Introduction
Payroll in Argentina requires withholding personal income tax (Impuesto a las Ganancias), remitting employer and employee social security contributions, and complying with the Labour Contract Law (Ley de Contrato de Trabajo, LCT) on wages, leave, and severance.
Income tax runs from 5% to 35% across nine progressive brackets, employer social security contributions fall between 24% and 26.4% depending on company type, and the employee share is 17%. Sectoral Collective Bargaining Agreements can set higher minimum salaries than the national floor.
The national minimum wage adjusts on a near-monthly schedule, income tax brackets and deductions refresh every six months to track inflation, and the Labour Contract Law itself is being reshaped by recent reform laws.
In this guide, we cover Argentina's payroll processing phases, statutory components, public holidays, income tax brackets, termination and severance rules, and how foreign companies can run compliant payroll without setting up a local entity.
What is the payroll process in Argentina?
In Argentina, the payroll process can't simply be reduced to similar processes elsewhere. That is, while the employee payroll process, from pay negotiation pre-hiring to invoicing post-placement, follows a similar pattern, Argentina's elusive economic realities make payroll much more complicated.
To manage Argentina payroll requirements, employers often need to dance around a wide range of inflationary pressures, ever-changing salary adjustments and increases, and a growing shift to use employee self-help HR applications.
From an employer's perspective, especially an international employer actively preparing payroll for talent in Argentina, the payroll process becomes more of a burden, if not a liability, draining the HR function.
Factor in Argentina's payroll taxes, in a country whose workforce skills vary dramatically, particularly between the agriculture and IT service sectors, and you're more inundated by yet more payroll complexities and variations.
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Talk to an expertWhat are the different phases of payroll processing in Argentina?
One of the main complexities of payroll is that the process is composed of three different stages: Pre-payroll, payroll, and post-payroll.
Pre-payroll phase
The pre-payroll period is when you will gather employee documentation, register with the relevant Argentine authorities, and prepare to pay employees.
Setting up the organization
Policies such as leave and attendance should be communicated to your workers, as well as pay frequency. Employment contracts should be drafted in Spanish, since Argentina's Ley de Contrato de Trabajo (LCT) requires employment terms to be available in the official language. Many sectors also require the applicable Convenio Colectivo de Trabajo (CCT) to be referenced explicitly in the contract.
- Business profile: Your business should be registered with the Agencia de Recaudación y Control Aduanero (ARCA) and assigned a Clave Única de Identificación Tributaria (CUIT). Employees must be registered with ANSeS before their first day of work.
- Work location: Argentina is a federal republic, so certain payroll-related obligations (such as gross income tax in some provinces) can vary by jurisdiction. Policies may need to be set per province.
- Leave policy: Make your leave regulations known to all of your staff. Employees in Argentina are entitled to a range of statutory leaves under the LCT, including annual paid leave, maternity leave, sick leave, and special leaves for marriage, bereavement, and study.
- Attendance policy: Timesheets, doctor's certificates for sick leave, and supervisor approvals for time off should all be documented.
Statutory components
Certain items must be provided to your employees by law, including social security contributions, the 13th-month salary (SAC), paid annual leave, and severance accruals.
Salary components
Several factors influence salary calculation in Argentina, including basic salary, SAC accrual, allowances, deductions, and applicable CCT-specific salary increases that can adjust salaries multiple times per year.
Pay schedule
The payroll frequency in Argentina is monthly. Salaries must be paid within four working days after the end of the payroll period under Article 128 of the LCT. Daily-rated workers may be paid weekly or bi-weekly.
Employee information
All employee information, including department, job title, applicable CCT category, and Clave Única de Identificación Laboral (CUIL), should be recorded in preparation for payroll.
Payroll calculation phase
The Argentina payroll calculation phase is the most important part of the process. Pre-payroll data is entered into a system that calculates each employee's net pay, taking into account income tax withholding (Impuesto a las Ganancias), employee social security contributions, SAC accruals, and any applicable CCT-specific allowances.
Post-payroll phase
Salary payments
Employees are compensated in the post-payroll phase. Salary disbursements must be made via direct credit to a registered Argentine bank account in pesos.
Payroll accounting
Payroll is a significant and costly expense. After payments have been sent out, balance the accounts and keep track of total payroll costs, including employer-side social security contributions.
Payroll reporting and compliance
Employee and employer social security contributions are filed monthly with ARCA via the Sistema de Cálculo de Obligaciones de la Seguridad Social (SICOSS). Income tax withholding is also remitted to ARCA on a monthly cycle. Pay slips must be issued in duplicate, with one copy signed and retained by the employer.
What is payroll management in Argentina?
For years, Argentina has been undergoing an evolution in payroll processing and management from paper-based to automated, cloud-based platforms.
Today, automated payroll management is a reality in many Argentine businesses. By streamlining payroll processes, payroll management software helps HR departments in companies focus on more strategic functions. This new reality comes, though, with a whole set of compliance issues, more so if you're an international employer not particularly familiar with Argentina's payroll laws.
The following is only a snapshot of compliance penalties you should expect if you go neck-deep into payroll management in Argentina without having proper expertise in your bag:
- ARS 220,000 (individuals) / ARS 440,000 (companies): for failing to file the required tax return on time
- 100% of the unpaid tax amount as a fine for tax omission
- ARS 150,000-ARS 2,500,000: for formal tax infractions such as failure to respond to ARCA requests or obstruction of audits.
So, how would you know, without any expert legal advice and built-in compliance under your belt, you're all set and fully payroll-compliant in Argentina?
Think of payroll management software only as a milestone, not an ultimate goal, along a payroll journey.
