What does it really cost to hire an employee in Argentina in 2026?
Argentina's employer social security contribution is 26.4% on the full gross salary with no ceiling, plus a mandatory SAC (aguinaldo) equal to one extra month of pay every year. A hire in Argentina costs considerably more than the gross salary alone, and Ley 27.802, enacted in March 2026, reshaped both the notice and severance rules that feed into the termination reserve you also need to budget.
· Argentina guide
Illustration · Buenos Aires, Argentina
An Argentine hire costs more than the gross salary. Two charges drive most of it. Employer social security is 26.4% on the full gross with no ceiling. The SAC (aguinaldo) is one full extra month of pay every year, split into two instalments.
Every employee also earns 14 days of paid leave in the first five years. Payroll runs monthly, 12 times a year. The minimum wage is ARS 367,800/month.
Add those lines up and the total employer cost runs well above the gross salary. Model each line before you send the offer.
What an Argentine hire actually costs: the full picture
Start with the gross monthly salary. Add 26.4% employer social security on the full amount. Then set aside one-twelfth of the monthly gross each month for the SAC, the mandatory 13th-month payment.
The table below shows illustrative totals on an ARS 1,000,000 monthly gross (ARS 12,000,000 annually). These are computed from verified statutory rates and labelled illustrative. They are not statutory figures.
Argentina stacks mandatory cost lines on top of gross salary. The social security contribution and the SAC together account for most of the loading. The table shows every main line for a full year.
| Line | Rate / basis | Illustrative annual cost on ARS 12,000,000 gross |
|---|---|---|
| Gross salary (12 months) | Contract | ARS 12,000,000 |
| Employer social security at 26.4% on full gross, no ceiling | Ley 24.241 SIPA | ARS 3,168,000 (illustrative) |
| SAC / aguinaldo: one extra month of salary, paid in two instalments | LCT Art. 121 to 122 | ARS 1,000,000 (illustrative) |
| Employer social security at 26.4% on the SAC payment | Ley 24.241 SIPA | ARS 264,000 (illustrative) |
| Annual leave: 14 days paid days built into the salary cost | LCT Art. 150 | Included in salary |
| Termination reserve: severance of one month per year of service under LCT Art. 245 (as amended by Ley 27.802) | LCT Art. 245 / Ley 27.802 | ARS 1,000,000/year accrual (illustrative) |
| Total illustrative annual employer cost (before termination reserve) | ARS 16,432,000 (illustrative, approx. 137% of gross) |
These figures are illustrative. They are computed from the 26.4% employer social security rate confirmed in the Argentina compliance cache. They are not statutory totals and will vary with the actual salary, sector, and collective agreement in place.
The termination reserve line uses the one-month-per-year formula under LCT Art. 245 as amended by Ley 27.802 (March 2026). The base for that calculation is capped at three times the average monthly wage set in the applicable collective agreement. Budget a monthly reserve so this cost does not appear as a surprise on exit. Add Teamed from $599 per employee per month and run the Employer Cost Calculator for your own salary figures.
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Start with gross monthly salary
Confirm the agreed gross salary in ARS. Check it clears the minimum wage. This is the base number every other line builds on.
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Add employer social security
Apply the employer social security rate to the full gross salary every month. There is no ceiling, so every peso of salary carries the same rate.
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Accrue the SAC monthly
Set aside one-twelfth of the monthly gross each month for the mandatory aguinaldo. Remember that social security also applies to this payment when it is made in June and December.
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Budget for sick pay and leave
Argentina's sick-pay obligation runs for months, not days. Check the employee's seniority to know which duration applies. Annual leave increases with tenure.
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Reserve for termination costs
The severance formula under Ley 27.802 is one month of salary per year of service. Budget a monthly accrual from day one so the termination cost does not arrive as a surprise.
The SAC (aguinaldo): one extra month you must plan for
Every employee in Argentina receives one extra month of pay each year. This is the SAC, also called the aguinaldo.
It is paid in two instalments: the first by 30 June, the second by 31 December. Both carry the full employer social security obligation on top.
How the SAC is calculated
The SAC is the higher of two calculations: one-twelfth of the total ordinary remuneration paid in the first semester, or one-twelfth of the total paid in the second semester. In practice, for most fixed-salary employees it equals one full month of gross pay per year. The legal basis is LCT Articles 121 to 122. The SAC applies to all employees regardless of salary level or sector.
Social security applies to the SAC
The SAC is treated as remuneration for social security purposes. The employer owes 26.4% on the SAC payment, just as on regular monthly salary. This means the SAC costs more than simply one extra month of gross pay. On a monthly gross of ARS 1,000,000, the SAC payment of ARS 1,000,000 carries an additional ARS 264,000 in employer social security (illustrative, computed at 26.4%).
