How to Use An Employer of Record in
Argentina

Hiring in Argentina means navigating mandatory aguinaldo (13th-month salary), employer social security contributions of approximately 27%, and collective bargaining agreements that override standard contracts in most industries. An Employer of Record in Argentina becomes the legal employer of your staff, ensuring full compliance with Ley de Contrato de Trabajo and handling all payroll, tax withholding, and statutory filings so you can hire in 5 to 10 business days without incorporating a local subsidiary. The EOR eliminates your exposure to penalties from AFIP (Argentina's tax authority) for incorrect withholding, late social security remittances, or non-compliant termination procedures under a rigid labour framework that heavily favours employee protection.

What Is an Employer of Record in Argentina?

An Employer of Record in Argentina is a third-party organisation that becomes the legal employer of your staff under Argentina law, holding the employment contract, handling all statutory obligations including payroll, tax withholding, and social security contributions, and ensuring compliance with Ley de Contrato de Trabajo and sector-specific collective agreements, while you retain complete operational control over day-to-day work, performance management, and business objectives.

Under Argentina's employment law framework, the EOR must issue indefinite-term contracts as the default (fixed-term contracts are permitted only under strict conditions defined in Ley de Contrato de Trabajo), enrol employees with AFIP and the applicable social security system (ANSES) within five business days of hire, withhold income tax (Impuesto a las Ganancias) at progressive rates from 5% to 35%, and comply with any applicable convenio colectivo de trabajo (collective bargaining agreement) that sets sector-specific minimums for salary, working hours, and benefits that override general labour law. The EOR also manages mandatory aguinaldo (13th-month salary paid in two instalments in June and December), statutory severance calculations based on length of service, and the required pre-termination communications to the Ministerio de Trabajo.

You retain full control over hiring decisions, job responsibilities, performance reviews, promotions, and the decision to terminate employment. The EOR owns the legal employment relationship, issues the employment contract under Argentina law, runs monthly payroll in Argentine pesos, files all tax and social security declarations with AFIP and ANSES, maintains compliance with working time limits under Ley de Jornada de Trabajo, and executes compliant termination procedures including calculation and payment of severance (indemnización por despido) and notice pay when you decide to end the employment.

How Does an Employer of Record Work in Argentina?

When you hire an employee in Argentina through an EOR, the process begins with defining the role, salary, and employment terms, then moves through contract preparation, government registrations with AFIP and ANSES, payroll setup, and ongoing compliance management. The EOR ensures every step meets the requirements of Ley de Contrato de Trabajo, applicable collective agreements, and tax and social security regulations. Here is how it works in practice.

Step 1: Define Role and Employment Terms

You provide the EOR with the job title, responsibilities, proposed salary, and start date for your new hire in Argentina. The EOR reviews whether the role falls under a collective bargaining agreement (convenio colectivo) that sets minimum salary scales, working hours, and benefits for specific industries or job categories. If a convenio colectivo applies, the EOR confirms that your proposed salary meets or exceeds the sector minimum and that the employment terms comply with any additional obligations such as meal allowances, transport subsidies, or specific leave entitlements. The EOR also advises on the appropriate contract type, noting that indefinite-term contracts are the legal default and fixed-term contracts (contratos a plazo fijo) are permitted only for temporary roles defined by law, with a maximum duration of five years.

Step 2: EOR Compliance Check

The EOR verifies that the proposed salary meets or exceeds the statutory minimum wage set by the Consejo Nacional del Empleo, which as of 2026 is ARS 234,315 per month. The EOR confirms compliance with the maximum working hours under Ley de Jornada de Trabajo, which sets a limit of 8 hours per day and 48 hours per week (or 44 hours in certain sectors), and checks whether the role is correctly classified as dependent employment (subject to full labour protections) versus independent contractor status, which is heavily scrutinised by the Ministerio de Trabajo. The EOR also reviews whether the role requires registration with any industry-specific body or union, and confirms that the proposed probation period does not exceed the legal maximum of three months (or shorter periods set by applicable collective agreements).

Step 3: Employment Contract Preparation

The EOR drafts and issues a written employment contract in Spanish, as required by Ley de Contrato de Trabajo and enforced by the Ministerio de Trabajo, even though oral contracts are technically valid. The contract must include the employee's full name, CUIL (Código Único de Identificación Laboral) number, job title and duties, start date, salary and payment frequency, working hours and location, applicable collective agreement (if any), probation period (if used), and the clause confirming the contract is governed by Argentina labour law. For fixed-term contracts, the EOR includes the specific legal ground justifying the fixed term and the end date, and notes that failure to provide written notice of renewal or termination at least one month before expiry converts the contract to indefinite term. The contract is signed by the EOR as the legal employer and by the employee, and the EOR provides you with a copy for your records.

