Labor Law Compliance Guide for Argentina

Argentina's economy recorded a nominal GDP of approximately $683 billion USD in 2025 (IMF estimate), making it one of the largest economies in South America. GDP grew an estimated 4.5% in 2025, with 3.0-4.3% growth forecast for 2026 (OECD). The country's economy is diversified, with key sectors including agriculture, energy and mining, automotive manufacturing, and services.

Category	Details
Minimum Wage	ARS 352,400 per month (March 2026)
Overtime Wage	150% of the regular hourly rate (200% on weekends or holidays)
Meal Breaks	30 minutes to 2 hours
Rest Breaks	15 minutes
Working hours	8 hours per day, 48 hours per week
Salary Payment Cycle	Monthly or bi-monthly
Payroll Taxes	Employer contributions 24-26.4%; Employee contributions 17%
Paid Vacation	14 to 35 days, depending on seniority
Overtime Hours	More than 48 hours per week
Night Shift Hours	130% of the regular hourly rate
Holidays	19 (plus 3 tourism bridge days)
No Work Days	Sunday
Minimum Wage	Argentina has a national minimum wage law. As of March 2026, the minimum wage is ARS 352,400 per month, adjusted monthly by the National Minimum Wage Council through August 2026.

Argentina is one of the world's leading exporters of soybeans, corn, and wheat, and has a robust industrial base. The services sector, particularly financial services and technology, is also significant.

The official currency of Argentina is the Argentine Peso (ARS).

Hiring Laws

In Argentina, businesses must establish a legal entity to hire employees. The process to set up a business entity typically takes 30 to 60 days and can cost between ARS 150,000 and ARS 300,000, depending on the type of entity and legal services required. Employment contracts are mandatory and must be written, specifying terms such as job role, salary, working hours, and conditions for termination. Employers must comply with the Labor Contract Law (Ley de Contrato de Trabajo), which governs employment relationships. Contractors are treated differently under Argentine law, with fewer protections compared to employees. There are no regional variations in the minimum wage, but certain sectors may have different wage agreements. Employers are also required to pay a 13th-month bonus (Aguinaldo), which is an additional monthly salary paid in two installments, in June and December.

Working Hours

The standard working hours in Argentina are 8 hours per day and 48 hours per week. Overtime is permitted but must be compensated at 150% of the regular hourly rate, or 200% if the overtime is performed on weekends or public holidays. Overtime is capped at 3 hours/day, 30 hours/month, and 200 hours/year.

Night shifts, which are defined as work performed between 9 p.m. and 6 a.m., are compensated at 130% of the regular hourly rate. The minimum legal working age in Argentina is 16 years, with strict regulations on child labor. Workers under 18 are not allowed to work night shifts or in hazardous conditions.

Note: Argentina's Labor Modernization Law, approved in February 2026, introduces changes effective June 1, 2026. Under the new rules, the standard workday may extend up to 12 hours, and employers may use an "hours bank" system to compensate overtime with time off instead of premium pay.

Payroll and Taxes

Employers in Argentina must make several payroll deductions:

• Employer Contributions (total 24-26.4%): Companies mainly in services/trade with annual sales exceeding certain thresholds pay 26.4%; all other companies pay 24%. This covers pensions, healthcare, and other social benefits. Employers are exempt from contributions on the first ARS 7,003.68/month per employee.

• Employee Contributions (total 17%): Pension fund (11%), Healthcare/Obra Social (3%), and Social services/PAMI (3%).

• Healthcare (Obra Social): Medical coverage provided through both employer and employee contributions.

The income tax regime (Impuesto a las Ganancias) in Argentina is progressive, with brackets adjusted for CPI. The following rates apply for the first half of 2026:

Taxable Income (ARS, annual)	Tax Rate
Up to 2,000,030	5%
2,000,030 - 4,000,060	9%
4,000,060 - 6,000,090	12%
6,000,090 - 12,000,181	15%
12,000,181 - 18,000,272	19%
18,000,272 - 24,000,363	23%
24,000,363 - 36,000,544	27%
36,000,544 - 60,750,914	31%
Over 60,750,914	35%

Statutory Leave Policies

Argentine labor laws mandate several types of leave:

• Paid Vacation: Employees are entitled to 14 to 35 days of paid vacation, depending on their length of service.

• Maternity Leave: 90 days of paid maternity leave (45 days before and 45 days after childbirth).

• Paternity Leave: 2 days of paid paternity leave.

• Sick Leave: Employees are entitled to up to 3 months of paid sick leave, or 6 months if they have over 5 years of service.

The following table lists the mandated holidays in Argentina for 2026:

Holiday	Date
New Year's Day	January 1
Carnival	February 16-17
Day of Remembrance for Truth and Justice	March 24
Malvinas Veterans Day	April 2
Good Friday	April 3
Labor Day	May 1
May Revolution Day	May 25
General Guemes Day	June 17
General Belgrano Day (Flag Day)	June 20
Independence Day	July 9
General San Martin Day	August 17
Day of Respect for Cultural Diversity	October 12
National Sovereignty Day	November 20
Immaculate Conception	December 8
Christmas Day	December 25

Additionally, the government has designated 3 tourism bridge days for 2026: March 23, July 10, and December 7.

Employee Benefits

Employers in Argentina are required to provide several benefits:

• Social Security: Includes healthcare, pensions, and other social services.

• Aguinaldo (13th-Month Bonus): A mandatory annual bonus paid in two installments, in June and December.

• Gratuity: Employees who are terminated without just cause are entitled to severance pay based on their years of service.

• Healthcare (Obra Social): Medical coverage provided through employer and employee contributions.

Employee Termination

Argentina does not follow At-Will Employment laws. Termination must be justified under the Labor Contract Law, and employers must follow specific procedures, including providing written notice and severance pay if applicable.

• Notice Period: Generally, 15 days' notice for employees with less than 5 years of service, and 30 days for those with more than 5 years.

• Termination Benefits: Employees terminated without just cause are entitled to severance pay, which includes one month's salary for each year of service, plus any accrued benefits.

• Legal Challenges: Employees can challenge their termination in labor courts. If the court rules in favor of the employee, they may be awarded reinstatement or additional compensation.

Employers can legally terminate employees for just cause, including poor performance, misconduct, or redundancy. However, the reasons must be clearly documented, and the employer must adhere to the legal termination process.

This guide provides a comprehensive overview of the labor laws in Argentina, helping businesses navigate the complexities of hiring and managing employees in the country.