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Hiring Employees in Argentina in 2025: What You Need to Know

August 2, 2025 | Michael Warne

Hiring Employees in Argentina in 2025: What You Need to Know
  • How to Hire Employees in Argentina
  • Understanding Worker Classification in Argentina
  • Hiring Costs and Payroll in Argentina
  • Compliance Risks When Hiring Employees in Argentina
  • Onboarding New Employees in Argentina
  • Managing Remote Employees in Argentina
  • Complying with Argentina Labor Laws
  • Terminating Employees in Argentina
  • Why U.S. Companies Can Consider Hiring in Argentina
  • Hire Smart, Stay Compliant, and Grow Globally

Key Takeaways

  1. Argentina offers a highly skilled, cost-competitive talent pool ideal for global teams.
  2. Strict labor laws require written contracts, statutory benefits, and careful compliance with payroll and tax regulations.
  3. Using an EOR enables rapid, compliant hiring without the need to set up a local entity.
  4. Time zone overlap and robust digital infrastructure support seamless collaboration with U.S.-based teams.
  5. Misclassifying workers or neglecting local regulations can result in significant legal and financial risks.

Argentina, the second-largest country in South America, has emerged as a powerhouse in the global talent market. With a rich educational tradition, high levels of English proficiency among professionals, and a robust tech ecosystem, Argentina is increasingly attracting attention from companies worldwide. 

The nation’s workforce is known for its adaptability, technical know-how, and strong work ethic, making it a prime destination for companies looking to expand internationally.

For U.S. companies, hiring in Argentina offers several distinct advantages. With a favorable time zone overlap, competitive labor costs, and a growing community of remote-ready professionals, Argentina provides access to a deep talent pool that can support a variety of roles, from software engineering to customer service. 

Moreover, leveraging Argentina’s skilled workforce can help U.S. firms scale quickly, remain cost-efficient, and diversify their global teams, all while maintaining compliance with local employment laws.

Now you can easily hire & employ international remote talent in full time jobs without opening international subsidiaries. Find out more about Tarmack's Employer of Record services.

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How to Hire Employees in Argentina

Assess Your Hiring Needs

  • Full-time vs. Project-Based Support: Clearly define whether your organization requires ongoing, full-time employees or short-term, project-based contractors. Full-time hires offer greater continuity but require deeper compliance and benefits commitments.
  • Local Compliance Requirements: Argentina’s labor regulations are employee-friendly and mandate written contracts, strict adherence to statutory benefits, and compliance with collective bargaining agreements. Assess your ability to meet these standards internally or via external partners.
  • Onboarding Speed vs. Long-Term Control: Companies that need to onboard rapidly may prefer using an Employer of Record (EOR), which streamlines compliance and payroll. Those seeking full operational control and direct local presence may opt to establish a legal entity, though it’s more complex and time-consuming.

Hiring Options in Argentina

Set Up a Legal Entity: 

  • Establishing a local subsidiary or branch offers maximum control over hiring, payroll, and employee management.
  • Requires navigating Argentine corporate registration, tax authorities, social security, and labor regulations.
  • Typically involves legal counsel, significant up-front investment, and ongoing administrative obligations.

Partner with an Employer of Record (EOR):

  • An EOR is a third-party provider that becomes the legal employer for your Argentine staff, handling payroll, contracts, benefits, and compliance.
  • Allows you to hire talent quickly and compliantly without setting up a local company.
  • Ideal for companies testing the market or scaling rapidly.

EOR vs. Legal Entity Comparison

AspectEmployer of Record (EOR)Legal Entity 
Setup Time1-2 weeks3-6 months
Initial CostLow (Service fee-based)High (legal, administrative, tax registration)
Ongoing ComplianceEOR handles all compliance, payroll, and statutory benefitsCompany is responsible for full compliance, filings, and payroll
Control over EmployeesOperational control, but legal employer is the EORFull legal and operational control
FlexibilityHigh (easy to scale up/down)Lower (entity must be maintained or dissolved)
SuitabilityTesting market, rapid hiring, remote teamsLong-term presence, large teams, brand building
EOR vs. Legal Entity for Hiring in Argentina

Understanding Worker Classification in Argentina

Employees vs. Contractors

AspectEmployeeContractor 
RelationshipContinuous, subordinate, and under employer directionProject-based or temporary, operates independently
Contract TypeIndefinite or fixed-term employment contractService contract (contrato de locación de servicios)
Payment MethodSalary (monthly, with mandatory benefits)Invoice per project or milestone, no benefits
Statutory BenefitsMandatory (social security, health insurance, vacation, etc.)None; responsible for own taxes and benefits
Tax WithholdingEmployer withholds and remitsContractor responsible for own tax filings
Legal ProtectionsStrong protections (severance, notice, unions)Minimal protections
Employees vs. Contractors in Argentina

  • Hire and Pay Contractors: For short-term or specialized work, contractors can be engaged via service agreements, but employers must ensure the relationship does not constitute de facto employment under local law.

