The complete guide to offering employee benefits in Argentina
In Argentina, labor laws are complex—especially for companies looking to hire employees in Argentina while based in the US or another country. It's important to understand mandatory employee benefits in Argentina, so you can put together a benefits package that's compliant with labor laws—and attractive to local workers.
Read on for everything you need to know about benefits plans that meet the statutory requirements in Argentina.
What employee benefits are mandatory in Argentina?
Mandatory benefits are the ones that are required by Argentine law for all workers based in Argentina.
Keep in mind that the benefits required by the government of Argentina are statutory minimums, and employers can always offer more than these mandatory benefits. Also, note that these benefits are mandatory for employees—independent contractors in Argentina aren't entitled to any benefits.
Social security
In Argentina, employers are required to contribute around 25% on top of an employee's salary to social security, which covers several crucial benefits:
- Retirement plans
- Disability benefits
- Mandatory life insurance
- Employment insurance and unemployment benefits
- Family allowances, which help low-income families provide for children and cover parental leave payments
Health insurance plans
Employees in Argentina have healthcare benefits through private companies that are arranged by labor unions. Health benefits under these plans typically include medical and dental coverage for the employee and all of their immediate family members. Both employers and employees contribute to the cost of premiums—employers contribute 6% on top of the employee's base salary.
Paid vacation
- Employees with less than five years of service are entitled to 14 days.
- Employees with five to 10 years of service are entitled to 21 days.
- Employees with 10-20 years of service are entitled to 28 days.
- Employees with over 20 years of service are entitled to 35 days.
Argentina requires vacation time to be granted between Oct. 1 and April 30.
Paid vacation leave in Argentina is based on seniority:
Sick leave
Sick leave is also based on seniority. Employees with less than five years of continuous service are entitled to three months of paid sick leave per year. Employees who have worked for the same employer continuously for more than five years are entitled to up to six months of paid sick leave per year.
The amount of sick leave an employee is entitled to is doubled if they have any dependents.
Statutory holidays
Employees in Argentina are entitled to different statutory holidays, depending on their municipality and religion. There are a number of holidays that are observed nationwide and given to employees as paid days off.
Below are the nationwide statutory holidays in Argentina.
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Currency conversions must be calculated manually during pay runs to see total payroll costs in your HQ's local currency
Rippling automatically does the calculation for you in Global Payroll, and shows you the converted amount at the time of the pay run
Holiday
Date
New Year's Day
Jan. 1
Carnival
Monday and Tuesday before Ash Wednesday
Memorial Day for Truth and Justice
March 24
Good Friday
The Friday before Easter Sunday
Christmas
Dec. 25
May Revolution Day
May 25
Flag Day
June 20
Independence Day
July 9
Day of National Sovereignty
Nov. 20
Immaculate Conception
Dec. 8
Day of Respect for Cultural Diversity
Oct. 12
Overtime pay
Labor laws in Argentina strictly limit how much employees can work. Normal working hours can't exceed eight hours per day or 48 hours per week—but for employees with overnight hours or who do work considered "unhealthy," the limit is seven hours per day.
Employees can work overtime for up to three hours per day, 30 hours per month, and 200 hours per year. Weekday overtime must be paid at 150% of the employee’s usual salary or wage, while overtime on a Saturday afternoon, Sunday, or public holiday must be paid at 200%.
Severance pay
Severance pay for employees in Argentina must be equal to one month of pay for every year they worked unless they're terminated for economic reasons; then, severance is equal to half a month's pay for each year worked. Employees may also be entitled to a portion of their 13th month salary, depending on the reason for the termination.
13th month salary
Employees in Argentina are entitled to a 13th month salary, called Aguinaldo. It's payable in two installments, one due to the employee before June 30, and the other due before Dec. 18. Each installment should be equal to at least 50% of their highest monthly wage received during the prior six months.
What employee benefits are optional in Argentina?
Argentina's statutory benefits are the minimums that are required to be provided by employers. But employers can always go above and beyond the minimum and offer extra benefits to help attract and retain the best talent in Argentina.
Some common supplementary benefits are below.
Gym allowance
It's becoming increasingly common for employers to offer supplementary benefits that help employees in Argentina maximize their wellness. This can include allowances for gym memberships, passes to fitness classes, and other health perks.
Transportation allowance
For commuters in particular, some Argentine employers offer transportation allowances to help offset the costs of getting to and from work.
Meal vouchers
Healthy, delicious meals can help attract great employees, so meal vouchers are another non-obligatory benefit that's becoming more common for Argentine employers. Some offer catered meals onsite, while others offer allowances to cover the cost of buying meals during their employees' work hours.
Internet/phone allowance
In the age of remote work, internet, and mobile phone allowances are becoming a more common supplementary benefit. If employees are expected to do any work from home or on their own devices, they may ask their Argentine employer to cover some or all of the cost.
How to hire employees overseas and offer them affordable benefits in minutes—with Rippling
Running a global workforce isn't easy. It can be a challenge for global companies just to keep their benefits compliant—let alone managing offer letters, equipment, payroll, and everything else global employees and contractors need.
That's why, if you're going to hire employees, contractors, or remote workers globally, you need Rippling. Rippling makes it easy to onboard, manage, and pay employees and contractors around the world—in one system that's always compliant with local employment laws and regulations.
Disclaimer: Rippling and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.