Step 4: Government Registrations

The EOR registers the new employee with AFIP (Administración Federal de Ingresos Públicos) using the F.931 declaration, which reports the employment relationship and triggers income tax withholding obligations, and with ANSES (Administración Nacional de la Seguridad Social) for social security contributions including pension, family allowances, and unemployment insurance. These registrations must be completed within five business days of the employment start date, and late registration exposes the employer to penalties from AFIP and potential claims from the employee that the employment was undeclared (trabajo en negro), which can result in doubled severance and additional fines. The EOR also registers the employee with the applicable ART (Aseguradora de Riesgos del Trabajo), the mandatory workplace injury insurance scheme, and with any union or obra social (health coverage fund) required by the applicable collective agreement or chosen by the employee.

Step 5: Payroll in Local Currency

The EOR processes monthly payroll in Argentine pesos, as required by Ley de Contrato de Trabajo, which prohibits payment in foreign currency for work performed in Argentina. Each month, the EOR calculates gross salary, deducts employee social security contributions (approximately 17% for pension, obra social, and union fees), withholds income tax (Impuesto a las Ganancias) using the progressive scale that ranges from 5% to 35% based on annual income, and remits both employee and employer contributions to AFIP via the monthly SICOSS declaration. The EOR transfers net salary to the employee's Argentina bank account by the last business day of the month or the date specified in the applicable collective agreement, and issues a digital recibo de sueldo (payslip) that details all earnings, deductions, and employer contributions as required by Resolución MTEySS 1891/2018.

Step 6: Ongoing Compliance Management

Each month, the EOR files the F.931 declaration with AFIP reporting all wages, withholdings, and employer contributions, and the SICOSS declaration to remit combined employer and employee social security contributions totalling approximately 44% of gross salary. The EOR manages payment of aguinaldo (13th-month salary) in two instalments: the first half by 30 June (calculated as 50% of the highest monthly salary in the January to June period) and the second half by 18 December (calculated as 50% of the highest monthly salary in the July to December period). The EOR tracks and updates salary adjustments required by government-negotiated paritarias (joint wage commissions) that periodically increase minimum salaries in collective agreements, ensures compliance with statutory leave including 14 calendar days of annual leave (increasing with seniority), and maintains all employment records as required by the Ministerio de Trabajo for inspections. The EOR also monitors changes to tax tables, social security rates, and labour regulations, implementing updates without requiring action from your internal team.

Step 7: Termination and Severance

When you decide to terminate an employee in Argentina, the EOR executes the termination under Ley de Contrato de Trabajo, which requires just cause (such as serious misconduct defined in Article 242) for dismissal without severance, or payment of statutory severance (indemnización por despido) for termination without cause. Notice periods are set by collective agreements and typically range from 15 days to two months depending on length of service, or the employer can pay notice in lieu (preaviso). Statutory severance is calculated as one month of salary for each year of service (or fraction greater than three months), based on the best monthly salary earned in the last year, and employees with more than one year of service are also entitled to an additional payment (integración del mes de despido) that completes the monthly salary, aguinaldo, and annual leave for the month of termination. The EOR issues the formal termination letter (telegrama de despido or digital notification via the Ministerio de Trabajo portal), calculates and pays all final amounts including severance, unused annual leave, aguinaldo proration, and any salary owed, and files the termination with AFIP and ANSES to close the employee's registration.

Employment Laws and Compliance an Employer of Record Handles in Argentina

When you hire through an Employer of Record in Argentina, they assume full legal responsibility for compliance with Ley de Contrato de Trabajo, tax and social security regulations enforced by AFIP, and sector-specific collective agreements, so you do not need to build an in-country HR or legal function to manage complex and frequently updated labour obligations.

