Employer of Record & PEO in Argentina
Hire & manage teams remotely in Argentina without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
How NNRoad Employment & PEO Services Work?
NNRoad provides professional employment organization (PEO) & employer of record (EOR) services for companies looking to hire and manage teams in Argentina. Registering a legal entity in Argentina as a means for employment is an outdated practice that takes both time (months) and money (thousands of USD). NNRoad’s employer of record and PEO services enables companies to hire and manage employees in Argentina in full accordance with local labor laws in under a week.
Employer of Record in Argentina
Employer of Record (EOR) services are for companies who do not have a legal entity in Argentina, but who want to hire in Argentina. Employment and full liability are outsourced to NNRoad.
➊ You interviews & select the candidates you want to hire in Argentina.
➋ NNRoad arranges a local labor contract with your new employee.
➌ NNRoad arranges a service contract between your organization & NNRoad.
➍ NNRoad organizes, manages & processes payroll in Argentina in full compliance with local employment laws.
➎ You maintain a normal working relationship and manage your team in Argentina while NNRoad manages payroll & HR liabilities.
Payroll & PEO in Argentina
Professional Employment Organization (PEO) services are for companies who have a legal entity in Argentina, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.
➊ You interviews & select the candidates you want to hire in Argentina.
➋ NNRoad organizes, manages and processes payroll for your local employees in full compliance with local employment laws.
➌ You maintain a normal working relationship and manage your team in Argentina while NNRoad manages payroll & HR compliance.
Advantages of NNRoad's Argentina Employment Services
- With EOR/PEO solutions you can manage client meetings, sales, quality control, marketing, R&D and customer support without a local company in Argentina.
- Pay as you go
- Dedicated account manager – One point of contact for multiple locations
- Employment & termination processing
- Complete payroll solution and statutory benefit according to local laws
- With EOR/PEO solutions you can hire staff while waiting for the registration of your company in Argentina.
- NNRoad only works with professional locally licensed partners
- GDPR compliant
- NNRoad manages employee record timekeeping, bonus and allowance, expenses claims and personal leaves according to local law.
- NNRoad provides foreigner VISA application services, if needed
Employment Compliance in Argentina
Taxes & Payroll in Argentina
Employee Income Taxes:
Individuals resident in Argentina is taxed on their worldwide income and may be eligible for a foreign tax credit for taxes paid on income earned elsewhere.
Non-residents and foreign beneficiaries are only liable for taxes on income earned in Argentina.
5%: Up to 64,532.64 ARS
9%: 64,532.64 to 129,065.29 ARS
12%: 129,065.29 to 193,597.93 ARS
15%: 193,597.93 to 258,130.58 ARS
19%: 258,130.58 to 387,195.86 ARS
23%: 387,195.86 to 516,261.14 ARS
27%: 516,261.14 to 774,391.71 ARS
31%: 774,391.71 to 1,032,522.30 ARS
35%: Over 1,032,522.30 ARS
Yearly income = 200,000 ARS
5% * 64,532.64 = 3,226.63
9% * 64,532.65 = 5,807.94
12% * 64,532.64 = 7,743.92
15% * 6,402.07 = 960.31
3,226.63+5,807.94+7,743.92+960.31 = 17,738.80
Yearly income tax = 17,738.80 ARS
Employer Costs in Argentina
18% – 21% – Pension Fund (the minimum salary is 9,787.95 ARS and maximum is 318,103.83 ARS)
6% – Health insurance
2.41% – Labor risk insurance
0.50% – Life insurance
100 ARS – Occupational disease trust fund (FFEP)
Total costs: 26.91% – 29.91% + 100 ARS
11.00% (Ceiling 28,000.65 ARS) – Pension fund
3.00% (Ceiling max 28,000.65 ARS) – Social security
3.00% (Ceiling 28,000.65 ARS) – Health insurance
Total cost: 17%
Working Hours and Overtime in Argentina
Working hours are limited to eight hours per day and 48 hours per week. The standard working week does not exceed 44 hours for daily work, 42 hours for night work, and 36 hours for labor in hazardous or unhealthy situations.
Overtime is paid at 50% of regular pay unless it is worked after 1 p.m. on Saturdays, Sundays, or holidays, in which case it is paid at 100% of regular salary. Higher payments may be available under applicable collective bargaining agreements. Overtime cannot exceed three hours per day, thirty hours per month, or two hundred hours per year.
Mandatory Contributions in Argentina
A national retirement pension scheme covers all employees and is funded by mandated contributions from both the employer and the employee. It is funded by withholdings from the employee’s gross pay and fixed contributions from the employer, both of which are determined as a percentage of the employee’s wage. When employees achieve retirement age (65 years for men and 60 years for women) and have contributed to the system for 30 years, they are able to retire and receive a government pension. Employers can only force employees to retire if they are at least 70 years old and have paid into the system for at least 30 years.
Healthcare and insurances
All employees are covered by healthcare plans that provide them with free medical treatment and hospital care. Employer contributions and employee withholdings, both a proportion of the employee’s pay, are used to fund these programs. Employers are required to purchase mandated insurance that covers an employee’s death, illness, or disability as a result of their employment. Employers must use authorized insurance companies to get insurance contracts. Injured employees are entitled to financial and medical support from such companies. Employees must also be covered by mandatory life insurance, which the employer must pay for through monthly installments. Keep in mind that appropriate collective bargaining agreements may include supplementary insurance provisions.
