Argentina’s a beautiful country with plenty of great talent. But the labor laws can be confusing, and if you’re making your first hire in Argentina, it may feel difficult to get started. Here’s what you need to know.
If you want to successfully hire in
Argentina
, you have two options:
Laws about hiring contractors are significantly more simple in
Argentina
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Argentina
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Argentina
.
Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Argentina
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and generally puts you at a bigger risk for legal fees. When you hire contractors overseas, your biggest risk is misclassification—but even then, misclassification penalties are often minimal and just require you to pay off any compensation that the person would have been owed as an employee.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Argentina
, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Argentina than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Argentina.
PTO is calculated by the length of employment:
There are Holidays that fall at the end of the week are moved to the following Monday.
Employees with less than 5 years of employment are entitled to 3 months of paid sick leave. Those with over 5 years of employment receive 6 months of paid sick leave. Leave is doubled for those with dependents.
Maternity leave is a total of 90 days and is typically split between 45 days before birth and 45 days post-birth, but not required.
At least 30 days must be taken before birth. Maternity leave pay is based on the average earnings of the 6 months leading up to birth.
Fathers receive 2 days of paid paternity leave.
There are no provisions in the law regarding parental leave.
Examination for university or secondary school: 2 days at a time (with a cap of 10 total).
Marriage: 10 days’ leave
Death of a child, parent or spouse: 3 days’ leave
Death of a sibling: 1 day’s leave
Termination must be justified with notice, unless it’s through mutual agreement due to economic factors, the employee has not been fulfilling work, or has performed serious misconduct.
The notice period in Argentina is:
Employees receive one month’s pay for each year of employment. Employees terminated for economic reasons are entitled to half a month’s salary for each year of service.
Probation period is 3 months.
Full-time employment is 8 daily hours and 48 weekly hours, maximum.
While working overtime isn’t common in Argentina, 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 double time for holidays or work performed after 1pm on Saturdays.
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