Argentina
Knowledge Base
Frequently asked question, important data and information on EOR.
General information
$ 65427 ARS per month
Labor Law
Laws that regulate Labor Relationship
• Law 24. 430: Argentine National Constitution
• Law 24.013: National Employment Law
• Law 11.544: Labor Day Law
• Law 24.557: Labor Risks Act
• Law 25.323: Workers Compensation
Onboarding guide
Requirements for a labor contract
• Name of the employee
• Marital status
• Date of entry and exit
• Remunerations assigned and received
• Individualization of persons that generate the right to the perception of family allowances
• Other data that allow an exact evaluation of the obligations under their charge
Article 56, Law 20744
Pre-hire Medical exam
Yes, mandatory.
• It must include: complete physical examination, chest x-ray, electrocardiogram, laboratory tests, neurological and psychological studies and sworn statement of the applicant or worker regarding the pathologies of his knowledge.
• In no case can be used as a discriminatory cause for employment
• It is prohibited to carry out studies such as HIV and Chagas disease.
• Drug and alcohol tests are not contemplated (unless they are necessary due to the nature of the function to be performed)
• Avoiding this medical exam, may involve penalties
Resolution of the Super intendency of Occupational Risks (SRT) N° 37/10
Types of contracts
• Indefinite term Article 99, Law 20744
• Fixed-term Article 108, law 20744
• Specific work or time Article 102, Law 20744
• Season Contract Article 105, Law 20744
Probation Period
The probation period is three months. During the first three months of employment, should the employer or the employee decide to terminate the contract without cause, the employer has no obligation to pay severance but must notify the employee of the termination 15 days in advance.
Are offer letters mandatory in the country?
Not Mandatory
Are digital signatures in labor contracts valid?
Permitted
Mandatory onboarding documents
• Birth Certificate or ID
• Form 572 (Deductions)
• Form 1357 (Income tax settlement)
• Unique Tax Identification Code (CUIT)
Statutory benefits
Annual Bonus
Supplementary annual salary is understood as the 13th paid month (Aguinaldo), received by the worker in the respective calendar year.
It is paid in two installments: the first one in June and the second in December each year.
Additional bonus
Doesn’t Apply
Leaves (medical, maternity, paternity, etc.)
• Maternity Leave: 90 days, of which the mother must take at least 30 days before the birth of the child. Commonly, the leave is split 45 days on either side of the delivery
• Paternity Leave: New fathers are entitled to 2 days of paid paternity leave
• Sick Days: If an employee has worked for a company for less than five years, they are entitled to a maximum of 3 months of paid sick leave. Once they have worked for a company for more than five years, the paid sick leave is extended to 6 months
• Marriage Leave: 10 days’ leave for their marriage
• Bereavement Leave: 3 days’ leave for the death of a child, parent, or spouse, 1 day leave for the death of a sibling
• Other Leaves: 2 days’ leave (at any one time, with a maximum of 10 days) for university or high school exams
Annual Leave (days per year)
The employee will enjoy a minimum and continuous period of paid annual rest, for the following periods:
•1 – 5 years of seniority: 14 days
•5-10 years of seniority:21 days
•10-20 years of seniority: 28 days
•More than 20 years of seniority: 35 days
Article 150 of the L.C.T.
How do vacation days expire?
Only 1/3 of the unused vacations from the previous period may be used in the next year. This must be agreed by the parties. When termination occurs, the employee is entitled to receive an indemnity corresponding to the vacation period proportional to the fraction of the year worked
Official Holidays
• 1 Jan, New Year’s Day
• 20 Feb, Carnival
• 21 Feb, Carnival
• 24 Mar, Truth and Justice Day
• 2 Apr, Malvinas Day
• 7 Apr, Good Friday
• 1 May, Labor Day
• 25 May, Revolution Day
• 26 May, Revolution Day Holiday
• 17 Jun, Martín Miguel de Güemes’ Day
• 19 Jun, Flag Day Holiday
• 20 Jun, Flag Day
• 9 Jul, Independence Day
• 21 Aug, Death of San Martin
• 13 Oct, Day of Respect for Cultural Diversity Holiday
• 16 Oct, Day of Respect for Cultural Diversity
• 20 Nov, National Sovereignty Day
• 8 Dec, Immaculate Conception
• 25 Dec, Christmas Day
Holidays that fall at the end of the week are moved to the following Monday.
On non-working days, work shall be optional for the employer, except in banks, insurance and related activities, as determined by regulation. On such days, the workers who render services shall receive the simple salary.
In case the employer chooses the non-working day, the salary shall also be paid to the worker.
Working on holidays and Sundays
Paid at 100% extra on top the regular wage
Number of Working hours
8 Hours a day, 48 hours per week
•Day Shift 6:00 am– 9:00 PM
•Night Shift 9:00 PM – 6:00 am
For every six days of work the employee must enjoy a rest day
Overtime
Paid at 50% extra on top of the regular wage. Overtime is permitted up to 8 hours a week
Social Security (what does it cover)
• Pension fund: Argentine Integrated Pension System (SIPA)
• Retirement: National Institute of Social Services for Retirement and Pensions (PAML)
• Work Risk Insurance: (ART)
• Mandatory Life Insurance
• Family Allowance Scheme (SUAF)
• National Employment Fund, Social work
Payroll
Salary payment currency
Argentinian peso (ARS)
Can salary be paid in a different currency other than the local currency?