That is, while the payroll management software market is witnessing a boom in Argentina and elsewhere, software alone is not a magic solution to your compliance needs if not informed by in-depth knowledge of and extensive experience in compliance complexities in Argentina.
To stay compliant, you need more than just another piece of software to integrate into your in-place HR system. Contrarily, if you don't have one, only use a payroll system that speaks to your specific compliance needs.
What is payroll compliance in Argentina?
In Argentina, statutory payroll compliance requires paying employees' salaries and benefits on time, as well as ensuring that income tax withholdings and social security contributions are remitted to the appropriate authorities each month.
Argentina's statutory payroll compliance runs across two separate authorities: Impuesto a las Ganancias withholding filed with ARCA monthly, and social security contributions reported through SICOSS covering five separate schemes, including pension, PAMI healthcare, family allowances, unemployment, and the Obra Social union health scheme.
Sectoral CCT obligations and SAC accruals paid in two semi-annual instalments on 30 June and 18 December add further complexity to every monthly cycle.
Skuad's Shield compliance layer helps your team stay aligned with statutory obligations across supported markets, covering contribution workflows, regulatory monitoring, and employment documentation, without independently tracking every regulatory update.
What are the main payroll components in Argentina?
To guarantee strict compliance with local employment legislation specifically relating to Payroll in Argentina, you first need to understand its components.
Payroll components in Argentina are administered under the Labour Contract Law No. 20,744 (Ley de Contrato de Trabajo, LCT), with sectoral Collective Bargaining Agreements (Convenios Colectivos de Trabajo, or CCTs) overlaying the LCT and frequently setting higher minimum salaries, working hours, and benefits than the statutory baseline.
Statutory social security is administered by ANSES, with tax withholding remitted to ARCA.
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Talk to an expertHow many public holidays are there in Argentina?
Argentina observes 16 national public holidays in 2026 under Law No. 27,399, plus 3 additional non-laborable days for tourism purposes (bridge days) established by executive decree, for a total of 19 days off.
What are payroll taxes in Argentina?
Argentina's payroll taxes cover corporate income tax, personal income tax, and social security contributions, split between employer and employee. Here is a breakdown of each.
Corporate income tax
Personal Income Tax
Payroll Taxes and Social Security Contributions
Employer contributions
Employee contributions
The total employer cost in Argentina adds up quickly once you stack progressive Impuesto a las Ganancias rates up to 35% across nine brackets that refresh every six months under Law 27,743, against employer social security contributions of 24% to 26.4% depending on company type, employee withholding of 17%, SAC accruals, and provincial gross income tax in applicable jurisdictions.
Skuad's employee cost calculator helps estimate the full cost of hiring across supported markets, including employer social and tax contributions, statutory deductions, and net-to-gross conversion, so finance teams can model headcount costs before committing to a hire.
What is the employee termination policy in Argentina?
Argentina's employment termination rules are set by the Labour Contract Law (Law 20,744). The key variables are whether termination is with or without just cause, the employee's length of service, and whether the contract is still in its probation period.
Severance calculation base
Labor Assistance Fund (FAL)
How to outsource payroll in Argentina?
Payroll in Argentina rarely stays still. The minimum wage adjusts on a near-monthly schedule, income tax brackets refresh every six months under Law 27,743, and the LCT itself is being reshaped by Law 27,742 and the more recent Labor Modernization Law 27,802.
Layer on sectoral CCTs that can override statutory minimums, ARCA-administered withholding that replaced AFIP in late 2024, and a four-business-day severance payment window that triggers penalties if missed, and small administrative gaps compound quickly into real liabilities.
This is where an Employer of Record earns its place. The right partner supports ARCA and ANSeS registration, processes the monthly SICOSS cycle, calculates SAC instalments correctly on 30 June and 18 December, applies the right CCT category for each employee, and tracks every semi-annual bracket update so retentions stay accurate.
For foreign companies hiring in Argentina without a local entity, Skuad's Employer of Record platform acts as the legal employer, so your company can process payroll and manage statutory compliance without setting up a local entity first.
Here is what Skuad helps with:
- Acts as the legal employer across 160+ countries, so you can hire without setting up a local entity
- Payroll processing in 70+ currencies with accurate tax withholding and statutory deductions
- Statutory contribution workflows across supported markets, covering applicable social insurance and pension obligations
- Employment contract generation aligned with local labor laws and statutory requirements across supported markets
- Compliance support that adapts as local labor and tax requirements change
Book a demo to see how Skuad gets your first Argentina hire onboarded in weeks.
Ready to set up payroll in Argentina?
Payroll in Argentina moves faster than most. The minimum wage changes nearly every month, income tax brackets reset every six months, and five separate social security schemes each carry their own rate and filing cycle. Layer on a mandatory 13th salary paid in two instalments, sectoral agreements that can override the statutory floor, and a four-business-day window to pay severance, and a small team running this from abroad is always playing catch-up.
An Employer of Record model helps simplify this by enabling companies to run payroll in Argentina without setting up a local entity, while Skuad supports payroll processing in 70+ currencies, statutory contribution workflows, employment contracts, and compliance across supported markets through its EOR capabilities.
The next step is to align your hiring plans and evaluate how an EOR setup can support compliant payroll operations in Argentina without the overhead of entity registration.
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About the author
Gabriela Cortés Gutiérrez
Gabriela Cortés Gutiérrez is a Global HR Operations Specialist at Payoneer Workforce Management (Formerly Skuad). With expertise in HR continuous improvement and international operations, she manages payroll, compliance, and talent processes across LATAM countries, including Mexico, Colombia, Brazil, and the Caribbean. Gabriela is skilled in employee onboarding, benefits administration, and navigating local labor laws in Spanish-speaking and Portuguese-speaking markets.
