How to Hire and Pay Remote Employees in Argentina (2023 Guide)

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How to Hire and Pay Remote Employees in Argentina (2023 Guide)

Considering expanding your startup's talent to Argentina? It's a hub of skilled professionals ready to uplift your business. 

Navigating hiring and payment abroad can be tricky, but this guide, designed for CEOs and hiring managers, simplifies the remote hiring landscape. From understanding local labor laws to navigating payroll systems, we ensure your entry into the job market there is smooth and compliant.

What’s inside:

Why Argentina is a Prime Location for Remote Hiring

Argentina, often dubbed the 'Silicon Valley of South America,' has quickly gained recognition for its top tech industry and highly skilled professionals. Here's why you should consider Argentina as a remote hiring destination:

Talented Workforce

Argentina boasts a high literacy rate and a strong educational system, particularly in STEM fields. This has resulted in a pool of tech-savvy professionals, from software developers to data scientists, ready to contribute to global projects.

English Proficiency

Argentinian professionals generally have solid English skills. In fact, Argentina ranked #1 in the LATAM region on the EF EPI exams. It even secured a global rank of 30, showcasing a notably high level of English proficiency in the country.

Cost-Effective Hiring

With the cost of living in Argentina being lower than in many Western countries, businesses can hire top-tier talent at a fraction of the cost they would incur in the US. This cost-saving aspect, combined with the quality of work, offers a significant competitive advantage.

Cultural Compatibility

Argentine professionals often share a work culture similar to their North American counterparts. Their adaptability, combined with a high proficiency in English, ensures smooth communication and collaboration.

Time Zone Alignment

The minimal time difference with Argentina is advantageous for US-based startups, especially those on the East Coast. Real-time collaboration becomes feasible, eliminating the challenges often associated with offshore hiring.

Growing Tech Hubs

Cities like Buenos Aires have become tech hubs with numerous tech events, conferences, and a thriving startup ecosystem. This environment fosters innovation and ensures a steady flow of tech talent.

By tapping into Argentina's talent pool, US startups can harness the benefits of nearshore hiring, blending quality with cost-effectiveness.

Understanding Payment Options in Argentina

Setting Up a Legal Entity

Establishing a local subsidiary in Argentina is one way businesses can hire employees directly. This method provides companies with direct control over their operations. However, it also means they bear the responsibility of adhering to local regulations. 

While this approach offers a hands-on experience and a deeper immersion into the Argentine market, it requires a thorough understanding of local laws. Additionally, businesses face higher initial costs and a longer setup time than other methods.

Global Employment Partners

Another approach is partnering with a global employment organization or an Employer of Record (EOR). An EOR acts as a bridge, hiring the employee on a company's behalf and managing the intricacies of legal and payroll processes.

This method significantly reduces the administrative burden on businesses and ensures compliance with local laws. The advantage here is the hassle-free experience, as the EOR takes care of most complexities. 

Why EORs are a Game-Changer

An EOR handles the legal and administrative aspects of employing staff in a foreign country. While the EOR becomes the official employer for tax, legal, and compliance purposes, the employee works for your company, ensuring a seamless integration of talent without the complexities of international hiring.

Benefits of Using an EOR


Using an EOR ensures businesses comply with all local employment regulations, reducing potential legal risks.


The onboarding process significantly expedites, allowing companies to start their operations immediately.


Bypass the costs associated with establishing a local entity, making EORs a more economical option.


EORs offer the ability to scale operations up or down quickly, adapting to business needs.

For a deeper dive into this concept and its benefits, you can refer to our detailed guide on Employer of Record (EOR)

Contractor vs. Employee Classification

When considering hiring in Argentina, it's crucial to understand the distinction between contractors and employees. Hiring professionals as contractors offers flexibility and can be quicker than traditional employment. However, it comes with the risk of misclassification.

If a contractor's role resembles a full-time employee's, transitioning them to a full-time status is essential. This ensures legal compliance and stability for the employee, fostering a long-term working relationship.

Currency, Tax, and Payroll Considerations

When expanding your business to Argentina, understanding the financial landscape is paramount. This includes being aware of currency preferences, tax regulations, and payroll considerations.

Currency Preferences

Due to Argentina's economic fluctuations, people often prefer transactions in US dollars. This is especially true for high-skilled positions, where the demand for payment in US dollars has grown due to high inflation rates in the country. 

Tax Regulations

Employees in Argentina are subject to a progressive income tax rate. For instance, those with a grossed income between 0 - 10,000 have a tax rate of 9%, and the rate increases with higher income brackets. Professionals working in Argentina for less than six months are subject to a single income tax withholding of 24.5%. 

Payroll Considerations

Employees in Argentina have specific entitlements, such as working hours, overtime, annual leave, sick leave, and maternity/paternity leave. For example, the maximum number of work hours is 48 per week, spread over a 6-day workweek at 8 hours per day.

Additionally, there's a concept of a 13th salary, where employees receive an extra month's pay divided into two installments.

For a more detailed breakdown of salaries in Argentina, you can always reference TECLA's Salary Wizard. This tool provides up-to-date information, ensuring competitive and fair compensation for remote employees.

Understanding the Cost of Living in Argentina

The cost of living is a pivotal factor when considering salaries and benefits for remote employees. Argentina, with its diverse landscapes and cities, has varying costs of living, with Buenos Aires being the most expensive.

