Payroll in Argentina
Get your Argentine payroll's ARCA contributions, SAC installments, and severance calculation right, so an inflation-driven bracket update or an opt-in reform never leaves your numbers stale.
SAC Second Installment Deadline
December 18
Tax ID
CUIT
Primary Registry
ARCA
Payroll in Argentina: What You Need to Know
Employer social security contributions run through ARCA at 18% to 20.40% of gross salary depending on company size and sector, covering SIPA pension, PAMI, asignaciones familiares, and the Fondo Nacional de Empleo. Obra social union health contributions add 6% employer plus 3% employee, and ART work-risk insurance, privately contracted and employer-paid, typically runs 1% to 3.5% or more of payroll. SAC is paid in two installments, 50% of the highest monthly remuneration earned that semester, due by June 30 and December 18. Vacation scales by seniority under LCT Article 150, from 14 calendar days at up to 5 years of service to 35 days beyond 20 years, requiring at least 50% of workdays worked in the year for the full entitlement. Severance under LCT Article 245 runs one month's salary per year of service or fraction over 3 months based on the best normal monthly remuneration, alongside a 2026 reform introducing an opt-in Fondo de Cese Laboral through collective bargaining, not yet mandatory nationwide. Ganancias Cuarta CategorÃa income tax is withheld through progressive brackets from 5% to 35%, with thresholds and deductions re-published periodically as inflation erodes fixed peso figures.
Key Requirements
Employer social security contributions via ARCA at 18% to 20.40% of gross salary depending on company size and sector, covering SIPA pension, PAMI, asignaciones familiares, and the Fondo Nacional de Empleo
Obra social union health contributions at 6% employer plus 3% employee, and ART work-risk insurance, privately contracted and employer-paid, typically running 1% to 3.5% or more of payroll
SAC paid in two installments, 50% of the highest monthly remuneration earned that semester, due by June 30 and December 18
Vacation scaled by seniority under LCT Article 150, from 14 calendar days at up to 5 years of service to 35 days beyond 20 years, requiring at least 50% of workdays worked for the full entitlement
Severance under LCT Article 245, one month's salary per year of service or fraction over 3 months based on the best normal monthly remuneration, alongside a 2026 reform introducing an opt-in Fondo de Cese Laboral through collective bargaining
Ganancias Cuarta CategorÃa income tax withheld through progressive brackets from 5% to 35%, with thresholds and deductions re-published periodically as inflation erodes fixed peso figures
Common Challenges
The 2026 severance reform is opt-in, not automatic
Article 245's lump-sum severance still applies by default. The new Fondo de Cese Laboral only replaces it if the employer's sector adopts it through collective bargaining, so a foreign company can't assume the reform lowers its severance cost without checking its specific union agreement.
SAC and vacation accrual add materially more than the headline contribution percentage
Budgeting only the 18-20.40% statutory contribution rate undercounts true annual cost by roughly another 8 to 15 percentage points once SAC and vacation accrual are added.
Income tax brackets shift mid-year, not just annually
Argentina's inflation means Ganancias thresholds and deductions get revised more than once a year, and payroll systems that don't resync with ARCA's current tables end up over-withholding and owing employees a refund.
How NavviPal Helps
Employer contribution calculation via ARCA, correctly applying the 18% or 20.40% tier and screening new hires for RIFL's reduced-contribution eligibility where it applies
SAC calculation against the peak monthly remuneration for each semester, processed on the June 30 and December 18 deadlines
Severance calculation under Article 245, with a check on whether the employer's collective bargaining agreement has adopted the Fondo de Cese Laboral alternative
Ganancias withholding kept current against ARCA's latest bracket and deduction tables, so employees are never over- or under-withheld
Frequently Asked Questions
Does Argentina's 2026 severance reform automatically lower termination costs?
No, not automatically. Article 245's lump-sum severance, one month's salary per year of service based on the best normal monthly remuneration, still applies by default. The new Fondo de Cese Laboral introduced in 2026 only replaces it if the employer's sector adopts it through collective bargaining, so a foreign company can't assume the reform lowers its severance cost without checking its specific union agreement.
Is the 18-20.40% ARCA contribution rate the full cost of payroll in Argentina?
No. Budgeting only the 18% to 20.40% statutory ARCA contribution rate undercounts true annual cost by roughly another 8 to 15 percentage points once SAC (the mandatory bonus) and vacation accrual are added, on top of obra social union health contributions and ART work-risk insurance.
How is SAC (the Argentine bonus) calculated and when is it paid?
SAC is paid in two installments, each equal to 50% of the highest monthly remuneration earned that semester, due by June 30 and December 18. It is calculated against the peak monthly salary for each semester, not a flat average.
Why do income tax withholding tables in Argentina need to be updated more than once a year?
Argentina's inflation means Ganancias Cuarta CategorÃa thresholds and deductions get revised more than once a year, not just annually. Payroll systems that don't resync with ARCA's current tables end up over-withholding and owing employees a refund.
Does vacation entitlement in Argentina scale with an employee's seniority?
Yes. Vacation scales by seniority under LCT Article 150, from 14 calendar days at up to 5 years of service to 35 days beyond 20 years, and requires at least 50% of workdays worked in the year for the full entitlement.
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