Professional Employer Organization (PEO) in Argentina

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Global PEO in Argentina

Consider this: you’re employing a new recruit for a startup based in New York City. You’ve found the perfect candidate who ticks every box and would be an excellent addition to your team… but they live in Buenos Aires. And they don’t want to move to the US. 

Navigating hiring in Argentina can be tricky, expensive, and time-consuming.  The country ranks 126th on the World Bank’s Ease of Doing Business list due to a complicated web of taxes, tax credits, subsidies, prohibitions, exemptions, and more.

It’s a lot to take on… but you don’t have to. Don’t let Argentina’s complicated legal system stop you from bringing this stellar recruit into your organization. Enter –– a professional employer organization (PEO). 

Professional employer organizations (PEOs) like Skuad don’t just make it possible to hire internationally, they make it easy. Businesses can seamlessly onboard, pay, and hire remote employees using a PEO in Agentina — or anywhere else in the world for that matter. 

What is a professional employer organization (PEO), you ask? Let us explain.

What is a PEO?

A professional employer organization (PEO) takes care of HR responsibilities for small-to-medium businesses and startups. PEOs shoulder the burden of things like managing payroll, providing fair and competitive packages for employees, and ensuring that everything is above board and compliant with local employment regulations. 

A PEO will handle all of the hard stuff that comes with hiring employees in Argentina, and around the world –– leaving you to focus on finding talent and growing your organization. Your PEO will ensure that your team is getting paid fairly and on time, will provide paystubs, navigate local taxation and payroll laws, and fulfill all local statutory employer requirements. 

Sound like a pretty perfect solution, right? We think so too. 

Get in touch with someone at Skuad today to find out more, and how we can work to bring your business to a global level.

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What are the benefits of using a PEO provider in Argentina?

Partnering with a PEO provider in Argentina can be the beginning of massive growth for your company. As you’ll see below, PEO is a valuable asset for small businesses looking to take it up a notch. 

Hire the best talent in Argentina

Argentina has a fast-growing tech sector and is the third-largest economy in Latin America. The talent pool there is massive and largely untapped by global companies –– especially small enterprises. Don’t let geographical boundaries stop you from dipping your toe into the pool!

Limiting yourself to only hiring employees in the local area is severely stunting your business growth. Hiring people from Argentina, and using a PEO to make it way easier, will bring a diversity of knowledge and worldviews to your team. 

Become a globally competitive employer

Chances are, you’re not super familiar with the hiring landscape in Argentina ––for example, what constitutes a good salary, bonuses, benefits, and time off. If you want to be recruiting local talent in Argentina, it’s important to make sure you’re offering a more attractive package than your competitors. 

A PEO that specializes in hiring in Argentina, like Skuad, is totally across the local market. We know exactly what your company should offer to attract the most qualified candidates.

Save on unnecessary costs

Going down the route of hiring international employees on your own comes with a lot of extra costs. First, you’d have to set up a new entity (more on that in a sec). Then you’d need to hire in-house HR who can assist you in complying with Argentinian laws, and consult with lawyers to ensure you’re ticking all the boxes when it comes to taxes and payroll. 

Save on unnecessary costs by partnering with a PEO who can handle everything… at a fraction of the cost.

Get your foot in the door of a new market

If you’re considering wading into the Latin American market, hiring employees in Argentina is a great place to start. Having insider local knowledge of competitors and consumers is priceless. 

Bringing on an employee in Argentina will help you gain valuable market insights, in a far more practical way than analyzing data ever could. 

Avoid setting up your own legal entity in Malaysia

So you want to hire someone in Buenos Aires –– but your organization is based in the US. Without a PEO, you’d have to set up your own entity in Argentina. This involves a lot of red tape, time, and – most importantly – a lot of fees.

You’d also be opening yourself up to some potential legal issues… unless you’re a total whiz when it comes to Argentinian payroll regulations and tax laws. 

Using a PEO bypasses the need to set up your own legal entity in Argentina, saving you a lot of headaches and cash. 

Become more culturally aware

Having a culturally diverse team is a massive, massive plus in today’s business landscape. By hiring internationally, you’re adding new worldviews and experiences to your team, which will have a positive impact on the way you do business. 

Get ahead of the ball –– your PEO will help keep you informed on the various cultural practices to be across as an employer in Argentina. Like, did you know that in Argentina, employees get 10 days of paid marriage leave?

Ensure that your business complies with statutory requirements in Argentina

As you know, every country around the world has its own labor and payroll requirements –– and they can get pretty complex! And if you don’t comply, you’ll be facing pretty hefty fines or even business bans.

Instead of having to spend hours studying Argentinian tax law in your spare time, partner with a  PEO that can stay on top of everything on your behalf. 

Here are some of the specifics that you should know when hiring in Argentina:

Payroll

  • The standard workweek in Argentina is 8 hours per day or 48 hours per week.
  • Employees are paid in local Argentine pesos. Some employees request to be paid in USD as it’s a more stable currency, but this is illegal.
  • Overtime must not exceed 30 hours a month and 200 hours a year.
  • Employers must give between two weeks’ and two months’ notice of termination, based on the time the employee has been with the company.

Employer contributions

  • Employers must pay a compulsory life insurance policy for all their employees, at a rate of 6%.
  • Meal tickets are a common benefit for employees, paid on a monthly basis together with the monthly salary. 
  • Local law states that employees receive a 13th-month bonus, called aguinaldo, which is delivered in two installments –– due prior to June 30th and December 18th. 
  • Employers must contribute 17% of the employee’s salary to their pension fund, and 2.41% to labor insurance. 

Paid Leave

  • Argentina celebrates 15 public holidays annually for which employees are given a paid day off.
  • Once an employee has worked for six months, they’re entitled to two weeks’ leave. This increases as time goes on, maxing out at 5 weeks. 
  • Employees are entitled to 3 months’ sick leave.
  • Marriage leave is 10 days, while the death of a child, parent, or spouse entitles employees to 3 days’ leave.

Learn more about how Skuad’s PEO services can help your business to grow by booking a demo today.

What does it cost to build a team in Argentina?

Company Incorporation in Argentina

As we touched on earlier, one option for hiring in Argentina is to register in-country as a foreign company. The costs associated with this add up pretty quickly. 

The price to register a company in Argentina is $5160, which includes one years’ worth of taxes and fees, plus a legal address for the company for 12 months. It doesn’t sound like too much… but then you’re also going to need to bring on HR consultants and an in-country legal representative. 

Additionally, you must make a deposit of 25% of the initial capital to the Bank of the Argentine Nation to submit your business registration. The money can then be withdrawn once your application is complete. 

Plus then there’s the cost of banking, the office space you’re registering with, and so on.

Or, you could partner with PEO services in Argentina instead.

PEO in Argentina

Different PEO organizations offer different pricing modules based on their services. 

Skuad offers free cancelation at any time, and you can get started at zero cost as well. 

Our PEO service allows you to onboard and pay employees in Argentina – and elsewhere around the world – for just $19 per month. We also offer employer of record services, where we hire international employees on your behalf, which start at $199/month.

We also offer custom pricing plans, which can be scaled based on the size and purpose of your enterprise –– get in touch to learn more!

Want to book in for a demo?

Keen to hire in Argentina and want to see how a PEO all works? Book in for a demo of Skuad’s global PEO solution right away!

Building a remote team?

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