A Practical Guide to Hiring Employees in Argentina with an EOR
Hiring in Argentina is rewarding because you get access to strong talent, excellent work ethic, and a growing tech market. But once someone joins your team, the obligations start right away.
Contracts need to reflect local rules, payroll comes with mandatory allowances and social security contributions, and inflation requires ongoing adjustments that aren’t optional.
Teams that assume they can “just hire quickly and clean it up later” usually discover that retroactive fixes are expensive. Back pay, penalties, and reheated employment disputes are common when compliance is treated casually.
At some point, every company hiring here realizes the same truth: expertise isn’t a luxury, it’s a requirement. Learning Argentine labor law by trial and error is not the path anyone wants to take.
That’s where Employer of Record services help. The EOR becomes the legal employer of your team in Argentina.
They issue compliant contracts, manage payroll, enroll employees in all required programs, and keep you away from accidental violations. You still direct the employee’s day-to-day work, they simply take care of everything that touches local law.
For most foreign companies, it’s the safest route into the market without forming a local entity.
How Employment Law Works in Practice in Argentina
Argentine employment law is built around stability, protections, and strict formalities. Informal agreements don’t carry much weight. Everything, from the work location to the salary structure, needs to be spelled out clearly in writing.
Written employment agreements are mandatory. Employees expect to see salaries expressed in local currency because inflation is a constant factor and payday amounts can shift if exchange rates are involved.
Employment terms are not easy to rewrite later. If payroll practices or benefits are set incorrectly, undoing them usually brings additional cost, not savings.
This is a place where precision on day one saves chaos in month six.
Contracts, Employment Types, and Classification Risks
Permanent employment is the default. Fixed-term contracts exist but must fit clear legal categories. If used incorrectly, the employee is reclassified as permanent, along with severance rights.
Probation exists but only inside permanent contracts. It typically lasts up to 3 months, and employees on probation still receive all required benefits.
Misclassification, i.e., calling someone a contractor when they work like an employee, is one of the fastest routes into penalties. Authorities look at control, exclusivity, reporting obligations, and whether the worker depends on your organization for income.
If it feels like employment, the government treats it like employment. A compliant EOR structure removes that gamble.
Salaries, Inflation Adjustments, and Regional Differences
Minimum wages are national, but wages often vary by industry and collective bargaining agreements (CBAs). These agreements carry a lot of weight and can impact raises, allowances, working hours, and overtime rates.
And inflation changes everything. Salary updates happen more frequently here than in most countries. Annual increases are typical; quarterly isn’t unusual.
Good EORs stay ahead of each update and guide you through budgeting so compensation doesn’t fall behind legal or cultural expectations.
Payroll, Taxes, and Mandatory Social Security (ANSES)
Payroll in Argentina comes with multiple layers, and most of them tie directly to legal compliance. Employers must contribute to different programs covering retirement, health coverage, life insurance funds, and employment risks.
Taxes and contributions are withheld automatically. Employees expect payslips that detail every deduction and benefit line-by-line.
Late payroll or missed contributions can lead to immediate penalties. Trust evaporates quickly if payments slip, and it’s hard to repair once broken.
An EOR keeps payroll aligned with real-time requirements. Still, employers should understand the full cost because it’s higher than the gross salary might suggest.
Mandatory Contributions and Allowances Overview
| Requirement | Who Pays | What It Covers | Why It Matters |
|---|---|---|---|
| Social Security (ANSES) | Employer & Employee | Retirement and social protection | Required for all employees |
| Health Coverage (Obra Social) | Employer & Employee | Medical coverage via unionized plans | Employees choose based on union affiliation |
| ART (Occupational Risk Insurance) | Employer | Workplace injury and disability | Strictly enforced, heavy penalties for non-payment |
| Income Tax Withholding (Ganancias) | Employee | Personal income tax | Must be calculated correctly every month |
| 13th Salary (Aguinaldo) | Employer | Mandatory semi-annual bonus | Not optional and closely monitored |
The 13th Salary (Aguinaldo)
Aguinaldo is one of the most visible and culturally important compensation elements. It is paid in two installments each year, typically June and December. It equals half of the highest monthly salary earned within each half-year period.
It is absolutely not performance-based. Missing or delaying payment triggers immediate complaints and serious legal exposure.
A good EOR treats Aguinaldo like a core budget item, not a surprise bill.
