leave for private sector employees. Collective agreements frequently improve on these minimums, so always check the agreement that covers each role.
Grows with seniority (see table below). Employees who worked less than half of the working days in the year get 1 day for every 20 days worked.
For non-work-related illness or injury, paid by the employer at full salary: 3 months (under 5 years’ service) or 6 months (5 years or more), doubled for employees with dependants.
Usually 45 days before and 45 days after birth; the employee may reduce pre-birth leave to 30 days and add the rest after. Paid as a maternity allowance by ANSES, not the employer.
Paid leave for the other parent under the general law. Many collective agreements grant more.
| Seniority | Annual leave |
|---|---|
| Less than 5 years | 14 days |
| 5 years, up to 10 years | 21 days |
| 10 years, up to 20 years | 28 days |
| More than 20 years | 35 days |
Leave is normally taken between 1 October and 30 April, unless employer and employee agree otherwise, and each employee must get a summer holiday at least once every three years. Holiday pay is calculated with a specific daily rate (monthly salary divided by 25).
Employees must report an illness during their first working day of absence. Medical certificates must state the diagnosis, treatment and days of rest, and digitally signed certificates are valid. The employer can require a check by its own doctor.
Set up each Argentine leave type in IceHrm with its own accrual, carry forward and approval rules, such as seniority-based vacation or exam leave capped at 10 days a year. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
The national minimum wage (Salario Mínimo, Vital y Móvil) is set by the National Council for Employment, Productivity and the Minimum Wage, or by the government when the council cannot agree. With high inflation it is updated frequently, often every month. Most employees are covered by collective agreements with higher pay scales.
For full-time monthly employees from 1 September 2026 (Resolution 4/2026), or ARS 1,919 per hour. Further monthly increases are scheduled.
Collective agreements can average hours over longer periods and use an hours bank, provided 12 hours’ rest between shifts and 35 hours’ weekly rest are respected.
Mandatory. Half of the best monthly salary in each half-year, paid by 30 June and by 18 December.
Overtime is paid at a 50% premium on ordinary days and 100% on Saturdays after 1pm, Sundays and public holidays. It is generally capped at 30 hours a month and 200 hours a year. Since the 2026 reform, employer and employee can agree in writing to compensate extra hours through an hours bank or time off in lieu instead of cash.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so the 50% and 100% overtime premiums reflect what was actually worked. Time & attendance →
Employment income is subject to income tax (Impuesto a las Ganancias) at progressive rates from 5% to 35%. Employers withhold the tax from each salary payment under ARCA’s withholding regime, using cumulative monthly tables. Personal allowances (non-taxable income, special deduction for employees and family deductions) are subtracted first, so many employees pay little or no tax. Bands are indexed to inflation twice a year.
| Taxable net income | Rate | Tax on this income |
|---|---|---|
| ARS 0 – 2,168,491.89 | 5% | 5% of taxable income |
| ARS 2,168,491.89 – 4,336,983.77 | 9% | ARS 108,424.59 plus 9% of the excess |
| ARS 4,336,983.77 – 6,505,475.65 | 12% | ARS 303,588.86 plus 12% of the excess |
| ARS 6,505,475.65 – 9,758,213.49 | 15% | ARS 563,807.89 plus 15% of the excess |
| ARS 9,758,213.49 – 19,516,426.99 | 19% | ARS 1,051,718.57 plus 19% of the excess |
| ARS 19,516,426.99 – 29,274,640.48 | 23% | ARS 2,905,779.13 plus 23% of the excess |
| ARS 29,274,640.48 – 43,911,960.73 | 27% | ARS 5,150,168.23 plus 27% of the excess |
| ARS 43,911,960.73 – 65,867,941.10 | 31% | ARS 9,102,244.70 plus 31% of the excess |
| Over ARS 65,867,941.10 | 35% | ARS 15,908,598.62 plus 35% of the excess |
Employers pay social security contributions on gross pay (including the aguinaldo) through ARCA, plus occupational risk insurance and compulsory group life insurance.
26.4% for larger employers mainly in services or trade, 24% for all others. Covers pensions, PAMI, family allowances, the employment fund and health insurance (obra social).
11% pension, 3% PAMI and 3% health insurance, withheld by the employer on salary up to a monthly ceiling that is indexed regularly.
Cover with an occupational risk insurer (ART) is compulsory; the premium depends on the activity and claims history. Group life insurance is also mandatory.
Build Argentine pay the way you already structure it, with your own salary components, deductions and formula columns, such as an aguinaldo accrual or employee contribution column. Want to know how well IceHrm handles payroll calculations for Argentina? Contact us or see Payroll →
Permanent employment in Argentina starts with a probation period, during which either party can end the relationship without cause, notice or severance. After probation, an employer can still dismiss without cause, but must give notice and pay statutory severance.
| Situation | Notice |
|---|---|
| Employee resigns | 15 days |
| Employer dismisses, up to 5 years’ service | 1 month |
| Employer dismisses, more than 5 years’ service | 2 months |
| Rule | Amount |
|---|---|
| Per year of service | 1 month’s salary for each year, or fraction of more than 3 months |
| Minimum | 1 month’s salary |
| Salary cap | 3 times the average salary of the applicable collective agreement, but never below 67% of the employee’s own salary |
Final pay also includes the pro-rata aguinaldo and payment for unused annual leave. Under the 2026 reform, statutory severance is the only compensation due for a dismissal without cause, and collective agreements may replace it with a severance fund paid for by the employer.
Argentina’s national holidays are set by Law 27.399. Some are fixed, while movable holidays that fall mid-week are moved to a Monday. Each year the government also designates up to three extra bridge days for tourism, which are non-working days rather than full holidays.
Employees who work on a national holiday are paid double. Holy Thursday is a non-working day: the employer decides whether staff work, and those who do are paid at the normal rate. Some religious days are non-working days for employees of that faith.
Leave groups give each office its own holiday calendar, so you can add each year’s moved holidays and bridge days, plus provincial holidays, for the offices they apply to. Holiday calendars →
Employment is presumed to be permanent (indefinite) unless the contract says otherwise. A written contract is not required for permanent employment, but it is strongly recommended and cannot provide less than the law or the applicable collective agreement.
Permanent contracts include a 6 month probation period. Collective agreements can extend it to up to 8 months for companies with 6–100 employees, and up to 1 year for companies with 5 or fewer. An employer can use probation only once with the same employee. Fixed-term contracts must be in writing, can last up to 5 years and must be justified by the nature of the work.
Send contracts for e-signing, store them on the employee’s record, and track onboarding with task lists, such as ARCA registration and ART cover, so nothing is missed on day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Argentina, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Argentina? Talk to us.
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