Hiring freelancers from Argentina offers a wealth of possibilities, but navigating the country’s labor laws, understanding the hiring process, and paying remote workers can be tricky. Luckily – we’ve prepared the basics for you! Here’s a comprehensive guide on how to hire and pay freelancers from Argentina.
Hiring independent contractors in Argentina – a key to business growth?
Argentina’s talent pool offers a convenient and cost-effective way to fuel your business growth in the US. Hiring independent contractors in Argentina pays off since the cost of living there is lower, so their rates are competitive compared to similar talent domestically. US companies benefit from cost savings, while Argentinian freelancers gain access to valuable international projects and career opportunities.
Moreover, independent contractors in Argentina are perfect for companies seeking skilled remote workers with minimal disruption to workflow – the time zone alignment makes collaboration smooth and efficient.
Furthermore, Argentina boasts a large pool of professionals fluent in both English and Spanish (the second most spoken language globally). This opens doors to a broader range of talent and strengthens communication across projects, especially if your target audience includes Spanish speakers.
What do you need to know about hiring remote workers in Argentina?
To avoid getting lost in the dos and don’ts of paying remote employees in Argentina, we’ve prepared a list of topics you should further investigate before kicking off:
- Laws: What are local laws regarding payroll taxes, social security contributions, payroll deductions, statutory benefits, etc., for international contractors?
- Payments: How should you pay contractors in Argentina? What payment methods and currencies do they prefer? Do they use alternatives to bank transfers for worldwide income? What are exchange rate fluctuations?
- Taxes: What taxes do Argentinian remote workers need to pay? Do they pay taxes themselves, or do you need to withhold them from your independent contractor’s income?
- Invoicing: Can you pay remote workers in Argentina based on an invoice? Do they need a legal entity to invoice you? What does a typical invoice look like?
- Classification: What’s the difference between independent contractors (freelancers) and “traditional” full-time employees in Argentina? How can you collaborate with an independent contractor without the risk of misclassification?
This article will be your partner, helping you navigate the legalities and cultural nuances of hiring remote workers in Argentina, but it won’t replace professional legal advice.
How to pay remote employees in Argentina?
There are several ways to pay employees in Argentina. Let’s start with the most direct but often the most costly one – banks. International bank transfers typically come with hefty currency conversion fees. To initiate the transfer, you’ll need your contractor’s bank details, including account number, bank name, and branch code.
Argentinian independent contractors also use alternative solutions that don’t entail such high conversion costs. Services like PayPal, Wise, or Payoneer let freelancers manage multiple currencies and international transactions seamlessly. This flexibility and security of transactions is crucial for freelancers who juggle projects with clients from various countries, including the US.
You also have a third, the most comprehensive and convenient option – Useme, an all-in-one platform to hire and pay remote workers via one service. It includes all the benefits of the online payment platform mentioned above along with the operational simplicity: you don’t handle hiring employees from abroad by yourself because we take over all the administrative tasks and the payment process.
Full-time remote employees or independent contractors?
If you hire freelancers, your “employment” relationships can’t resemble hiring a full-timer based on an employment contract. The employer-employee relationship is based on the employee’s subordination (the employer’s control). The employer:
- dictates expectations and performance standards for the employee;
- sets the employee’s work schedule, including daily hours and potential overtime;
- determines where the employee performs their duties, whether on-site or remotely;
- provides the necessary equipment and tools for the employee to complete their job.
A freelance remote worker can shape these areas according to their needs and is welcome to negotiate their conditions. However, they don’t have all the statutory benefits and protection guaranteed by the local labor laws, such as the minimum wage, social security, paid leave, notice period, or severance pay.
If you choose to pay freelancers in Argentina, your legal requirements are much looser than when you hire a full-time employee. That’s why collaborating with a highly skilled workforce on the freelance market pays off – both parties remain independent while still catering to each other’s needs.
Read more about differences between hiring freelancers and employees.
Paying remote workers in Argentina – the risk of misclassification
Misclassifying an employee as an independent contractor can lead to significant risks and financial consequences for your business. You might be liable for back payments of all social security contributions and substantial fines for non-compliance with labor regulations.
Let’s discuss how to hire and pay freelancers from Argentina conveniently without worrying about the legal issues.. Whether you want to settle deals with remote workers from Latin America or anywhere else, the easiest and safest way is to invite your freelancer to settle a deal via Useme. This way, you won’t risk confusing freelance collaboration with hiring foreign employees.
