The minimum wage as of April 2023 is ARS 80.342 per month. However, due to the monthly inflation that Argentina has, the minimum wage is updated at least 4 times per year by a decree of the Ministry of Labor.

The following increases in 2023 expected are:

• May: ARS 84.512
• June: ARS 87.987

The individual income tax ranges from 5% to 35%. Income tax is calculated [according to progressive rates]. Multiple additional factors may impact overall rates such as household status (rent or credit), number of dependents under 18, civil status, and geographical residence location.

Income tax as of January 2023 is:

The employer cost is generally estimated at 28% of the employee salary. Argentina maintains very high inflation rates, the fixed amounts may vary from month to month.

A monthly fee of USD 20 per employee will apply if Deel opens a bank account in USD for the employee. 

• Pension: 12.35%
• Law 19032 (Social Security): 1.58%
• Family allowance: 5.40%
• National employment fund: 1.07%
• Medical Insurance: 6.0%
• Accident Insurance (ART): 1.53% + ARS 200.13 (USD 0.71)
• Life Insurance: ARS 78.36 (USD 0.32)
• Optional health benefit monthly fee: USD 15
• Work from Home Allowance: ARS 11,912.78 (USD 50)
• Salary Bank Account in USD    - USD 20 (if applicable)

Private health insurance - estimated USD 50, final cost will be determined during onboarding

One time fees

• Mandatory Wet Ink Employment Agreement Handling Fee - USD 80 
• Pre-employment mandatory medical exam - approximately USD 130

Employees are entitled to 90 calendar days of paid leave. The standard is to take 45 days prior to birth, but it will be at the discretion of the employee if they want to wait until 30 days prior to the birth date to then accumulate 15 days after birth leave. The employee will receive a salary during this period, and Social Security will be responsible for this pay.

The employee can extend leave additional and receive 25% of the pay.

Employees are entitled to paid sick leave whose length will depend on their seniority. If the employee has a seniority of fewer than 5 years, they will be entitled to 3 months of sick leave. For employees with a seniority higher than 5 years, sick leave will increment to 6 months. Sick leave is paid by the employer.

A medical certificate must be provided to the employer, and digital copies are allowed.

Employees are also entitled to leave for the following cases, where leave is paid as PTO:

• Marriage: employees are entitled to 10 calendar days to celebrate.
• Death of dependents, siblings, or parents: employees are entitled to 3 calendar days.
• High school or university exams: employees are entitled to 2 calendar days per exam, with a maximum of 10 calendar days per year.

Terminations in Argentina have a high complexity. There is no at-will termination in Argentina for employers [outside the probation period].

Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer based on:
  • probation period
  • objective grounds
  • disciplinary dismissal
  • performance due to unsuitability for the job
• By the expiration of the contract

The minimum notice period is 30 days and will be increased according to the length of the employment.

• 30 days if the length of service is less than 5 years
• 60 days if the length of service is more than 5 years

During the probation period, the notice period is 15 days.

In Argentina, employees dismissed without a justified cause are entitled to severance pay (if they are not under probation). Underperformance and reorganization are not causes to justify dismissal under Argentine labor law.

Severance payment compensation will vary depending on the tenure of the employee since it is equivalent to one (1) month of salary per year of services rendered or per fraction greater than three (3) months.

Examples

• If an employee has worked for a period of 4 months and is terminated without cause, the employee is entitled to severance pay equivalent to 1 (one) month of salary.
• If the employee has worked for a period of 1 year and 2 months, the employee is entitled to severance pay equivalent to one (1) month of salary.
• If the employee has worked for a period of 1 year and 3 months, the employee is entitled to severance pay equivalent to two (2) months of salary.

Argentina celebrates 14 national holidays. Some holidays are transferrable, meaning they will be moved to the previous Monday if they fall on a Tuesday or Wednesday. Those that fall on Thursday and Friday, will be moved to the following Monday.

Also, there can be additional holidays for non-transferrable public holidays so the population has the chance to take a long weekend.

The dates for public holidays are published each year

National public holidays include:

• New Year
• Carnival (2 days)
• National Day of Remembrance for Truth and Justice
• Veteran's Day and Memorial Day in the Falklands War
• Labor Day
• Day of the May Revolution (2 days)
• Day of the Passage to Immortality of General Martín Miguel de Güemes (2 days)
• Day of the Passage to Immortality of General Manuel Belgrano
• Argentine Independence Day
• Passage to the Immortality of General José de San Martín
• Day of Respect for Cultural Diversity (2 days)
• National Sovereignty Day
• Feast of the Immaculate Conception of Mary
• Christmas

Contracts must be in Spanish and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

• name
• start date
• length of the employment
• job description
• termination conditions
• payment terms