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Mercans offers complete payroll, PEO and HR services in Argentina

Mercans is a leading provider of comprehensive payroll, PEO, and HR services in Argentina. With a team of experienced professionals and advanced technology, Mercans simplifies complex HR processes, ensuring accuracy, compliance, and timely delivery. Whether you need help with payroll management, employee benefits administration, or legal compliance, Mercans offers tailored solutions to meet your unique business needs. With Mercans, you can streamline your HR functions and focus on what matters most - growing your business.

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Doing Business in Argentina

Doing business in Argentina offers both opportunities and challenges. With a diversified economy and a skilled workforce, Argentina offers a large consumer market and a strategic location in the Southern Cone. However, the country's complex regulatory environment, high inflation, and bureaucratic hurdles can present obstacles to foreign investors. It's important to work with trusted local partners and navigate the legal and business landscape with care.

Entity Registration and Incorporation Requirements

To register and incorporate an entity in Argentina, you'll need to provide a set of documents, including a power of attorney, corporate bylaws, and the names of the directors and shareholders. You'll also need to obtain a tax ID number, register with the commercial registry, and pay the corresponding fees.

Banking

Banks are usually open for business from 10:00 till 15:00 (depending on cities and seasons) and are closed on Saturday and Sunday

Working Week

From Monday through Saturday, there are a maximum of eight working hours per day. Employees may work unequally during the week as long as they do not exceed 9 hours on any single day, and they do not work after 1 pm on Saturdays. The normal working hours do not apply to managers and directors.

Labor Law

The Labour Law in Argentina is regulated mainly by the Labor Contract Law No. 20,744. The Labour Contract Law governs the terms and conditions of employment such as working hours, holidays and rest periods, wages, overtime, employment relationships. The other acts that govern employment relationships are Law on Work Time, 1929, No. 11,544, Decree on National Holidays, No. 1584/2010, Collective bargaining agreements, etc.

Main Industries

Food processing, beverages motor, vehicles, auto parts, appliances, electronics, machinery

GDP Growth

1.7%

Dates & Numbers

dd/mm/yyyy

Official State Name

Argentine Republic

Population

45.81 million

Capital

Buenos Aires

Major Languages

Spanish

Currency

Argentine Peso (ARS)

Internet Domain

.ar

International Dialing Code

+54

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Argentina
Buenos Aires, AR
6:13 am, November 21, 2024
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Humidity 73 %
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Payroll

Payroll in Argentina can be complex and requires compliance with various legal and tax regulations. Employers must register with the tax authorities and obtain a tax ID number, calculate and withhold employee income tax, social security contributions, and other taxes, and make timely payments to the relevant agencies. It's important to work with a knowledgeable local partner to ensure accurate and compliant payroll processing.

It is acceptable to provide employees with online payslips

Payslip

Payroll reports must be kept for 2 years

Reports

Employees receive paid annual leave of 35 days

Annual Leave

Employees receive paid sick leave of 90 days

Sick Leave

3 months of paid maternity leave and 2 days of paid paternity leave

Maternity & Paternity Leave

30 days

Employee Termination

There are no provisions mandated by law regarding the 13thmonth salary

13thmonth salary

69,500 pesos per month

Minimum Wage

Overtime payment of 2x the employee's ordinary rate of pay for the first 3 hours of service

Overtime

Employees paid monthly are entitled to 30 days’ pay for each year of employment for every year of service

Severance Pay

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Tax and Social Security

In Argentina, businesses are subject to a complex tax system that includes federal, provincial, and municipal taxes. Employers must also contribute to the social security system, which provides benefits such as retirement, disability, and healthcare. Compliance with tax and social security regulations is essential, and businesses should work with local experts to ensure accurate reporting and timely payment of taxes and contributions.

Tax

In Argentina, employees are subject to progressive income tax rates, and employers are responsible for withholding and remitting the corresponding amounts to the tax authorities on a monthly basis.

25%

Corporate Income Tax

35%

Personal Income Tax

21%

Sales Tax

21%

VAT

Social Security

Social security in Argentina includes contributions for retirement, disability, healthcare, and other benefits, which are mandatory for employers and employees.

37.4%

Social Security Rate

20.4%

Social Security Rate for Employers

17%

Social Security Rate for Employees

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Employment Law

Employment law in Argentina is complex and highly regulated, covering various aspects such as hiring and termination, compensation, working hours, vacation, and employee benefits. Employers must comply with the applicable federal, provincial, and municipal laws and regulations, and work with legal experts to ensure compliance and avoid potential liabilities.

Employment Agreement

A written employment contract must be executed; it requires an extraordinary need that duly justifies executing a fixed term contract. there is a maximum term of 5 years; the employer must serve prior notice of termination (no less than 1 month and no more than 2 months).

Working condition

Living in Argentina lets most expats lead a relatively comfortable life. Some of the most well-known indices, such as the Mercer Quality of Living Survey, routinely rank Argentina well above other Latin American nations.

Leaves

Employees who have worked for an employer for more than six months are entitled to 2 weeks of annual leave. The amount of holiday entitlement increases with the length of continuous employment, up to a maximum of 35 days. New employees are entitled to 1 day of leave for every 20 days worked.

Employment termination

The employer must justify any termination with notice unless it is through mutual agreement, the employees’ failure to fulfill their work requirements, severe misconduct, or economic factors.

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30 days

Minimum notice period for terminating an employee

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16 days

Total number of public holidays

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48 hours

Working hours per week

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3 days

Total number of days for Compassionate & Bereavement Leave

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Immigration

There are three categories of residence for Argentina: transitory, temporary, and permanent residence. Temporary Residency is for foreigners who want to live in the country/territory for an extended period. They can work, study, live, etc. A Work Residence is the residence type applied to foreigners employed by a local company long term. The Work Residence is valid for one year, and this can be extended indefinitely. Permanent Residence is for those foreigners who want to live in the country/territory permanently.

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Residency permits

Becoming a permanent resident in Argentina is largely a matter of lawfully meeting the requirements of temporary residence for at least two years and then filling out the necessary paperwork. Once you’re a permanent resident, you can work and live in the country indefinitely.

Work Permit Validity

1 year

Required Documents

A valid passport

Three passport photos

Notarized certification of the company’s intra-company transfer or an employer-signed employment contract

Their birth certificate

A marriage certificate or divorce decree, if applicable

A certificate of good conduct

An affidavit showing that they don’t have an international police record

An official certified copy of degree certificate or professional credentials

Compliant, reliable, error-free and touchless payroll in Argentina

Build the best team and hire top talent compliantly in Argentina. Get in touch with Argentina payroll outsourcing & PEO specialists for a free consultation!

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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