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UPDATED NOV 5, 2026馃挕 A general guide to hiring and managing employees in Argentina through Toku. Use it to understand local employment topics and plan your questions. Toku will confirm the process and terms applicable to your hire.
鈩癸笍 **Country-specific processes:**These guides provide general information. Additional or different steps may apply, and Toku will work with you directly to confirm the requirements for your situation. Continue submitting information and requests through Toku. Toku cannot offer or arrange Toku-sponsored benefits in these countries. Your applicable statutory entitlements and individual employment terms remain subject to local requirements and your signed agreement.
馃挷 Argentina pricing: Argentina has a set country rate of USD 599 per employee per month (USD 629 with private medical insurance, plus the plan premium). This rate applies in place of the standard fee in your order form.
鈿狅笍 Argentina's 2026 labor reform. The Labor Modernization Law (Law 27,802) took effect on March 6, 2026. It changed probation notice, vacation scheduling, severance calculation, resignations and other rules. Some parts phase in later: the Labor Assistance Fund starts on December 1, 2026, and the Telework Law is repealed from January 1, 2027. This guide reflects the law as of October 2026.
At a Glance
| Item | Detail |
|---|---|
| Currency | Argentine Peso (ARS) |
| Payroll cycle | Monthly. Salaries are paid in ARS by the 4th business day of the following month. |
| Estimated employer costs on top of salary | Approximately 25-30% of gross salary, plus the 13th month salary (aguinaldo) |
| Onboarding lead time | Approximately four weeks, including a mandatory pre-employment medical exam |
| Standard working week | Up to 48 hours (8 hours a day) |
| Probation period | 6 months |
| Annual leave | 14 calendar days per year, rising with length of service up to 35 |
| 13th month salary | Required (aguinaldo), paid in two halves in June and December |
| Minimum notice on termination | None during probation. After probation, 1 month (under 5 years' service) or 2 months (5 years or more) |
| Fiscal year | January 1 - December 31 |
Onboarding a New Hire
Plan for approximately four weeks for onboarding. Submit your new hire through the Toku platform and we take it from there: local employment agreement, medical exam, statutory registrations and payroll setup. See Onboard Contributors as a Client Admin in Toku for the step-by-step process, and the Toku: Country Readiness for Hiring [EOR] for lead times across all countries.
How it works in Argentina:
- Submit the hire in Toku with the salary, salary currency, start date, job title and work location. Tell us whether the annual salary you offered includes the aguinaldo (see Compensation & Payroll below).
- Toku prepares the local employment agreement in Spanish with an English translation.
- The employee completes onboarding in Toku. Their details are needed to book the mandatory pre-employment medical exam, which must be completed before the start date.
- The employee signs the employment agreement before the start date and is registered with the tax authority (ARCA) from their first day. Once all information is in, the local steps take about 8-12 business days, mainly because of the medical exam. Late approvals or incomplete forms extend this. To be paid in a given month, onboarding must be fully complete by the 13th of that month. Start dates cannot be backdated, because backdating creates a compliance risk in Argentina. If the cut-off is missed, Toku will confirm the next available start date.
The employee will need their DNI (national ID), CUIL (labor ID number), a bank account in their name to receive their salary in ARS, their home address and the obra social (health fund) they want their contributions to go to.
Offer letters. The employment agreement issued through Toku is the binding document. If you send your own offer letter first, issue it on your company letterhead, do not present it as issued by the legal employer, and make sure the salary, currency, start date and aguinaldo treatment match what you submit in Toku. Mismatches between the offer letter and the agreement are the most common cause of delays.
Employer Costs
On top of gross salary, the following employer contributions apply in Argentina:
| Cost | Rate | Notes |
|---|---|---|
| Social security (pension, retiree healthcare, family allowances, National Employment Fund) | 18% or 20.4% of gross salary | Rate depends on the employer's size and activity (Law 27,541). No ceiling. |
| Employer health contribution (obra social) | 6% of gross salary | Funds the employee's statutory health coverage |
| Workplace accident insurance (ART) | Varies | Mandatory. Priced by the insurer based on risk, usually low for office and remote roles |
| Mandatory group life insurance (SCVO) | Small fixed monthly amount per employee | Mandatory |
| Labor Assistance Fund (FAL) | 1% (large employers) or 2.5% (small and medium employers) | Starts December 1, 2026. Offset by an equal reduction in other employer contributions, so the overall cost should not change. It does not reduce severance owed. |
As a rule of thumb, total cost of employment is roughly 125-130% of gross monthly salary, plus the aguinaldo, which adds one extra month's salary per year and carries employer contributions as well.
