Employer of Record (EOR) in Argentina

An EOR in Argentina allows businesses to enter the market quickly and help maintain compliance with local laws, all while reducing the overhead costs of establishing a local entity. Atlas HXM offers a seamless EOR service that handles all aspects of employment from payroll processing to compliant administration.

Partner with Atlas HXM for a cost-effective, compliant solution to hire and manage your workforce in Argentina.

Country InsightsArgentinaEmployer of Record

Quick Overview of EOR in Argentina

Expanding into Argentina doesn't have to mean drowning in paperwork or hefty setup costs. With an Employer of Record (EOR), you can bypass the complexities of local regulations and quickly hire employees, all while maintaining compliance with Argentina's labor laws. From payroll processing and tax compliance to benefits management, an EOR takes care of the legal nitty-gritty like social security contributions and aguinaldo payments, so you can focus on growing your business without the need to set up a costly local entity.

The EOR model offers a low-risk, cost-effective alternative to setting up a subsidiary. Establishing a local entity in Argentina can cost anywhere from USD 5,000 to USD 15,000 plus the cost of maintaining human resources (HR), legal assistance, accountants and more. It can also become highly administrative. By partnering with an EOR, you can avoid these setup costs and enter the market faster, avoiding the overhead of a physical office. This is especially beneficial for startups, SMEs, and businesses testing new markets, who need to act quickly and comply with complex local regulations.

Disclaimer: The contents of this article is not legal advice and should be used for reference only. If in doubt, please seek independent legal advice from a lawyer in the relevant jurisdiction.

What You'll Learn

  • Looking to hire in Argentina without the hassle and administrative burden of setting up a local entity? An EOR helps you onboard employees while maintaining compliance with payroll and local labor laws.

  • With a Direct EOR, you gain control, faster onboarding, and stronger compliance. It is ideal for businesses aiming to scale quickly.

  • On the other hand, an Indirect EOR may be more cost-effective but comes with slower processes and added complexity.

  • EOR service fees typically range from USD 300 to USD 600 (ARS 300,000 to ARS 600,000) per employee per month.

  • Atlas HXM offers a robust Direct EOR solution, providing smooth market entry, compliance, and seamless employee management: all in one platform.

How an EOR Works

At Atlas HXM, we provide EOR services that ensure your business remains compliant with Argentina's labor laws while you focus on growing your operations, free from administrative and legal burdens.

Candidate Selection

Atlas HXM does not recruit candidates, but will check the employment setup for compliance around new hires like validating right-to-work, reviewing contract terms against Argentine rules, and configuring payroll and statutory obligations correctly. EOR providers in Argentina, including Atlas HXM, can assist with work visa documentation but do not directly sponsor visas. Anyone hired via EOR must already hold valid work authorization or obtain it through proper immigration channels.

Employment Contracts

Atlas HXM drafts and administers employment contracts in compliance with Argentina's Employment Contract Law. In the contract, we clearly outline employment terms to reduce risk of future disputes, such as:

  • Job title and responsibilities

  • Salary, benefits, and working hours

  • Leave entitlements and notice periods

Payroll & Benefits Management

Payroll is processed in Argentine pesos (ARS), including:

  • Accurate tax withholdings and social security contributions

  • Mandatory benefits such as health insurance (obra social)

The EOR also helps maintain compliance with mandatory benefits, so employees are protected under Argentina's laws.

Work Permit Compliance

In Argentina, EOR providers can assist with work permit documentation and coordinate with immigration specialists. Once a worker has valid authorization, Atlas HXM manages compliant employment, payroll, social security, and statutory obligations in alignment with Argentine labor regulations.

Ongoing HR Support

Provides HR support, including: Leave management, employee relations and regulatory updates throughout the employee's tenure. This allows businesses to focus on core operations, while Atlas HXM handles ongoing compliance.

