Cost of an employee in Argentina (2026)
What an employee really costs an employer in Argentina: gross salary plus mandatory employer social contributions.
On a gross salary of ARS 3,000,000 per month in Argentina, an employer pays about ARS 3,780,000 in total once mandatory employer social contributions of 26% on top of the gross are included.
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How salary is taxed in Argentina
Income tax in Argentina is progressive: marginal rates rise from 5% to 35% as income grows.
Employees also pay social contributions of around 17% of gross salary.
A tax-free allowance of about ARS 23,183,111 per year is deducted before income tax.
The standard VAT rate is 21%.
| Annual taxable income | Tax rate |
|---|---|
| Up to ARS 2,000,030 | 5% |
| Up to ARS 4,000,060 | 9% |
| Up to ARS 6,000,090 | 12% |
| Up to ARS 9,000,135 | 15% |
| Up to ARS 18,000,271 | 19% |
| Up to ARS 27,000,406 | 23% |
| Up to ARS 40,500,609 | 27% |
| Up to ARS 60,750,914 | 31% |
| ARS 60,750,914 and above | 35% |
Frequently asked questions
What does it cost to employ someone in Argentina?
On top of the gross salary, an employer in Argentina pays mandatory social contributions. The total cost of employment is the gross salary plus those employer contributions.
Are employer contributions the same as salary deductions?
No. Employer contributions are paid by the company in addition to the gross salary, while employee deductions (income tax and social contributions) are taken out of the gross to leave the net take-home pay.
Employer-contribution rates are approximate and may be capped or vary by region and sector.
Approximate 2026 estimate. Simplified model, verify before relying on it. Not tax advice.
Rates updated June 2026