Argentina Compensation & Benefits
Because of Argentina’s complicated labor laws, it’s useful to keep standard compensation and benefits in mind when negotiating a contract. You can then stay compliant and be in a great position to offer additional benefits to attract top talent. If you don’t have the time or resources to learn all the intricacies of Argentine law or administer benefits, Argentina benefit outsourcing can help keep your business growing and free up your time.
Argentina Compensation Laws
Argentina’s compensation laws dictate a minimum wage of 11,300 Argentine pesos (ARS) per month, which a company pays to employees 13 times a year. The 13th payment is a bonus known as the Aguinaldo. Local law states all workers must receive this bonus — which is payable as two semiannual installments — each year.
Employees can only work eight hours a day and 48 hours per week as part of a six-day workday, according to the Employment Contract Law No. 11, 544. One of Argentina’s compensation laws dictates that employees must get an additional 50% payment for overtime work during weekdays and an extra 100% on weekends and national holidays.
Guaranteed Benefits in Argentina
Every Argentine employee must receive certain benefits, including paid time off and maternity and paternity leave. The country also has 15 public holidays that all employees receive a day off for.
Employees who have worked for more than six months receive two weeks of annual vacation leave. This amount typically increases as the employee works longer. Female workers receive 45 days of time off before and after childbirth and are entitled to some family allowances and other benefits.
Employees’ mandatory health insurance is arranged by labor unions and covered by private companies. This health insurance covers everything established by the PMO (Compulsory Medicare Program), including maternity and child plans, dental plan, medication, medical appointments, exams, surgeries, and more. Employers contribute 6% to this plan, and employees give 3% on top of their base salary.
Argentina Benefit Management
Opening a subsidiary in Argentina means arranging benefit packages for all your employees and dispersing them according to Argentina compensation laws. Some Argentina benefit management tips to keep in mind include:
- Make sure employees meet statutory working hour requirements
- Pay employees on time through bank-automated payroll deposits
- Give paid leave at the appropriate times mandated by law
Benefits and Compensation Restrictions
Making sure you are aware of and following all restrictions is another aspect of Argentina benefit management. For example, employees cannot work more than 30 hours of overtime per month or more than 200 hours per week. If an employee doesn’t take a vacation, the vacation days cannot be compensated unless that employee is terminated.
Choose Globalization Partners
One of the best ways to stay compliant when expanding your business to Argentina is through Argentina compensation and benefits outsourcing.
Globalization Partners is a global PEO that can help you with both compensation and benefits in Argentina. We hire employees on your behalf so that you can start growing your company while going through the lengthy subsidiary process. We put the risks on our shoulders, so you don’t have to worry. Contact us today to learn more.