Employee Leasing in Argentina

• Expanding business activity into Argentina through employee leasing allows clients to have great ease and flexibility in their market entry.
• Employee leasing lets clients focus on business decisions, while FMC Group handles the administrative management of employees.
• Recruiting local employees improves clients’ competitiveness by reducing the time needed for integration and adaptation.
• Employee leasing lets clients benefit from the Argentinian talent pool without setting up a local company.

• Searching for the best candidates that match the client’s requirements;
• Negotiating and signing employment contracts;
• Paying the necessary taxes and social contributions;
• Ensuring payroll accounting that matches international standards;
• Paying all types of expenses and allowances;
• Monitoring paid vacations;
• Implementing private health insurance if requested;
• Maintaining regular contact with clients.

• Argentina covers most of the Southern portion of South America. It is the world’s eighth-largest country, encompassing immense plains, tundra, forests, as well as mountains, rivers, a desert, and thousands of kilometers of ocean shoreline. Its size and location, along with its various geological riches, make it an opportune investment market.
• Argentina is a member of the Southern Common Market (MERCOSUR), a South American trade bloc with four fully-pledged members (Argentina, Brazil, Paraguay, and Uruguay) and seven associated members (Chile, Bolivia, Colombia, Ecuador, Guyana, Peru, and Suriname). This facilitates access to the entire market of the South American continent.
• Argentina has a high quality of life, good healthcare and education, along with a rich history and diverse culture, which has attracted many skilled professionals and entrepreneurs over the past decade. The country is currently one of the most favored destinations in South America to find talented workers, notably in the IT sector.
• Argentina has some of the best infrastructures in South America. The country has extensive road and rail networks of over 35,000 kilometers running throughout the country, more than 40 seaports, and over 50 airports.
• The Argentinian government has made remarkable efforts in recent years to provide a stable macroeconomic environment. Some of the most notable measures include the elimination of capital repatriation restrictions, the elimination of export tariffs, and increased tax incentives for foreign investments.
• You can find out more about the investment incentives provided by the Argentinian government on the website of the Argentine Investment and Trade Promotion Agency.

Minimum Wage and Payroll

• The monthly minimum wage in Argentina is set at ARS 32,616 (EUR 243).
• Salaries are paid either weekly, biweekly, or monthly, depending on the type of work.
• The 13^th-month bonus salary is mandatory in Argentina. It is paid in two installments equal to half the regular salary. The installments have to be paid before June 30^th and December 18^th.

Social Contributions and Taxes

Employer Contributions
Pension Fund	18.00% – 21.00%
Health Insurance	6.00%
Labor Risk Insurance	2.41%
Life Insurance	0.50%
Occupational Disease Trust Fund	ARS 100 (EUR 0.75)
Total	26.91% – 29.91% + ARS 100
Employee Contributions
Pension Fund	11.00%
Social Security	3.00%
Health Insurance	3.00%
Total	17.00%
Employee Income Tax
Up to ARS 64,533 monthly (EUR 481)	5.00%
Between ARS 64,533 and ARS 129,065 (EUR 481 – EUR 962)	9.00%
Between ARS 129,065 and ARS 193,598 (EUR 962 – EUR 1,443)	12.00%
Between ARS 193,598 and ARS 258,131 (EUR 1,443 – EUR 1,924)	15.00%
Between ARS 258,131 and ARS 387,196 (EUR 1,924 – EUR 2,886)	19.00%
Between ARS 387,196 and ARS 516,261 (EUR 2,886 – EUR 3,848)	23.00%
Between ARS 516,261 and ARS 774,392 (EUR 3,848 – EUR 5,772)	27.00%
Between ARS 774,392 and ARS 1,032,522 (EUR 5,772 – EUR 7,696)	31.00%
From ARS 1,032,522 (EUR 7,969)	35.00%

 

Working Hours and Overtime

• Legal working hours in Argentina cannot exceed 48 hours per week and eight hours per day.
• Workers with night shifts (9 p.m. to 6 a.m.) can only work seven hours per day.
• Overtime work is paid at a rate of 150% of the regular pay on regular working days.
• Overtime work is paid at a rate of 200% of the regular pay on weekends and public holidays.
• Overtime work cannot exceed three hours per day, 30 hours per month, and 200 hours per year.

Vacation Days

• Employees in Argentina have the right to a minimum of 14 days of paid vacation per year. After five years of employment, the duration increases to 21 days. After 10 years of employment, it increases to 28 days. Finally, after 20 years, it increases to 35 days.
• Argentina commemorates 15 public holidays:
  • New Year’s Day: January 1^st;
  • Carnival (two days): Between February and March (moveable);
  • Day of Remembrance for Truth and Justice: March 24^th;
  • Day of the Veterans and Fallen of the Falklands War: April 2^nd;
  • Good Friday: Between March and April (moveable);
  • Labor Day: May 1^st;
  • General Martin Miguel de Güemes Memorial Day: June 17^th;
  • General Manuel Belgrano Memorial Day: June 20^th;
  • Independence Day: July 9^th;
  • General José de San Martin Memorial Day: August 17^th;
  • Day of Respect for Cultural Diversity: October 12^th;
  • National Sovereignty Day: November 20^th;
  • Immaculate Conception Day: December 8^th;
  • Christmas Day: December 25^th.

Parental Leave and Sick Leave

• Female employees in Argentina are entitled to 90 days of paid maternity leave, usually divided into 45 days before delivery and 45 days after. Pay is fully covered by social security during maternity leave.
• New fathers are entitled to two days of paid paternity leave after the birth of their child.
• Employees in Argentina are entitled to a maximum of three months of paid sick leave in their first five years of employment and six months of leave afterward. Pay during sick leave is fully covered by the employer.

Other Types of Paid Leave

• Employees in Argentina can take 10 days of paid leave for their marriage.
• Employees are entitled to three days of paid leave for the death of a child, parent, or spouse, and one day for the death of a sibling.
• Employees can take two days of paid leave for university and high school exams, with a maximum of 10 days per year.

Notice Period

• Employees wishing to resign have to provide one month’s notice if they worked for the same employer for less than five years and two months’ notice if they worked more than five years.

Further Useful Information

• More information about recruitment in Argentina is provided by the Argentinian Ministry of Labor (Spanish).