Argentina Payroll and Benefits Benchmark guide

The current minimum wage is 15,625 pesos per month and is set to rise to 16,875 pesos per month.

Annual leave depends on the seniority of the employee.

• 14 days leave – under 5 years of employment
• 21 days leave – over 5 years and less than 10
• 28 days leave – over 10 years and less than 20
• 35 days leave – over 20 years of continuous employment

Employees with less than 5 years of continuous service are entitled to 3 months of paid sick leave. Those with over 5 years of service receive 6 months of paid sick leave. Leave is doubled for those with dependents.

Maternity leave is a total of 90 days. 45 days before birth and 45 days post birth is how leave is typically divided, but not required. However, at least 30 days must be taken before birth.

Fathers receive 2 days of paid leave.

No provisions exist for parental leave.

Marriage Leave:  10 days

Bereavement Leave: 3 days leave are given for the death of a wife, child or parent, and 1 day for the death of a sibling.

Examination for university or secondary school: 2 days at a time (with cap of 10).

Full time employment is 8 daily hours and 48 weekly hours. Night workers (9pm-6am) daily workers should not exceed 7 hours. Employees working in unhealthy or dangerous conditions cannot work longer than 6 hours a day or 36 hours a week.  

Overtime hours should not exceed 3 hours per day, 30 hours per month, or 200 hours per year. Employees receive an additional 50% for overtime work and an additional 100% for holidays or work performed after 1pm on Saturdays. 

21% rate

The Argentine Integrated Pension System (SIPA) is in charge of the country’s Pension fund.

Universal Pension for the Elderly (PUAM) – for those 65 or older who are either Argentine, naturalized with 10 years of residence, or a foreigner with 20 years of residency.

Old age pension covered by social insurance covers men age 65 or older and women aged 60 or older. Both must have at least 30 years of contributions. Contributions for employees of hazardous or unhealthy conditions is reduced by ten years.

Employers contribution – 11.07%

Employees contribution – 11%

Contributions towards social security are paid towards retirement, family allowance, public health insurance agency (PAMI), and the national employment fund.

The minimum non-taxable amount for the payment of employer contributions will rise from 7,003.68 pesos to 15,810.81 pesos on January 2020.

Contributions are:

Employer –

• Argentine Integrated Pension System - 11.07%
• PAMI - 1.62%
• Family Allowance (AAFF) - 4.83%
• National EmploymentFund - 0.98%

Total to social security scheme 18.50%

To the National Social Work Regime

• Social work - 6%

Total Contributions - 24.5%

 Employee –

• Argentine Integrated Pension System – 11%
• PAMI – 3%
• Social work – 3%

Total Contributions - 17%

The 13^th salary is payable in two instalments, one before June 30^th and the other before December 18^th.

Salaries are commonly paid on a monthly basis and in 13 payments. Payment must be within the first 4 days of the following month.

Hourly workers receive their salary at the end of each week.

Employers can terminate workers on grounds of worker misconduct, or economic grounds. If without cause, employers must provide notice of: 15 days for employees of less then 3 months, 1 month for employees of up to 5 years, and 2 months for employees of more than 5 years. Severance pay can be provided in lou of notice.

Written notice 15 days in advance.

Severance pay is one month of regular wages per each year employed in a 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 - 5 years: 1 months salary, and for over 5 years: 2 months salary.