How to Pay Remote Employees in Argentina

If you ever thought of hiring foreign employees, Argentina is probably one of your best options because it offers various opportunities to employers and businesses who are looking to expand their business by hiring an international workforce.

Argentina is one of the largest economies in South America, its time zone is similar to the United States, and most of the population speaks English; all of these make Argentina a perfect place for many companies.

Moreover, you should know that Argentina has a rich tech culture and talent pool, but most importantly, it has flexible remote work policies, which means you can freely hire top remote employees.

However, if you are willing to hire and pay remote employees in Argentina, you need to know its employment laws, possible hiring risks, tax requirements, and more.

How Can Foreign Employers Hire and Pay Employees in Argentina

To successfully hire remote employees, you need to know Argentina’s local labor requirements, which we explain in the following section.

Start up a foreign entity in Argentina:

If you want to easily hire remote employees from Argentina, it is better to consider setting up an entity in Argentina to establish a long-term presence in the country. 

When you set up a foreign entity in Argentina, you will receive direct access to the country’s market, which help you hire top talents and payroll in-house.

The important point to consider is that setting up an entity may be time-consuming and expensive and needs deep knowledge of Argentina’s employment and payroll laws.

Collaborate with contractors in Argentina: 

If you want to work on short-term projects instead of hiring and paying full-time employees, you may need to engage and collaborate with contractors in Argentina.

Note that collaborating with contractors doesn’t need any entity establishment in Argentina, and employers are not required to pay employment taxes or provide benefits to contractors. 

Partner with an experienced employer in Argentina: 

As mentioned earlier, establishing an entity in Argentina can be time-consuming and expensive, so if you want an easier way, you can collaborate with an employer of record (EOR) so you can hire and pay remote workers in the country.

It is good to know that an EOR is your entity in the country and hires, manages and pays all employees in Argentina or any other global markets on your behalf.

Therefore, if you want great results or even want to test the Argentine market and work with top talents, partnering with an EOR is your best option.

What Is the 13-month Payment in Argentina?

You may be wondering why Argentine employees receive a legal annual bonus, which is also called “sueldo annual complementarioas” or 13-months pay.

Employers are required to pay Argentine employees a 13-month payment in two semi-annual parts, which is on June 30th and December 18th.

The key point is that each payment must equal 50% of the employee’s highest monthly salary.

How to Pay Remote Workers in Argentina

There are different ways you can pay remote employees in Argentina; however, you need to be aware of possible risks. In the following, you will learn how you can pay remote Argentine workers with fewer risks. 

You can set up a local entity in Argentina to pay remote workers. However, the main risk for this method is a permanent establishment, which means you need to pay corporate taxes and meet other standards.

As mentioned earlier, if you want to avoid establishing an entity permanently, you can work with an EOR who can serve as an entity.

It is good to know that an employer of record can handle all legal issues related to hiring and paying remote employees in all international markets.

What Are Argentina’s Employment Laws

When you want to hire remote employees in a foreign country such as Argentina, it is necessary to know its employment laws to avoid any legal issues.

If you want to hire top talents in Argentina, you need to know and follow the employment laws we explained in this section.

Working overtime 

Like most countries, the working hours in Argentina are eight hours daily and 48 hours weekly. According to Argentina’s employment law, employees will receive 150% of their payment when they work overtime.

If they work on Sundays, holidays, and rest days, the number will increase to 200% of their regular pay. 

However, you must note that overtime shifts can not exceed three hours daily, 30 hours monthly, and 200 hours yearly.

Minimum payment

Argentine employers are eligible to receive a monthly minimum payment, which is almost ARS 65,427 or $281.

Parental leave

Argentina has parental leave laws just like any other country, and female employees have the right to use  90 days of parental leave benefits, which is upon giving birth.

The point is that they are free to choose how they want to use these 90 days; they can split it into two 45 days before and after birth or take 30 days before and 60 days after birth.

However, this law is not the same for male employees; they can only take two days unless they are eligible to extend this period.

