Argentine Labor Law: Complete Guide

Published on October 31, 2025 and written by Cyril Jarnias

Argentina has a long tradition of protecting workers’ rights, rooted in its turbulent social and political history. However, the country faces economic challenges that put pressure on its labor law system. Let’s examine the main aspects of Argentine labor law and its recent evolution.

A Protective Legal Framework for Employees

Argentine labor law is governed by the Employment Contract Law (Ley de Contrato de Trabajo), which establishes a detailed legal framework to protect workers’ rights. This law covers many aspects of employment relationships, including:

Types of employment contracts: Indefinite-term contracts are the standard in Argentina. Fixed-term and temporary contracts are permitted but strictly regulated to prevent abuse. Employment contracts are presumed to be full-time (8 hours per day, 48 hours per week) unless otherwise specified.

Probation period: It is limited to a maximum of 3 months, during which the employer and employee can terminate the contract without notice or severance pay.

Employee rights: The law guarantees numerous rights for Argentine workers, such as the right to paid leave (14 to 35 days depending on seniority), the right to professional training, protection against unfair dismissal, etc.

This protective legal framework aims to ensure job stability and prevent abuse, but it is sometimes criticized for its lack of flexibility in a difficult economic context.

Extensive Social Obligations for Employers

Argentine employers are subject to numerous social obligations toward their employees, including:

Social contributions: Employers must pay approximately 27% of gross salary in social contributions, covering health insurance, pensions, family allowances, etc.

13th month salary: Employers must pay a 13th month salary, paid in two installments (in June and December).

Work accident insurance: Employers must take out mandatory insurance to cover occupational risks.

Maternity protection: Pregnant women are entitled to 90 days of maternity leave and protection against dismissal during pregnancy and up to 7.5 months after childbirth.

These extensive social obligations aim to ensure comprehensive social protection for Argentine workers. However, they represent a significant cost for employers, which can hinder hiring in a difficult economic context.

A Minimum Wage in Constant Evolution

Argentina has a legal minimum wage, called “Salario Mínimo, Vital y Móvil” (SMVM). This minimum wage is regularly reassessed to account for inflation, which is chronically high in the country.

As of February 1, 2025, the SMVM stands at 28,080 Argentine pesos per month (approximately 246 euros). It is important to note that this amount is relatively low compared to the cost of living in major cities like Buenos Aires.

The minimum wage is negotiated within the National Council for Employment, Productivity, and the Minimum, Living, and Mobile Wage, which brings together representatives from the government, employers, and unions. These negotiations are often tense, with unions demanding significant increases to compensate for inflation, while employers worry about the impact on their competitiveness.

A major challenge: galloping inflation

One of the main difficulties of the Argentine minimum wage system is keeping pace with inflation. With annual inflation rates regularly exceeding 50%, SMVM increases often struggle to maintain the purchasing power of the lowest-paid workers.

Average Wages Under Pressure

Average wages in Argentina vary considerably by industry sector and region. In major cities like Buenos Aires, salaries are generally higher than in the rest of the country.

Some examples of average monthly salaries (in Argentine pesos):

– Engineer: 150,000 – 250,000 ARS – Teacher: 80,000 – 120,000 ARS – Nurse: 70,000 – 100,000 ARS – Salesperson: 60,000 – 90,000 ARS

It is important to note that these figures are indicative and can vary considerably. Moreover, high inflation makes any comparison over time difficult.

The impact of inflation on wages

Galloping inflation in Argentina has a major impact on wages. Unions regularly negotiate salary increases to try to maintain workers’ purchasing power. However, these increases often struggle to keep pace with inflation, leading to an erosion of purchasing power for many Argentines.

Evolving Salary Skills

The Argentine labor market is constantly evolving, with growing demand for certain specific skills. The most dynamic sectors in terms of compensation include:

Information technology: Developers, cybersecurity engineers, and data scientists are particularly sought after and well-paid.

Energy: With the development of renewable energy and the exploitation of the Vaca Muerta shale gas deposits, specialized engineers and technicians are in high demand.

Financial services: Despite the country’s economic difficulties, the financial sector continues to offer attractive compensation for qualified profiles.

Agri-food: This key sector of the Argentine economy is looking for technical and managerial profiles to improve its competitiveness.

It is important to note that proficiency in English is often a major asset for accessing the highest-paying positions, especially in international companies based in Argentina.

Powerful Unions, Key Players in Social Dialogue

Argentina has a long union tradition, with powerful organizations that play a major role in labor relations and the country’s political life. The main aspects of Argentine unionism are:

Strong representation: Approximately 30% of Argentine workers are unionized, a high rate compared to many other Latin American countries.

A complex structure: There are numerous sectoral unions, grouped within national confederations like the CGT (Confederación General del Trabajo) and the CTA (Central de Trabajadores de la Argentina).

A key role in collective bargaining: Unions regularly negotiate with the government and employers on wages, working conditions, and social benefits.

Significant mobilization power: Argentine unions do not hesitate to organize strikes and demonstrations to defend workers’ rights.

However, the Argentine union movement faces challenges, including fragmentation between different political tendencies and the need to adapt to the evolving labor market, with the emergence of new forms of employment like independent work and the platform economy.

Extensive but Threatened Workers’ Rights

Argentine workers enjoy numerous rights, guaranteed by the Constitution and labor legislation. Among these rights are:

The right to decent and fair working conditions The right to union freedom and collective bargaining The right to protection against arbitrary dismissal The right to social security, including health insurance and pensions The right to professional training

However, these rights are sometimes called into question in a difficult economic context. Successive governments have attempted to reform labor law to make it more flexible, sparking opposition from unions.

Current challenges

The government of President Javier Milei, elected in 2023, has announced its intention to deeply reform Argentine labor law. Among the measures being considered are:

– Reduction of severance pay – Relaxation of rules on temporary contracts – Limitation of the right to strike in certain sectors

These reform plans are sparking strong opposition from unions, who fear increased job insecurity and a challenge to social gains.

Conclusion: A System in Search of Balance

Argentine labor law today stands at a crossroads. On one hand, it offers extensive protection to workers, the result of a long history of social struggles. On the other hand, it faces major economic challenges, with high unemployment and galloping inflation eroding employees’ purchasing power.

The challenge for Argentina will be to find a balance between protecting workers’ rights and the need to stimulate job creation and business competitiveness. This quest for balance will undoubtedly come at the cost of difficult negotiations between the government, employers, and unions in the coming years.

For companies operating in Argentina or considering establishing operations there, it will be crucial to closely follow the evolution of labor law and compensation practices. The ability to navigate this complex and constantly changing context will be a key success factor in the Argentine market.