Summary
The Argentinian social security system is comprehensive in nature, providing old age, disability, sickness and maternity benefits, as well as industrial injury and unemployment coverage.
Details
Contributions
Social Security is payable on total employee compensation and for employer contributions, is not subject to an income cap. The employer contribution rate is between 24 and 27%, dependent on the sector in which the employer is established. Employee contributions are paid at a rate of 17% on monthly income of around $2,500.
Treaties
Argentina has a limited range of social security agreements. Outside Latin America, agreements are in place with, amongst others, Belgium, France, Spain and Italy, but there are no agreements with the US, UK, Germany or Canada. Typically Argentina’s social security agreements allow for home country coverage for only 1 or two years, so longer term expatriates may fall into Argentinian social security part-way through their assignments.
UK and US expatriates moving to Argentina are likely to be exposed to double social security contributions
Exemptions
Certain professional workers hired abroad and who work in Argentina for less than two years and remain socially insured in another country can be exempted from Argentina social security. Eligibility for this exemption is a complex area and specific advice should be sought.
Administration
Contributions to the three main branches of the Argentinian social security system (pension, health and social services) are coordinated and the employer (or Argentinian host company in the case of expatriates) collects all contributions through payroll withholding.
Benefits
Pension benefits in Argentina are a blend of a core amount and an amount derived from the average pre-retirement salary. In general however, benefits have not kept pace with the rapid increase in the cost of living – in 2020 pensions lost 7% of their purchasing power.
Other
Social security contributions in Argentina are income tax deductible.
In certain provinces, employer social security contributions are creditable against the employer’s VAT liability.Social security insights are intended to provide quick and straightforward insights into social security regimes. Always seek professional advice based on actual circumstances before acting.
More About Us
- What is Workia?
- Insights Home