Paid time off

Employers in Argentina have up to 35 paid time off days or annual leave, which depends on their years with the company. So, employers who have more experience working for the company will have more paid time off. 

Sick leave. Paid sick leave in Argentina depends on the employee’s years of service. Employees who have worked for an employer for less than five years receive up to three months’ paid sick leave per year, while employees who have worked for an employer for more than five years receive up to six months’ paid sick leave.

Holidays and vacations

It is good to know that many Argentine holidays don’t have the same date as the United States and differ from US vacations.

Some of their holidays are May Revolution Day, Carnival, Holy Friday, etc. Finally, they are entitled to 12 public holidays.

Termination notice 

Employees who have worked with an employer for less than five years have the right to get notified about termination one month earlier. However, they are entitled to two months’ notice if they have more than 5 years of partnership.

What Are Argentina’s Tax Rates

There are four types of taxes in Argentina, and it doesn’t matter if you are hiring employees through an entity, by yourself, or working with an EOR; you need to know these tax rates. Moreover, note that residents of Argentina need to pay taxes based on their income. 

Besides, income tax in Argentina is progressive and ranges between 5% and 35%, which means the higher the income, the higher the tax rate.

In What Currency Employers Pay Remote Employees in Argentina

You are free to pay Argentine remorse employees in their currency, which is pesos; however, you can also send their payments in any other currency.

If you decide to pay employees in any currency other than pesos, you must be aware of changes in the exchange rates, which depend on the economic situation.

Note that local employment laws of Argentina require employers to pay in pesos, but such laws don’t apply to contractors. 

Finally, you can pay employers in any currency, but it is better to pay them in their local currency for tax and reporting goals.

What Is the Minimum Payment in Argentina

The minimum payment in Argentina is set by the National Economic and Social Council, which is ARS 87,987 monthly. 

As mentioned earlier, when employers work overtime, they receive 50% of their regular payment, which will increase to 100% if they work on holidays or rest days.

Possible Risks When Hiring And Paying Argentinian Remote Employees

Now that you know how to hire and pay remote employees in Argentina, it is good to know the possible risks when you hire remote workers.

Employee misclassification

One of the main risks of hiring foreign remote workers from Argentina is misclassification. As you may know, work classification determines if an employer needs to pay taxes on behalf of their employees or not.

Misclassification has various disadvantages for employers, as it can increase penalties for legal fines or unpaid taxes.

Immigration issues and requirements 

Another possible risk is immigration requirements because obtaining visas and work permits depends on various factors, which sometimes may cause difficulties for employers and companies.

Incorrect payrolls

Always remember that employers who violate Argentina’s payroll laws may face legal consequences such as fines and employee back pay.

Therefore, business owners must always be aware of possible regulation changes in Argentina, which impact payroll contributions, deductions, etc.

Different employment laws

You are now familiar with Argentina’s employment laws, so you need to note that these rules are not the same in the United States or other countries.

Therefore, you must be aware of these differences when hiring remote employees from Argentina because knowing these rules is essential to managing the international workforce.

Finally, following Argentina’s employment laws helps you better manage employees’ payrolls, termination process, onboarding, etc.

FAQs

1- What is the average payment per hour in Argentina? 

The average hourly payment in Argentina is ARS 260, which means an employee earns almost 260 pesos for an hour.

2- Can employers pay remote Argentine employees in USD?

According to Argentina’s local labor laws, employers need to pay in Argentina’s currency, which is pesos. However, you are free to pay Argentine employees in any currency, such as USD.

3- How many paid time off are there in Argentina? 

Argentine employees have up to 35 paid time off days, which varies based on their experience and the period of their services.

Conclusion

As mentioned, hiring remote employees in Argentina has many benefits for foreign employers who are looking to expand their business to international levels.

That is why employers need to understand Argentina’s local employment laws to hire top talent and avoid any possible issues.

If you are a business owner seeking to expand your business, you can start working with an 

EOR in Argentina to simplify all the hiring and paying processes.