Costs & Pricing

EOR services in Argentina are typically billed as a platform/service fee in the range of USD 300–600 (EUR 270–540 / ARS 300,000–600,000) per employee per month. This fee covers administration such as compliant contracts, payroll processing, statutory filings, and HR administration for workers who already hold valid work authorization. This service fee is separate from the employee's salary, benefits, taxes, and visa-related costs, which vary by role and jurisdiction. By using an EOR, companies avoid the cost and overhead of setting up an Argentine entity, which can require USD 5,000–15,000 upfront before any operational spend.

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What to Choose: EOR vs PEO

EOR

Employer of Record

An EOR becomes the legal employer for your talent in a country where you do not have an entity. The EOR carries employer liability and handles compliant contracts, payroll, statutory benefits, tax filings, and labour-law adherence. You still direct the employee's work. This model suits companies expanding into Argentina without wanting to form a local entity or take on compliance risk.

PEO

Professional Employer Organization

A PEO provides outsourced HR services like payroll, benefits, HR admin, but only when you already have a local entity. You remain the legal employer, and the PEO shares administrative tasks without taking on employer liability. Suitable when you are already established in the country and are only looking to offload HR administration.

What’s Best for You?

  • Choose an EOR when you want to hire in Argentina without setting up an entity and want a partner who absorbs employer risk.

  • Choose a PEO when you already operate locally and just want HR support.

Work Life in Argentina

Argentina's employment framework is designed to balance operational needs with employee protections. Here's what you need to know:

Employment Types:

  • Permanent: Ongoing employment with full statutory benefits, presumed indefinite unless specified otherwise.

  • Fixed-Term: Hired for a specific project or defined duration, maximum 5 years with written agreement required.

  • Temporary: For extraordinary and transient activities; entitled to statutory benefits like leave and overtime.

Probation Periods: Employment contracts for indefinite periods have a trial period of 6 months, which may be extended up to 8 months for employers with 6-100 employees or 1 year for employers with 5 or fewer employees. Domestic workers have probation periods of 15-30 days. Employers must give 15 days' notice for termination during probation.

Working Hours & Overtime: In Argentina, the standard workweek is 48 hours, with a maximum of 8 hours per day. There must be a 12-hour gap between working days. Night work (9:00 PM to 6:00 AM) cannot exceed 7 hours, and hazardous work is limited to 6 hours per day or 36 hours per week. Overtime is paid at 150% for weekdays and 200% for Saturdays after 1:00 PM, Sundays, and holidays.

Leave Entitlements

Leave Type

Eligibility / Duration

Payment / Notes

Annual Leave

14 days (0-5 years), 21 days (5-10 years), 28 days (10-20 years), 35 days (20+ years)

Paid in advance at normal remuneration rate

Maternity Leave

90 days (45 before, 45 after birth)

100% paid by Social Security funds

Paternity Leave

2 days (15 days for Buenos Aires public workers)

100% paid leave

Sick Leave

3 months (≤5 years service), 6 months (>5 years service)

Full pay, plus 12 months unpaid with job protection

Public Holidays

All statutory holidays

Paid; handled by Atlas HXM

Vacation Leave

Based on seniority, consecutive days required

Paid in advance; unused leave typically cannot be carried over

Payroll & Benefits: Wages must meet minimum wage requirements (ARS 296,832 monthly from March 2025). Atlas HXM manages payroll in ARS, social security contributions (employer and employee), statutory benefits, aguinaldo (13th month payment), and private health insurance. Supplemental benefits can include life insurance, transportation allowances, meal vouchers, and professional development options.

Atlas HXM can help you manage these aspects and can help ensure that employees are supported and compliant with Argentina's labor laws while businesses can focus on operations without administrative burdens.

What to Choose: Indirect vs Direct EOR

Direct EOR

The EOR owns the legal entities in the target country, coordinating all employment-related tasks directly. It offers faster onboarding, better compliance, and more control.

Best for: Businesses looking to scale quickly, expand long-term, or enter Argentina with compliance.

Indirect EOR

The EOR provider acts as an intermediary between the business and a third-party local entity. While it can be cheaper, it may result in delays and compliance complexity.

Best for: Small teams or short-term hires with less urgent compliance needs.

What’s Best for You?

