Salary Calculator
Argentina

Our calculator simplifies complex local salary regulations by providing a clear overview of salary breakdowns. Just input the gross salary amount, and the calculator will automatically estimate deductions such as income tax, pension contributions, and healthcare. It also displays the net salary and the total employer cost, giving a complete picture for both parties.

The salary cost in Argentina goes beyond the gross salary paid to an employee. Employers are responsible for several statutory contributions that significantly increase the overall employment expense. These contributions typically include payments to pension funds, health insurance, social security, and other labour-related costs.

On average, employer contributions can range from 25% to 35% of the gross salary, depending on the employee's role and applicable sector-specific regulations. When hiring, it's crucial to consider these additional costs to accurately forecast payroll budgets and remain compliant with local employment laws.

Income tax in Argentina is calculated using a progressive system, where higher income brackets are taxed at higher rates. The tax rates start at 5% and go up to 35%, depending on the total annual income.

For example, income up to a certain threshold is taxed at 5%, while income above ARS 5,417,175 is taxed at 35%. The system applies progressively, meaning each portion of income within a specific bracket is taxed at its corresponding rate. In addition to income tax, employees also contribute to social security and pension schemes, which further reduce the net salary. Personal circumstances such as dependents, deductions, and additional income sources may also affect the final tax calculation.

Argentina has a well-regulated labour framework that ensures employees receive a comprehensive set of benefits. These benefits are mandatory by law and must be included in every employment relationship.

Paid annual leave: Employees are entitled to paid vacation days, which increase based on their length of service. The minimum is 14 consecutive days for those with less than five years of service, increasing up to 35 days for employees with over 20 years of service. This time off must be granted during the employee’s preferred vacation period whenever possible.

13th salary (Aguinaldo): The 13th salary, known locally as Sueldo Anual Complementario (SAC), is a mandatory annual bonus. It is paid in two instalments—one in June and one in December—and is equivalent to half of the highest monthly salary earned in each half of the year.

Social security and pension contributions: Employers are required to contribute to Argentina’s social security system, which includes pension funds, healthcare, unemployment insurance, and family allowances. These contributions are a legal obligation and represent a significant part of the overall employment cost.

Health insurance (Obra social): Through the Obra Social system, employees receive access to healthcare services. Employers must register workers with a recognised health insurance provider and ensure that both employer and employee contributions are made consistently.

Maternity and paternity leave: Female employees are entitled to 90 days of paid maternity leave, usually taken as 45 days before and 45 days after childbirth. During this period, they receive payment through the social security system. Fathers are entitled to two days of paid paternity leave following the birth or adoption of a child.

Sick leave: Employees are entitled to paid sick leave of up to 3 months per year if they have been employed for less than 5 years, or up to 6 months if they have been employed for more than 5 years. The employer must continue paying the employee's salary during this period.

Severance pay: In cases of termination without just cause, Argentine law mandates severance compensation. This includes one month’s salary for each year of service (or portion thereof over three months), in addition to unused vacation pay and other benefits. Severance obligations can be significant and must be planned for accordingly.

In addition to the mandatory benefits, many companies in Argentina offer additional perks to attract and retain talent. These can include private health insurance, transportation allowances, meal vouchers, flexible working arrangements, or performance-based bonuses. While not required by law, these supplementary benefits are common in competitive industries and can significantly enhance the employee value proposition. Employers should consider these elements when designing compensation packages, as they often influence employee satisfaction and loyalty.

Gross salary refers to the full amount an employee earns before any deductions are made. This includes not only the base pay but also bonuses, commissions, and other forms of compensation. Net salary, on the other hand, is the amount the employee actually receives after taxes and statutory deductions have been subtracted. The employer cost goes a step further and includes the gross salary plus all employer-paid contributions, such as social security, healthcare, and insurance. Our calculator clearly shows all three components—gross, net, and total cost—so you can understand exactly where each peso is going.