Employer of Record (EOR) in Argentina: Complete 2026 Guide
Guide to using an EOR in Argentina — costs, Labor Contract Law compliance, top providers, and comparison with setting up a local entity.
Argentina is one of South America's largest economies, with 3.0-4.3% GDP growth forecast for 2026. The country has a well-educated workforce, particularly strong in technology and professional services, and competitive labor costs due to currency dynamics.
However, Argentina's employment framework is highly protective. The Labor Contract Law mandates aguinaldo (13th-month bonus), high employer contributions (25-30% including the obra social and ART), generous severance pay, and strict termination procedures. The 2026 Labor Modernization Law adds further complexity. An Employer of Record (EOR) handles all of this.
Why Use an EOR in Argentina?
High employer contributions. Employer contributions total about 25-30% of salary: 18% or 20.4% to the social security system depending on the employer's size and sector, 6% to the obra social health fund, and 1-3.5% for ART workplace accident insurance.
Mandatory aguinaldo. A 13th-month salary paid in two installments (June and December). This is a legal requirement.
Generous severance. Termination without just cause requires one month's salary per year of service, plus notice pay. Combined with other entitlements, severance costs can be substantial.
Currency volatility. Argentina's peso fluctuates significantly. An EOR manages FX risk and payroll in local currency while billing you in USD.
Labor Modernization Law (2026). New rules effective June 2026 allow extended workdays (up to 12 hours) and "hours bank" overtime compensation. An EOR stays current on these changes.
Important
For a detailed breakdown of Argentine labor laws including minimum wages, employer contributions, working hours, and leave policies, see our Argentina Labor Law Compliance Guide.
Key Employment Regulations
| Regulation | Details |
|---|---|
| Minimum wage | ARS 383,800/month (September 2026), rising monthly to ARS 406,400 by December 2026 under Resolución 4/2026 |
| Standard hours | 48 hours/week |
| Overtime | 150% regular days; 200% weekends/holidays |
| Annual leave | 14-35 days (based on seniority) |
| Aguinaldo | 1 month's salary (paid in June and December) |
| Maternity leave | 90 days paid |
| Paternity leave | 2 days |
| Public holidays | 19 + 3 tourism bridge days |
| Employer contributions | 18% or 20.4% social security (by employer category) + 6% obra social + 1-3.5% ART, about 25-30% in total |
| Notice period | 15-30 days based on service |
| Severance | 1 month's salary per year of service |
EOR Costs in Argentina
Most EOR providers charge $400 to $600 per employee per month.
Statutory Employer Costs
| Statutory Cost | Rate |
|---|---|
| Social security contributions (SIPA, PAMI, family allowances, unemployment fund) | 20.4% for services and commerce employers above the MiPyME sales thresholds; 18% for other private employers with a MiPyME certificate |
| Obra social (health fund, employer share) | 6% |
| ART (workplace accident insurance) | 1-3.5%, set by the insurer by activity; office work is at the low end |
| Aguinaldo (SAC) | ~8.33% accrual (one extra month, paid in June and December) |
Statutory contributions add about 25-30% on top of gross salary, and the aguinaldo accrual takes the total to roughly 33-38%. Employees pay a further 17% from their own salary. Rates checked September 2026 against ARCA's employer contribution tables; the average salary in Argentina guide has the sources.
Total Cost Example
For a bilingual customer service agent at a large services company earning ARS 1,100,000/month gross (about $727 at ARS 1,512 per dollar, September 2026; peso figures date quickly, so budget in dollars):
| Component | Monthly Cost |
|---|---|
| Gross salary | ARS 1,100,000 |
| Social security contributions (20.4%) | ARS 224,400 |
| Obra social (6%) | ARS 66,000 |
| ART (2.5%) | ARS 27,500 |
| Aguinaldo accrual (8.33%) | ARS 91,630 |
| EOR provider fee (~$500/mo) | ARS 756,165 |
| Total monthly cost |
Severance on dismissal without cause (one month's salary per year of service) is the largest contingent cost and is not included above.
EOR vs Setting Up a Local Entity
| Factor | EOR | Local Entity (S.A. or S.R.L.) |
|---|---|---|
| Setup cost | $0 | ARS equivalent of $10K-$25K |
| Setup time | 7-14 days | 4-8 weeks |
| Best for | 1-10 employees | 10+ employees |
Break-even point: Typically 8-12 employees given entity setup costs and Argentina's compliance complexity.
Top EOR Providers for Argentina
| Provider | Owned Entity | Starting Price | Strengths |
|---|---|---|---|
| Deel | Yes | $599/mo | Strong LatAm presence |
| Remote | Yes | $599/mo | All owned entities |
| Velocity Global | Yes | Custom | Deep LatAm expertise |
| Oyster HR | Partner | $599/mo | Good employee experience |
For a full comparison, see our Best Employer of Record Companies guide.
Managing a Team in Argentina?
Track time, monitor productivity, and manage schedules across time zones with HiveDesk. Works with any EOR setup — $5/user/month, all features included.
Related: see the average salary in Argentina guide for official wage data, minimum wage, market pay for remote and BPO roles, and a worked employer-cost calculation.