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Minimum wage in Argentina

Payroll in Argentina

Statutory benefits in Argentina

Other employee benefits in Argentina

Compliant, seamless payroll and benefits in Argentina and beyond

Payroll and benefits in Argentina

If you want to run payroll in Argentina, you’ll need to know about the rules and customs that shape the payroll process, including prescribed payroll cycles and deadlines. You’ll also need to know about the contributions you’ll have to make on your employees’ wages so you can fully understand your hiring budget.

In this section, we’ll walk you through everything you need to know to set up and run payroll in Argentina. We’ll also talk about the benefits, both mandatory and optional, that you can and should offer to your employees. In Argentina, many benefits are provided indirectly through the country’s social security system. However, there are still certain things that employers are obligated to provide. Understanding how this all works can help you to both ensure compliance with the law and give your Argentine employees the employee experience they expect and deserve.

Minimum wage in Argentina

In 2026, the national minimum wage in Argentina is 322,000 Argentine pesos (ARS) per month, based on the most recent officially approved rate published by the National Council for Employment, Productivity, and the Adjustable Minimum Living Wage (SMVM). The minimum wage applies to all employees aged at least 18 years old. Many workers in Argentina are entitled to higher minimum wage rates through industry-level collective bargaining agreements. Employers in Argentina must verify whether such an agreement applies to their sector to ensure full compliance with wage standards. In Argentina, employers must pay employees via bank transfer or in cash where chosen by the employee. Actual wage levels vary significantly depending on industry and the specific collective agreement in force.

Argentina’s minimum wage per hour

The minimum wage per hour is expressed as a monthly amount for full-time employment based on a standard 48-hour workweek. A full-time employee earning the national minimum wage will therefore receive:

ARS 1,610 per hour
ARS 12,880 per day
ARS 64,400 per week
ARS 3,328,000 per year

Penalties for non-compliance with Argentina’s minimum wage laws

The Federal Labor Pact establishes penalties for employers that fail to pay at least the statutory minimum wage. Penalties vary depending on the seriousness of the offence, as follows:

Minor infractions: 25–150% of the minimum wage per affected worker
Serious infractions: 30–200% of the minimum wage per affected worker
Very serious infractions: 50–2,000% of the minimum wage per affected worker

For repeat offences, an additional penalty equal to 10% of all remuneration due in the month prior to the violation may be imposed.

Payroll in Argentina

As in all countries, payroll in Argentina is subject to certain rules and regulations. In Argentina, these are largely set by the country’s labour laws. In some cases, collective agreements provide additional requirements. There are also certain payroll customs which may not be required legally, but which are nonetheless expected by employees.

Payroll cycles in Argentina

The payroll cycle in Argentina depends on the pay structure of the employee in question. Employees who are paid a monthly salary should be paid at the end of each calendar month. Those with daily or hourly wages must be paid weekly or biweekly, and the same is true of those who are paid by the project.

Monthly and biweekly employees must receive their pay within four working days of the end of each pay period, and weekly employees must be paid within three working days. For example, a worker who is paid weekly and works Monday through Friday must receive their pay by the end of Wednesday of the following week.

Employer contributions in Argentina

Employers running payroll in Argentina must make contributions to the social security system based on their employees’ wages. These add up to between 26.5% and 30% of each employee’s total remuneration.

Contributions are broken down as follows:

Pension fund: 18–21%.
Health insurance: 6%.
Labor Risk Insurance: 2.41%.
Life insurance: 0.5%.
Occupational Disease Fund (FFEP): 100 ARS.

Employee contributions and taxes in Argentina

Employees running payroll in Argentina also have to make payments to social security, which employers must deduct from their wages. Employee contributions add up to a total of 17% of salary, and break down as follows:

Pension Fund: 11% (up to ARS 28,000.65).
Social Security Contribution: 3% (up to ARS 28,000.65).
Health Insurance: 3% (up to ARS 28,000.65).

Employee income tax is another important part of payroll in Argentina. It’s calculated on a progressive scale with rates starting at 5% and going up to 35% for the highest income level.

