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Employer of Record (EOR) in Argentina: 2026 Guide for US Startups

What an employer of record (EOR) costs in Argentina in 2026. Aguinaldo (SAC), severance of one month per year, inflation, and same-day USD payments.

Argentina punches far above its weight in engineering talent: strong computer science education, a deep startup culture (it has produced more tech unicorns than almost any of its neighbors), and near-perfect US timezone overlap. What surprises US founders isn't the labor law, it's the money: decades of inflation and currency turbulence mean Argentine workers care intensely about how and in what currency they get paid, and salaries need revisiting far more often than you're used to.

Here's what you actually need to know.

Quick facts

Argentina
CurrencyArgentine Peso (ARS)
Standard work week48 hours, 6 days
Payroll frequencyMonthly
Employer statutory cost~26-30% on top of gross salary
Minimum wageARS 372,400/month (adjusted frequently)
ProbationUp to 3 months
Notice periodTiered by tenure: 15 to 60 days
13th month payMandatory SAC, paid in June and December
Employees paid inARS, required by law

First decision: contractor or employee?

Argentine engineers have worked remotely for foreign companies for years, largely because being paid from abroad was the best inflation hedge available. So the contractor pool is deep, experienced, and used to invoicing US clients.

The misclassification line is the usual one: fixed hours, exclusivity, and your day-to-day direction make someone an employee under Argentine labor law regardless of the paperwork. What raises the stakes here is that labor litigation is common and employee-friendly, and many roles fall under collective bargaining agreements (CBAs) that set salary floors and extra entitlements. When someone becomes core to the team, convert them through an employer of record (EOR); the EOR also handles mapping them to the correct CBA.

Paying contractors in Argentina

The compliance side is simple; the money side is where Argentina is different:

  • Collect a W-8BEN before the first payment, so you generally don't issue a 1099. Confirm your setup with your accountant.
  • Sign a real contract with scope, rate, IP assignment, and termination terms, drafted with Argentine law in mind.
  • Expect USD to matter. After years of inflation and on-and-off currency controls, Argentine contractors overwhelmingly prefer to bill in USD and think of their rate in dollars. Bank wires are slow, cost $25-45 each, and hide an FX spread; the local conversion path a contractor takes matters to them more than in any other market.

Shor pays Argentine contractors over local rails, same-day, with a flat disclosed 2% FX margin and a $19/month per-contractor fee. Contracts, W-8BEN collection, and invoicing are built in, and your contractor sees the rate before they accept.

Hiring full-time employees

Employer-side statutory contributions on top of gross salary:

ContributionRate (employer side)Notes
Pension (SIPA)10.17%National pension system
Health insurance (Obra Social)6%Employee contributes 3%
Social services (PAMI)1.5%Retiree healthcare
Family allowances4.44%ANSES family benefit system
Unemployment fund0.89%
ART (labor risk insurance)~3%Varies by activity and insurer

Headline employer load: roughly 26-30% on top of gross salary. On top of that sits the SAC (aguinaldo), a mandatory 13th salary paid half in June and half in December, and the practical cost of inflation: expect to adjust salaries multiple times a year, often on a CBA-driven schedule. Statutory rates change, so confirm current figures with your accountant.

The 2026 change to have on your radar: Argentina enacted a major labor reform (Law 27,802) in March 2026. For employers, the headline items are a recalculated severance base that now excludes non-monthly payments like the SAC and vacation pay, no notice requirement for terminations during probation, and a new mandatory Labour Assistance Fund (FAL) contribution of roughly 1% of payroll for large employers and 2.5% for smaller ones, operational from mid-2026. A good EOR reprices all of this as regulations settle; the details are still being implemented, so treat specifics as moving targets.

Employees must be paid in ARS to an Argentine bank account.

Leave and benefits

  • Annual leave: 14 days, scaling with tenure (21 days after 5 years, 28 after 10, 35 after 20)
  • Sick leave: paid at 100%; duration depends on tenure and family situation, so confirm specifics per case
  • Maternity leave: 13 weeks at full pay, state-funded
  • Paternity leave: 2 days, paid (CBAs often extend this)
  • Public holidays: ~15 days

Beyond statute, competitive offers in Argentina commonly add private health upgrades (prepaga), meal vouchers, transport and remote-work allowances, and performance bonuses.

Ending employment

Argentina is not at-will:

  • Notice: 15 days during probation-length tenure, 30 days up to 5 years, 60 days beyond that (or pay in lieu, plus integration pay if notice isn't given)
  • Severance: 1 month of salary per year of service for termination without cause, with a minimum of 1 month even in year one
  • Final settlement: accrued salary, proportional SAC, vacation payout, and the severance indemnity

For-cause termination has narrow grounds and high litigation risk. Between severance math, CBA overlays, and the 2026 reform changing the calculation base, never terminate in Argentina without a consultation first.

Documents we'll collect from your employee at onboarding

DNI (national ID), CUIL (labor tax ID), and an Argentine bank account with its CBU for salary. Statutory setup covers AFIP registration, ART labor risk insurance, the Obra Social health fund assignment, and ANSES social security.

What it costs through Shor

  • Contractors: $19/month each, same-day payouts over local rails
  • Full-time employees (EOR): $299/month each, AFIP filings, SAC accrual, ART, and contributions handled

No setup fees, no annual lock-in, and the FX margin is a flat disclosed 2%. The pricing calculator shows the full Argentina math including every statutory line.

Next steps, depending on where you are: the EOR pricing comparison puts published provider prices side by side, and EOR vs. your own entity has the breakeven math for when a local entity starts to win. To see Argentina against the rest of our coverage, the reference tables compare employer costs, notice periods, and public holidays across every country here. Already with another provider? Switching EOR providers covers the traps worth planning around.

Paying Argentina contractors in dollars instead of local currency is a separate question, and a common one: what that looks like in Argentina.

FAQ

Can I pay Argentine employees in USD? No. Salary must be paid in ARS to an Argentine bank account. Contractors, however, can invoice in USD, and in Argentina nearly all of them do.

What is the SAC (aguinaldo)? Argentina's mandatory 13th salary: one extra month per year, paid in two installments, half by June 30 and half by December 18. Provision for it monthly (about 8.33% of salary) so June and December aren't surprises.

How do I handle inflation on salaries? Plan for multiple adjustments per year rather than an annual review. Many roles follow CBA-negotiated increase schedules, and an EOR will flag when a CBA floor moves under one of your employees.

What does an employer of record in Argentina cost? With Shor, $299/month per employee, plus the statutory employer contributions (roughly 26-30% of gross salary) that any employer in Argentina pays. Deel and Remote charge $599-699/month for the same coverage.