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Argentina — Business: Payroll

Running payroll in Argentina means withholding income tax and the employee's 17% social security contribution, while the employer separately pays 24%-26.4% in employer social security contributions on top of gross salary. A compulsory 13th-month salary (aguinaldo/SAC) is paid in two installments each year (June and December). The CUIT (obtained when the company is formed) is used for all payroll tax filings with AFIP/ARCA, not a separate 'Ministry of Labor' registration step for tax purposes.

VerifiedCommunity sourcePwC Worldwide Tax Summaries — Argentina, Corporate/Individual — Other taxes (social security/payroll contributions)Last reviewed: 2026-08-31

Why this matters

Employer costs run well above gross salary alone (roughly 24-26.4% extra in contributions, plus the 13th-month salary obligation spread across the year), so payroll budgeting needs to account for total cost of employment, not just listed salary.

Key facts

  • Employee social security withholding: 17% of gross salary.
  • Employer social security contribution: 24%-26.4% of gross salary, paid on top of (not deducted from) the employee's salary.
  • 13th-month salary (aguinaldo/SAC) is compulsory, split into two payments (June and December), each equal to half a month's salary based on the best salary of the preceding semester.
  • Payroll tax registration and filing runs through the company's CUIT with AFIP/ARCA -- there isn't a separate standalone 'payroll registration' fee/permit distinct from standard employee registration.

Steps

  1. Register the employee — Register the new hire in AFIP's payroll systems using the company's CUIT before their start date, as required by Argentine labor law.
  2. Run monthly payroll withholding and contributions — Withhold 17% employee social security plus applicable income tax, and separately remit the employer's 24%-26.4% contribution, on a monthly basis.
  3. Pay the 13th-month salary (aguinaldo) — Pay half in June and half in December, each calculated on the best monthly salary of the preceding six months, with standard contributions applied.

Costs

  • Registration fees: varies
  • Work permit fees: varies

Timelines

  • Registration process: 2-6 weeks
  • Obtaining necessary permits and documentation: several weeks or months

Required documents

  • DNI or passport of the employee
  • Employment contract
  • Company CUIT and AFIP payroll system access

Common mistakes

  • Budgeting employer cost at gross salary alone, ignoring the 24-26.4% employer contribution on top.
  • Forgetting the compulsory 13th-month salary (aguinaldo), split June/December.
  • Registering the employee late -- Argentine labor law requires registration before the employee starts work.

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