Argentina

Employment

The most common type of employment contracts are unlimited time contracts. The first three months are considered a probation period during which both parties are entitled to cancel the agreement. Limited time contracts must be written and must conclude in a maximum of 5 years. Contracts are not obligated to be in writing, but it is recommended and general practice.

Payroll

Salaries are commonly paid on a monthly basis; payment must be within the first 4 days of the following month.

HR & Labor

Work hours: Regular full time employees work 48 hour per week (8 hours a day). Overtime must be paid between 150%-200% of the regular salary depending on the hours worked.
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(Saturday afternoon, Sundays and official holidays) Annual bonus (Aguinaldo) is paid in two payments and is equivalent to 50% of the monthly wage. Employees are entitled to breaks if they work 12 hours in two working days and 35 consecutive hours in a week. Employees are entitled to 13th month salary.

Immigration

To apply for a work visa, an entry permit is required. Permits are valid for up to three years. Once in Argentina, employees must apply for a work visa via the National Directorate of Migration.

Recruitment

Employers can reduce their social security contributions when new employees are hired. If a new employee was previously unemployed and receiving unemployment, the employer can receive a subsidy for a portion of the employee's salary.

Public Holidays

January 01: New Years Day
February 12: Carnival
February 13: Carnival/Shrove Tuesday
March 24: Truth and Justice Memorial Day
March 30: Good Friday
April 02: Day of the Veterans (Malinas Day)
May 01: Labor Day
May 25: May Revolution Day
June 20: National Flag Day
July 09: Independence Day
August 20: San Martin Day
October 15: Day of Respect for Cultural Diversity
November 19: National Sovereignty Day
December 08: Immaculate Conception Day
December 25: Christmas Day

** The following are federal non-working national or religious holidays, during which people of the following faiths are excused from work:

April 11,12,17 &18: Passover (Judaism)
April 13: Holy Thursday ( Catholicism)
April 24: Day of Action for Tolerance and Respect among Peoples (Armenians)
June 25: Festival of Breaking of the Fast of the Holy Month of Ramadan (Islam, Eid al-Fitr)
September 01: Festival of Sacrifice (Islam, Eid al Adha)
September 21 & 22: Jewish New Year (Judaism, Rosh Hashana)
September 30: Day of Atonement (Judism, Yom Kippur)
October 02: Islamic New Year (Islam).

Minimum Wage

Monthly minimum wage is 6060 ARS, paid 13 times a year.

Pension Fund

Employers contribute either 10.17% or 12.71%

Employee contributes 11% with a salary ceiling of ARS 48,598.08 per month.

Severance Payments

Severance pay is one month of regular wages per each year that the employee worked in the company.

If appropriate notice was not given, additional payments will be provided. For 3 months or less of employment - 0.5 months salary, for 3 months up to 3 years - 1 months salary, and for over 3 years - 2 months salary.

Probation Period

The first three months of employment are considered the probation period, during which the contract may be terminated by either part at any time. This can be extended up to six months.

Contract Suspension

Employment contracts can be suspended on various grounds such as as employees illness, maternity, holding of public office or of trade union office and military service.

Additionally, suspension can be due to lack of work because of less demand, or disciplinary reasons in which case the suspension cannot be for more than thirty days within a twelve month period.

Advance Notice

Written notice given 15 days in advance.

Termination Procedure

Employer must give the employee 15 days notice for less then three months employed, one month notice if they have been in the company for less than five years and two months’ notice if more than five years. Employer can also offer a payment instead of these notices.

Sick Days

If the employee has worked in the company for less than 5 consecutive years, they receive 3 months paid sick leave. An employee working more than 5 consecutive years receive 6 months of paid leave.

Vacation Days

Employees who have worked in the company for between 6 months to 5 years are entitled to 14 days of vacation time, 5 - 10 years of employment entitles workers to 21 days, 10-20 years of employment entitles workers to 28 days, and for over 20 years of employment workers are entitled to 35 days leave.

*Salary during vacation is increased by 20% of its regular value.

Additional Employee Taxes and Withholdings

1. Pensioner’s Health Care Fund- Employer contributes 1.5% or 1.62%.
2. Family Allowance Fund - Employer contributes 4.4% or 5.56%
3. Unemployment Fund - Employer contributes 0.89% or 1.11%.
4. Medical Care - Employer contributes 6%.
5. Ingresos Brutos - Employer contributes 4%.

1. Pensioner’s Health Care Fund - Employees contribute 3% with a salary ceiling of ARS 48,598.08 per month.
2. Family Allowance Fund - Employees contribute 0%.
3. Unemployment Fund - Employees contribute 0%.
4. Medical Care - Employees contribute 3%.

VAT

VAT is 21% standard rate.