Hiring Costs and Payroll in Argentina

Hiring Costs Overview

  • Base Salaries: Salaries vary by region and industry, but are generally lower than U.S. equivalents.
  • Statutory Benefits: Employers must contribute to health insurance, pension, social security, and pay annual bonuses (aguinaldo).
  • Recruitment Costs: Using local recruiters or EORs incurs service fees but saves on time and compliance risks.

Payroll Setup Steps

  • Register your entity with AFIP (Federal Public Revenue Administration) for employer and tax identification.
  • Enroll employees in the social security system (ANSES) and health insurance (Obra Social).
  • Draft compliant employment contracts specifying compensation, benefits, and working conditions.
  • Ensure monthly remittance of payroll taxes, social security, and statutory contributions.

Income Tax Rates

  • Argentina has a progressive income tax system. Employee income tax rates (Impuesto a las Ganancias) range from 5% to 35% based on salary brackets.
  • Employers are responsible for withholding and remitting income tax from employees’ salaries.

Payment Methods (direct deposit, transfers, EOR payroll)

  • Direct Deposit: The most common method, with salaries paid into employees’ local bank accounts.
  • Bank Transfers: Used for both employees and contractors; may require local banking relationships.
  • EOR Payroll: EORs manage all payments, tax withholdings, and statutory deductions, ensuring compliance.

Using Global Payroll Services

  • Global payroll providers like Deel, Multiplier, and Papaya Global offer solutions to manage multi-country teams, automate compliance, and simplify reporting.
  • These services integrate with your HR and accounting systems, streamline payments, and provide real-time insights into payroll costs and compliance status.

Compliance Risks When Hiring Employees in Argentina

Incorrect Payroll Contributions

  • Failure to accurately calculate and remit payroll taxes, social security, and benefits can result in fines and legal action from Argentine authorities.
  • Employers must stay current on monthly and annual reporting deadlines.

Permanent Establishment Risk

  • Hiring employees directly without proper local registration can trigger “permanent establishment” status, leading to corporate tax liabilities in Argentina.
  • Using an EOR can mitigate this risk for companies without a local entity.

Statutory Benefits

  • Argentina mandates a comprehensive benefits package, including health insurance, pensions, life insurance, paid leave, and a 13th month bonus (aguinaldo).
  • Non-compliance may result in lawsuits, back payments, and reputational damage.

Misclassification Risks

  • Misclassifying employees as contractors can lead to retroactive benefit and tax payments, penalties, and court-ordered employee reinstatement.
  • Always assess working relationships carefully and consult local legal experts.

Provincial/Regional Law Variances (if applicable)

  • Certain provinces may set higher minimum wages or additional employment protections.
  • Always verify local regulations in the region where your employees are based.

Onboarding New Employees in Argentina

Before Their First Day

  • Prepare a compliant employment contract (in Spanish), outlining terms, compensation, and benefits.
  • Collect identification documents (DNI/passport), tax ID (CUIL), and bank account details.
  • Register the employee with social security and health insurance providers.

On Day 1

  • Introduce the employee to team members and assign a mentor or onboarding buddy.
  • Provide access credentials to necessary tools, software, and communication channels.
  • Review company policies, code of conduct, and highlight key compliance topics.

During Their First 90 Days

  • Schedule regular check-ins to address questions, assess progress, and facilitate integration.
  • Monitor adaptation to company culture and provide ongoing support and feedback.
  • Complete any required compliance training or certifications.

Offer Letter Essentials

  • Clearly state job title, start date, compensation (gross and net), benefits, and reporting lines.
  • Include termination clauses, probation period (if applicable), and reference to collective bargaining agreements if relevant.

NDAs and Confidentiality

  • Include confidentiality clauses in contracts or require separate NDAs to protect sensitive information, intellectual property, and trade secrets.

Running Background Checks

  • Background checks are permitted but must comply with Argentina’s data protection regulations (Ley de Protección de Datos Personales).
  • Obtain written consent from candidates before conducting checks.

Managing Remote Employees in Argentina

Computer and App Access

  • Provide remote employees with laptops and secure access to corporate systems.
  • Implement multi-factor authentication (MFA) and VPNs to protect sensitive data.
  • Offer training on security best practices and remote work guidelines.