Employees pay 17% of gross salary in social security (11% pension, 3% retiree healthcare, 3% obra social), up to a monthly ceiling that is updated regularly, plus progressive income tax from 5% to 35%. These are withheld from gross salary, not charged on top. Toku calculates and remits all of the above.
Compensation & Payroll
鈩癸笍 Stablecoin payments are not supported in Argentina at this time. Salaries are paid in ARS by bank transfer to an account in the employee's name.
Payroll in Argentina is monthly. Salaries are paid by the 4th business day of the following month, and employees receive an itemized payslip showing gross pay, deductions and net pay.
Salary currency. You can set the salary in ARS or in USD. If you set it in USD, the agreement states the USD amount and it is converted to ARS each month at the official Banco de la Naci贸n Argentina (BNA) selling rate for banknotes ("billete") published on the 14th, or the previous business day if the 14th is a weekend or holiday. The rate and the date are written into the agreement, and the same date applies to every USD-denominated employee in Argentina, so it cannot be changed for one person. Because the rate can move between the 14th and payday, the ARS amount can differ from what the employee would get at the payday rate. Setting the salary in ARS removes that exchange rate exposure. If you set it in ARS, plan regular salary reviews, because inflation erodes ARS salaries quickly. If you want to offset rate movements for a USD salary, you can pay a separate bonus, which is an extra cost and subject to normal contributions and tax.
Aguinaldo (13th month salary). Required by law. It equals one extra month's salary per year, paid in two halves: the first by June 30 and the second by December 18. Each half is 50% of the highest monthly salary in that half-year, prorated for partial periods. Be explicit with Toku about your offer:
- If the annual salary you offered includes the aguinaldo, the monthly salary is the annual figure divided by 13.
- If it does not include it, the monthly salary is the annual figure divided by 12 and the aguinaldo is paid on top, which adds about 8.3% to the annual cost, plus employer contributions. Minimum wage. The national minimum wage (Salario M铆nimo, Vital y M贸vil) is ARS 391,200 per month from October 1, 2026, rising to ARS 398,800 in November and ARS 406,400 in December 2026, with further scheduled increases through April 2027 (Resolution 4/2026). If a collective bargaining agreement applies to the role, its minimum pay scales also apply and are usually higher. Toku confirms whether one applies for each hire.
Employment Contracts & Probation
- Indefinite-term contracts are the default. Fixed-term contracts must be in writing and justified by the nature of the work.
- The employment agreement is issued in Spanish with an English translation. Toku reviews each agreement for confidentiality and assignment of work product. Tell us at submission if the role needs anything specific, for example invention assignment for engineering roles.
- Probation is 6 months for indefinite-term contracts (Law 27,742). During probation either party can end the employment without severance, and since March 2026 the employer does not have to give notice. The employee must be registered from day one, otherwise the probation period does not apply. Pregnancy and maternity protections still apply during probation.
- The employer cannot change essential terms of the contract or cause the employee material harm on its own. Reducing pay or allowances requires the employee's agreement.
Working Hours
The standard limit is 8 hours a day and 48 hours a week. Directors and managers are exempt from the hour limits. Overtime is paid at 150% on weekdays and 200% on Saturdays after 1 PM, Sundays and public holidays, and is capped at 3 hours a day, 30 hours a month and 200 hours a year. Since March 2026, employer and employee can agree in writing to compensate overtime with time off (a time bank), as long as the 12-hour rest between shifts and 35-hour weekly rest are respected.
Remote Work
Until December 31, 2026, employees who work from home are covered by Argentina's Telework Law (Law 27,555). Under it the employer must:
- provide the equipment needed for the job, or cover its cost, including maintenance
- compensate the employee's extra internet and energy costs. The law does not set the amount. The standard amount in Toku's Argentina employment agreement is USD 40 per month, converted to ARS, paid as a non-salary allowance.
- respect the employee's right to disconnect outside working hours The Labor Modernization Law repeals the Telework Law from January 1, 2027. After that, remote work follows the general employment law and the employment agreement, and work-related internet and phone costs can still be reimbursed outside salary within official limits. Because the allowance is written into signed agreements, plan for it to continue after January 1, 2027. Toku will confirm how the change applies to existing employees before then. Toku also confirms which equipment is provided, and whether any cost is billed to you, before the agreement is finalized.