13th month salary in Argentina

As in many countries in South America, the 13th month salary is mandatory in Argentina. It’s known as Aguinaldo and is paid in two semi-annual instalments. These are due by the end of June and the middle of December. Each payment is equivalent to 50% of the employee’s earnings during their highest-earning month in the past six months.

Other requirements for running payroll in Argentina

Employers must provide employees with a payslip after each pay period, containing the following information:

Name and address of the employer.
Name and position of the employee.
Tax identification numbers of employer and employee.
Number of hours worked or units completed.
Gross pay, deductions, and net pay.
Place and date of payment.
Employee’s date of hire.

Payslips must be given in paper format and signed by the employer and the employee.

Statutory benefits in Argentina

Employees in Argentina are entitled to a range of statutory benefits, which are provided either directly by the employer or through the country’s social security system. Social security benefits are funded through employer and employee contributions based on each employee’s wages.

Social security benefits in Argentina

The following benefits are provided through the social security system in Argentina:

Disability benefits.
Mandatory life insurance.
Family allowances.
Employment insurance.
Unemployment benefits.

Employees who have made contributions to the social security system for 30 years are eligible to retire and receive the state pension from the age of 65. The pension comprises a basic amount and an additional amount based on contributions made. Employees can choose to continue working later, but employers can compel employees to retire at the age of 70.

Mandatory employer-provided benefits in Argentina

Employers in Argentina must also provide at least the following direct benefits to their employees:

Health insurance plans: All employees are entitled to healthcare insurance, which is funded by employer and employee contributions. Employers must contribute 6% of each employee’s salary. Some health insurance plans extend coverage to employees’ families.
Paid annual leave: Employees in Argentina are also entitled to a certain amount of paid leave each year depending on their seniority. For example, employees with less than five years of service are entitled to 14 days of leave. Employees also get statutory public holidays as paid days off work.
Paid sick leave: Sick leave in Argentina is also based on seniority. Employees with less than five years of service are entitled to three months of paid sick leave per year, while those who have worked for the same employer for more than five years are entitled to up to six months per year. This is doubled if they have any dependents.
13th-month pay: All employees in Argentina are entitled to a thirteenth salary payment, paid in two instalments in June and December. This is based on their highest monthly wages in the preceding six months.

Other employee benefits in Argentina

In addition to mandatory benefits that are defined by labour law and collective agreements, employers in Argentina can choose to offer a wide range of extra perks to their employees. While these are not obligatory, they can help to attract talent by improving the employer value proposition.

Additional annual leave in Argentina

Employees in Argentina are entitled to at least a certain amount of paid annual leave depending on their years of service. However, employers can choose to offer additional leave as an optional benefit. This can be very effective in attracting and retaining employees since it can improve their work-life balance.

Gym allowance in Argentina

It’s becoming more and more common for employers in Argentina to offer benefits that help employees look after their physical health. Examples include passes for gym memberships and free fitness classes.

Transportation allowance in Argentina

Some employers in Argentina offer their employees benefits that help with the costs of commuting to and from work. For example, they may provide an allowance to pay for transportation.

Meal vouchers in Argentina

Employers in Argentina sometimes offer vouchers that allow employees to buy meals during their work hours. Others offer catered meals instead.

Internet/phone allowance in Argentina

Internet and phone allowances are becoming more common as an employee benefit in Argentina, particularly for remote workers.

Private health insurance in Argentina

Health insurance is a mandatory employee benefit in Argentina, which all employees are entitled to. However, employers can choose to offer additional insurance as an added benefit. For example, some pay for insurance that covers health costs for employees’ family members.

Compliant, seamless payroll and benefits in Argentina and beyond

Getting payroll and benefits right is not just a legal issue. Every country also has its own customs, norms and expectations about employee compensation. And if your operations aren’t in line with your workers’ expectations, they may not stick around for long.

Thankfully, we know what we’re doing. When you work with CXC to engage workers in Argentina, we’ll handle everything from tax withholding to employee bonuses on your behalf.

Want to find out more?

