How To Work With an Employer of Record in Argentina

Thinking about expanding your team to Argentina? Great choice!

Argentina is home to a thriving workforce, particularly in sectors like technology, agriculture, and renewable energy. 

Argentina's rich culture and high education standards make it an attractive destination for businesses seeking talented individuals with a passion for innovation.

However, navigating Argentina's complex labour regulations can be challenging without the proper support.

Enter the Employer of Record (EOR) in Argentina. They simplify the hiring process, ensure compliance with local regulations, and manage the administrative load so you can focus on growing your business.

Let me show you how partnering with an EOR in Argentina can make recruiting there a breeze.

Ready? Let's roll.

What Is an Employer of Record in Argentina?

An Employer of Record in Argentina is a third-party organisation that manages your local workforce's legal employment requirements.

EOR services take care of the following tasks:

• Handling payroll
• Managing taxes
• Preparing and overseeing contracts
• Ensuring compliance with Argentine labour laws. 

While the EOR is the legal employer, you still control your team's everyday roles and tasks.

My pro tip: Want to learn more about EOR services? Check out my handy guide on “What Does EOR Stand For” to learn more.

But why do so many businesses hire Argentinian talent? And why do they use EORs in Argentina to do so? Let’s find out.

Why Do Businesses Choose an EOR in Argentina Over Hiring Directly?

Hiring directly in Argentina can be challenging due to complex labour laws, high administrative burdens, and the need for local expertise. 

These challenges make partnering with an EOR an attractive option. Here are some key reasons why so many companies work with an EOR in Argentina:

• Risk Mitigation: Avoid fines and compliance issues by allowing local experts to navigate Argentina's labour laws.
• Faster Market Entry: Setting up a local entity can take months. With an EOR, you can be operational in a matter of weeks.
• Compliance Expertise: Argentina's labour regulations can be intricate, but an EOR ensures you stay on the right side of the law.
• Cost Efficiency: Skip the costs of establishing a legal entity or physical office—an EOR covers all employment aspects remotely.

Partnering with an EOR in Argentina allows you to recruit local talent without the headaches of navigating compliance, such as managing complex tax regulations or keeping up with frequent changes in labour laws. 

So, what makes Argentina such a promising market for hiring? Let me explain.

Understanding the Employment Landscape in Argentina

When I first looked into hiring in Argentina, I quickly realised that its employment environment has unique features.

Argentina is business-friendly, but its labour regulations demand attention to detail.

For instance, you need to manage compulsory social security contributions and understand specific rules for terminating employment.

Here’s what else you need to know about hiring in Argentina.

Standard Working Hours and Overtime

In Argentina, the standard workweek is 48 hours over six days. 

Work-life balance is valued, and many companies adopt flexible working models to keep up with global trends.

My pro tip: Check out my guide on Hybrid vs. Remote Work to understand these flexible working models.

Overtime is regulated and generally paid at higher rates (usually between 150% and 200% of regular pay), depending on whether it’s during the week, weekends, or public holidays. 

Accurate monitoring of overtime is essential to ensure compliance.

Compensation and Currency

Salaries in Argentina are typically paid in Argentine Pesos (ARS), and compensation can vary depending on industry and region.

For example, software developers in Buenos Aires can expect to earn between ARS 300,000 to ARS 500,000 per month, while agricultural roles in rural areas may offer lower compensation. 

Buenos Aires, for instance, often sees higher salaries than other areas due to its higher cost of living.

The minimum wage is periodically reviewed and adjusted by the government, currently set at ARS 132,000 per month in 2024. 

Many employers offer additional benefits like transportation or meal subsidies to attract and retain top talent.

Public Holidays and Vacation Leave

Argentina celebrates numerous national public holidays, including:

• Independence Day (July 9)
• Labor Day (May 1)
• Christmas Day (December 25)

Employees are entitled to 14 paid annual leave days, increasing based on tenure, and around 15 public holidays.

Employers must consider these dates for workforce planning.

Taxes and Social Contributions

Compliance with Argentine tax regulations is crucial for avoiding penalties. Here’s what you need to keep in mind:

Income Tax

Income tax in Argentina ranges from 5% to 35%, depending on an employee's earnings. Employers are required to withhold taxes directly from salaries.

Social Security Contributions

Employers must contribute approximately 27% to 29% of an employee's salary to social security, covering healthcare, pensions, and other benefits. 

These contributions are a significant part of employment costs and should be factored into budgeting.

For example, hiring an employee with a monthly salary of ARS 150,000 would involve an additional ARS 40,500 to ARS 43,500 in social security costs.

Leave Policies and Parental Benefits

Argentine employees are entitled to paid sick leave, and parental leave policies are generous.

Mothers can take up to 90 days of paid maternity leave, while fathers receive 2 days of paternity leave.

Probation Period and Termination

Probation periods in Argentina typically last three months. Termination regulations can be complex, with notice periods and severance requirements varying depending on the employee's length of service.

Choosing the Best EOR in Argentina

Picking the right Employer of Record in Argentina is crucial.

Choosing the wrong provider can lead to compliance issues, unexpected costs, and administrative headaches. 

Here’s what to look for:

• Local Expertise: Your EOR should know Argentina's labour laws inside and out.
• Strong Local Network: An established network can help you navigate local challenges.
• Comprehensive Services: Look for an EOR that handles HR, payroll, compliance, and benefits.
• Transparent Pricing: Clear fees and no hidden costs are essential.
• Proven Track Record: Look for testimonials and success stories from other companies expanding into Argentina.
• Cultural Knowledge: A good grasp of cultural norms can impact employee satisfaction and integration.

Does this all sound like too much hassle? No worries—there are plenty of alternatives if Argentina isn't your ideal destination.

Consider Other Labour Markets

Argentina is a great choice, but other Latin American countries also have a lot to offer. Markets like Brazil, Chile, and Mexico have thriving workforces with unique advantages.

Or consider hiring in South Africa—a rising star in the tech sector with a young, bilingual workforce ready for international business.

My pro tip: If you want to learn more about hiring from South Africa, check out my guide on working with an employer of record in South Africa.

My Final Thoughts

There you have it: Hiring in Argentina doesn’t have to be daunting. 

With the right Employer of Record in Argentina, you can focus on finding and nurturing top talent while they handle compliance, payroll, and local regulations.

Let your EOR take care of the paperwork so you can focus on growing your business. The sooner you have your dream team in place, the sooner you can start making a splash.