Hr Software for Argentina

Leave Policy

Maternity Leave

Employees are entitled to 90 calendar days of paid vacation. The default is to take 45 days before the birth, but it is at the employee’s discretion whether they want to wait until 30 days before the birth date and then take 15 days of leave after the birth. During this period, the employee receives a salary for which social security is responsible.

The employee can also extend the vacation and receive 25% of the salary.

Paternity Leave

Employees are entitled to 2 days of paid paternity leave, which must be taken after the birth of the child. The employee receives 100% of his salary during this period and the employer is responsible for this compensation.

Parental Leave

Parental leave is not regulated by law in Argentina. However, employees may be entitled to maternity and paternity leave.

Sick Leave

Employees are entitled to paid sick leave, the duration of which depends on their seniority. Employees with less than 5 years of service are entitled to 3 months of sick leave. For employees with more than 5 years of service, sick leave increases to 6 months. Sick leave is paid by the employer.

A medical certificate must be presented to the employer, although digital copies are also permitted.

Employees are also entitled to vacation in the following cases, with vacation paid as PTO:

  • Marriage: Employees are entitled to 10 calendar days for celebrations.
  • Death of family members, siblings or parents: Employees are entitled to 3 calendar days.
  • School or university examinations: Employees are entitled to 2 calendar days per examination, up to a maximum of 10 calendar days per year.

Pay & Tax

Minimum Wage Requirements

According to Argentine law, the minimum wage in Argentina will increase monthly and will reach up to ARS 202,800 starting March 2024.

Individual Income Tax

Individual income tax ranges from 5% to 35%. Income tax is calculated [at progressive rates]. Several additional factors can affect overall rates, such as: B. the status of the household (rent or loan), the number of under 18s, marital status and geographical location.

As of January 2023, the income tax is:

Gross Annual IncomeTax Rate (%)
Up to ARS – 173,834.615%
Up to ARS – 347,669.239%
Up to ARS – 521,503.8412%
Up to ARS – 695,338.4715%
Up to ARS – 1,043,007.6819%
Up to ARS – 1,390,676.9023%
Up to ARS – 2,086,015.3527%
Up to ARS – 2,781,353.8531%
Over ARS – 2,781,353.8535

Payroll Cost

Employer costs are generally estimated at 28% of employee salary. Since the inflation rate in Argentina is very high, the fixed amounts may vary from month to month.

A monthly fee of $20 per employee is payable when IceHrm opens a USD bank account for the employee.

  • Pension: 12.35%.
  • Law 19032 (Social Security): 1.58%
  • Family allowance: 5.40%
  • National Employment Fund: 1.07%
  • Health insurance: 6.0%
  • Accident insurance (ART): 1.53% + ARS 200.13 (USD 0.71)
  • Life Insurance: ARS 78.36 (USD 0.32)
  • Monthly fee for optional health services: USD 15
  • Work from Home Allowance: ARS 18,450 (USD 50)
  • Salary bank account in USD* – USD 20 (if applicable)

*Fee for opening a bank account in USD for the employee through Deel
Private Health Insurance – estimated at $50, final cost will be determined upon onboarding.

One-time fees

  • Mandatory Wet Ink Employment Contract Processing Fee – USD 80
  • Medical check upon hire – USD 130

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day and 40 hours per week, with an additional hour per day for the lunch break. The normal working week lasts from Monday to Friday. However, the standard working time can also be 48 hours.

Termination

Termination Requirements

Terminations in Argentina are very complex. In Argentina there is no dismissal at will for employers [outside of the probationary period].

Compliant terminations are:

  • Voluntary by the employee
  • By mutual agreement
  • Unilaterally by the employer due to:
    1. Probationary period
    2. Objective reasons
    3. Disciplinary dismissal
    4. Performance due to unsuitability for the position
  • When the contract expires

Notice Period

The minimum notice period is 30 days and increases depending on the length of employment.

  • 30 days if you have been with the company for less than 5 years
  • 60 days if you have been with the company for more than 5 years

During the probationary period, the notice period is 15 days.

Severance for Employees

In Argentina, employees who are dismissed without good reason are entitled to severance pay (as long as they are not on probation). Poor performance and restructuring are not reasons that justify dismissal under Argentine labor law.

The amount of the severance payment depends on the length of service of the employee, as it corresponds to one (1) month’s salary per year of services rendered or per fraction of more than three (3) months.

Examples

  • If an employee has worked for 4 months and is terminated without cause, he or she is entitled to severance pay equal to 1 (one) month’s salary.
  • If the employee has worked for 1 year and 2 months, he is entitled to a severance payment equal to one (1) month’s salary.
  • If the employee has worked for 1 year and 3 months, he or she is entitled to a severance payment equal to two (2) months’ salary.

Statutory Time Off

Paid Time Off

Both full-time and part-time employees are entitled to 10 working days (14 calendar days) of paid time off (PTO) per year. The number of PTO days and the entitlement to these days depend on the length of service. Before the end of 6 months of service, the employee is entitled to 1 day of annual leave for every 20 working days of service.

Public Holidays

There are 17 national holidays in Argentina. Some holidays are transferable, meaning they will be moved to the previous Monday if they fall on a Tuesday or Wednesday. Those falling on Thursday and Friday will be moved to the following Monday.

In addition, there may be additional non-transferable holidays to give the population the opportunity to spend a long weekend.

The dates of public holidays are published every year

National holidays include:

  • New Year
  • Carnival (2 days)
  • National Day of Remembrance for Truth and Justice
  • Maundy Thursday
  • Good Friday
  • Veterans Day and Falklands War Remembrance Day
  • Labor Day
  • May Revolution Day
  • Day of the awarding of immortality to General Martin Miguel de Güemes
  • Day of the farewell to immortality of General Manuel Belgrano
  • Argentine Independence Day
  • Day of the awarding of immortality to General José de San Martín
  • Day of Respect for Cultural Diversity
  • National Sovereignty Day
  • Feast of the Immaculate Conception of Mary
  • Christmas

Onboarding

Onboarding

Onboarding takes 6 working days. Compliance documents must be completed 2 days before the start date, including the certificate of pre-employment medical examination and bank details.

Additional Info

Employment Contract Details

The contracts must be written in Spanish and can be bilingual. They must be in writing and signed by both parties.

A contract must contain:

  • Surname
  • Start date
  • Length of employment
  • Job Description
  • Termination conditions
  • Payment terms

Probation Period

The probation period is mandatory and lasts 90 calendar days.