For employers looking to hire across the Americas, Argentina is a great source of international talent. The country has seen stable economic growth and has a booming industrial sector. With a population of approximately 46 million people, there are many skilled workers who can support your company's expansion into South America. If you decide to hire in Argentina, you will need to first understand the local employment laws around payroll and payroll processing. In this blog post, we'll go over the important labor laws and payroll requirements you should know before you make your first hire — including a major 2026 labor reform that changes several of the rules below.
A note on the 2026 labor reform
In March 2026, Argentina enacted Ley 27.802 (Ley de Modernización Laboral), the most significant reform to the Ley de Contrato de Trabajo (LCT) in decades. It touches severance calculations, probation periods, working-time flexibility, vacation scheduling, and the legal presumption of an employment relationship. We've noted where it changes the rules below. (A first-instance court ruling has reportedly suspended parts of the law pending appeal, so employers should confirm current enforceability before relying on any single provision.)
Labor laws in Argentina
Before hiring in Argentina, you should know that Argentina has strong worker protections and labor unions. It's one of a few countries that gives a full scope of employee rights to all employees, regardless of their contract type. Argentinian labor laws are governed by the Argentine Constitution, international treaties, the Employment Contract Law (LCT), several federal statutes, and collective bargaining agreements. They are enforced by the National Ministry of Labor. These are some things to be aware of:
- In certain circumstances, a written contract isn't required to establish an employment relationship. However, following the 2026 reform, the legal presumption of employment no longer applies where work is performed under a services or works contract backed by invoicing or bank payments — so this area now carries more nuance than before, and misclassification risk should be assessed case by case.
- Employers have the right to terminate a position without any obligation of cause, subject to notice and severance rules described below.
- Non-compete agreements are generally understood to be capped in duration (commonly cited as up to two years, save for exceptional cases) — we recommend confirming current treatment before relying on this for contract drafting.
Working hours
In Argentina, work days are generally limited to eight hours per day and 48 hours per week, Monday through Saturday, with Saturday work ending by 1:00pm. Managers and directors are exempt from these restrictions. Workers with unhealthy working conditions or night-shift schedules (9:00pm–6:00am) may be limited to six or seven hours per day. Night shifts are paid at 150% of the usual salary on a regular day, and 200% if worked on Saturday after 1:00pm, Sunday, or a holiday. Employees are entitled to at least 35 rest hours over the weekend (from 1:00pm Saturday to midnight Sunday), and employers must provide at least 12 resting hours between shifts. Work on rest days is paid at 200% of the usual salary, plus an equivalent period of compensatory rest. Overtime is capped at three hours per day, 30 hours per month, and 200 hours per year, paid at 150% of the regular rate (200% on Saturday afternoon, Sunday, or holidays). Since the 2026 reform, employers and employees can also agree in writing to a "banco de horas" (time-banking) or compensatory rest-off arrangement as an alternative to cash overtime pay, provided minimum rest periods are respected. Outside Buenos Aires, employers should also plan around the afternoon siesta observed in many parts of the country.
Compensation and benefits
There are several common compensation and benefits requirements that employers should be aware of:
- Minimum wage (Salario Mínimo, Vital y Móvil) applies regardless of age or experience. As of July 2026 it is set at $372,400/month, on a government-set schedule running through August 2026.
- Overtime is paid at 150% of the standard rate and increases to 200% for any work completed after 1pm on Saturdays or any time on Sundays or public holidays.
- Full-time employees are eligible for one extra month of salary; half is paid in June and the other half in December. (This is known as the 13th month salary!)
- Employers must pay additional employer social security contributions on top of gross salary. Current SIPA/pension contribution rates are 20.40% (larger employers in "services"/"commerce") or 18% (other private employers with MiPyME status), plus additional contributions for other subsystems (health coverage, family allowances, unemployment fund, workers' compensation insurance). Under the 2026 reform's temporary RIFL program (May 2026–2027), qualifying employers can pay just 5% in contributions on new registered hires for 48 months.
- Non-compete agreements must include compensation for the employee at a rate commonly cited as at least 50% of monthly salary.
Severance in Argentina
Employers can terminate employment without cause, subject to notice and severance. During the probation period, no notice or severance is owed (see Probation, below). Following the 2026 reform, severance under Art. 245 LCT still follows the "one month's salary per year of service" formula, but with important changes to how it's calculated:
- The calculation base now expressly excludes the 13th-month salary (SAC), vacation pay, and non-monthly bonuses — only regular monthly remuneration is counted.
