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Global Payroll Team
Written by Global Payroll Team
Last updated May 7, 2026
Expert Reviewed
Payroll in Argentina
Tax in Argentina
Immigration in Argentina

Argentina map

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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, helping employers stay aligned with Argentina’s labor, tax, payroll, and social security requirements. 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, a skilled workforce, and a large consumer market, Argentina remains an important commercial hub in the Southern Cone. Employers and investors should also plan carefully for local labor compliance, payroll administration, tax reporting, inflation-related adjustments, and regulatory formalities. Working with trusted local partners remains important for compliant and efficient operations.

Entity Registration and Incorporation Requirements

To register and incorporate an entity in Argentina, businesses generally need to prepare the relevant constitutional documents, appoint directors or representatives, obtain a tax identification number, register with the applicable public registry, and complete labor, payroll, and tax registrations as required for operations.

Banking

Banks are usually open for business from 10:00 till 15:00, although hours may vary depending on the city, province, and season.

Working Week

From Monday through Saturday, the legal maximum working time is generally eight hours per day or 48 hours per week. 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 rules do not apply in the same way to managers and directors.

Labor Law

Labor relations in Argentina are regulated mainly by the Labor Contract Law No. 20,744, together with the Working Time Law No. 11,544, collective bargaining agreements, and other employment, social security, and holiday regulations. These rules govern employment contracts, working hours, holidays, leaves, wages, termination, and other key employment conditions.

Main Industries

Food processing, beverages, motor vehicles, auto parts, appliances, electronics, machinery, chemicals, agriculture and mining

GDP Growth

4.0% (2024)

Dates & Numbers

dd/mm/yyyy

Official State Name

Argentine Republic

Population

45.70 million (2024)

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
8:03 pm, July 17, 2026
21°C
overcast clouds
89 %
Wind Gust: 2 mph
Clouds: 100%
Sunrise: 7:57 am
Sunset: 6:01 pm

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Payroll

Payroll in Argentina requires compliance with labor, tax, and social security regulations. Employers must register with the tax authorities, calculate and withhold employee income tax where applicable, remit mandatory employee contributions, pay employer social security charges, and comply with statutory payroll items such as the Sueldo Anual Complementario. Working with a knowledgeable local partner helps ensure accurate and compliant payroll processing.

It is acceptable to provide employees with online payslips where payroll information is properly delivered and retained

Payslip

Payroll and employment records should be retained in line with applicable labor and tax rules

Reports

Employees receive paid annual leave ranging from 14 to 35 calendar days depending on length of service

Annual Leave

Paid sick leave generally ranges from 3 to 12 months depending on seniority and family dependents

Sick Leave

90 days of paid maternity leave and 2 days of paid paternity leave

Maternity & Paternity Leave

Notice varies by circumstance, generally 15 days during probation, 1 month up to 5 years of service, and 2 months after 5 years

Employee Termination

The 13th month salary is mandatory through the Sueldo Anual Complementario, paid in two installments

13thmonth salary

352,400 pesos per month for monthly employees working the full legal schedule from 1 March 2026

Minimum Wage

Overtime is generally paid at 50% extra on weekdays and 100% extra on Saturdays after 1 pm, Sundays, and public holidays

Overtime

Employees are generally entitled to one month of salary per year of service or fraction greater than 3 months in cases of dismissal without cause

Severance Pay

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Tax and Social Security

In Argentina, businesses are subject to federal, provincial, and municipal taxes. Employers must also comply with payroll withholding and social security obligations that fund retirement, healthcare, social services, and other benefits. Accurate tax and social security administration is essential for compliant employment operations.

Tax

In Argentina, employees are subject to progressive income tax rates, and employers are responsible for withholding and remitting the corresponding amounts when applicable. Corporate income tax is progressive, with rates of 25%, 30%, and 35% depending on taxable income levels. The standard VAT rate is 21%.

≤ 35%

Corporate Income Tax

35%

Personal Income Tax

21%

Sales Tax

21%

VAT

Social Security

Social security in Argentina includes retirement, healthcare, and social service contributions that are generally mandatory for employers and employees. Standard employee contributions are generally 17%, while employer contributions commonly range from 23.6% to 25.5%, depending on the employer’s activity and other applicable rules.