Part-year hires
For an employee who has not completed a full semester, the SAC is proportional to the months worked. A hire made in April, for example, earns a partial SAC at the June instalment. The obligation does not wait for one full year of service. It accrues from the first month.
Budgeting for the SAC
The most reliable way to budget for the SAC is to treat it as an invisible monthly cost. Divide the expected full annual SAC payment (including the social security on top) by twelve and add that amount to your monthly employer cost estimate. This avoids a large cash-flow spike in June and December and gives you a flat monthly view of the true cost.
Annual leave, sick pay, and parental leave
Every Argentine employee earns 14 days of paid annual leave in the first five years of service. Leave accrues from the first year.
Sick pay during non-work-related illness (enfermedad inculpable) is the employer's cost for the full sick-pay period. The maximum paid duration is 12 months for an employee with five or more years of service and dependants.
Annual leave
The 14 days entitlement under LCT Art. 150 is the minimum for employees with fewer than five years of service. Leave increases with seniority: 21 days from five to ten years, 28 days from ten to twenty years, and 35 days for more than twenty years. Annual leave is paid at the normal salary rate and is built into the gross salary cost, not a separate cash line.
Sick pay: employer-funded for months, not days
Argentina's sick-pay obligation under LCT Art. 208 is among the most generous in Latin America. For an employee with fewer than five years of service, the employer pays full salary for up to three months. With dependants and fewer than five years, it is six months. With five or more years of service and dependants, the employer pays for the full 12 months. This is not a social security benefit that shifts to the state after a short waiting period. The employer bears the cost for the full duration.
Maternity and paternity leave
Statutory maternity leave is 13 weeks under LCT Art. 177. The employer is responsible for this cost unless the employee's INSS registration allows the social security system to fund part of it. Statutory paternity leave is 2 days under LCT Art. 158. These entitlements were subject to review under Ley 27.802 (March 2026). Verify the current figures with Ministerio de Trabajo before sending an offer letter, as the reform's full implementing regulations were still being published at the time of this review.
Working time
Argentina's standard working week is 48 hours, set by LCT Art. 196 and Ley 11.544. This is higher than most European countries. Overtime beyond 48 hours must be paid at a premium rate. The maximum weekly hours cap affects how you calculate part-time roles and overtime budgets.
Employee income tax: what your hire takes home
Argentine income tax (Impuesto a las Ganancias) runs on a nine-band scale from 5% at the bottom to 35% at the top.
There is a personal allowance. The basic deduction (minimo no imponible) is ARS 5,151,802.50/year for residents. An employee earning below this level pays no income tax at all.
The income tax scale for 2026
Argentina taxes employment income through nine brackets under Ley 20.628 (Impuesto a las Ganancias). The brackets below are the annual income thresholds as of 30 December 2025. They are adjusted semiannually by CPI, so the exact thresholds will move during 2026.
| Annual taxable income (ARS) | Rate |
|---|---|
| Up to ARS 1,749,902/year | 5% |
| ARS 1,749,902/year to ARS 3,499,803/year | 9% |
| ARS 3,499,803/year to ARS 5,249,704/year | 12% |
| ARS 5,249,704/year to ARS 7,874,557/year | 15% |
| ARS 7,874,557/year to ARS 15,749,113/year | 19% |
| ARS 15,749,113/year to ARS 23,623,670/year | 23% |
| ARS 23,623,670/year to ARS 35,435,504/year | 27% |
| ARS 35,435,504/year to ARS 53,153,257/year | 31% |
| Above ARS 53,153,257/year | 35% (top rate) |
The personal allowance and the earned income deduction
Argentina uses a deduction system rather than a zero-rate band. The basic personal allowance (minimo no imponible) is ARS 5,151,802.50/year, requiring at least six months of residence in Argentina. Employees also receive a separate earned income deduction of ARS 24,728,652 (as confirmed by PwC for 2026, not a separate cache key). This means most employees on moderate salaries pay no income tax at all after deductions, and the higher bands only affect higher earners. The employer withholds income tax monthly via the payroll and pays it to ARCA (formerly AFIP).
Why Argentina uses CPI-linked brackets
Argentina's inflation rate has been high in recent years. The government adjusts the income tax brackets every six months by CPI to prevent bracket creep. This means the exact peso thresholds in the table above will move in July 2026. The rates themselves (5% to 35%) are fixed by law. Only the threshold amounts adjust.
How Teamed handles Argentina employer costs for you
Teamed becomes your legal employer of record in Argentina for from $599 per employee per month, with zero FX mark-up in any currency.
Social security filings, SAC accruals, income tax withholding, and the full Argentine payroll compliance stack run on one platform.
Real HR and legal experts handle your Argentine hires from the first offer letter through every SIPA filing, every SAC instalment, and every monthly payroll run. An actual person, not a chatbot or a pooled queue. There is no setup fee and no exit fee. Every employer cost passes through at cost, itemised on every invoice. You see the social security line, the SAC accrual, and the income tax withholding separately. Nothing is hidden inside the management fee.
