How to Pay Remote Employees in Argentina: A Guide for Employers

Argentina is the land of tango, mate, and soccer, full of warm, passionate, and very talented people. No wonder why so many of our clients ask our hiring experts to search for Argentinian talent—they are highly skilled, with excellent English levels, and a time zone that favorably aligns with countries like the US.

But, like any other country, hiring in Argentina implies understanding the local nuances of payroll and compliance, and that’s not an easy task for international employers. So we’ve prepared a starting guide to help you navigate the process smoothly and successfully. Dive in and discover how to effectively tap into Argentina’s rich talent pool.

What Argentinian Talent Can Bring To The Table

• Access to a skilled workforce: Argentina is known for its robust education system, even for the college level, and a large pool of talented professionals, particularly in tech and IT.
• Cost efficiency: Hiring remote employees in Argentina can be more cost-effective compared to local hires in European countries or the US. The lower cost of living in Argentina translates to competitive salary expectations, allowing companies to allocate resources more efficiently.
• Time zone alignment (for US employers): Argentina’s time zone aligns closely with that of the US, facilitating real-time communication, collaboration, and productivity.

Key Considerations for Payroll in Argentina

1. Legal and Compliance Requirements

When hiring remote employees in Argentina, you must comply with local labor laws and regulations, including mandatory benefits, payroll taxes, and contributions. Employers are required to contribute to various social security funds, such as the pension fund, health insurance, and labor risk insurance.

2. Payment Frequency and Methods

Wages in Argentina can be paid weekly, bi-weekly, or monthly. It is important to issue paychecks within a specific timeframe to remain compliant. There’s also an additional annual salary, the 13th, which must be paid in halves: one before June 30th and the other before December 18th.

3. Choosing the Right Payroll Model

There are several models you can use to manage payroll for remote employees in Argentina:

• Internal payroll: Establishing an internal payroll system involves registering a local entity and hiring HR professionals familiar with Argentine tax and labor laws. Some employers may find this option to be complex and costly.
• Local payroll partners: You can partner with local payroll service providers who manage payroll calculations, payments, and filings, while you maintain compliance with employment laws.
• Fully outsourced payroll: Engaging with an Employer of Record (EOR) allows a third party to handle all payroll responsibilities, including compliance, reporting, and payments. This model minimizes risks and administrative burdens.

Step-By-Step Summary

1. Evaluate your needs: Determine whether you need full-time, part-time, or project-based remote employees.
2. Choose a payroll model: Decide whether you will handle payroll internally, partner with a local provider, or outsource entirely to an EOR.
3. Compliance check: Ensure you understand and comply with all local labor laws and tax regulations.
4. Interview process: Select your potential Argentinian candidates and assess them to understand if they are the right fit for your project (Lupa can help with that!).
5. Onboarding and training: Implement a comprehensive onboarding process to integrate remote employees smoothly into your team.

Putting It All Together

Bringing in Argentinian talent is a great choice that will surely take your team to the next level! But there are some steps to follow before diving right into Argentina’s talent pool.

This is just the first step in hiring, but with information and the right guidance you can successfully get access to greatly skilled and passionate professionals. Lupa has placed dozens of candidates from Argentina, so if you want to talk to experts in hiring, you can always reach out to us here!