Our Employer of Record (EoR) / International PEO solutions enable staffing organisations and foreign businesses to expand into Argentina and hire employees without the need to establish a new corporate entity.
We take care of the entire employment relationship including managing all social security costs, social benefits and statutory rights afforded to the employee. The best part is that our EoR solutions are completely managed by the Capital GES team, allowing you to concentrate on international expansion.
Interested in doing business in Argentina? Here are the top five things you need to know:
1. Social security
Argentinian social security includes:
- Health Care
- Social Security
Employer contributions are due at approximately 23-26% of the gross salary. Employee contributions represent approximately 17% of the gross salary with a cap set by law, which is updated twice per year.
2. Bonus and Expense Payments
Bonuses are treated as additional salary. Business-related expenses can be reimbursed upon valid original receipt.
3. Employment contract details
There are no specific rules governing the language for employment contracts. The employee must understand the contract language.
Contracts must be in writing.
4. Fixed-term contract extensions
Fixed term contracts may not exceed 5 years in total duration. Successive fixed-term contracts without an objective reason may deem the employment relationship as indefinite.
5. Termination costs
Severance payment depends on the employee’s length of employment and notice period given:
- 15-day notice for employees who rendered services for 1 to 3 months;
- 1-month notice for employees who rendered services for less than five years;
- 2-month notice for employees who rendered services for more than 5 years.
Employer must also pay out the accrued 13th salary and vacations.
6. Termination rules
Terminations in Argentina are often complex and should be considered with local experts before any notice is issued. Argentina does not allow at-will termination of employment for employers; contracts may be terminated by mutual agreement or unilaterally for due cause (serious cause, unfit for the role, extinction of the role). As a result of this complexity terminations are often a negotiated process.
Fixed-term contracts cannot be terminated early by the employer.
If you are looking to expand your workforce in Argentina (or any other of the 30 countries we operate in) without the burden of registering an entity and incurring significant expense and administration then please get in touch with Nick Broughton at Capital GES on +44 7539 337 563 or email Nick.Broughton@Capital-GES.com.
Capital GES provides market-leading employment services to staffing companies, corporate clients and independent contractors in all sectors across Europe, Latin America and southern Africa. With headquarters in Switzerland and offices in USA, Brazil and UK, Capital GES provides services including Employer of Record, Contractor Payroll, Invoice & Pay and IC Compliance Checking.
For more detailed information on employment matters in Argentina, including statutory benefits, employment regulations and contract requirements, download our free guide today or contact our team for a free consultation.