Buenos Aires 

As the capital city and the largest in Argentina, Buenos Aires has a higher cost of living compared to other regions. Here are some specific costs to give you an idea:

  • Meal, Inexpensive Restaurant: $6.63
  • Monthly Internet (60 Mbps or More, Unlimited Data, Cable/ADSL): $19.16
  • Monthly Rent for an Apartment (1 bedroom) in City Centre: $267.58
  • Gasoline (1 gallon): $3.25
  • Monthly Public Transport Ticket: $15.00

*Costs may vary and fluctuate. Data updated October 2023. 

Other Regions

Outside Buenos Aires, cities like Córdoba, Rosario, and Mendoza offer a more affordable lifestyle. Housing, food, and transportation costs are significantly lower, making them attractive options for those looking to maximize their earnings.

Comparing with the US

While Argentina offers a lower cost of living overall, it's essential to consider the local economic conditions. The Argentine Peso (ARS) has faced fluctuations, impacting purchasing power. However, Buenos Aires is still more affordable compared to major US cities. 

For instance, the cost of living in Buenos Aires is about 49% cheaper than in Philadelphia, Pennsylvania, making it an attractive location for remote work.

Navigating Local Labor Laws

Understanding the legal ecosystem in Argentina regarding the work environment and rights is important, as it unravels cultural expectations.Keep reading for a quick snapshot of the 2023 report on “Employment and Labor Law Regulations in Argentina”

Legislative Developments in 2022

  • Childcare: Companies employing 100 workers or more must provide nurseries or day-care centers for employees with children aged between 45 days and three years, or alternatively, reimburse daycare expenses. This benefit also extends to teleworkers.
  • Digital Nomads: A provision in 2022 allowed foreigners who don't require a tourist visa to enter Argentina to obtain temporary residence to provide remote services for entities outside Argentina. This provision is significant for understanding the legal implications of foreign workers providing services in Argentina.

Review of Jurisprudence

Regarding Teleworking and Reversibility, a significant ruling in 2022 stated that employers cannot unilaterally decide to revert a teleworker to in-person work without a valid reason. This is especially relevant given the rise of teleworking during the pandemic.

The Integral Role of Staffing Agencies in Global Hiring

Exploring the vast talent pool of Argentina? Staffing agencies might just be the key to unlocking your hiring success in the region.

What Do Staffing Agencies Do, Anyway?

Staffing agencies are a crucial link between businesses and potential employees, ensuring a streamlined hiring process that aligns with company needs.

By tapping into their extensive networks across various sectors, these agencies facilitate access to a wide array of professionals, ensuring businesses can efficiently find candidates that meet their specific requirements.

Advantages of Partnering with Staffing Agencies

Proficiency in Talent Sourcing

Staffing agencies specialize in identifying and vetting talent to ensure they present businesses with candidates who meet their criteria and align with their culture.

In-depth Industry Knowledge

With a comprehensive understanding of industry trends and the talent market, staffing agencies can provide valuable, data-driven insights to inform hiring strategies.

Efficiency in Hiring

Leveraging their established networks, staffing agencies can significantly reduce time-to-hire, ensuring businesses can swiftly onboard the needed talent.

Compliance and Risk Mitigation

Ensuring adherence to local employment laws, staffing agencies mitigate potential legal risks by ensuring the hiring process complies with all relevant regulations.

From Hiring to Onboarding, Payment & More: TECLA's Nearshore Staff Augmentation Service

In the competitive landscape of global hiring, TECLA's nearshore staff augmentation service stands out as a comprehensive solution. Beyond just sourcing talent, TECLA ensures a holistic approach to integrating top professionals from Argentina into your team.

  • Talent Sourcing: With a vast network of professionals across various industries, TECLA streamlines the process of finding the right fit for your needs.
  • Seamless Onboarding: TECLA's expertise ensures that the onboarding process is smooth, reducing the time from hiring to productivity.
  • Legal and Payment Handling: While TECLA isn't an EOR, its staff augmentation service takes care of the nitty-gritty in hiring, legal, and payments, letting businesses stay focused on their main operations without getting tangled up in administrative hassles.
  • Deep Market Understanding: With a profound knowledge of the Latin American talent market, TECLA offers insights and guidance, ensuring businesses can make informed decisions and tap into Argentina's rich talent pool.

Final Thoughts

Navigating the complexities of hiring and paying remote employees in Argentina can be challenging, but with the right knowledge and resources, businesses can tap into a rich pool of talent. 

Argentina offers a unique blend of skilled professionals, cost benefits, and a favorable remote work environment. As you consider expanding your team in this vibrant country, remember that TECLA's nearshore staff augmentation service is here to simplify the process, ensuring you find the best talent while handling the intricacies of hiring, legalities, and payment. Embrace the future of work with confidence and TECLA by your side.


How do I pay a remote worker in Argentina?
Paying remote workers in Argentina involves picking a payment method, like bank transfers or online platforms, and keeping in line with local tax rules. Choosing a payment method that your employee is happy with and follows Argentine laws is important.
How do I hire a remote employee from Argentina?
Hiring from Argentina can be straightforward with a bit of help. Staffing agencies, like TECLA, make this process easier by connecting you with skilled workers and handling the details of the hiring process, ensuring everything goes smoothly from start to finish.
How do I pay remote employees in Latin America?
Paying remote employees across Latin America means understanding each country's payroll and tax rules. Common payment methods include bank transfers and online platforms, but it’s key to ensure each payment follows the rules of the country you’re dealing with. Using a staffing agency with knowledge of the region can help keep things consistent and compliant.

Gino Ferrand


Gino Ferrand

Gino Ferrand

Gino is an expert in global recruitment having spent the last 10 years leading TECLA and helping world-class tech companies in the U.S. hire top talent in Latin America.

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