No
Payment frequency
Monthly, at the end of each calendar month.
Employees with daily or hourly wages must be paid weekly or bi-weekly.
Personnel who are paid per project must be paid weekly or bi-weekly.
VAT percentage
21.00%
Income Tax
Residents and non-residents are taxed at progressive income tax rates ranging from 5% to 35%. For more information see https://taxsummaries.pwc.com/argentina/individual/taxes-on-personal-income
Tax Payer Identification Number
• Unique Tax Identification Code – Código Único de Identificación Tributaria (CUIT)
• Unique Labor Identification Code – Código Único de Identificación Laboral (CUIL)
Offboarding
Voluntary resignation
The termination of the employment contract due to the resignation of the employee, whether or not prior notice is given, as a requirement for its validity, must be formalized using a telegraphic courier sent personally by the employee to his employer or the administrative labor authority.
If an employee resigns, there is no compensation cost for the company, the employee is liquidated on the days of the month of the termination, and the Christmas bonus is added (proportional to the months worked up to that point in the year) and the vacations not taken, also proportional to the year worked.
Contract termination
The employment contract will end in the following cases:
• Mutual agreement
• Resignation of the employee
• Death of the employee or employer
• For permanent disability
• Worker’s retirement
• Due to abandonment of employment by the worker
• For dismissal with justification
• For denouncing the contract with just cause
Justified Dismissal
Dismissal with cause is the unilateral decision of the employer to terminate the employment relationship, based on the breach of any of the employee’s obligations.
Reasons for dismissing an employee with just cause:
• Repeated unjustified absences
• Unjustified breach of any of the obligations assumed by the employee in the employment contract.
• Misbehavior
• Theft of belongings from the workplace
• Use of physical or verbal violence
Unjustified Dismissal
Dismissal without cause consists of the unilateral decision of the employer to terminate the employment relationship with his employee without expressing any reason that justifies it or that has decided to make that determination.
In this case, the employer must pay the employee for the dismissal:
• A severance indemnity equivalent to ONE (1) month’s salary for each year of service or fraction greater than THREE (3) months, based on the best monthly, normal, and customary remuneration earned during the last year or during the time of service, whichever is less.
• If the employer omitted to give notice, it shall pay an amount equivalent to the remuneration that would correspond to the employee: ONE (1) month when the employee has been employed for a period not exceeding FIVE (5) years and TWO (2) months when the employee has been employed for more than FIVE (5) years.
• It must also pay the employee the Christmas bonus and vacations proportional to the time of the year worked until the dismissal.
Art. 245
Severance pay
The severance payment corresponds to:
• Proportional salary for the current month
• Proportional amount of the statutory Annual Bonus
• Proportional amount of unused vacations
• Compensation in lieu of notice (If the employer does not give notice, must pay a compensation in lieu of notice)
Compensation:
• For unjustified dismissals: If the contract has been valid for a year or more and the employer terminates without a just cause, the worker must be paid compensation for the years of service: 30 days of salary for each year of service and a fraction greater than 6 months, with a maximum of 330 days
• For justified dismissals: there is no payment of additional compensation required
Minimum Notice Period
For resignation: 10 days
For dismissal:
•10 days: up to 1 year
• 30 days: up to 5 years
• 2 months: more than 5 years.
During the notice period, the employee is entitled to 10 paid hours per week to look for new employment.
Immigration
Visa process
1. Gather the required documents and complete the visa application (signed)
2. Appointment at the corresponding Consular Representation in order to present the documents
3. The applicant must attend the appointment and submit the documentation (original and copy) The person must present:
• Visa application form (downloaded from the website)
• Commitment to tell the truth Sworn declaration
Note: Work visas can only be processed at the Consular Representation of the Argentine Republic corresponding to the foreigner’s domicile. The procedure is personal.
All candidates working under a foreign work contract must get the contract translated into Spanish. Then, the Argentina chamber of commerce will sign and certify it. Contracts must include information about a candidate’s period of employment, details of the company, names of all dependents, and evidence of a social security fund. Your company should then send the files to the Argentine consulate in the employee’s home country.
Visa documents
• Valid passport valid for at least 6 months on the date of entry into the country, and at least one blank page (two pages) available
• Two (2) current photographs 4x4cm with white background
• Completed visa application form signed by the applicant
• Proof of residence in the jurisdiction of the Consulate (by presenting a service ticket or other supporting documentation)
• Apostilled or legalized criminal record certificate, issued by the competent authority of the countries where the employee has resided for more than 1 year during the last
3 years
•Commitment to tell the truth or Sworn statement of lack of criminal record in other countries Labor contract
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