Certified Diversity and Security Cleared Organization | GDPR Compliant

Argentina

Argentina

Navigate country regulations and labor laws across geographies with confidence.

Currency

ARS

State

N.A

Language Spoken

Spanish

Payroll Frequency

Annually, Monthly, Hourly

Argentina, officially the Argentine Republic, is a country in the southern half of South America. Argentina covers an area of 2,780,400 km², making it the second-largest country in South America after Brazil, the fourth-largest country in the Americas, and the eighth-largest country in the world.Argentina, country of South America, covering most of the southern portion of the continent. The world’s eighth largest country, Argentina occupies an area more extensive than Mexico and the U.S. state of Texas combined. It encompasses immense plains, deserts, tundra, and forests, as well as tall mountains, rivers, and thousands of miles of ocean shoreline. Argentina also claims a portion of Antarctica, as well as several islands in the South Atlantic, including the British-ruled Falkland Islands (Islas Malvinas).Argentina is shaped like an inverted triangle with its base at the top; it is some 880 miles (1,420 km) across at its widest from east to west and stretches 2,360 miles (3,800 km) from the subtropical north to the subantarctic south. The country is bounded by Chile to the south and west, Bolivia and Paraguay to the north, and Brazil, Uruguay, and the Atlantic Ocean to the east. Its undulating Atlantic coastline stretches some 2,900 miles (4,700 km).

Employees who have worked for an employer for more than six months are entitled to 2 weeks (14 calendar days) of annual leave. The amount of holiday entitlement increases with the length of continuous employment, up to a maximum of 35 calendar days. New employees are entitled to 1 day of leave for every 20 days worked. The entitled paid vacation for employees in Argentina is dependent on their time with the employer: Employees who have worked for the same employer for less than five years are entitled to 14 calendar days leave Employees who have worked for the same employer for 5–10 years are entitled to 21 calendar days leave Employees who have worked for the same employer for 10–20 years are entitled to 28 calendar days leave Employees who have worked for the same employer for more than 20 years are entitled to 35 calendar days leave During annual leave, the employer must pay the employee full salary as well as any other entitled benefits. Annual leave is calculated by dividing the salary payment by 25 and multiplying it by the number of days of holiday to which the employee is entitled.

There are 18 national holidays. Holidays that fall at the end of the week are moved to the following Monday. National holidays such as Truth & Justice Memorial Day, Malvinas Day, Independence Day, and major festive holidays such as New Year's Day and Christmas Day are the most popular holidays in Argentina.

Annual leave is compulsory and the employer must grant them between October 1 and April 30 as follows: up to 5 years of service – 14 calendar days. between 5 and 10 years of service – 21 calendar days. between 10 and 20 years of service – 28 calendar days.

If an employee has worked for a company for less than five years, they are entitled to a maximum of 3 months of paid sick leave. Once they have worked for a company for more than five years, the paid sick leave is extended to 6 months. The employer covers the payment of sick pay, however, the Employment Risk Insurance (which is compulsory insurance for employers) covers any treatment, sick pay, or rehabilitation for a work-related accident, injury, or illness.

An employee who is dismissed without reasonable cause is entitled to statutory severance of 1 month’s salary for each year of service, or period longer than 3 months. This amount is calculated using the employee’s highest monthly, regular compensation received in the last 12 months of work. This baseline cannot be more than 3 times the monthly payment, which is the average of all compensation set out in the applicable CBA at the time of the dismissal. This average is periodically published. If the employee is not subject to a CBA (typically senior employees), the limits applicable to the activity in which they perform duties still apply. In no case will the amount of the compensation payable be less than 1 month of salary. Currently in the Vizotti case, the Supreme Court of Justice has raised the basis for calculating compensation subject to a limit, establishing that it will be 67% of the employee’s monthly and usual compensation, the amount to be multiplied by the employee’s years of service based on constitutional reasons and in cases where the application of the legal limit imposes a reduction to the severance payment of more than 33%. This severance payment may be reduced or increased in other types of termination (e.g., force majeure and lack or reduction of work, death of the employee, employer bankruptcy, employee retirement, employee illness, or employee pregnancy). Further, on December 13, 2019, the administration enacted Decree No. 34/2019 to protect the employment market. Specifically, it implemented double compensation in the event of dismissal without cause, which is effective until June 2022. Recently, by means of Decree No. 886/2021, the national government increased severance based on the timing of the dismissal, as follows: (i) Severance payment will be increased by 75% if the dismissal occurs between January 2022 and February 2022 (ii) Will be increased by 50% if the dismissal occurs between March 2022 and April 2022, and (iii) by 25% if the dismissal occurs between May 2022 and June 2022. This regime applies to those employees who were employed on or before December 13, 2019, and are dismissed without cause between December 14, 2019, and June 30, 2022. In case of dismissal without cause during the employment emergency period, the dismissed employee is entitled to receive an increased severance payment in accordance with the current legislation, covering all the compensatory items originated by such wrongful termination.

Argentinian local law states employees are entitled to receive an additional month’s salary, a 13th month salary: Aguinaldo. This 13th-month salary is payable in two semi-annual installments, which are due for payment before June 30th and December 18th, respectively. The amount of each installment is equal to 50.00% of the highest monthly wage received during the previous 6-month period.

Gym Allowance – 5,000 to 7,000 ARS monthly. Meal Vouchers – 6,000 ARS monthly. Transportation Allowance – 200 to 300 ARS per day, depending on distance between workers home and office. Internet Allowance – 2,500 ARS monthly. Mobile Allowance – 3,000 ARS monthly. Private Health Insurance – 10.000 to 12.000 ARS monthly for employee-only cover. The age, extent of cover, and medical history can also impact the cost.