How does Argentina payroll tax work in 2026?
Employer social security in Argentina runs at 26.4% of gross salary. That single rate covers pension, healthcare, family allowances, and work-injury insurance. It is one of the highest combined employer rates in Latin America, and it applies from day one with no upper earnings ceiling.
· Argentina guide
Illustration · Buenos Aires, Argentina
Argentina employer social security is 26.4% of gross salary. This covers pension, healthcare, family allowances, and work-injury insurance. There is no earnings ceiling.
The employee pays 17% total: 11% to the pension fund, 3% to healthcare, and 3% to social services. Both rates apply to the full gross wage.
Income tax (Impuesto a las Ganancias) has nine bands. The rate starts at 5% and reaches 35% at the top. A personal deduction reduces taxable income before the bands apply.
Salaries must be paid monthly in Argentine pesos. A 13th salary (aguinaldo) is paid in two halves: June and December.
What does an employer pay in Argentina social security?
Employer social security is 26.4% of gross salary. This applies to all earnings with no upper ceiling.
The rate covers five separate funds. Each has its own allocation within the total. The employer pays all of it on top of the gross wage.
| Fund | Employer rate (approximate allocation) |
|---|---|
| SIPA pension (Sistema Integrado Previsional Argentino) | Approx. 18-20% of the 26.4% total |
| Instituto Nacional de Servicios Sociales para Jubilados y Pensionados (INSSJP) | Included in total |
| Fondo Nacional de Empleo (unemployment fund) | Included in total |
| Asignaciones familiares (family allowances - ANSES) | Included in total |
| Obra social (employer healthcare) | Included in total |
The 26.4% rate applies to companies in the services and trade sector above the general threshold. Smaller employers or those in specific industry groups may pay 12% (the general lower rate is 24%) depending on classification. Verify your company's sector code with ARCA (the Argentine tax authority, formerly AFIP) before processing the first payroll.
Work-injury insurance (ART)
Employers must also hold a work-injury insurance policy (Aseguradora de Riesgos del Trabajo, or ART) with a licensed insurer. The premium is set commercially and varies by industry risk class. It is a mandatory on-cost separate from the SIPA social security contribution. It does not appear in the 26.4% figure above.
Aguinaldo: the 13th salary
Every employee earns one extra month of salary per year (the Sueldo Anual Complementario, or SAC). It is paid in two equal instalments: the first by 30 June, the second by 31 December. The SAC base is the highest monthly gross salary earned in each half-year period. Social security contributions apply to the SAC payment at the same rates.
What does an employee pay in Argentina social security?
Employee social security contributions total 17% of gross salary. The split is 11% to pension, 3% to healthcare, and 3% to social services.
There is no upper earnings ceiling. The full 17% applies across the entire gross wage.
| Contribution type | Employee rate |
|---|---|
| SIPA pension fund | 11% |
| Obra social (healthcare) | 3% |
| INSSJP (retiree social services) | 3% |
| Total employee contribution | 17% |
The obra social deduction gives the employee access to a compulsory health plan managed by a trade-union or sector-linked fund. Employees can redirect their contribution to a private health plan of their choice after registering the change with ARCA. The base employer healthcare contribution (3% employer side) is separate from the employee 3% and is included within the 26.4% employer total.
Minimum and maximum taxable bases for contributions are updated by resolution. ARCA (General Resolution 139/2026) set June 2026 floors and ceilings. Always confirm the current published bases before closing each monthly payroll run.
Argentina income tax bands for 2026
Argentina income tax (Impuesto a las Ganancias) has nine bands. The rate starts at 5% and rises to 35% on the highest income.
A personal deduction (minimo no imponible) reduces taxable income before the bands apply. For 2026, the basic deduction is ARS ARS 5,151,802.50 a year for resident workers.
The nine-band Impuesto a las Ganancias scale applies to taxable income after deductions. Brackets are adjusted semiannually by CPI. The scale below reflects the 30 December 2025 adjustment.
Source: PwC Worldwide Tax Summaries: Argentina Individual Taxes on Personal Income 2026
| Annual taxable income (ARS) | Rate |
|---|---|
| ARS 0 to ARS 1,749,902 | 5% |
| ARS 1,749,902 to ARS 3,499,803 | 9% |
| ARS 3,499,803 to ARS 5,249,704 | 12% |
| ARS 5,249,704 to ARS 7,874,557 | 15% |
| ARS 7,874,557 to ARS 15,749,113 | 19% |
| ARS 15,749,113 to ARS 23,623,670 | 23% |
| ARS 23,623,670 to ARS 35,435,504 | 27% |
| ARS 35,435,504 to ARS 53,153,257 | 31% |
| Above ARS 53,153,257 | 35% |
How the deductions work
The minimo no imponible (MNI) is the basic personal deduction. For 2026 it is ARS 5,151,802.50 a year for workers who have been resident in Argentina for at least six months of the calendar year. Employed workers also receive a separate earned income deduction. Both deductions reduce taxable income before the bracket scale above applies.
Brackets are adjusted automatically every six months by the CPI index. The scale above reflects the 30 December 2025 adjustment. The June 2026 adjustment will revise all thresholds upward. Employers must apply the current published scale in each payroll run.
Employer withholding
Employers withhold income tax directly from each monthly payslip. They remit it to ARCA. The withholding is calculated on a cumulative annual basis, recalculating each month against year-to-date earnings. Year-end adjustments settle any over- or under-withholding.
How does Argentina payroll filing with ARCA work?
Employers file monthly payroll declarations with ARCA (the Argentine tax authority). Each declaration covers social security contributions, income tax withheld, and the salary data for every employee.
Payroll must be paid monthly, in Argentine pesos. The law does not permit less frequent payment of base salary.