≤ 42.5%

Social Security Rate

≤ 25.5%

Social Security Rate for Employers

17%

Social Security Rate for Employees

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Employment Law

Employment law in Argentina is detailed and highly regulated, covering hiring, working time, compensation, vacation, leave, collective bargaining, social security, and termination. Employers must comply with the applicable federal labor framework and any relevant collective bargaining agreement in order to reduce compliance risks and employment liabilities.

Employment Agreement

Employment contracts in Argentina are generally presumed to be for an indefinite term. Fixed-term contracts are allowed only where there is an objective reason justifying that form of hiring, and they are subject to a maximum term of 5 years. Written contracts are advisable and may be necessary in practice for evidentiary and compliance purposes.

Working condition

The general legal limit for working time is 8 hours per day and 48 hours per week. Hours may be distributed unequally during the week provided daily and weekly legal limits are respected. Night work and overtime are subject to special rules, and collective bargaining agreements may provide additional conditions or benefits.

Leaves

Employees who have worked for an employer for more than 6 months are entitled to paid annual leave. The entitlement depends on the employee’s length of service and ranges from 14 to 35 calendar days. New employees who have not yet completed the required service period may be entitled to proportional leave. Employees are also entitled to special paid leave in cases such as marriage, childbirth, bereavement, and examinations.

Employment termination

Termination rules depend on the reason for dismissal and the employee’s status. Dismissal without cause generally requires statutory notice and severance, while dismissal with just cause must be supported by sufficient grounds. Mutual termination, retirement, force majeure, and other specific legal grounds are also regulated under Argentine labor law.

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15 days to 2 months

Minimum notice period for terminating an employee

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12

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

Argentina recognizes transitory, temporary, and permanent residence categories. Foreign nationals who intend to work in Argentina generally need the appropriate immigration status before starting employment. Temporary residence based on work remains a common route for foreign employees, and residence permits may be granted for up to 3 years depending on the migratory category. Permanent residence may be available once the legal requirements are met.

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Residency permits

Foreign nationals may apply for temporary or permanent residence depending on nationality and immigration category. Temporary residence can be granted for up to 3 years and allows the issuance of a temporary national identity document. Permanent residence does not have an expiration term once granted. Work-related immigration filings may also require the sponsoring entity to be properly registered with Migraciones.

Work Permit Validity

Up to 3 years depending on the residence category granted

Required Documents

A valid passport

Passport photographs, as required by Migraciones

Employment contract or equivalent work sponsorship documentation

Birth certificate, where required

Marriage certificate or divorce decree, if applicable

Criminal record certificates from the country of origin or residence for the required period

Affidavit regarding international criminal records, where applicable

Academic or professional credentials, if relevant to the role

Legalized or apostilled documents and official Spanish translations where required

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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    FAQs

    What is an Employer of Record (EOR) in Argentina and how does it work?

    An Employer of Record (EOR) in Argentina legally employs staff on behalf of foreign companies. It manages employment contracts, payroll, taxes, social security, and compliance with local labor laws, allowing companies to hire employees quickly without establishing a local legal entity.

    Why should international companies use an EOR instead of establishing a legal entity in Argentina?

    Using an EOR eliminates the time and costs associated with setting up a local company. It provides fast market entry, reduces administrative workload, ensures legal and tax compliance, and is ideal for businesses testing the Argentine market or hiring a small team.

    How does payroll outsourcing in Argentina help with compliance and local tax regulations?

    Payroll outsourcing ensures accurate salary processing, tax filings, and social security contributions in accordance with Argentine law. It reduces compliance risks, avoids penalties, and provides expertise on local labor and tax regulations.

    Can an Employer of Record in Argentina hire employees and manage work permits for foreign businesses?

    Yes, an EOR can legally hire employees for foreign companies and handle work permits. It manages HR operations, payroll, and compliance with local labor and immigration laws, enabling smooth operations without a local entity.

    What are the key benefits of using EOR and payroll services in Argentina for global expansion?

    EOR and payroll services enable faster hiring, local compliance, reduced legal and financial risk, and access to market expertise. They allow companies to expand into Argentina efficiently while focusing on business growth.

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