Resident Tax Information
The residents of Argentina are taxed on their worldwide income, but they may be eligible for foreign tax credits if the money was earned in certain countries.
The income taxes for residents of Argentina are below —
Social Security
The contribution that both employers and employees pay toward social security is a mandatory requirement in Argentina.
The rate of contributions are as below —
Statutory Benefits
The employee benefits that an employer must provide their employees in Argentina include unemployment insurance, retirement and healthcare.
Working hours and overtime pay
The employees in Argentina are not allowed to work more than eight hours per day and forty-eight weekly. There must also be rest breaks throughout the course of every shift, which cannot exceed seven entire calendar days without any violations occurring or being reported for overtime payment purposes (nighttime workers aren’t eligible).
The maximum overtime hours cannot exceed
3 hours a day
30 hours a month, or,
200 hours a year
The Argentine labor authority has put forth new guidelines that will require employers to obtain approval before requiring their employees work overtime. Overtime pay that an employer must pay includes —
Overtime on weekends is 50% of the employee’s regular salary
Overtime on Sundays and public holidays is twice the employee’s regular salary
additional month pay
The law in Argentina requires employers to offer 13th month salary or aguinaldo. The payment is due on June 30 and December 18 each year, with two installments coming half way through each season respectively
The 13th-month pay in Argentina is calculated as 50% x (the highest monthly salary received in the last 6-month period).
Social security
Employers are required to enroll their Argentine employees in the country’s social security system. The employer will deduct employee contributions towards this benefit from each paycheck
Argentine social security provides the following benefits
- Pension
- Health insurance
- Social insurance
- Life insurance
- Labor risk insurance
- Occupational disease trust fund
Statutory leaves
All employers must provide their employees in Argentina with
Fringe Benefits
In Argentine, fringes benefits are given to employees. These can be either monetary or non-monetary depending on the business requirements and budgets set for providing them as well as what goals one might want their company reach through this practice of offering perks that help attract quality staff members who will work hard towards achieving those objectives.
- Meal vouchers
- Flexible work hours
- House rent allowance (HRA)
- Additional paid time off
- Company transportation
Exempt Benefits
Certain exempt benefits in Argentina include —
Education and childcare expense
Pension and other social security contributions
Mortgage deductions up to ARS 20,000 annually
Life insurance premiums
Funeral expenses
Rental expenses up to 40% of the gross expense with a maximum capping of ARS 167,678.40
Medical care expenses and contributions Domestic staff compensation up to a maximum of ARS 167,678.40
Long-term Incentives
In order to motivate their employees and reward them for achieving long term goals, some employers offer these types of incentives. This is a great way that an organization can show appreciation while also shaping the future workforce by promoting hard work and dedication at key positions within its company.
Depending on the seniority and years of service, employees can receive long-term incentives such as profit sharing.
Commonly provided long-term incentives in Argentina include —
- Performance-based compensation
- Voluntary pension contributions
- Group health insurance and dental insurance