Leave Entitlements
| Leave | Entitlement | Who pays |
|---|---|---|
| Annual leave | 14 calendar days (under 5 years' service), 21 (5-10 years), 28 (10-20 years), 35 (over 20 years) | Employer |
| Sick leave | Up to 3 months' paid leave per year with under 5 years' service, or 6 months with 5 years or more. Doubled if the employee has dependents. The job is then held for up to 12 more months unpaid. | Employer |
| Maternity leave | 90 days, generally 45 before and 45 after birth | Social security (ANSES) |
| Birth of a child (paternity) | 2 calendar days | Employer |
| Marriage | 10 calendar days | Employer |
| Bereavement | 3 days (spouse or partner, child, parent), 1 day (sibling) | Employer |
| Exams | 2 days per exam, up to 10 days per year | Employer |
Annual leave is normally taken between October 1 and April 30, with at least 30 days' written notice of the start date. Since March 2026 the employer and employee can agree to take leave outside that window or split it into blocks of at least 7 days. Vacation pay is paid before the leave starts and is calculated at the monthly salary divided by 25 per day, so it is slightly higher than normal pay. In the first year, the full entitlement requires working at least half of the working days in the year; otherwise the employee earns 1 day for every 20 days worked. Employees must report sickness on the first day of absence, and medical certificates must be digitally signed through an authorized platform.
Public Holidays (2026)
Employees who work on a national holiday are paid double. Tourism non-working days are optional for private employers: the employer decides whether the team works, and normal pay applies if they do.
| Date | Holiday |
|---|---|
| January 1 | New Year's Day |
| February 16 | Carnival |
| February 17 | Carnival |
| March 23 | Tourism non-working day (optional) |
| March 24 | Day of Remembrance for Truth and Justice |
| April 2 | Day of the Veterans and Fallen of the Malvinas War |
| April 3 | Good Friday |
| May 1 | Labor Day |
| May 25 | May Revolution Day |
| June 15 | General Mart铆n Miguel de G眉emes Day |
| June 20 | Flag Day (General Manuel Belgrano), a Saturday in 2026 |
| July 9 | Independence Day |
| July 10 | Tourism non-working day (optional) |
| August 17 | General Jos茅 de San Mart铆n Day |
| October 12 | Day of Respect for Cultural Diversity |
| November 23 | National Sovereignty Day |
| December 7 | Tourism non-working day (optional) |
| December 8 | Immaculate Conception |
| December 25 | Christmas Day |
Benefits: What's Required vs. What's Optional
This is the most common question we get for Argentina. Everything in the first table is required by law and is already part of the employment cost. Everything in the second table is your choice.
Required by law
| Benefit | What it is | Who pays |
|---|---|---|
| Statutory health coverage (obra social) | Local health coverage for the employee and their family. The employee can choose which obra social receives their contributions, and many use it to access a private plan (prepaga), paying any difference themselves. | Employer (6%) and employee (3%) through payroll |
| Pension and social security | State pension, retiree healthcare and family allowances | Employer and employee through payroll |
| Workplace accident insurance (ART) | Covers workplace accidents and occupational illness, including while working from home | Employer |
| Group life insurance (SCVO) | Basic mandatory life cover | Employer |
| Aguinaldo | 13th month salary, paid in June and December | Employer |
| Paid annual leave and vacation pay | See Leave Entitlements above | Employer |
| Remote work equipment and costs | Equipment plus compensation for internet and energy costs (standard USD 40 per month). Required by the Telework Law until December 31, 2026, and contractual under the signed agreement after that. | Employer |
| Pre-employment medical exam | Must be completed before the start date | Arranged by Toku |
Optional (you choose)
| Benefit | What to know | Who pays |
|---|---|---|
| Private medical insurance | International or higher-tier health plans can be added through Toku's Argentina benefits arrangement (not a Toku-sponsored plan). Toku shares the available plans and monthly prices on request. Adding a plan brings the monthly Argentina fee to USD 629, plus the premium. Whether part of the premium can be shared with the employee through payroll is confirmed case by case. Tell Toku early so enrollment can be included in onboarding. | You |
| Top-up of the employee's private plan (prepaga) | Paying all or part of the cost difference of the employee's own plan. Employer-paid health plans can qualify as a non-remunerative social benefit, meaning no social security contributions on them. Toku confirms the treatment when it is set up. | You |
| Supplemental life insurance | Cover above the mandatory group life insurance | You |
| Bonuses, including an exchange rate adjustment bonus | Paid through payroll and subject to normal contributions and tax | You |
| Training, childcare (children up to 6) and similar reimbursements | Documented reimbursements in these categories can qualify as non-remunerative social benefits | You |
| Extra leave above the statutory minimum | For example longer paternity leave. Must be written into the agreement or a policy. | You |
Does the employee need private insurance if they already have an obra social? No. Statutory coverage is required and already included in the cost. Private international insurance is optional and mainly useful for coverage outside Argentina or for a higher tier of care.