Working Hours, Leave, and Public Holidays
The standard workweek is 40–48 hours, depending on the role and agreement. Overtime is tightly regulated and must be paid with premiums.
Employees are entitled to:
- Paid annual leave (from 14 to 35 days, depending on tenure)
- Paid public holidays (Argentina has many)
- Statutory sick leave
- Maternity and protected family-related leave
Tracking leave manually is risky. Mistakes usually show up in payroll disputes or back-pay demands. EORs manage records and ensure each leave category is paid correctly.
Probation, Termination, and Severance
This is where Argentine law becomes very strict. There is no at-will employment.
Terminations generally require:
- A justifiable legal reason
- Documentation of performance issues or operational changes
- Correct notice periods or payment in lieu
- Statutory severance tied to tenure and circumstances
Improper terminations can escalate instantly into legal claims, with outcomes that are usually expensive and slow. Mutual separation agreements are common but must follow legal protocol.
Having a local team guiding each step makes a huge difference. Termination is not the time to learn by mistake.
Onboarding Employees Through an EOR in Argentina
Onboarding through an EOR in Argentina is usually straightforward, but it follows a more formal structure than many foreign employers expect. Small missteps early on can create compliance issues later, so this phase deserves attention.
Typical timeline
A clean onboarding process often takes about 1–3 weeks from offer acceptance to full payroll enrollment. Timelines stretch if the role falls under a specific collective bargaining agreement (CBA) or if documents are incomplete. A good EOR will map the timeline for you upfront so there are no surprises.
Common document requirements
Employees are generally asked to provide:
- Government-issued ID
- Local tax identification (CUIL/CUIT)
- Bank account details for salary payments
- Proof of address
- Educational or professional certificates for certain roles
Your EOR typically reviews and validates these before payroll setup. Delays almost always come from missing or inconsistent paperwork rather than bureaucracy.
Union and benefit enrollment
Many roles in Argentina are linked to union frameworks or industry agreements. This can affect health coverage, minimum pay levels, and certain benefits. Employees must be enrolled in:
- Obra Social (union-linked health coverage)
- Pension and social security systems
- Occupational risk insurance (ART)
A knowledgeable EOR will confirm the correct category and handle enrollment so the employee is properly covered from day one.
Local language contracts
Employment contracts are normally issued in Spanish because that’s what authorities and courts rely on. Some EORs provide bilingual contracts for convenience, but the Spanish version is the legally controlling one. Relying only on an English contract is a common foreign-employer mistake.
What smooth onboarding looks like
When done well, onboarding in Argentina feels organized and predictable. The employee receives a compliant contract, is correctly registered in all systems, and sees accurate deductions on their first payslip. That first payroll experience sets the tone for trust.
A capable EOR doesn’t just process forms; they guide classification, benefits, and timing so your hire starts on solid legal ground.
EOR vs Setting Up a Local Entity in Argentina
| Factor | Using an EOR | Local Entity Setup |
|---|---|---|
| Time to hire | Days to weeks | Months, sometimes longer |
| Upfront cost | Low | High (legal, tax, registrations) |
| Payroll & compliance | Fully managed | Fully internal |
| Flexibility | High | Low |
| Best for | Market entry + small teams | Larger, long-term operations |
Most foreign companies begin with an EOR and only establish a legal entity when headcount or long-term plans justify the complexity. Many never need to change.
How to Choose the Best EOR in Argentina
Not every EOR handles Argentina the same way. The differences only show up after hiring, especially once compensation and benefits start evolving.
When evaluating providers, look for:
- Experience handling inflation adjustments and CBAs
- Clear plans for complying with Aguinaldo and severance rules
- Transparent salary budgeting support
- Local specialists, not just SaaS support reps
- Total cost breakdowns including contributions and insurance
- Guidance during terminations, not just onboarding
The ideal EOR doesn’t feel like software. They feel like a local compliance partner protecting your team and your budget.
Final Thoughts
Argentina offers skilled talent and a hardworking culture, but the rules leave almost no margin for improvisation.
The companies that take compliance seriously from the start build loyal teams and avoid unnecessary drama. The ones who don’t usually get their wake-up call during an audit or dispute.
An EOR lets you focus on the person you’re hiring rather than the paperwork behind them. With the right partner, entering the Argentine market becomes exciting instead of stressful, and that’s exactly how it should feel.

