Legal
Employment Law in Argentina: A Guide for Foreign Employers
What foreign companies and entrepreneurs need to know about Argentine labor law before hiring.
May 22, 2026
A Worker-Protective Legal Framework
Argentine employment law (Ley de Contrato de Trabajo, LCT) is strongly protective of workers' rights. Severance pay (indemnización) for dismissed employees is calculated as one month of salary per year worked — meaning long-tenured employees represent a significant liability if dismissed. Employment contracts are generally presumed to be indefinite — probationary periods are limited to 3 months.
The Cost of Employment
Beyond salary, Argentine employers are responsible for significant additional costs: social security contributions (approximately 26% of gross salary), mandatory benefits (vacation, aguinaldo/13th month salary, illness coverage), and union contributions in unionized sectors. The total employment cost is typically 45–55% above the net salary received by the employee.
Alternative Structures
Given the complexity of Argentine employment law, foreign companies often initially engage Argentine professionals through service agreements (contratos de locación de servicios) with registered monotributistas or self-employed contractors. This structure reduces compliance complexity but carries risks if challenged as disguised employment. Roffo advises on compliant engagement structures for every stage of business growth.
Interested in investing or relocating to Argentina?
Our team is available for a free 30-minute advisory call.