Employer of Record in Argentina (2026): Hiring Under the New Labor Law

An employer of record (EOR) lets a foreign company hire in Argentina without opening a local entity first. The EOR is the legal employer: it registers the employee with ARCA, files the monthly F.931 return, runs payroll and applies the collective agreement for the role. The Labor Modernization Law (Ley 27.802) changed several rules in 2026, so here is what employing someone involves now.

How an EOR works in Argentina

• The employee is registered with ARCA (Simplificación Registral) before starting work. Unregistered employment brings heavy penalties.
• Each role falls under a collective bargaining agreement (CCT), which often sets minimum salaries above the national minimum wage.
• Payroll is paid monthly, with contributions filed through form F.931.

What employing someone costs in Argentina

• Minimum wage: ARS 391,200 a month from 1 October 2026 for full-time employees (Resolution 4/2026, National Minimum Wage Council).
• Employer social security: 18% for employers with a valid SME certificate, or 20.4% for larger service and commerce companies, plus 6% for the employee’s health plan (obra social) and work-risk insurance (ART).
• Labor Assistance Fund (FAL): from the November 2026 accrual period, 2.5% for SMEs and 1% for large companies, paid with form F.931 (ARCA General Resolution 5907/2026).
• Formalization incentive (RIFL): eligible new hires under Ley 27.802 can carry reduced employer social security contributions of 5% for 48 months. The 6% health contribution still applies.
• Employee withholdings: 11% pension, 3% PAMI and 3% health plan, plus income tax where it applies.
• Aguinaldo (SAC): half of the highest monthly salary in each semester, paid in June and December.

Contracts and working time

Indefinite employment is the norm; fixed-term contracts must be in writing and justified. The limit is 8 hours a day and 48 hours a week. Since 2026, flexible schedules and hour banks can be agreed, and vacations can be split into blocks of at least seven days.

Ending employment

Dismissal without cause requires notice from the employer of one month with up to five years of service and two months after five years, or pay in lieu. Since Ley 27.802 (art. 48, amending LCT art. 231), no notice is required during the probation period. Severance is one month’s salary per year of service or fraction over three months (Employment Contract Law, art. 245). Since Ley 27.802, the calculation excludes the aguinaldo, vacation pay and bonuses not paid monthly. Some articles of Ley 27.802 are still being challenged in court, so check their status before you sign contracts.

When to set up your own company

For a permanent team or local invoicing, it is usually better to set up your own company in Argentina and employ staff directly. See our employer of record and PEO services in Latin America, our payroll outsourcing in Argentina guide and Argentina’s labor laws.

Get help from Easyco

Easyco coordinates the company setup in Argentina up to the issue of the CUIT, and supports companies afterwards with tax, accounting, payroll and company compliance, including a registered office address. Request a quote to discuss your hiring plans.