- The "Vizzoti cap" limiting the salary base now has legal (not just judicial) status.
- Payment of severance is now the sole remedy for termination without cause — once paid and accepted, it extinguishes further related claims.
- Employers and employees can also agree, through collective bargaining, to an alternative funded severance system (Sistema de Cese Laboral, backed by a new Fondo de Asistencia Laboral) in place of the traditional lump-sum severance.
Employees may receive one month’s salary for each year of employment at the highest rate they earned during the course of their tenure. If the employee is terminated for economic reasons, this does not apply, and employees receive half a month’s pay for each year of employment.
Probation period
The probation period is 6 months for most employers, extendable to 8 months for employers with 6–100 employees, or up to 12 months for employers with 5 or fewer employees. Since the 2026 reform, employers are not required to give any notice to end the relationship during probation, and no severance is owed.
Holidays and leave in Argentina
Holidays
If you’re working with team members in Argentina, you should know that there are 12 public holidays. Expect your teammates to take the following days off:
- January 1: New Year
- Monday and Tuesday of Carnival
- March 24: National Day of Memory for Truth and Justice
- Holy Friday (Date Varies)
- April 2: Veterans and Fallen Day in the Falklands War
- May 1: Labor Day
- May 25: May Revolution Day
- June 20: Pass to the Immortality of General Don Manuel Belgrano
- July 9: Independence Day
- December 8: Day of the Immaculate Conception of Mary
- December 25: Christmas
The following dates are considered transferable national holidays:
- June 17: Step to the Immortality of General Don Martín Miguel de Güemes
- August 17: Step to the Immortality of General Don José de San Martín
- October 12: Day of Respect for Cultural Diversity
- November 20: National Sovereignty Day
If these holidays fall on a Tuesday or Wednesday, the time off is given on the Monday of that week. If the holiday falls on a Thursday or Friday, the time off is taken on the following Monday.
There are also a number of non-working days that are recognized for individuals who identify with different identities and religions. For example, Jewish employees may receive Rosh Hashana (two days), Yom Kippur (one day), and Pesach (first and last two days) off. Muslim employees received Muslim New Year, the day after the culmination of fasting, and the day of the Feast of Sacrifice off. Those of Armenian descent may take off April 24 to participate in activities to recognize the Armenian Genocide.
If a team member is required to work during a holiday, they should be paid at a rate of 200% of the regular salary. Though you should know that work on holidays can’t exceed 30 hours per month, or 200 hours per year.
Annual leave
Entitlement is based on tenure, as before. Since the 2026 reform, statutory annual leave can be split into periods of at least 7 consecutive days each, while employees retain the right to take at least one summer-season leave period every three years.
Sick leave
Everyone gets sick from time to time. In Argentina, employers must provide paid leave in the case of illness or an accident. The amount of paid sick leave employees receive, like annual leave, is based on tenure. Those with less than five years receive up to three months; those with five or more years, or with a dependent, receive up to six months; and those with five or more years and a dependent receive up to 12 months.
If an employee is unable to continue their work after this time period, they may take an additional 12 months of unpaid leave. Following this period, the employee may be fired if they are unable to return to their job.
Maternity leave
Pregnant employees receive 45 days of unpaid leave before childbirth and 45 days of unpaid leave after childbirth. Employees may choose to take less leave before childbirth, but are required to take at least 30 days prior to childbirth. The days that were forfeited before the birth may be reallocated to time off after childbirth. During the unpaid period of time off, employees receive social security benefits that are equivalent to their regular salary.
Mothers can take three to six months of additional unpaid leave if they’ve been with your company for at least a year. If the employee decides to resign, they’re eligible for a farewell bonus of 25% of the mandatory severance pay. Individuals that are breastfeeding may take two 30 minute breaks during the day for up to a year from childbirth. Fathers can take two days of paid leave.
Setting up payroll in Argentina
When hiring international talent, companies can choose to set up payroll internally or to outsource payroll functions.
Setting up payroll in-house can be a complex and time-consuming process, since companies need to consider and keep up with a number of labor laws in order to remain compliant. Managing registrations, tax payments, and social security requirements places a lot of pressure on HR teams, and takes away their time from other important tasks. Global employment platforms like Oyster make it fast and easy to manage international payroll and automate compliance across 180+ countries.
