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- Employee Cost Calculator
- Argentina
Employee cost calculator in Argentina
Looking to hire in Argentina? Our Employee Cost Calculator gives you a clear view of expenses including taxes and employer contributions.
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Request a demoFrequently Asked Questions (FAQs)
What mandatory employment costs and benefits must employers provide in Argentina?
Employers in Argentina are required to contribute to the Sistema Integrado Previsional Argentino (SIPA) for pensions, the health insurance system (Obra Social), and the National Institute for Social Services for Retirees and Pensioners (INSSJP). Statutory benefits include paid annual leave, sick leave, maternity/paternity leave, and mandatory contributions to severance funds. Additionally, employers must pay for mandatory life insurance and provide a Christmas bonus known as 'Sueldo Anual Complementario' (SAC), which is equivalent to one month's salary paid in two installments.
What payroll taxes and social security contributions are required for employers and employees in Argentina?
Employers must contribute approximately 25-27% of the employee’s gross salary to social security, which covers pension (jubilación), health care (obra social), family allowances, and other statutory funds. Employees contribute about 17% of their gross salary, withheld by the employer, covering pension, health insurance, and social services. Both employer and employee contributions are regulated by the Administración Federal de Ingresos Públicos (AFIP).
What are some common hidden or indirect employment costs in Argentina?
In addition to base salary and statutory contributions, employers must budget for the 13th month salary (Sueldo Anual Complementario), mandatory severance payments upon termination, and additional compensation for unused vacation. Employers may also incur costs due to collective bargaining agreements (convenios colectivos de trabajo), which can mandate extra benefits such as meal vouchers or transportation allowances.
How do legal requirements such as minimum wage, working hours, and termination rules affect employment costs in Argentina?
Argentina sets a national minimum wage (Salario Mínimo Vital y Móvil), which is regularly updated and binding for all employees. The standard workweek is 48 hours, with overtime payable at 50-100% above the regular rate as prescribed by Ley de Contrato de Trabajo (LCT). Termination without justified cause obligates employers to pay severance (indemnización por despido), typically one month's salary per year of service, plus unused vacation and proportional bonuses.
What are typical employment practices in Argentina regarding probation, contracts, and additional benefits?
Employment contracts in Argentina are usually indefinite (contrato por tiempo indeterminado), though fixed-term and temporary contracts are allowed under specific conditions. The standard probation period is three months, during which termination requires no severance. It is common for employers to offer additional benefits such as lunch vouchers, private health insurance, and transportation subsidies, particularly in competitive industries.