FAQ's

How does payroll work in Argentina?

Running payroll in Argentina starts with the Ley de Contrato de Trabajo, the LCT, together with the applicable tax and social security legislation, which set the rules for calculating gross pay, withholding employee social security contributions, adding employer contributions on top, and paying the net amount to the worker. None of this happens automatically. Each step carries its own statutory deadline.

Every worker has to be registered with the Agencia de Recaudación y Control Aduanero (ARCA), the tax authority that replaced AFIP, before their first day on the job. Employers then file and pay social security contributions monthly. Two payments sit outside the ordinary monthly cycle, the aguinaldo, paid in two instalments on 30 June and 18 December, and statutory leave, which changes what a worker is paid whenever vacation, sickness, or parental leave is taken. Contributions are filed monthly through ARCA’s Form 931, the standard channel for reporting employer obligations.

How do you set up payroll in Argentina?

Setting up Argentina payroll starts with having an appropriate local structure registered as an employer with ARCA. That structure can then register as an employer with ARCA. Companies without one typically use an Employer of Record that already holds a registered entity and runs payroll on their behalf. That registration step alone can take weeks to complete.

From there, the employer has to register each employee with ARCA, apply the relevant social security and obra social contributions and obtain the required ART occupational risk insurance coverage.. Each new hire is individually registered through alta temprana no later than their first working day. Once registered, employer contributions are filed and paid monthly through a single channel, ARCA’s Form 931, which covers most of the statutory obligations tied to running a compliant payroll. This filing obligation applies whether the company employs one person or a hundred.

How much does it cost to run payroll in Argentina?

Employers in Argentina should budget for gross salary plus employer social security contributions of generally 18% or 20.4%, along with workers’ compensation insurance (ART), mandatory life insurance and other employment costs that may apply.

The social security rate varies by employer type. ARCA applies a 20.4% rate to certain private-sector employers in services or commerce that exceed the MiPyME thresholds, while a general 18% rate applies to other qualifying employers. Law 27.802 also introduced a temporary Registered Employment Promotion Regime for certain eligible new hires registered between 1 May 2026 and 30 April 2027. Qualifying employers may receive reduced contributions for specified social security subsystems, subject to the statutory conditions.

Employers also need to account for the aguinaldo, Argentina’s statutory 13th salary, which is paid in two instalments during the year. Costs under an applicable collective bargaining agreement, such as additional allowances or contributions, may also need to be included.

The total payroll cost therefore varies by salary, employer classification, industry and applicable collective agreement. ART premiums can also differ based on the employer’s activity and workplace risk.

Can a foreign company run payroll in Argentina without a local entity?

Yes. A foreign company can hire and pay employees in Argentina without setting up its own local entity by using an Employer of Record (EOR). The EOR becomes the local legal employer and runs the employee’s Argentine payroll.

Through an EOR, the employee can be registered locally and paid through a compliant Argentine payroll. The EOR handles salary payments, payroll deductions, employer social security contributions, payslips, statutory benefits and required filings with authorities such as ARCA.

If a foreign company wants to employ workers directly and run its own local payroll, it will generally need the appropriate registration and local structure to act as the employer in Argentina.

Using an EOR gives companies another option when they want to hire in Argentina without establishing an entity first. The company continues to manage the employee’s role and day-to-day work, while the EOR handles the local employment and payroll responsibilities.

What payroll taxes and contributions must employers pay in Argentina?

Employers in Argentina must pay employer social security contributions, health insurance contributions, workers’ compensation insurance (ART) and mandatory life insurance as part of their payroll obligations.

The main employer social security contribution rate is generally 18% or 20.4% of the employee’s taxable salary, based on the employer’s activity and classification. These contributions fund Argentina’s pension system, family allowances, the National Employment Fund and other social security programmes.

Employers also contribute towards the employee’s obra social, Argentina’s employment-based health insurance system. ART insurance is required to cover occupational accidents and illnesses, with premiums varying by industry and workplace risk. Mandatory group life insurance also applies.