EOR payroll, contractor onboarding, and entity setup all live on one platform. An Argentine contractor who converts to payroll keeps their record. That same employee can graduate from EOR to your own Argentine entity without switching systems. EOR is the right structure for a first Argentine hire, until it isn't. Teamed does not lock you in. There is no minimum contract. Start from the Argentina hiring overview or run the Employer Cost Calculator to see the full cost picture before you send an offer.
Frequently asked questions
How much does it cost to hire an employee in Argentina in 2026?
An Argentine hire typically costs well above the gross salary once all mandatory lines are counted. The main employer obligations are: social security at 26.4% of gross salary with no ceiling; the SAC (aguinaldo) equal to one full extra month of pay per year; and the termination reserve under the one-month-per-year severance formula of LCT Art. 245 (as amended by Ley 27.802). Social security also applies to the SAC payment when it is made.
What is the SAC (aguinaldo) and how much does it cost the employer?
The SAC (Sueldo Anual Complementario) is a mandatory 13th salary under LCT Articles 121 to 122. It equals one full month of gross pay per year, paid in two instalments: the first by 30 June, the second by 31 December. The employer owes 26.4% employer social security on both SAC instalments, just as on regular monthly salary. For a part-year employee, the SAC is proportional to months worked.
What is the employer social security rate in Argentina in 2026?
The employer social security contribution is 26.4% for services and trade companies above certain revenue thresholds. A lower rate of 24% applies to smaller or non-services employers. The 26.4% rate applies to the full gross salary with no annual ceiling. Employees contribute at a flat 17%, covering pension, healthcare, and social services.
How many paid leave days does an Argentine employee get?
Every Argentine employee earns 14 days of paid annual leave in the first five years of service under LCT Art. 150. The entitlement increases with seniority: 21 days from five to ten years, 28 days from ten to twenty years, and 35 days after twenty years. Leave is paid at the employee's normal salary rate. Argentina's sick-pay obligation for non-work-related illness can also run for up to 12 months for employees with long service, depending on whether they have dependants.
What income tax does an Argentine employee pay?
Argentine income tax (Impuesto a las Ganancias) runs from 5% at the lowest band up to 35% at the top, across nine brackets. The basic personal allowance (minimo no imponible) is ARS 5,151,802.50/year. Employees also receive a separate earned income deduction. The employer withholds income tax each month and pays it to ARCA. The tax brackets are adjusted semiannually by CPI, so the peso thresholds change twice a year.
The line that surprises most buyers in Argentina is not the social security rate. They have usually seen that number. What catches them out is the SAC. It is not a bonus you can withhold or negotiate. It is the law, it accrues from the first month, and social security sits on top of it when it is paid. Budget it as a monthly cost from day one or the June and December payments will break your cash-flow model.
Argentina stacks 26.4% employer social security on every peso of gross salary, then adds a mandatory 13th-month SAC on top.
Both lines carry social security. Neither is optional. Neither comes cheap.
Know every line before you send the offer.
Employer social security: the biggest recurring line
Every employer in Argentina pays social security contributions at 26.4% on the full gross salary. There is no annual ceiling.
The 26.4% rate applies to services and trade employers above certain revenue thresholds. Smaller or non-services companies may pay a lower rate of 24%, but 26.4% is the general rate confirmed for 2026.
What the 26.4% covers
The employer contribution funds Argentina's integrated social security system (SIPA), covering pensions, healthcare, family allowances, and social services. The 26.4% rate is set under Ley 24.241 and SIPA regulations. Unlike many countries, Argentina applies this rate to the full gross salary with no upper earnings limit. A salary of ARS 5,000,000 a month generates the same 26.4% rate as a salary of ARS 500,000.
The employer social security rate is 26.4% for services and trade companies above thresholds, applied to the full gross salary with no ceiling. A lower rate of 24% applies to smaller or non-services employers. The employee contributes at a flat 17%, covering pension, healthcare, and social services.
Source: PwC Worldwide Tax Summaries: Argentina individual other taxes 2026
Employee social security deduction
The employee pays 17% of gross salary into the SIPA system. This total breaks down as 11% toward pension, 3% to healthcare (PAMI), and 3% toward social services (ANSSAL/INSSJP). The employee rate has an earnings ceiling above which no further contribution applies. The ceiling figure for June 2026 is set by General Resolution 139/2026 (ARCA). The employer rate has no such ceiling.
Why the no-ceiling rule matters
In countries where social security has an earnings cap, a high-salary hire becomes proportionally cheaper above the cap. Argentina has no such relief on the employer side. Every peso of salary above the minimum wage attracts 26.4%. Senior hires cost proportionally more in social security terms than junior hires at the same percentage uplift.