Argentina is much more than the land of football greats. The South American country is known for its trade and investment scope in IT, health, energy, and agriculture sectors. Over the last two decades, the FDI in Argentina averaged around 176.73 USD million, with a forecasted GDP of 495.03 USD billion by 2023. Agriculture alone contributes more than 7% to the national GDP.
The country has ample investment opportunities in mining, agriculture, IT, and infrastructure or construction. Historically, top global companies have had subsidiaries set up in the country thanks to the availability of a talented workforce for affordable payments. The local workforce is well-versed in the latest technology and has higher education. No wonder the country has a 98% plus literacy rate for both males and females, as per data from 2023.
Any recruitment and selection in Argentina must operate within the Employment or Labor Contract Law’s norms. The Constitution of Argentina, treaties that govern trade relationships of Argentina with overseas countries, and collective agreements also have specific norms that employers must keep in mind as they learn how to hire an employee in Argentina.
The government has worked on debt restructuring for economic revival. It further attracts foreign employers. The government has also made company registrations quicker while introducing several economic support schemes for investors in the Argentine landscape.
As you engage in recruitment and selection in Argentina, remember that the country ranks 126th on the rank list for the Ease of Doing Business index.
Things to Know Before Hiring in Argentina
As you begin hiring employees and start with recruitment and selection in Argentina, remember to follow the laws to hire employees in Argentina. It will help to ensure no penalties or missing out on compulsory mandates.
- The Argentine market is attractive to foreign employers thanks to the population’s high level of English proficiency. Its EF EPI Score stands at 30, which makes it the leader in this context among all 20 South American nations.
- In the e-commerce sector, the country has seen the fastest growth globally for 2021.
- Argentina is a quick adapter of the latest tech, keen on green and clean technology.
- Thanks to the following GST- a 3-time zone that makes it easy to conduct business with teams even in places as far off as North America.
- Workers in Argentina stay at the top of fiscal trends and thoroughly understand global markets. They have seen ample financial crises to have turned financially savvy.
Employment Contract
While an employment contract is not mandatory for a working relationship in Argentina, having one in written form is becoming common.
- Such work contracts are in Spanish, but it is important to have a copy in English if either party is proficient in the latter.
- Most contracts for recruitment and selection in Argentina apply to a fixed tenure, but the employer can extend the same indefinitely.
- Such contracts apply to full-time as well as seasonal and part-time jobs.
- Employers must maintain the Special Payroll Book as a record for employee hiring. The Ministry of Labor oversees the same.
For all purposes related to recruitment and selection in Argentina, a basic contract mentions-
- Employer related details
- Employee roles and profile of job
- Employee duties
- Duration
- Probation and notice period
- Collective bargaining rules
- Salary and benefits
- Work hours and overtime
- Annual leaves and holidays
- Termination and dismissal details
Probation and Termination
As per the Labor Contract Law in Argentina, the probation period for employees is three months.
An employer can terminate the employee’s services after the probation period expiry but needs to compensate with severance payment without a notice period.
Notice period
The notice period for termination of a job role in Argentina, when you hire staff in Argentina, varies per service tenure, as follows.
TENURE | NOTICE PERIOD |
More than 3 months but lesser than 5 years | 1 month |
More than 5 years | 2 months |
Employment laws
When handling any recruitment and selection in Argentina or when you hire staff in Argentina, its Labor Code is a beacon for inclusiveness and non-discriminatory practices. Refrain from asking any questions that could breach such norms during the recruitment and selection in Argentina.
Working hours and breaks
As you hire staff in Argentina, track permissible working hours-
- The standard working hours for staff in Argentina are 48 hours per week.
- Employees can work up to 200 hours in a year overtime as per relevant pay.
- Overtime payment for weekdays until 1 p.m. on Saturday is a 50% surcharge over salary. It becomes payable at a 100% surcharge for holidays, Saturdays (post 1 p.m.), and Sundays.
Payroll
- When you hire employees in Argentina, ensure a monthly salary payout.
Minimum wage
- The average wage to hire employees in Argentina is 69,500 ARS per month.
Bonuses
- A 13th and 14th-month payout signifies bonus payment in Argentina.
Holidays for employees
Official public holidays in Argentina are below-
Jan 1 | New Year Day |
Feb 20-21 | Carnival Monday and Tuesday |
March 24 | Truth and Justice Memorial Day |
April 2 | Malvinas Day |
April 7 | Good Friday |
May 1 | Labor Day |
May 25-26 | May Day Revolution |
June 17 | Martin Miguel de Guemes Day |
June 19-20 | National Flag Day |
June 27 | Day of the State Worker (only public sector) |
July 9 | Independence Day |
August 21 | San Martin’s Day |
Oct 13 | Public Holiday holiday |
Oct 16 | Day of Respect for Cultural Diversity |
Nov 20 | Day of National Sovereignty |
Dec 8 | Immaculate Conception Day |
Dec 25 | Christmas Day |
Other Leaves
Vacation Leave
The paid annual vacation period in Argentina when you hire staff in Argentina varies per service tenure as under-
TENURE OF SERVICE | ANNUAL LEAVE |
Up to 5 years | 2 weeks |
5 to 10 years | 3 weeks |
10 to 20 years | 4 weeks |
More than 20 years | 5 weeks |
Maternity and Paternity Leave
1. Pregnant employees are entitled to 90 days of maternity leave, split between 45 days each before and after childbirth.