• Employment Contracts: The EOR issues written contracts in Spanish as required by Ley de Contrato de Trabajo, ensuring all mandatory clauses are included and that indefinite-term contracts are used unless a fixed-term contract meets one of the specific legal grounds in Article 93. Failure to provide a written contract or use of an illegal fixed-term arrangement can result in penalties from the Ministerio de Trabajo and automatic conversion to indefinite-term status with retroactive severance exposure.
• Payroll Tax and Income Tax Withholding: The EOR withholds Impuesto a las Ganancias (income tax) from employee salaries using the progressive scale administered by AFIP, which ranges from 5% on annual income above ARS 2,052,000 to 35% on income above ARS 15,000,000, and remits withheld amounts monthly via the F.931 declaration. Incorrect withholding or late remittance results in interest charges, penalties from AFIP, and potential liability for the full unpaid tax amount plus fines up to 100% of the tax owed.
• Social Security and Pension Contributions: The EOR calculates and remits combined employer (approximately 27%) and employee (approximately 17%) social security contributions to ANSES each month via the SICOSS system, covering pension (SIPA), family allowances (SUAF), unemployment insurance, and obra social (health coverage). Late payment triggers automatic interest at AFIP's published rate (currently over 4% per month compounded) and can result in suspension of the employer's CUIT (tax identification number), blocking all business transactions until contributions are current.
• Statutory Leave Entitlements: The EOR tracks and administers annual leave starting at 14 calendar days per year and increasing to 35 days after 20 years of service, 10 national public holidays when employees cannot work (or receive double pay if required to work), and paid sick leave of 3 to 12 months depending on tenure and family status, all as set out in Ley de Contrato de Trabajo. Denial of statutory leave or failure to pay leave correctly exposes the employer to claims in labour courts (Justicia Nacional del Trabajo) and potential orders to pay the leave value plus damages.
• Termination and Severance: The EOR manages termination procedures under Ley de Contrato de Trabajo, calculating statutory severance at one month of salary per year of service (plus integración del mes de despido for employees with more than one year), ensuring notice is given or paid in lieu as required by the applicable collective agreement, and filing all required notifications with AFIP, ANSES, and the Ministerio de Trabajo. Failure to calculate severance correctly or follow procedural steps can result in employee claims for double severance (indemnización agravada) and additional penalties in labour courts.
• Working Time Limits: The EOR ensures compliance with Ley de Jornada de Trabajo, which limits working hours to 8 per day and 48 per week (or 44 in certain industries), requires overtime pay at 50% above the regular rate for the first three hours and 100% thereafter, and mandates a minimum rest period of 12 hours between shifts and 35 continuous hours per week (typically Saturday afternoon through Sunday). Violations result in fines from the Ministerio de Trabajo, potential shutdown orders, and employee claims for unpaid overtime plus interest.
• Health and Safety: The EOR maintains mandatory coverage with an ART (Aseguradora de Riesgos del Trabajo) to insure workplace injuries and occupational diseases as required by Ley de Riesgos del Trabajo, ensures workplaces meet standards set by the Superintendencia de Riesgos del Trabajo (SRT), and complies with industry-specific safety regulations. Failure to maintain ART coverage results in direct employer liability for all workplace injury costs, fines from SRT, and potential criminal liability for serious accidents.
• Data Protection and Employee Privacy: The EOR processes employee personal data in compliance with Ley de Protección de Datos Personales (Law 25,326) and regulations enforced by the Agencia de Acceso a la Información Pública, ensuring lawful collection, storage, and transfer of employee information including CUIL, salary, and health data. Non-compliance can result in fines up to ARS 100,000,000, orders to cease data processing, and employee claims for damages in civil courts.
• Collective Bargaining Agreements: The EOR identifies and complies with any applicable convenio colectivo de trabajo negotiated between unions and employer associations, which override general labour law and set mandatory minimums for salary scales, working hours, leave entitlements, meal allowances, uniform provisions, and termination procedures in specific industries or job categories. Failure to apply the correct collective agreement results in underpayment claims, fines from the Ministerio de Trabajo, and potential union action including strikes or legal challenges.
• Aguinaldo (13th-Month Salary): The EOR calculates and pays the mandatory 13th-month salary in two instalments: 50% of the highest monthly salary earned in the first half of the year by 30 June, and 50% of the highest monthly salary in the second half by 18 December, as required by Article 122 of Ley de Contrato de Trabajo. Failure to pay aguinaldo on time or in the correct amount results in interest charges at the legal rate, potential labour court claims, and fines from the Ministerio de Trabajo during inspections.

How Much Does It Cost to Use an Employer of Record in Argentina?

Using an Employer of Record in Argentina involves two cost components: the EOR service fee and the statutory employer on-costs fixed by Argentina law including social security contributions, workplace injury insurance, and other mandatory charges. Statutory on-costs in Argentina are among the highest in Latin America, totalling approximately 27% of gross salary, and are non-negotiable regardless of which EOR you use. Playroll's EOR service fee starts from $399 per employee per month and is billed separately from the employee's salary and statutory costs, giving you a clear breakdown of each cost element.

Let's look at an example that includes a base salary and the EOR service fee.

Playroll's EOR service fee covers the drafting and signing of compliant employment contracts, all government registrations with AFIP and ANSES, monthly payroll processing in Argentine pesos, calculation and remittance of all tax and social security contributions, statutory filing of F.931 and SICOSS declarations, management of aguinaldo payments, annual leave tracking, compliance with collective agreements, ongoing monitoring of legal changes, and execution of compliant termination and severance procedures when required.

