Guide to hiring employees in Argentina

Employee Benefits in Argentina

13th-month salary

An extra salary is paid in two installments over the year for each employee. The first installment must be paid before the 30th of June and second one before 18th of December.

Types of leave available in Argentina

See below the list and explanation of every kind of leave available for employees in Argentina.

Annual Leave

According to Argentine labor laws, the amount of days for annual leave depends on how long the employee has been working in the company.

The maximum time for this leave is 35 days, and every worker is entitled to two weeks of annual leave after completing the first six months with the organisation. Newly hired employees gain one day of leave for every 20 days worked.

Refer below to see how the number of days increases according to the length of continuous employment:

• More than six months, less than five years: 14 days of leave
• Five to ten years of service: 21 days of leave
• Ten to twenty years of service: 28 days of leave
• More than twenty years of service: 35 days of leave

It’s good to remember that annual leave is paid in full by the employer, including bonuses and other benefits and perks.

Sick Leave

All employees are entitled to sick leave, but the amount of time also depends on how long the worker has been with the company. For the ones that are employed for less than five years, they can have a maximum of 3 months of leave. If they have been employed by the same organisation for over five years, their sick leave entitlement is increased to six months.

The payment is made in full during this time, covered by the employer. However, the compulsory Labor Risk Insurance that companies have to pay covers treatments, sick pay and even rehabilitation for work-related injuries or diseases.

Maternity Leave

Maternity leave is defined as a 90-day leave. The only difference is that 30 of the 90 days have to be taken immediately prior to the baby’s birth. This leave is fully paid by the Social Security system.

Paternity Leave

New fathers have two days to take after the birth of each child. These days are also paid in full by Social Security.

Bereavement, marriage and school exams leave

There are also leaves in case of marriage (10 days in total), death of family members (three days in total) and in case of studying for exams in university or high school (three days at a time, total maximum of 10 days).

Public Holidays in Argentina

In total, there are 16 public holidays in Argentina, although they may vary sometimes by region.

• New Year's Day - 1 January
  
• Carnival (2 days) - 47 days before Easter
• Truth and Justice Day - 24 March
• Malvinas Day - 2 April
• Good Friday * - Last Friday before Easter
• Labour Day - 1 May
• Revolution Day - 25 May
• Martín Miguel de Guemes Day - 17 June
• Flag Day - 20 June
• Independence Day - 9 July
• Death of San Martin - 21 August
• Day of Respect for Cultural Diversity - 12 October
• National Sovereignty Day - 20 November
• Immaculate Conception - 8 December
• Christmas Day - 25 December

Attracting talent in Argentina

The competition for top talent is a global phenomenon, with varying outcomes across regions. In Argentina, organisations have found success in attracting and retaining the best candidates through a simple yet effective approach - offering attractive financial packages. Recognising the significant impact that compensation can have on employee satisfaction and loyalty, these companies invest in both short and long-term benefits to retain their valuable workforce.

Provide employees with annual performance bonus

Offering performance bonuses is a standard practice among companies seeking to keep their workforce motivated.

It's a common business strategy to reward employees for achieving goals and hitting significant milestones, demonstrating a commitment to their well-being and job satisfaction. In fact, 65% of employees prefer bonuses that are based on personal performance.

Establishing clear and attainable criteria for bonuses is critical for maintaining employee engagement and satisfaction.

Bonus schemes that lack clear guidelines, are not performance-based, appear arbitrary, or are distributed unfairly among employees in similar positions can lead to resentment and a desire to seek employment elsewhere.

Personalised and well-communicated recognition and rewards serve to acknowledge and appreciate employees, ultimately contributing to their retention and satisfaction in the workplace.

Private pension plan

Private pension plans are also a valuable incentive that organisations can incorporate into their benefits package in order to make it more competitive and appealing.

Financial stability is a key factor in promoting the well-being and productivity of a workforce. According to a multi-country survey by Accenture, 62% of employees seriously consider the availability of a good retirement plan when deciding to change jobs or stay in their current position. Additionally, 76% are “very likely” to be attracted to a company that openly cares about their personal finances.

Therefore, offering competitive retirement or pension plans can greatly aid in retaining a motivated and satisfied workforce

Workplace flexibility

 Workplace flexibility has defined an entirely new way of working, providing employees with greater autonomy over how and when they work.

It has enabled to take greater control of their own schedule and create a much-needed balance between their work and personal lives. 

This concept works best in high-trust workplace environments, where managers value their employees' professionalism and time management. And it has been shown to produce positive results.

In these environments, employees report improved mental health, a better work-life balance, and a heightened sense of engagement with their companies. This is particularly evident among remote workers, with 60% stating they feel more committed to their company compared to 53% of on-site employees

Termination and probation in Argentina

The legal requirements for termination of contract states that it must be acknowledged by the employer in any case. The exception to this is when termination happens through mutual agreement.

Misconduct from the employee, economic factors in the company or failure to fulfil work-related tasks are all examples of motives for termination.

Notice Period

Notice periods are also affected by the amount of time the worker has been with the company. For employees employed for more than three months but less than five years, the notice period should be one month. For those employed for five years or more, it’s obligatory to have a two-month notice period.

Severance pay

When an employee is dismissed, severance pay is calculated according to time served at the company. For each year at the company, they get a month's worth of salary, except when terminated for economic reasons, then it’s half a month’s pay for every year in the organisation.

Other bonuses such as 13th salary are also paid in proportion to the year worked. For example, if an employee is dismissed in October, they are entitled to 10/12 of the extra remuneration.