How to run payroll in Argentina

In Argentina, most employers pay employees monthly, typically on the last working day of each month. Here's the complete payroll cycle.

Payment frequency and timing

Argentina law requires monthly salary payments for most employees. The standard practice is paying on the último día hábil (last working day) of each month, though some companies choose the 25th or 30th.

Hourly workers and some retail employees may receive bi-weekly payments, but monthly remains the norm across most industries. Payment delays beyond the agreed date can trigger penalty interest of 1% per day.

Mandatory bonus payments

Argentina requires two additional salary payments each year - the aguinaldo (13th month bonus).

First aguinaldo: Paid by June 30th, calculated as 50% of the highest monthly salary earned between December and May.

Second aguinaldo: Paid by December 18th, calculated as 50% of the highest monthly salary earned between June and November.

For employees working less than a full semester, the aguinaldo is prorated based on months worked. These payments are subject to the same tax and social security deductions as regular salary.

Vacation pay calculation

Employees earn 14 calendar days of vacation after one year of service, increasing to 21 days after five years and 28 days after ten years.

Vacation pay equals the employee's regular daily salary multiplied by vacation days taken. The daily rate calculation uses the best salary earned in the year preceding the vacation period.

Companies typically pay vacation salary in advance when the employee takes time off. Unused vacation must be paid out upon termination at the current salary rate.

Payment methods and requirements

Bank transfers are mandatory for all employees earning above AR$69,000 monthly (2026 threshold). Employers must deposit salaries into employee bank accounts - cash payments aren't permitted above this threshold.

For employees below the threshold, cash payments are allowed but most companies use bank transfers for consistency. International companies can pay in pesos through local bank accounts or authorized payment processors.

All payments must be in Argentine pesos unless the employee has specific authorization for foreign currency payments through the Central Bank.

Payslip requirements

Every employee must receive a detailed recibo de sueldo (payslip) showing:

• Gross salary breakdown (base, overtime, bonuses)
• All deductions (taxes, social security, union dues)
• Net payment amount
• Employer social security contributions
• Year-to-date totals

Payslips must be in Spanish and delivered before or with salary payment. Electronic delivery is acceptable if employees can access and print them easily. Companies must retain payslip records for five years for labor inspection purposes.

Think you just withhold federal tax? Argentina adds provincial taxes and municipal levies that catch many employers off guard.

Argentina's federal income tax uses a progressive system with rates from 5% to 35% for 2026. But here's what trips up most payroll teams - you're also handling provincial income tax withholdings that vary by location, plus potential municipal taxes depending on where your employees work.

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Income tax brackets

Argentina's federal income tax brackets for 2026 apply these rates to annual income:

The tax-free threshold is AR$2,800,000 annually (about AR$233,333 monthly). Provincial income tax rates typically range from 1% to 3.5%, but Buenos Aires Province charges up to 2.5% while CABA has different brackets entirely.

Withholding requirements

You're responsible for withholding federal and provincial income taxes from every paycheck. Register with AFIP (federal tax authority) and your provincial tax authority before running payroll.

Monthly withholding returns are due by the 15th of the following month. File Form 649 for federal withholdings and separate provincial forms depending on location. Late filing triggers a 2% monthly penalty plus interest.

Annual reconciliation happens through Form 572, due by April 30th. Employees file their own annual returns, but your withholding accuracy affects their refunds or additional payments.

Tax registration

New employers need three key registrations before the first payroll:

AFIP registration - Apply online through the AFIP portal. You'll need your CUIT number and business registration documents. Processing takes 5-10 business days.

Provincial tax registration - Each province has different requirements. Buenos Aires Province requires Form CM-01, while other provinces use their own forms. Allow 7-15 days for processing.

Municipal registration - Required in major cities like Buenos Aires, Córdoba, and Rosario. Contact the local tax authority directly as online systems vary widely.

Special tax considerations

Non-resident employees face a flat 35% withholding rate on Argentine-source income unless a tax treaty reduces this rate. The US-Argentina treaty, for example, can lower rates for certain types of income.

Expatriate packages create complications when you're covering tax obligations. The tax equalization payments themselves become taxable income, creating a gross-up calculation nightmare.

Regional variations matter more than most countries. An employee in Mendoza faces different provincial rates than someone in Santa Fe, even at identical salary levels.

Common tax mistakes

Mixing up provincial jurisdictions - You withhold based on where the employee works, not where they live. Remote workers create gray areas that need careful documentation.