Employer of Record vs Setting Up an Entity in Argentina

Deciding between an Employer of Record and establishing your own legal entity in Argentina depends on your hiring timeline, budget, and long-term commitment to the market. The most common structure for foreign companies entering Argentina is a Sociedad Anónima (S.A.) or Sociedad de Responsabilidad Limitada (S.R.L.), which requires registration with the Inspección General de Justicia (IGJ), obtaining a CUIT from AFIP, opening a local bank account, and appointing a legal representative resident in Argentina, typically taking 8 to 14 weeks and costing $15,000 to $30,000 in legal, notary, and registration fees before you can hire your first employee.

For companies hiring fewer than 10 to 15 employees in Argentina, an Employer of Record is almost always the faster and more cost-effective route.

Playroll also supports your long-term growth through its Global Entity Setup product, which handles entity incorporation and local payroll in 120+ countries so you can transition from EOR to your own compliant entity in Argentina when the time is right, without switching providers or rebuilding your HR processes.

How Long Does It Take to Hire Someone in Argentina Through an Employer of Record?

You can hire an employee in Argentina through an Employer of Record in 5 to 10 business days from the moment you provide the EOR with the candidate's details and approved employment terms to the employee's official start date with all government registrations complete.

• Stage 1: Contract preparation and signing (1 to 2 business days): The EOR drafts a compliant employment contract in Spanish under Ley de Contrato de Trabajo, including all mandatory clauses and any terms required by the applicable collective agreement, and circulates it to you for approval and to the employee for signature. Timing depends on how quickly you and the employee review and return the signed contract, and whether any negotiation on terms is required.
• Stage 2: Government registrations (2 to 4 business days): The EOR registers the employee with AFIP using the F.931 declaration and with ANSES for social security contributions, and enrols the employee in an ART (workplace injury insurance scheme) and the chosen obra social (health coverage fund). Argentina law requires these registrations to be completed within five business days of the employment start date, and starting work before registration exposes the employer to penalties for undeclared employment (trabajo en negro) including doubled severance and fines from AFIP.
• Stage 3: Payroll configuration and first cycle (1 to 2 business days): The EOR configures the employee in the payroll system, setting up income tax withholding based on the employee's annual income and personal deductions, calculating social security contributions, and scheduling the first payroll run for the end of the month or the date specified in the applicable collective agreement. The employee receives their first payslip on or before the last business day of their first month of work.
• Stage 4: Argentina-specific requirements (runs in parallel): If the employee's role falls under a collective agreement that requires union registration or notification, the EOR handles this during Stage 2. If the employee needs to provide a CUIL (Código Único de Identificación Laboral) for the first time, obtaining this from ANSES can add 3 to 5 business days, though most Argentina workers already have a CUIL from prior employment. This step typically runs in parallel with contract signing and does not extend the overall timeline if the employee already holds a CUIL.

The timeline can extend beyond 10 business days if the employee does not yet have a CUIL and must apply for one, if the applicable collective agreement requires pre-hire union approval or additional documentation, if you request multiple rounds of contract revisions, or if there are delays in the employee providing required identification documents or choosing their preferred obra social. Most delays are avoidable with prompt document collection and clear communication of employment terms upfront.

By comparison, incorporating a local entity in Argentina and hiring through your own Sociedad Anónima or S.R.L. takes 8 to 14 weeks for entity registration alone, plus additional time to set up payroll, open bank accounts, and complete AFIP and ANSES registrations as a new employer.

How Playroll's Employer of Record Process Works in Argentina

Playroll manages the full employment lifecycle in Argentina so you can hire compliantly without building in-country HR infrastructure.

1. You define the role and candidate

You tell Playroll who you want to hire, the job title, the proposed salary, and the start date. Playroll confirms the employment terms meet or exceed the statutory minimum wage and any applicable collective agreement minimums, and advises on contract type and probation period options under Ley de Contrato de Trabajo.

2. Playroll prepares a compliant contract

Playroll drafts a written employment contract in Spanish that includes all mandatory clauses required by Ley de Contrato de Trabajo, including job duties, salary and payment terms, working hours, the applicable collective agreement (if any), and the probation period if used. The contract is reviewed by you, signed by the employee, and countersigned by Playroll as the legal employer.

3. Employee onboarded and payroll goes live

Playroll registers the employee with AFIP, ANSES, and the applicable ART and obra social within 5 business days, configures payroll to calculate income tax withholding and social security contributions, and processes the first payroll at the end of the employee's first month. The employee is legally employed and covered by all statutory protections from their first day of work.

4. Playroll manages ongoing compliance

Playroll runs monthly payroll in Argentine pesos, files the F.931 and SICOSS declarations with AFIP, calculates and pays aguinaldo in June and December, tracks statutory leave entitlements, monitors changes to collective agreements and tax tables, and handles all termination procedures including severance calculation and payment when required. If your hiring grows to the point where a local entity makes sense, Playroll can handle that too through its global entity setup service, allowing you to transition from EOR to your own Argentina entity without switching providers or rebuilding your payroll and compliance infrastructure.