Ending Employment
Terminations in Argentina must be communicated in writing, usually by labor telegram or notarized letter, and the reason must be stated if it is for cause. Involve Toku early whenever you are considering a termination, and submit it in the Toku platform. In Argentina, Toku needs at least three weeks' notice to process a termination and its paperwork. For the process, see How to Terminate an Employee or Contractor.
| Situation | Notice |
|---|---|
| During probation (first 6 months) | No notice required |
| Employer termination, under 5 years' service | 1 month, or pay in lieu |
| Employer termination, 5 years or more | 2 months, or pay in lieu |
| Employee resignation | 15 days |
After probation, if the termination date does not fall on the last day of the month, the employer also pays salary through the end of that month (integraci贸n del mes de despido).
Severance (termination without cause, after probation). One month's salary for each year of service, or fraction of more than three months, with a minimum of one month. The base is the best normal and habitual monthly pay in the last year. Since March 2026 it excludes the aguinaldo, vacation pay and non-monthly bonuses. The base is capped at three times the average salary of the applicable collective agreement, but the cap cannot reduce it below 67% of the employee's actual pay. Pro-rata aguinaldo and unused vacation are paid on top. Termination for just cause requires no severance, but the employer must prove the cause, and Argentine labor courts tend to favor employees.
Resignations. A resignation is only valid once the employee formalizes it by telegram (physical or digital) or before the labor authority. Submit it in the Toku platform with the employee's resignation letter, and Toku will make sure the formal step is completed.
Mutual termination. An agreed separation is only valid if it is signed before a notary (public deed) or before the judicial or administrative labor authority, with the employee present in person. Plan extra time for this.
Protected employees. A dismissal within 7.5 months before or after childbirth, or within 3 months before or 6 months after the employee's marriage, is presumed to be for that reason and triggers additional compensation of one year's salary. Union representatives are also protected.
The employer must provide the employee's work certificates within 45 business days of the end of employment.
Annual Leave at Termination
This section describes statutory annual leave. Any additional contractual or company-provided leave above the statutory minimum may follow different carryover, expiry, or payout rules under the employee's agreement or applicable policy, subject to local law.
Statutory leave termination payout: Required. Unused leave for the current year is paid out proportionally in final pay.
Statutory carryover / look-back: Leave cannot be exchanged for money during employment and must be taken. By agreement, up to one third of a year's leave can be added to the next year's leave.
Admin responsibility: Schedule leave within the October to April window with at least 30 days' written notice, and track any agreed carryover separately.
Important exceptions: If leave is not granted in time, the employee can take it after giving notice. Toku confirms the legally outstanding balance before final pay is communicated.
See the Toku: Annual Leave / PTO Carryover & Termination Payout Guide for the cross-country framework.
Hiring Someone from Overseas?
Foreign nationals need residence with work authorization from Argentina's National Migration Directorate (Direcci贸n Nacional de Migraciones). Nationals of MERCOSUR and associated countries have a simplified residence route. Talk to Toku before extending an offer to a candidate who needs sponsorship: support and timing are confirmed case by case, and the start date cannot be set until the permit is in place. Argentine citizens and permanent residents do not need a permit, so make sure the right-to-work answer in onboarding is accurate, because a sponsorship flag pauses onboarding until it is cleared.
Official Sources
- Law 27,802, Labor Modernization Law (Argentina.gob.ar)
- Law 20,744, Employment Contract Law (InfoLEG)
- Law 27,555, Telework Law (Argentina.gob.ar)
- 2026 national holidays (Argentina.gob.ar) and Central Bank holiday notice (BCRA)
Last updated November 5, 2026 (date notice only). Last verified October 2026. This guide is for general information and doesn't constitute legal or tax advice. Your Toku account manager can confirm specifics for your situation.