Access Argentina's Top Tech Talent Without the Regulatory Overhead.
Argentina has one of Latin America's strongest talent pools in software development, design, and professional services. RecruitGo handles AFIP registration, social security contributions, aguinaldo payments, union compliance, ART insurance, and all payroll in ARS so you can hire in days.
What Is an Employer of Record in Argentina?
An Employer of Record (EOR) is a locally registered entity that legally employs workers in Argentina on your behalf. RecruitGo's Argentine entity becomes the legal employer. We sign the employment contract, register employees with AFIP (the federal tax authority), manage social security contributions (pension, healthcare, and social services), withhold income tax, pay the mandatory aguinaldo (13th month salary), arrange ART (workers' compensation insurance), and navigate the collective bargaining agreements that apply to most industries.
You retain full control over the employee's work, schedule, and responsibilities. They report to you, work on your projects, and function as part of your team. We handle everything that Argentine labor law places on the employer, including the complexity of union agreements that can override base statutory minimums.
Why EOR matters more in Argentina: Argentina has some of the most employee-protective labor laws in the world, strong unions with sector-wide bargaining power, mandatory 13th month salary, generous sick leave, and severance at 1 month per year of service. Employer social security contributions run 24 to 27% of gross salary. Getting any of this wrong is expensive. EOR removes the risk entirely. See full EOR vs entity comparison →
Who Should Use EOR in Argentina?
What It Costs to Hire Through EOR
Argentina has one of the highest employer cost burdens in Latin America. Social security contributions alone run 24 to 27% of gross salary (uncapped for employers). On top of that, the mandatory aguinaldo (13th month salary) adds 8.33% and ART (workers' compensation) adds 1 to 5% depending on industry risk. Total loaded cost is typically 140 to 150% of gross salary before the EOR fee.
| Component | Monthly (ARS) | Rate |
|---|---|---|
| Gross salary | 2,000,000 | — |
| Pension fund (employer) | ~215,000 to 247,000 | 10.77–12.35% |
| Healthcare / Obra Social (employer) | 120,000 | 6% |
| Family allowances | ~89,000 to 111,000 | 4.44–5.56% |
| INSSJP (retiree healthcare) | ~30,000 to 32,000 | 1.5–1.62% |
| National Employment Fund | ~18,000 to 22,000 | 0.89–1.11% |
| ART (workers’ comp) | ~48,000 to 100,000 | ~2.4–5% |
| Life insurance | 10,000 | 0.5% |
| Aguinaldo provision | ~167,000 | 8.33% (13th month) |
| Total employer cost | ~2,700,000 to 2,910,000 | ~135–146% |
* Employer social security rates depend on company type and size. Larger service/trade companies pay 26.5%; others pay 24%. SMEs may qualify for reduced rates under government programs. Employer contributions are not capped. Employee contributions (17% total) are capped at a monthly maximum that adjusts for inflation (ARS 3,823,373 as of January 2026). Aguinaldo is calculated as 50% of the highest monthly salary in each semester, paid in June and December. ART rates vary by industry risk classification. EOR management fee not included above.
Inflation and salary adjustments: Argentina's inflation rate has been running 20 to 25% annually in late 2025 and early 2026. Tax brackets, social security caps, and minimum wages are adjusted twice per year (January and July). Collective bargaining agreements typically include automatic salary adjustments linked to inflation. Your EOR monitors all indexation changes and adjusts payroll accordingly.
How Hiring Works Through EOR
You share the role, salary in ARS, location, and start date. We identify the applicable collective bargaining agreement (CBA), confirm union obligations, and return a full cost breakdown within 24 hours.
We draft an employment contract compliant with Law 20,744 (Employment Contract Law) and the applicable CBA. We register the employee with AFIP, enroll them in the Obra Social (health insurance), arrange ART coverage, and set up income tax withholding.
We run monthly payroll in ARS, calculate and remit all social security contributions, withhold income tax, and provide payslips. In June and December, we calculate and pay the aguinaldo (13th month). Vacation pay is calculated at salary/25 per day.