Termination Laws and Severance Pay in Argentina
A contract of employment may be terminated in the following conditions, other than on the employer’s initiative:
- unilaterally by the worker;
- by mutual agreement of the parties;
- on the death of the worker or the employer when it causes the employer’s activities to cease;
- on the expiration of the agreed term;
- on the employer’s insolvency or liquidation;
- on the worker’s retirement.
Also, with a valid justification for such termination, such as the worker’s behaviour, or on economic grounds due to a lack or scarcity of work, or force majeure, the employer may unilaterally end the employment contract.
The notice period is 15 days when the contract is terminated on the employee’s initiative.
When an employee’s contract is terminated on the employer’s initiative, the length of notice is calculated using the following scale: 15 days if the employee has less than three months of service, one month if the employee has three months to five years of service, and two months if the employee has more than five years of service. In small businesses, the notice period is never longer than one month.
If an employee’s employment is terminated without cause, the employer is required by law to pay the employee mandatory severance compensation within four days of receiving notice of termination, as follows:
- Seniority compensation – equivalent to the highest monthly salary for each year of employment or period longer than three months, using the highest monthly salary as a base and the regular and ordinary salary accrued during the previous working year. Such basis has a maximum ceiling amount provided by the applicable bargaining agreement (three times the average of all wages provided by such collective bargaining agreement) and a minimum cap amount (one gross monthly salary).
- Compensation in lieu of notice – In the event of a termination of employment without justified cause, the employer must give the employee prior written notice. If the employer fails to provide such notice, it must provide severance pay in lieu of notice, which is calculated as 15 days’ salary plus one or two monthly wages (depending upon each specific case).
- Pending days till the end of the month – If the dismissal does not occur on the final day of the month, the employer is required to pay a compensation equal to the proportional wage for the days remaining in the month in which the dismissal occurred.
- Compensation for unused vacations – For the year in which the dismissal occurred, the employee is entitled to compensation equivalent to the vacation pay in proportion to the days effectively worked.
Public Holidays in Argentina
Public Holidays in Argentina
- New Year’s Day – January 1
- Carnival – February 28-March 1
- Truth and Justice Memorial Day – March 24-25
- Malvinas Day – April 2
- Good Friday – April 15
- Labour Day – May 1
- Population Census – May 18
- May Day Revolution – May 25
- Martin Miguel de Guemes Day – June 17
- National Flag Day – June 20
- Independence Day – July 9
- San Martin’s Day – August 15
- Bridge Holiday – October 7
- Day of Respect for Cultural Diversity – October 10
- Day of National Sovereignty – November 20
- Bridge Holiday – November 21
- Immaculate Conception Day – December 8-9
- Christmas Day – December 25
Paid Leave in Argentina
Workers who have worked for the same employer for at least six months over a twelve-month period are eligible for paid leave. It lasts 14 calendar days if the employee has less than 5 years of service, 21 calendar days if the employee has 5 to 10 years of service, 28 calendar days if the employee has 10 to 20 years of service, and 35 calendar days if the employee has 20 years or more of service.
Employment Contract in Argentina
In most cases, an employment contract is regarded to be concluded for an indefinite amount of time. Fixed-term employment contracts are authorized, but only if they are in writing and for a period of no more than five years. It is also feasible to enter into a contract for casual work to address unusual or transitory needs whose length cannot be predicted at the moment the contract is signed. It is also permissible to enter into employment contracts using modalities such as part-time work and apprenticeship.
The first three months of an employment contract are regarded as a probation period, during which any party may terminate the contract at any time, providing the contract has been legally registered with the competent labor authorities. Probation may, however, be extended for up to six months under collective bargaining agreements.
Types of Leaves in Argentina
If a worker’s length of service is less than 5 years, he or she has the right to full-pay sick leave for up to three months every year, and for up to six months if his or her length of service is greater than 5 years. The employee is also entitled to unpaid sick leave for another 12 months, during which time the employer is required to preserve the employment connection. For any illness that stops a worker from reporting to work, the foregoing entitlements are granted.
Maternity and Paternity Leave
Maternity leave in Argentina is 90 days. Usually, the leave is split into 45 days before birth and 45 days after birth. Pre-birth leave may be decreased to thirty days at the request of the employee, with post-birth leave being extended to 60 days. The female worker is eligible to monetary payments paid out of Social Security funds while on maternity leave. A woman worker is also entitled to two thirty-minute breaks every day to breastfeed her child. This benefit is valid for one year after the birth of the child, but it can be extended with the submission of a medical certificate. Fathers are entitled to two days of paid paternity leave.
Immigration Laws in Argenitna
A 23 A or 23 E visa is required for most employees who plan to work in Argentina for more than 90 days. The majority of people traveling to Argentina for a one-year compensated job qualify for the 23 A visa. Employees can extend this visa for a longer period of time if necessary. Scientists, specialists, select managers, technicians, and administrative employees are eligible for the 23 E visa. Your employees may need to apply for a 23 E visa if they fall into one of these categories.