Local labor laws in Argentina
While Argentinian employment laws shape relationships between employers and employees, some regulations may also apply to freelancers. Foreign companies should be aware of local regulations, regardless of whether they pay remote employees in Argentina on a freelance or employment basis.
- Legal system
There are two documents that set labor laws in Argentina: Ley de Contrato de Trabajo and Código Civil y Comercial. The first can be translated to the labor code, and the second to the civil and commercial code. Moreover, the terms of employment, including wages, benefits, and working hours, may be determined by Collective Bargaining Agreements (union contracts).
- Types of contracts
Employment contracts differ, depending on the employment period – permanent (Contrato de Trabajo permanente), short-term (Contrato de trabajo eventual), fixed-term (Contrato de trabajo a plazo fijo), and temporary (Contrato de trabajo de temporada).
- National minimum wage
The minimum wage is severely affected by the annual inflation soaring over 250%. In February 2024, it was raised to 180,000 pesos ($215) per month.
- Working hours
Argentinians can’t work more than 8 hours per day and 48 hours per week (although it usually doesn’t exceed 44 hours for daily work).
- Overtime
Employees working overtime receive a premium on their regular pay. This is typically 150% for weekdays and 200% for work done on holidays, Sundays, and designated rest days. Overtime is limited to 3 hours per day, 30 hours per month, and 200 hours per year.
- Paid leave
In Argentina, employees are entitled to 14 consecutive vacation days after working for the same employer for at least six months. Before that, they can take one day off for every 20 days of work.
- Sick leave
Like vacation, the amount of paid sick leave in Argentina is tied to an employee’s length of service. Employees who have been with their employer for less than five years are entitled to up to three months of paid sick leave annually. After five years, they can take up to six months of sick leave.
- Maternity leave
Mothers are entitled to a mandatory parental leave that begins 45 days before childbirth and extends for 45 days after. However, they can reduce their pre-birth leave to 30 days, with the corresponding extension of their post-birth leave to 60 days.
Local tax regulations and compliance requirements
Global hiring also requires an understanding of local employment taxes. Argentinians pay income tax VAT. They must have the CUIT – a unique 11-digit tax identification number assigned by the Administración Federal de Ingresos Públicos (AFIP) in Argentina.
Argentina taxes its residents on their worldwide earnings. Income taxes in Argentina differ depending on an individual’s gross income and range from 5 to 35%. Value-added tax is calculated at a rate of 21% (for some activities – 10.5% or 27%). Independent contractors must file their tax forms (formularios fiscales) by June each year.
For US companies hiring abroad, it’s also necessary to consider filling in Form W-8 BEN, Form 1099-NEC, and Form 1096.
Hiring full-time employees in Argentina
If you decide to start an employment relationship instead of a freelance collaboration, you have to follow all the rules laid down in the Argentinian labor law. You’ll need to:
- formalize an employment contract outlining the new employee’s responsibilities, working hours, salary, and benefits package;
- officially register the new employee with the Argentinian tax authority (AFIP) and social security agencies to ensure they’ll receive proper pension, healthcare, and other benefits coverage mandated by law;
- withhold income tax, make social security contributions on your employee’s behalf, and stay up-to-date on relevant tax and social security regulations to avoid potential disputes and penalties.
The international hiring process is complicated, especially if you want to stick to an Argentinian full-time contract. That’s why many global companies rely on hiring independent contractors, granting themselves flexibility, time and cost savings, and access to the most skilled workers.
This way, they also avoid establishing a local entity to handle contractors from Latin America because all parts of a freelance collaboration can effectively happen online. Read more to further explore how to hire and pay foreign freelancers.
How to find a freelancer in Argentina – independent contractors needed?
If you’re wondering how to pay someone in Argentina, you’re probably on the lookout for new international team members. So, where can you find diverse, competitive, and ambitious freelancers who will contribute to your next project?
Once dominated by traditional employment, many popular jobs in Argentina are now filled by a growing pool of remote workers. And when it comes to freelancers, your hiring process starts in Useme. We have an ever-growing base of independent contractors who look forward to working with foreign businesses.
You can skip further investigation on how to pay in Argentina. All you need to do is initiate a collaboration with a chosen freelancer on Useme. You can commission a single task or a complex project to a professional found on our platform or invite a remote worker from outside Useme. Build your global team of highly skilled freelancers!