Intellectual Property Protections

  • Include clear IP assignment clauses in employment and contractor agreements, ensuring the company retains rights to work produced.
  • Types of IP rights to consider:
    • Copyright: For software, written materials, and creative content.
    • Patents: For inventions or technical solutions (if applicable).
    • Trade Secrets: Proprietary information and processes.
    • Trademarks: Company logos, names, and brands.

Complying with Argentina Labor Laws

Working Conditions by Employment Type

  • Standard workweek: 48 hours, capped at 8 hours per day across six days. Overtime must be compensated at higher rates as per law.
  • Paid leave: Minimum 14 days of annual paid vacation (increases with seniority), public holidays, sick leave, and maternity/paternity leave.

No At-Will Employment (if applicable)

  • Argentina does not recognize at-will employment. Termination must be for just cause or in compliance with legal procedures, including notice and severance.

Trade Unions and Collective Bargaining

  • Argentina has strong labor unions and active collective bargaining agreements (CBAs). Many industries have sector-specific CBAs that dictate minimum salaries, benefits, and working conditions.
  • Employers must comply with applicable CBAs for their sector and region.

Terminating Employees in Argentina

Acceptable Termination Reasons

  • Valid reasons include poor performance, misconduct, redundancy, or mutual agreement.
  • Dismissal without just cause requires payment of severance based on tenure, salary, and applicable CBAs.
  • Unfair or discriminatory terminations can be challenged in labor courts, resulting in reinstatement or additional compensation.

Notice Periods and Legal Protections

  • Notice periods typically range from 15 days (during probation) to 1-2 months (after probation), depending on tenure and contract terms.
  • Severance pay is mandatory except in cases of dismissal with just cause.
  • Employers must provide termination letters and pay all accrued entitlements (vacation, bonuses, etc.).

Why U.S. Companies Can Consider Hiring in Argentina

Access to Skilled Talent

  • Argentina boasts a large pool of well-educated professionals in IT, engineering, finance, and customer support.
  • Notable strengths in software development, data science, and creative industries.
  • High rates of English proficiency, particularly in urban centers like Buenos Aires, Córdoba, and Rosario.

Cost Efficiency

  • Salaries and benefits in Argentina are significantly lower than in the U.S. for equivalent roles.
  • Lower overhead and administrative costs when using EOR or remote-first models.

Time Zone Overlap

  • Argentina’s time zone (ART, UTC-3) closely aligns with U.S. Eastern and Central time zones, allowing for real-time collaboration.
  • Ideal for distributed teams and around-the-clock support or development operations.

Growing Remote-Friendly Infrastructure

  • High internet penetration and access to modern coworking spaces in major cities.
  • A mature tech/startup ecosystem and widespread adoption of remote work culture.
  • Government and private sector initiatives supporting digital transformation and workforce development.

Did you know?

Tarmack helps you easily hire international talent as your full time employees without opening international subsidiaries. Find out more about our Employer of Record services

Learn More

Hire Smart, Stay Compliant, and Grow Globally

Hiring in Argentina presents an excellent opportunity for U.S. companies seeking skilled, cost-effective talent with minimal time zone barriers. 

While Argentina’s labor laws are employee-centric and may seem complex, partnering with an experienced EOR or leveraging local expertise can streamline compliance and reduce risk. 

With the right approach, U.S. firms can unlock the full potential of Argentina’s vibrant workforce, drive business growth, and establish a sustainable international presence.

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Frequently Asked Questions (FAQs)

What are the main compliance risks of hiring in Argentina?

Argentina’s labor laws are stringent and employee-focused. The main risks include misclassification of workers, incorrect payroll contributions, failure to provide statutory benefits, and not adhering to collective bargaining agreements. Partnering with an EOR or local legal counsel can help mitigate these risks.

How much does it cost to hire an employee in Argentina?

In addition to the base salary, employers must contribute to social security, pension, health insurance, and pay a 13th month bonus. These statutory contributions typically add 30-40% to the gross salary. Recruitment or EOR service fees are additional.

Can a U.S. company hire contractors directly in Argentina?

Yes, U.S. companies can hire independent contractors, but the relationship must be genuinely project-based and non-subordinate. Misclassification can result in retroactive taxes and benefits. Always use clear service agreements and review local legal definitions.

What is the fastest way to hire employees in Argentina?

Using an Employer of Record (EOR) is the fastest and most compliant way to hire. EORs can onboard employees within 1-2 weeks, handle payroll, and ensure all statutory obligations are met without the need for a local entity.

What documents are required to onboard an employee in Argentina?

You will need the employee’s identification (DNI/passport), tax ID (CUIL), signed employment contract (in Spanish), and bank account information. Registration with social security and health insurance is also mandatory before the employment start date.
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