Ignoring municipal taxes - Cities like Buenos Aires and Córdoba impose additional withholdings. Missing these can mean 50% penalties plus interest.

Incorrect treaty applications - Claiming treaty benefits without proper documentation gets you in trouble fast. AFIP audits treaty claims aggressively and penalties start at 100% of unpaid tax.

Late payment penalties compound monthly at 2% plus the official interest rate, currently around 75% annually. A AR$100,000 late payment becomes AR$175,000 after one year.

Employer contributions in Argentina add 27% to every salary. Budget for it.

Argentina's social security system requires substantial employer contributions across multiple categories. You'll pay into social security, pension funds, healthcare, unemployment insurance, and family allowances.

What does the employer pay?

*Work risk insurance varies by industry risk level. Most office jobs pay 0.5-1.5%.

How much will you actually pay?

For a AR$60,000 monthly salary:

• Base salary: AR$60,000
• Social security: AR$10,200
• Pension: AR$4,500
• Healthcare: AR$3,600
• Unemployment: AR$900
• Family allowances: AR$2,664
• Work risk insurance: AR$300
• Total monthly cost: AR$82,164
• Annual cost multiplier: 1.37x

Your total employment cost is 37% higher than the base salary when you include the 13th month bonus (aguinaldo) paid twice yearly.

Contribution caps matter for high earners

Social security and pension contributions cap at AR$2,040,000 monthly salary (2026 rates). Once an employee's salary exceeds this amount, your contribution costs decrease significantly as a percentage.

Healthcare, unemployment, and family allowance contributions have no caps - you'll pay the full percentage regardless of salary level.

Registration requirements

You must register with multiple agencies before hiring:

Registration takes 2-4 weeks. Start the process before you need to hire.

Payment deadlines are strict

Contributions are due by the 15th of the following month. Pay through the VEP (electronic payment voucher) system via AFIP.

Set up automatic payments through your Argentine bank. Manual payments often miss deadlines due to banking delays.

Argentina has 19 public holidays in 2026. Work on these days? Pay double.

Your payroll calculations need to account for generous leave entitlements and specific payment rules. Here's what affects your monthly runs.

Annual leave

Employees get 14 calendar days after one year of service. This increases to 21 days after five years, 28 days after 10 years, and 35 days after 20 years.

Calculate vacation pay using the employee's average monthly salary from the last 12 months. Include overtime, bonuses, and commissions in this calculation.

Employees can carry over unused vacation to the following year, but you must pay it out within four years. On termination, pay the proportional vacation plus a 33% premium.

The vacation bonus equals 50% of the vacation pay amount. Pay this when the employee takes their annual leave.

Sick leave

Employees with less than five years' service get three months of paid sick leave per year. Those with more than five years get six months.

You pay 100% of salary for the first three days. After that, social security (PAMI) covers the payments at 75% of salary for up to one year.

Employees need medical certification from day one. The certificate must come from a doctor registered with the social security system.

For workplace injuries, the ART (workplace insurance) covers 100% of salary from day one. This doesn't count against the employee's sick leave allowance.

Parental leave

Maternity leave

Women get 90 days of maternity leave - 45 days before birth and 45 days after. They can transfer up to 30 pre-birth days to after delivery.

Social security pays 100% of salary during this period. You don't pay the employee directly, but you'll handle the paperwork and coordinate payments.

Mothers can extend leave for up to six months without pay. They're guaranteed job protection during this entire period.

Paternity leave

Fathers get two consecutive days of paid paternity leave. You pay 100% of salary for these days.

If the mother dies during childbirth, the father gets the remaining maternity leave period paid by social security.

Public holidays 2026

Work performed on public holidays requires double pay (200% of normal rate). This applies even if the holiday falls on a weekend.

Mandatory benefits affecting payroll

Aguinaldo (13th month bonus)

Pay half the 13th month bonus in June and half in December. Calculate using the best monthly salary from each six-month period.

If an employee works less than six months, pay proportionally based on months worked.

Family allowances

Social security pays family allowances directly to employees earning below ARS 2,847,186 annually (2026 threshold). Higher earners receive these through your payroll.

Monthly amounts for 2026:

• Per child under 18: ARS 15,847
• Per disabled child: ARS 47,541
• Spouse allowance: ARS 10,565

You'll deduct and remit family allowance contributions at 4.44% of gross salary for all employees.

Meal vouchers

While not mandatory, 95% of employers provide meal vouchers. The tax-exempt limit is ARS 89,200 per month in 2026.