The monthly payroll cycle for an Argentine employer runs in this sequence: close the pay period, calculate gross salary and variable items, deduct employee social security contributions and income tax, calculate employer social security on the gross, file the ARCA declaration, and pay both the net salary and the tax and contribution liability.
Key Argentina-specific payroll items to include in every run:
- SAC accrual: track the highest monthly gross salary in each half-year period. The June and December SAC payments are calculated from this figure.
- Income tax CPI bracket update: check whether ARCA has published a revised bracket scale for the current semester before running the income tax calculation.
- Obra social allocation: ensure the healthcare fund code is correctly registered for each employee and any redirections are on file.
- ART premium: confirm the work-injury insurer premium for the month has been paid before closing the run.
ARCA uses the SIPA system for social security declarations and the SICORE system for income tax withholding declarations. Both are submitted electronically via the ARCA portal. Filing deadlines vary by employer size and CUIT (tax identifier) ending digit. Late or incorrect filings trigger interest charges on unpaid balances.
-
Collect salary and variable data
Gather each employee's gross salary, any bonuses, commissions, and overtime for the pay period. Confirm the highest monthly gross in the half-year period for SAC accrual tracking.
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Apply deductions and withholding
Deduct employee social security at 17% of gross. Withhold income tax using the cumulative annual calculation against the current ARCA bracket scale.
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Calculate employer social security
Calculate the employer contribution at 26.4% of gross salary for each employee. Confirm the applicable rate for your sector and company size.
-
File the ARCA monthly declaration
Submit the SIPA declaration for social security and the SICORE declaration for income tax withholding via the ARCA portal. Check the filing deadline for your CUIT ending digit.
-
Pay net salaries and contributions
Transfer net salaries to each employee's registered bank account in Argentine pesos. Pay the social security and income tax liabilities to ARCA by the applicable deadline.
Pension and social benefit contributions in the payroll stack
Argentina does not have a separate employer pension contribution layered on top of social security. The pension fund component is built into the social security rates.
The employee contributes 11% of gross salary to the SIPA pension system. The employer contributes the pension component within the 26.4% employer social security total.
Argentina moved from a mixed private/public pension system (AFJP) to a fully state-run scheme (SIPA) in 2008. There is no equivalent to UK pension auto-enrolment or a separate employer pension pot. The pension entitlement is built from SIPA contributions throughout the worker's career.
Family allowances (asignaciones familiares)
Family allowances are funded through the employer social security contribution and administered by ANSES (the national social security administration). Employees with children or other qualifying dependants receive payments directly from ANSES, not from the employer payroll. The employer's role is to make the correct contributions and register the employee's family situation correctly.
Healthcare (obra social)
Each employee is assigned to an obra social (health fund) linked to their trade or sector. The combined employer and employee healthcare contributions finance this coverage. Employees earning above a certain threshold can redirect their contribution to a private health plan (medicina prepaga) if they prefer. The redirection must be registered with ARCA and the receiving fund.
National minimum wage
The national minimum wage (Salario Minimo Vital y Movil, SMVM) is set quarterly by the National Employment Council. From June 2026 it is ARS 367,800/month. This is the floor for any full-time employee. Many collective bargaining agreements set higher sector minimums. Always check the applicable collective agreement (convenio colectivo de trabajo) for the relevant sector before setting a salary.
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Key sources: Ley de Contrato de Trabajo No. 20.744, PwC Argentina individual tax summary 2026, and Consejo Nacional del Empleo (SMVM).
Frequently asked questions
What is the employer social security rate in Argentina in 2026?
Employer social security in Argentina is 26.4% of gross salary for services and trade sector companies. This covers pension, healthcare, family allowances, unemployment insurance, and the retiree social services fund. There is no upper earnings ceiling. Smaller employers or those in specific sectors may pay at a lower rate (around 24%) depending on their ARCA classification.
What does an employee pay in social security in Argentina?
Employees contribute 17% of gross salary in total. The split is 11% to the SIPA pension fund, 3% to obra social (healthcare), and 3% to INSSJP (social services for retirees). There is no upper earnings ceiling. Both the employee and employer rates apply to the full gross salary.
What are the Argentina income tax bands in 2026?
Argentina Impuesto a las Ganancias has nine bands in 2026. The rate starts at 5% on taxable income up to ARS 1,749,902 and rises through 19%, 27%, 31%, reaching 35% above ARS 53,153,257 a year. A personal deduction of ARS 5,151,802.50 a year for resident workers reduces taxable income before the bands apply. Brackets are adjusted semiannually by CPI.
How often must employers pay salaries in Argentina?
Argentine law requires employers to pay salaries monthly in Argentine pesos. The law does not permit less frequent payment cycles for base salary. In addition to the monthly salary, every employee receives one extra month of salary per year (aguinaldo), paid in two instalments: the first by 30 June and the second by 31 December.
Is there a separate pension contribution in Argentina on top of social security?
No. Argentina does not have a separate employer pension contribution layered on top of social security. The pension component is built into the social security rates. The employee contributes 11% of gross salary to the SIPA pension system, and the employer's pension allocation is within the 26.4% employer social security total. There is no separate auto-enrolment scheme.
The biggest Argentina payroll surprise for foreign employers is the combined cost. You see the gross salary, you add the 26.4% employer social security, then you add the ART insurance premium on top. That is the true cost of an Argentine hire. The 26.4% alone is more than the total employer cost in some other Latin American markets.
Argentina employer social security sits at 26.4% with no ceiling. That figure alone changes the cost model for a Buenos Aires hire.
Add the nine-band income tax schedule, the June and December aguinaldo, the ART insurance premium, and the monthly ARCA filing, and you have a payroll stack with real complexity.
Get the structure right before the first hire. Run the full cost.
