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The final steps have been initiated for the new social security agreement between Switzerland and Argentina. Switzerland has already concluded social security agreements in South America with Chile, Uruguay and Brazil.
On 14 May 2025, the Swiss Federal Council submitted the message for the approval of the agreement on social security between Switzerland and Argentina to Parliament. Once the agreement, negotiated in 2024, has been signed, it will enter into force.
Until the agreement enters into force, from a social security perspective, it is considered that no agreement exists. This means that employees posted from Switzerland to Argentina can only continue to be covered under Swiss social security if, among other things, they have at least five previous insurance years.
To continue Swiss social security coverage in a non-contracting state, the following conditions must be met:
- Salary payment by a Swiss employer: The salary must be paid, at least in part, by a Swiss employer. It must be agreed with the competent compensation office whether a portion of the salary must actually be paid monthly or whether a one-off annual bonus is sufficient to meet this condition.
- Contributions on total remuneration: The Swiss employer must calculate and pay social security contributions in Switzerland on the total remuneration for the work activity, including remuneration paid from abroad.
- Five consecutive insurance years with AHV/IV: The employee must have been compulsorily or voluntarily insured with AHV/IV for at least five consecutive years immediately prior to the assignment abroad. If a person was exempt from compulsory contributions due to age or marital status, years of residence in Switzerland count as contribution or insurance years. Only periods of prior insurance completed in Switzerland are considered.
- Consent of both employee and employer: Both the employer and the employee must agree to the continuation of insurance and submit an application either in writing or via the Applicable Legislation Platform Switzerland (ALPS) to the employer's compensation office.
It should be noted that neither the employer nor the employee is obliged to consent to this application.
The application must be submitted no later than six months after the start of the assignment abroad. If the application is submitted after this period, it will be rejected and continuation of insurance in Switzerland will no longer be granted.
If these requirements are met, Swiss social security can be continued in all branches of insurance. However, this does not mean that no additional social security costs may arise in the host country. Based on the fact that there is no social security agreement between the two countries, it means that a person posted abroad is generally subject to social security obligations in the host country. Usually, the social security benefits in these countries are not provided at the same level or in the same manner as those in Switzerland.
In the interest of providing the employee with as similar a level of coverage as possible during the assignment abroad, the request for voluntary continuation of insurance is usually initiated by the employer.
Both employers and employees accept that additional social security contributions may arise in the host country. However, the employer must find a way to deal with double payments or potential overlapping benefits.
How does the social security situation differ (current regulation vs. after the agreement enters into force) for assignments in Argentina?
Assignment in Argentina – Current Regulation
For a two-year assignment in Argentina of a person posted from Switzerland who fulfils the conditions for voluntary continuation of insurance, the situation is as follows:
- Switzerland: Continuation of voluntary Swiss social security: AHV/IV/EO, unemployment insurance, accident insurance, pension fund, (daily sickness allowance insurance)
- Switzerland: Continuation of Swiss health insurance
- Argentina: Social security obligation: contributions to the pension fund, health insurance, and social benefits. The contribution rate is 17%.
- Additional – optional: international health insurance supplement
For a two-year assignment in Argentina of a person posted from Switzerland who does not fulfil the conditions for voluntary continuation of insurance:
- Switzerland: No contributions
- Argentina: Social security obligation: contributions to the pension fund, health insurance, and social benefits. The contribution rate is 17%.
- Additional – optional: International health insurance supplement
- Additional – optional: International pension fund or separate insurance to ensure adequate coverage
Assignment in Argentina – After the Agreement Enters into Force
For a two-year assignment in Argentina of a person posted from Switzerland who was insured in Switzerland prior to the assignment:
- Switzerland: Continuation of Swiss social security: AHV/IV/EO, unemployment insurance, accident insurance, pension fund, (daily sickness allowance insurance)
- Switzerland: Continuation of Swiss health insurance
- Argentina: No contributions
- Additional – optional: international health insurance supplement
In general, a prior insurance period of four weeks in Switzerland is sufficient to claim continuation of insurance under an existing social security agreement.
Conclusion
With the entry into force of the social security agreement, assignments of employees from Switzerland to Argentina will become more cost-effective and significantly easier from an administrative perspective. The same also applies to assignments of employees from Argentina to Switzerland.
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.