2. Fathers can also take paid paternity leave for two days, post the child’s birth.
Other Leaves
1. In Argentina, employees get bereavement leave of one to three days.
2. An employee can take up to 10 days of leave for marriage.
3. Additionally, employees can take up to ten days extra leave annually for University exams.
4. Sick leave for an employee can last up to six months.
Social security
The social security contribution break-up in Argentina is as under:
Contribution header | Employee contributions | Employer contributions |
Pension fund | 14% | 18% |
Health security | 3% | 6% |
Risk insurance variable | NA | 2.41 |
Life insurance | No fixed amount | 0.5 |
Taxation
Argentina’s corporate tax rate is as under:
NET TAXABLE PROFITS | TAX PAYMENT |
0 to ARS 7,604,948.57 | 25% |
ARS 7,604,948.57 to ARS 76,049,485.68 | ARS 1,901,237.14+30% on excess of ARS 76,049,485.68 |
Above ARS 76,049,485.68 | ARS ARS 22,434,598.28 + 35% on excess of ARS 76,049,485.68 |
The standard VAT rate is 21%, while some sectors have special VAT rates that range between 10.5% and 27%.
The income tax brackets in Argentina follow a progressive structure as outlined below:
Income in ARS | Effective Tax in % |
Up to 173,834.61 | 5 |
173,834.61-347,669.23 | 9 |
347,669.23-521,503.84 | 12 |
521,503.84-695,338.47 | 15 |
695,338.47-1,043,007.68 | 19 |
1,043,007.68-1,390,676.90 | 23 |
1,390,676.90-2,086,015.35 | 27 |
2,086,015.35-2,781,353.85 | 31 |
Above 2,781,353.85 | 35 |
The Cost of Hiring an Employee in Argentina
In the context of the recruitment fees in Argentina and costs for the hiring process in Argentina, the main expense headers are as under:
- Advertisement expenses
- Hiring and interviewing expenses
- Verification expenses for background checks
- Visa expenses
- Payroll expenses
- Taxes and social security expenses
- Salary and benefits-related expenses
- Bonus expenses
- Vacation and leaves-related expenses
- Contractual expenses
- Onboarding and training expenses
What Does a Company Need to Hire Employees in Argentina?
Employers in Argentina can employ permanent, part-time, or apprentice employees. To hire employees in Argentina, compliance with all governing laws is mandatory. A contract for employment in Argentina mentions all aspects of employment. The documentation you need to hire for an organization in Argentina are-
- Work visa or permit for the employee
- Passport copy of the employee
- Employee photographs
- Age proof of employee
- Employment contract
- Notarized certificate of company registration
- Tax registration certificate
- Consulate issued medical statement
- Police record for three years from the country of stay
- Criminal record transcript
Various Options for Hiring Employees in Argentina
For all processes of recruitment and selection in Argentina, there are two basic structures to follow-
- EOR service: For all needs related to recruitment and selection in Argentina, outsource the same to an EOR service provider. Such solutions providers have the proper mechanisms and systems to handle hires and draft contracts in the country. It eases the management aspect and covers all legal norms to the core.
- Internal hiring: You can set up a traditional HR team and hire staff in Argentina. However, the company must have an in-house HR team in such cases. This team further engages in research related to the Maltese market for jobs. Finally, per applicable laws of the land, the team closes a hiring chapter on your behalf.
The Steps to Hiring in Argentina
The recruitment and selection in Argentina follow a basic structure, elaborated below.
1. Advertising
- Advertise an open position on leading job boards, social networks, and industry hiring sites in Argentina.
- Use local references and networks to access prospective candidates.
- Mention all job duties for the open rule while laying down the minimum qualifications and experiences you expect from the candidate.
2. Shortlisting candidates for recruitment and selection in Argentina
- Candidates generally make online applications via their resumes or CVs.
- Make a list of the most eligible fits.
- Set up an interview round and inform the candidates via email.
3. Interviews for recruitment and selection in Argentina
- Schedule an interview on-site or over the web, as per the location you are present in.
- Discuss all expected work duties from the candidate and give a clear picture of the company culture.
4. Final offer and contracting
- Make an offer via a relevant letter and draft an employment contract. Ensure you follow all laws for recruitment and selection in Argentina.
- Mention the need for a legal background check for recruitment and selection in Argentina.
Onboarding and employee training
- Onboarding begins as the contractual formalities wrap up.
- You can wrap up the processes for recruitment and selection in Argentina once the employee induction in the company is complete.
Let Multiplier be Your EOR Platform in Argentina
Following all labor codes is mandatory as you set your sights on hiring staff in Argentina. Penalties apply to violations in the context of employment and contracts. As a new company or one with no local Argentine experience, recruitment, and selection in Argentina, issues might be tough to sort out all alone. You can partner with some reputed PEO-EOR firms, such as Multiplier, to minimize the entire workload.
Recruitment and selection in Argentina become smoother, and you get the answers to the question of how to hire employees in Argentina with ease. Multiplier is a SaaS-based Employer of Record solutions provider that lets you focus on understanding the Argentine market without establishing a branch there.