Employees can't exchange vouchers for cash, and they're only valid at registered food establishments.

Employment contracts in Argentina must include specific mandatory clauses or they're legally invalid. Missing elements like exact salary amounts, job descriptions, or termination procedures can void the entire agreement and expose you to significant penalties.

Monthly filing requirements

Argentina requires monthly payroll tax filings through the AFIP online portal by the 15th of each month following the pay period. You'll submit Form 931 (employer contributions) and Form 649 (income tax withholdings) electronically.

The filing covers employer social security contributions, employee income tax withholdings, and union dues. Late submissions trigger automatic penalties starting at AR$25,000 per day for small employers (up to 25 employees) and AR$50,000 per day for larger companies.

Provincial payroll tax filings have separate deadlines that vary by jurisdiction. Buenos Aires requires filing by the 12th, while Córdoba extends to the 20th. Each province uses its own online system.

Annual reporting

Year-end reconciliation must be completed by March 31, 2026, through AFIP's annual declaration system. This reconciles all monthly filings against actual payments and identifies any discrepancies.

Employee annual tax certificates (Certificado de Retenciones) must be issued by February 28, 2026. These documents detail total earnings, tax withholdings, and social security contributions for the previous tax year.

The annual employer social security declaration is due by April 30, 2026, covering all employee contributions and employer obligations. This filing often triggers AFIP audits if discrepancies appear.

Employee documentation

Employment contracts must be registered with the Ministry of Labor within 30 days of hire. The contract must specify exact monthly salary, working hours, probation period (maximum 3 months), and termination procedures in Spanish.

Payslips require 15 mandatory elements including gross salary breakdown, all deductions itemized, net pay calculation, and employer contribution details. Missing any element results in AR$15,000 penalties per occurrence.

Employment records must be retained for 10 years after employment ends. This includes contracts, payslips, time records, and all correspondence. Digital storage is acceptable but must include backup systems.

Penalties and violations

Labor inspections can occur without notice and carry additional penalties for workplace violations. Inspectors check employment registration, payroll records, and compliance with working time regulations.

Regulatory oversight

AFIP (Federal Tax Authority) oversees all payroll tax compliance, income tax withholdings, and social security contributions. Their online portal at www.afip.gob.ar handles most filings and payments.

Ministry of Labor manages employment contract registration, workplace inspections, and labor law compliance. Each province also maintains its own labor authority for local regulations.

Provincial tax authorities handle payroll tax collection and compliance. Buenos Aires uses ARBA (www.arba.gov.ar), while other provinces maintain separate systems requiring individual registration.

Contact AFIP's employer helpline at 0800-999-2347 for tax-related questions or use their online chat system. The Ministry of Labor operates a compliance hotline at 0800-666-4100 for employment law guidance.

2026 brought several major payroll changes to Argentina. Here's what you need to update.

Minimum Wage Increase - Effective January 1, 2026 Argentina's minimum wage increased 28% from AR$234,315 to AR$300,000 per month. This affects salary calculations, overtime rates, and severance pay calculations.

All employers must update payroll systems to reflect the new rate. The increase also impacts the calculation of various labor benefits tied to minimum wage multiples.

Income Tax Bracket Adjustments - Effective January 1, 2026 Personal income tax brackets were adjusted for inflation, with the tax-free threshold rising from AR$2,800,000 to AR$3,640,000 annually. The first taxable bracket (5%) now applies to income between AR$3,640,001 and AR$5,460,000.

Update your withholding calculations immediately. Employees earning between AR$233,333 and AR$303,333 monthly are no longer subject to income tax withholding.

Social Security Contribution Changes - Effective March 1, 2026 Employee social security contributions decreased from 17% to 16%, while employer contributions increased from 23% to 24%. The change aims to reduce the tax burden on workers while maintaining funding levels.

Adjust payroll calculations starting with March 2026 payroll. Net pay will increase slightly for employees, while employer costs rise by approximately 1% of gross salary.

Digital Payroll Receipt Mandate - Effective July 1, 2026 All employers must provide payroll receipts through AFIP's digital platform. Paper receipts are no longer acceptable for compliance purposes.

Register for digital payroll services before the deadline. Failure to comply results in fines starting at AR$500,000 per violation.

Upcoming Changes Starting January 2027, employers with more than 50 employees must report payroll data monthly instead of annually. Begin preparing your reporting systems now to avoid compliance issues.