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Payroll in ArArgentina.






Country Capital

Buenos Aires


Argentine peso ($) (ARS)

With strong employee protections and labor unions, operating a business in Argentina can initially seem dauting due to complex tax laws and labor regulations. When a company decides to set up a subsidiary in Argentina, it first needs to understand local employment laws regarding payroll and payroll processing.

Taxation rules in Argentina

Compliant payroll management involves following local laws that dictate the contributions made by the employer and employee, which should be reported each period.

After setting up payroll in Argentina, you will need to follow a variety of rules to stay compliant. Both the employer and the employee must take part in the contributions. The employer’s social security contribution rate can be as high as 24% of the gross pay of each employee. The employee must contribute 17% to pension and social security.

Argentina payroll options for companies

Companies have multiple Argentina payroll options that come with various pros and cons. Employers can choose between:

  • Local outsourced payroll: In this option, a company creates a subsidiary in Argentina but chooses to have an Argentina payroll processing company administer payroll for them. The company is still fully liable for compliance with payroll regulations.
  • Internal payroll: Larger companies may choose to run their own payroll by creating a subsidiary and then setting up human resources personnel in Argentina that can manage payroll. This option is more expensive and requires a full understanding of all employment laws in Argentina.
  • Use an EOR to employ individuals: If you are unable to set up an entity in Argentina, the G-P platform streamlines the entire employee lifecycle, including payroll management with fast, reliable, and flexible payment options in full compliance with local laws.

How to set up a payroll in Argentina

Before setting up Argentina payroll, companies have to establish your subsidiary in Argentina. It could take months before they’re prepared to hire employees, causing delays that could impact business long term. If companies are ready to set up Argentina payroll, they will need some personal information from employees, including their national ID number, deductions, and position.

Employers must register all employees with the Argentina tax authority and make sure they retain the right taxes from employees’ salaries. Employees also need to register with the Social Security Registry before their start date.

Entitlement and termination terms

Terminating an employee can prove difficult in Argentina. It is best to have a strong, written employment contract that outlines entitlement and termination. Employees are entitled to severance pay based on their highest regular monthly salary accrued over the last year. Fixed-term employees are entitled to their remaining salary through the completion of the contract if employers terminate the contract prematurely. Employees with union representatives may qualify for more severance pay.

Streamline global payroll management with G-P.

G-P streamlines each step of the payroll management process with our market-leading Global Growth Platform™. Pay your team with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.

Contact us to learn more about how we can support you.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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