  • For Small Teams or Contractors: Indirect EOR could work, especially for temporary hires or testing a market.

  • For Scaling and Compliance: Direct EOR is the best choice. With Atlas HXM, you'll have control, faster entry, and streamlined compliance.

Taxes & Compliance

Argentina operates on a calendar-year tax system, running from January 1 to December 31. Employers must submit income tax withholdings by the 10th of the following month, social security contributions by the 15th, and monthly payroll tax returns (F.931) based on tax identification numbers. Annual income tax returns for individuals are typically due by the end of June for the previous tax year.

Category

Details

Employer Payroll Tax

Social Security: 16% of gross salary

  • Health insurance: 6% of gross salary

  • Work accident insurance: 1-3% (varies by risk)

  • Family allowances: 4.44%

  • Unemployment insurance: 0.89%

  • Total: ~27% of gross salary

Employee Payroll Tax

Residents: progressive income tax 5%–35%

  • Non-residents: taxed only on Argentine-source income

  • Employee social security: 11% (pension)

  • Employee health insurance: 3%

Pension System (SUSS)

Unified Social Security System with mandatory contributions

  • Retirement age: 60 (women), 65 (men)

  • Requires 30 years of contributions for full pension

  • Monthly adjustments based on consumer price index

VAT & EOR Costs: Argentina applies a 21% VAT (IVA) rate. EOR services are generally subject to VAT, either included in quoted fees or added separately. Businesses may claim VAT credits if properly registered and meeting requirements.

Atlas HXM handles tax compliance, including progressive income tax calculations, social security contributions, year-end filings, and expatriate tax coordination, ensuring businesses remain compliant with local laws while minimizing administrative burden.

Termination

Employees must give written notice for termination. Notice periods are: 15 days by employee; 15 days by employer (under 3 months service), 1 month (3 months to 5 years), 2 months (over 5 years). Severance pay equals 1 month's salary per year of service for unfair dismissal, or half-monthly salary per year for economic reasons. The EOR helps ensure proper handling of terminations, including notice periods, final wages, Aguinaldo payments, and required documentation.

5 Things to Look for in an EOR Provider in Argentina

  1. Local expertise and knowledge of labor laws, social security contributions, and Argentine regulatory requirements.

  2. Advanced technology for payroll, reporting, and HR system integration.

  3. Experience in your industry and handling work permit documentation and immigration coordination.

  4. Strong compliance track record and relationships with government agencies and legal advisors.

  5. Global presence to support multi-country expansion, with verified security and compliance standards (ISO 27001/27017/27018, GDPR).

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Atlas HXM provides direct EOR services, managing payroll, compliance and benefits efficiently. Our unified platform automates HR, payroll, and compliance tasks, while offering premium employee support, global benefits, and access to 9,000+ learning courses. Recognized by Everest Group PEAK Matrix 2025 and NelsonHall NEAT Assessment 2025, Atlas HXM combines compliance, technology, and global expertise.

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FAQs

How quickly can I hire employees in Argentina through an EOR?

With an established EOR like AtlasHXM, you can typically hire employees in Argentina within 1-2 weeks once you've identified candidates and obtained proper work authorization.

What are the main compliance risks when hiring in Argentina?

Key risks include improper employment contract structuring, incorrect payroll tax calculations, failure to provide mandatory benefits like aguinaldo, and non-compliance with termination procedures.

How does the 13th month payment (aguinaldo) work?

Aguinaldo is paid in two installments - June and December. Each payment equals 50% of the highest monthly salary received in the respective six-month period.

What are the notice periods for termination?

Notice depends on length of service: 15 days (under 3 months), 1 month (3 months to 5 years), 2 months (over 5 years), unless otherwise stated in contracts.

What are the social security contribution rates?

Employer contributions total ~27% of gross salary (16% social security, 6% health insurance, plus other mandatory contributions). Employee contributions are 14% total.

Can employees work overtime without limits in Argentina?

Overtime is regulated with specific payment requirements at 150% for weekdays and 200% for weekends/holidays. Standard work is limited to 8 hours per day, 48 hours per week.

         

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