Argentina’s labor and tax regulations change frequently due to inflation indexation, CBA renegotiations, and government decrees. We monitor all AFIP updates, minimum wage adjustments, CBA salary scales, social security cap changes (adjusted monthly), and labor law reforms.
EOR vs Argentine Entity vs Contractors
| EOR | S.A. / S.R.L. | Contractor | |
|---|---|---|---|
| Time to first hire | 3 to 5 days | 4 to 8 weeks | Immediate |
| Setup cost | None | USD 3K to 10K+ | None |
| Union / CBA compliance | Handled by EOR | Your responsibility | Not applicable |
| Aguinaldo / severance | Managed by EOR | Your responsibility | None (risk if misclassified) |
| AFIP registration | Handled by EOR | Your responsibility | Self-employed (monotributo) |
| Best for | 1 to 20 people, speed | 30+, permanent ops | Short-term, defined projects |
Contractor risk in Argentina: Many companies hire Argentine “contractors” on monotributo (simplified tax regime) to avoid employer costs. This is extremely risky. Argentine labor courts will reclassify the relationship as employment if the contractor works exclusively for you, follows your schedule, or is integrated into your team. Reclassification triggers backdated social security (24 to 27%), aguinaldo, vacation pay, severance, and penalties. Argentina's courts are strongly pro-employee.
Income Tax (Impuesto a las Ganancias)
Argentina uses a progressive income tax system for salaried individuals, administered by AFIP. Employers withhold tax monthly. Tax brackets and deduction thresholds are adjusted twice per year (January and July) to account for inflation. The tax year runs from January 1 to December 31. Rates range from 5% to 35%.
Income tax thresholds (as of August 2025): The minimum salary subject to income tax withholding is approximately ARS 1,934,000 net for single employees and ARS 2,564,000 net for married employees with two children. These thresholds adjust with inflation. For many mid-level employees in Argentina, income tax may not apply or is minimal due to the high thresholds relative to typical salaries outside Buenos Aires. Your EOR calculates withholding each month based on the latest AFIP tables.
In addition to income tax, employees contribute 17% of gross salary to social security (capped at a monthly maximum that adjusts for inflation). Employers deduct this from wages and remit along with their own contributions to AFIP by the relevant monthly deadline.
Employee Benefits and Leave Entitlements
Mandatory leave entitlements
Union agreements matter: Collective bargaining agreements (Convenios Colectivos de Trabajo) apply to most industries in Argentina and often provide benefits above the statutory minimums, including higher vacation days, additional bonuses, meal or transport allowances, and specific salary scales. Your EOR identifies the applicable CBA for each employee's role and ensures full compliance.
Termination Rules and Severance
Argentina has some of the strongest employee protections in Latin America. Dismissal without cause is legal but requires full severance compensation. Argentine labor courts are strongly pro-employee, and litigation over termination is common.
Notice periods
| Length of service | Notice required (employer) |
|---|---|
| During probation (first 3 months) | 15 days |
| 3 months to 5 years | 1 month |
| More than 5 years | 2 months |
Payment in lieu of notice is permitted. Employees resigning must provide 15 days' notice.
Severance (indemnización por despido sin causa)
Employees dismissed without just cause are entitled to 1 month's salary for each year of service (or fraction greater than 3 months). The salary used is the highest monthly regular compensation in the last 12 months. The per-year amount is capped at 3 times the average monthly salary under the applicable CBA, but in no case can the total per year be less than 1 month's salary (the Vizzoti ruling by the Supreme Court sets the minimum at 67% of actual salary if the CBA cap reduces it by more than 33%).
Total termination cost example: For an employee with 5 years of service dismissed without cause: severance (5 months' salary) + notice period (1 month's salary or payment in lieu) + pro-rated aguinaldo + pro-rated vacation pay + any pending salary. Total can easily reach 8 to 10 months' salary. Your EOR provisions for these costs throughout the employment to avoid large lump-sum payouts.
Termination with cause
Termination for cause (e.g., serious misconduct, repeated unjustified absences, breach of duty) does not require severance. However, the employer must provide a detailed written notice specifying the grounds. Argentine courts scrutinize cause-based dismissals closely, and the burden of proof is on the employer. If the court finds the stated cause insufficient, the dismissal is treated as without cause and full severance applies.