Payroll contributions are generally calculated and reported monthly through ARCA, including through the employer’s monthly social security filing. Employee contributions are deducted separately from gross salary and withheld through payroll.

What mandatory employee benefits are required by law in Argentina?

Statutory employee benefits in Argentina include paid annual leave, paid sick leave, maternity and paternity leave, health coverage through an obra social, the aguinaldo (13th salary), workers’ compensation coverage and statutory severance where applicable.

Paid annual leave starts at 14 calendar days for employees with up to five years of service, rising to 21, 28 or 35 days as seniority increases. Paid sick leave generally ranges from three to 12 months based on length of service and whether the employee has dependants.

Employees are also covered by an obra social, Argentina’s employment-based health insurance system, and occupational accident and illness coverage through ART.

Maternity leave is generally 90 days, while statutory paternity leave is two consecutive days. Employees also receive the aguinaldo, paid in two instalments each year. Statutory severance may be payable when employment is terminated in circumstances covered by Argentine labour law.

What is the minimum wage in Argentina?

The minimum wage in Argentina is ARS 383,800 per month from 1 September 2026, or ARS 1,919 per hour for hourly workers. The minimum wage, known locally as the Salario Mínimo, Vital y Móvil (SMVM), is scheduled to increase over the coming months:

October 2026: ARS 391,200.

November 2026: ARS 398,800.

December 2026: ARS 406,400.

January 2027: ARS 414,200.

February 2027: ARS 422,000.

March 2027: ARS 429,600.

April 2027: ARS 437,000.

Employers should also check whether a collective bargaining agreement (CBA) applies to the employee. Many sectors in Argentina have collectively agreed salary rates that are higher than the national minimum wage.

What payroll deadlines must employers meet in Argentina?

Employers in Argentina must meet several payroll deadlines: monthly or bi-weekly wages must be paid within four business days after the pay period ends, while weekly wages must be paid within three business days.

Other key payroll deadlines include:

Aguinaldo: the first instalment is due by 30 June and the second by 18 December.

Social security and payroll contributions: reported and paid monthly to ARCA according to the employer’s assigned due date.

Form 931: filed monthly with ARCA for social security contributions and payroll-related obligations.

These deadlines apply separately. Paying employees on time does not replace the employer’s monthly ARCA reporting and contribution requirements.

Employers should build each deadline into their payroll calendar, particularly where collective bargaining agreements introduce additional payments, allowances or sector-specific requirements.

What is obra social and is it mandatory in Argentina?

An Obra Social is a health insurance fund that covers a registered worker and their family. It is one of the guarantees behind employee benefits in Argentina for every dependent employee, and enrolment is mandatory. Monotributistas, Argentina’s registered self-employed workers, get coverage through their own monthly contributions instead.

It also covers retirees, pensioners, and their family members. Funding is shared between worker and employer. The employee contributes 3 percent of salary plus 1.5 percent for each dependent family member enrolled, and the employer adds a further share of salary on top.

Every obra social has to cover the full Mandatory Medical Programme and the required medications. Coverage starts the moment someone is affiliated, with no waiting period, and it cannot be refused on medical or discriminatory grounds. That combination of mandatory enrolment, immediate coverage, and no medical screening is written directly into the law governing obras sociales.

How does CXC ensure accurate payroll processing in Argentina?

CXC supports accurate payroll processing in Argentina by calculating employee pay, statutory deductions, employer contributions and benefits in line with local payroll requirements and deadlines.

Our payroll team manages regular salary calculations as well as Argentina-specific requirements such as the aguinaldo, paid leave and applicable statutory contributions. We also account for changes that affect payroll, including minimum wage updates and employee changes during the pay period.

CXC manages the payroll information required for local reporting and contributions, including relevant ARCA requirements, and provides employees with accurate payslips and payments in local currency.

For companies using CXC’s Employer of Record service, payroll is managed alongside the employee’s local employment administration and statutory benefits. This gives your HR and finance teams one point of contact for Argentine payroll rather than having to manage local calculations, filings and employment requirements separately.

Speak to our team to learn more about payroll in Argentina with CXC.

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