By Law Number 27,430, published on the Official Gazette on 29 December 20171, the federal government introduced significant reforms to the tax system, among them modifications to the employer´s payroll contributions for social security in Argentina2.

Employers have mandatory contributions to support the Unique System of Social Security3, and the healthcare system. After the amendments introduced by Law Number 27,430, the employer´s payroll contributions for social security in Argentina in relation to the Unique System of Social Security are the following:

  1. The general rate is 17.5%. However, if the employer's principal activity consists in the provision of services or commercial activities and its sales exceed certain amounts (currently AR$ 48,000,000), a 20.7% rate will apply. These rates will be varying until reaching a common 19.5% in the year 2022, all according to the following schedule:
  • Employer´s contribution Until 12/31/2018 Until 12/31/2019 Until 12/31/2020 Until 12/31/2021 As from 1/1/2022
    All activities, except services and commercial activities with sales exceeding AR$ 48,000,000) 17.5% 18% 18.5% 19% 19.5%
    Services and commercial activities with sales exceeding AR$ 48,000,000) 20.7% 20.4% 20.1% 19.8% 19.5%
  1. The minimum non-taxable amount will be ranging from AR$ 2,400 (as of the year 2018) to AR$ 12,000 (as of year 2,022), to be updated following the consumer price index.
  2. According to the provincial jurisdiction the employer does business in, a percentage of the employer's social security payment may be currently offset against the Valued Added Tax. However, such creditable amount will decrease over time until completely eliminated in the year 2022.
  3. Special promotion regimes may apply lowering certain contributions. Fuel tax may be set off against employer´s contribution in certain activities.
  4. Law Number 27,426 amended the Article Number 252 of the Contract of Employment Law Number 20,744, preventing the employer to request the employee´s retirement until he/she has reached 70 years of age4. However, this very same law brought a relief in employer´s contributions for those 65-year-old workers who do not retire and continue working: as long as the worker meets the requirements to get the universal basic benefit of the pension system, the employer will not have to pay contributions to the Unique System of Social Security any longer. From that moment on, the employer will just pay contributions for the health care system (6%) and the work risks insurance.

The employer´s contribution to support the healthcare system keeps the same rate: 6%.


1. The Spanish version of the legal provisions mentioned in this article may be consulted in the following database:

2. For a brief on Labor Costs in Argentina, please review the following article on our Legal Blog:

3. Comprised of the Argentine Integrated Pension System (Law Number 24,241) the National Institute of Social Services for Retirees and Pensioners (Law Number 19,032), the National Regime of Family Allowances (Law Number 24,714), and the National Employment Fund (Law Number 24,013)

4. For more information on this amendment, please, read on our Legal Blog:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.