Probation period
The first 3 months of employment are a probation period. During this time, either party can terminate with 15 days' notice and no severance obligation. After the probation period, full employment protections apply.
Working Hours and Overtime
The standard workweek is 48 hours (8 hours/day, 6 days/week). Most office roles follow a 9-hour day, Monday to Friday (with a 1-hour break). Night work (9 PM to 6 AM) is limited to 7 hours. Hazardous work is limited to 6 hours/day and 36 hours/week.
| Scenario | Rate |
|---|---|
| Overtime on a regular workday | 150% of hourly rate (base + 50%) |
| Overtime on weekends/holidays | 200% of hourly rate (double pay) |
| Work on a public holiday (no overtime) | 200% of daily rate |
| Maximum overtime | 30 hours per month, 200 hours per year |
Frequently Asked Questions
Total employer cost is typically 135 to 146% of gross salary. This includes social security (24 to 26.5%), ART (1 to 5%), life insurance (0.5%), and aguinaldo provision (8.33%). Argentina has one of the highest employer cost burdens in Latin America. The EOR management fee is additional.
The aguinaldo is a mandatory 13th month salary, paid in two installments (June 30 and December 18). Each installment equals 50% of the highest monthly salary earned in that semester. It is not optional and applies to all employees. Failure to pay it triggers penalties and employee claims.
Employees dismissed without cause receive 1 month’s salary per year of service (or fraction over 3 months), based on the highest monthly regular compensation in the last 12 months. The per-year amount is capped at 3x the average CBA salary but can never be less than 1 month’s actual salary. Plus notice pay, pro-rated aguinaldo, and vacation.
Almost certainly. Argentina has sector-wide collective bargaining agreements that apply based on the employee’s activity, not the employer’s choice. A software developer may fall under the IT workers’ CBA (CCT 753/19), an accountant under the commercial employees’ CBA (CCT 130/75). Your EOR identifies and complies with the applicable CBA, including its salary scales, benefits, and union dues.
This is very risky in Argentina. If the worker is exclusive to you, follows your schedule, or is integrated into your team, courts will reclassify the relationship as employment. This triggers backdated social security (24 to 27%), aguinaldo, vacation, severance, and penalties. Argentine courts are strongly pro-employee in reclassification cases.
Argentina’s inflation has been running 20 to 25% in late 2025 and early 2026. Social security caps, tax brackets, minimum wages, and CBA salary scales are adjusted frequently (monthly, quarterly, or biannually depending on the item). Your EOR monitors all indexation changes and adjusts payroll calculations each period.
Maternity: 90 days (paid by social security, not the employer). The employee is protected from dismissal during pregnancy and for 7.5 months after birth. Paternity: 2 calendar days (paid by employer). Some CBAs provide more. There is no statutory parental leave beyond these provisions.
Typically 3 to 5 business days from signed agreement. Setting up your own S.A. or S.R.L. takes 4 to 8 weeks including AFIP registration, social security enrollment, ART setup, and bank account opening.
Law 27,506 provides up to 70% reduction in employer social security contributions for companies in technology, software, and related fields. To access this, you need your own registered entity and must meet specific criteria. Through EOR, your employees can still benefit from competitive Argentine tech salaries without the entity overhead.
Employer and Employee Contributions
Argentina's social security system is funded by both employer and employee contributions. The employer contribution is among the highest in Latin America and is not capped. Employee contributions are capped at a monthly maximum that is indexed monthly for inflation.
Employer contributions (24 to 26.5% of gross salary)
Employee contributions (17% of gross salary, capped)
The rate depends on company size: Larger companies in services or trade (annual sales above certain thresholds) pay 26.5% total employer contribution. Smaller companies and those in non-service sectors pay 24%. SMEs may qualify for further reductions under government employment programs. Companies in the Knowledge Economy regime (Law 27,506) can receive up to 70% reduction in employer contributions for qualifying employees.
Additional mandatory costs