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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 2025, the national minimum wage in Argentina is 286,711 Argentine pesos (ARS) per month. It applies to all employees aged at least 18 years old. This is equivalent to around USD 278 or EUR 268 and falls roughly in the middle of other Latin American countries. The minimum wage was adjusted as of 1 January, 2025 by the National Council for Employment, Productivity, and the Adjustable Minimum Living Wage (NCEPAMLW).

Many workers in Argentina are guaranteed minimum wages above this level by industry-level collective bargaining agreements. Employers in Argentina need to verify whether such an agreement applies to their industry to ensure they comply with its minimum wage requirements.

In Argentina, employers must pay their employees in cash or check. Employees can choose to be paid in cash. Actual pay rates vary significantly according to the industry and the collective agreement that applies.

Argentina’s minimum wage per hour

The minimum wage per hour is expressed as a monthly figure for full-time work. A full-time employee who works 40 hours per week and earns the minimum wage will therefore earn:

  • ARS 1,653,82 per hour.
  • ARS 13,230.56 per day.
  • ARS 66,152.80 per week.
  • ARS 3,440,532 per year.

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

The Federal Labor Pact imposes penalties on businesses that fail to pay their workers at least the minimum wage in Argentina. The penalties vary depending on the seriousness of the offence, as follows:

  • Minor infractions: 25–150% of minimum wage per affected worker.
  • Serious infractions: 30–200% of minimum wage per affected worker.
  • Very serious infractions: 50–2000% of minimum wage per affected worker.

For repeat violations, an additional penalty equivalent to 10% of all remuneration due the month before the offence can be imposed on top of the above.

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?

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