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Latin America · 3 countries
Country guide · Latin America
Choose a country to open its guide.
Use the country button above. Each guide covers contracts, employer cost, working time, leave, termination, freelancers and work permits, with the legal source of every figure.
Country guideLatin AmericaVerified Oct 2026
BR
Hiring in Brazil: the 2026 guide
Covers hiring staff in Brazil under the CLT through an Employer of Record and engaging independent contractors (PJ). Labour law is federal; collective agreements (CCT/ACT) by union and state add many terms. Brazil has no 'at will' employment.
14 min read Verified Oct 2026 General information, not legal advice
Capital · Currency
Brasilia · BRLLanguage
PortugueseMinimum wage
R$1,621 per month (federal, from 1 Jan 2026); some states set higher regional floorsEmployer contributions
About 36% of gross pay: INSS 20%, FGTS 8%, third-party levies about 5.8%, plus RAT 0.5% to 6%Statutory paid leave
30 calendar days after 12 months, paid with a 1/3 bonus (about 4.3 weeks)Public holidays
10 national public holidays in 2026 (state and city holidays come on top)Employer notice
30 days plus 3 days per completed year of service, up to 90 daysFreelanX EOR onboarding
5–20 daysCountry guideLatin AmericaVerified Oct 2026
MX
Hiring in Mexico: the 2026 guide
Guide to employing staff in Mexico through an Employer of Record and engaging contractors. Labour law is federal (Ley Federal del Trabajo, LFT). Payroll tax (ISN) is set by each state and differs; Mexico City is used as the example where stated.
14 min read Verified Oct 2026 General information, not legal advice
Capital · Currency
Mexico City · MXNLanguage
SpanishMinimum wage
MX$315.04 per day general zone; MX$440.87 per day northern border free zone (2026)Employer contributions
About 21% to 28% of pay: IMSS, SAR, INFONAVIT 5% and state payroll tax (ISN, about 2% to 4%)Statutory paid leave
12 working days in year 1, rising by 2 days a year to 20 in year 5, plus 25% vacation premiumPublic holidays
7 statutory public holidays in 2026 (all fall on weekdays)Employer notice
No statutory employer notice period; dismissal without cause is paid as severance (3 months plus 20 days per year of service)FreelanX EOR onboarding
5–20 daysCountry guideLatin AmericaVerified Oct 2026
AR
Hiring in Argentina: the 2026 guide
Employment is governed nationally by the Ley de Contrato de Trabajo 20.744 (LCT), amended by the Ley de Modernizacion Laboral 27.802 (in force since 6 March 2026, partly challenged in court). Figures are dated because inflation moves them monthly.
14 min read Verified Oct 2026 General information, not legal advice
Capital · Currency
Buenos Aires · ARSLanguage
SpanishMinimum wage
AR$391,200 per month (1 Oct 2026, rises monthly; AR$406,400 from 1 Dec 2026)Employer contributions
About 26.4% of gross pay (20.4% social security + 6% obra social), plus ART; 24% for MiPyME employersStatutory paid leave
14 calendar days (under 5 years of service), up to 35 daysPublic holidays
11 fixed national holidays, plus movable holidays and bridge days (about 15 days off in total)Employer notice
1 month under 5 years of service, 2 months from 5 years; none required during probation under Law 27.802FreelanX EOR onboarding
5–20 daysHire in Brazil, start to finish
FreelanX EOR is the legal employer in Brazil. We issue the contract, run payroll and declarations, and you manage the work day to day.
1Request
Tell us the role, salary and start date.
2Contract
Brazil employment contract and written terms prepared.
3Registrations
Tax, social security and insurance registrations.
4Start date
Your collaborator starts, on payroll from day one.
5–20 days in totalfor Latin America with FreelanX EOR. The exact time depends on how fast documents arrive.
The CLT is mandatory
Employees must be registered (CTPS digital, eSocial). Core CLT rights cannot be waived by contract. Collective agreements add pay floors and benefits.
Employer cost is high
On top of salary: INSS 20%, FGTS 8%, RAT and third-party levies, plus 13th salary and 1/3 vacation bonus accruals. Budget well above gross pay.
13th salary and vacation bonus
A full extra monthly salary is paid each year (two instalments). Vacation is paid with an extra one third on top.
Dismissal is costly
Without cause: notice, accrued rights, FGTS release and a 40% fine on the FGTS balance. Mutual agreement (Art. 484-A) halves some amounts.
44 hour week, change pending
The limit is 44 hours (usually 6x1). A constitutional amendment to cut it to 40 hours has passed the Chamber and has been under Senate floor debate since 6 October 2026.
PJ contractors carry real risk
If the work shows personal service, regularity, pay and subordination, labour courts can reclassify a PJ as an employee. The STF has yet to settle the issue.
Five mistakes to avoid
The ones we see most often when a team hires in Brazil for the first time.
Treating a full-time worker as a PJ
A 'PJ de cracha' who works set hours under a manager is likely an employee. Back pay covers FGTS, 13th, vacation, INSS and fines.
Arts. 2, 3 and 9 CLTForgetting the 13th and vacation accruals
Budgeting only salary plus INSS understates cost. Accrue the 13th (8.33%) and vacation with the 1/3 bonus (about 11.1%), each with FGTS and INSS.
Lei 4.090/1962; Art. 7 XVII CF; Art. 130 CLTLate severance payment
Termination amounts are due within 10 days of the end of the contract. Late payment triggers a fine equal to one monthly salary.
Art. 477 paras 6 and 8 CLTIgnoring union agreements
The CCT/ACT of the employee's category can set higher wages, benefits (meal voucher) and rules on hours banks. Reform gave negotiated terms priority over statute on listed topics.
Arts. 611-A and 611-B CLTGranting vacation late
Vacation must start within 12 months after it is earned. If not, the employer pays double. Vacation cannot start in the 2 days before a holiday or weekly rest day.
Arts. 134 and 137 CLTContract rules that matter
Form of contractIndefinite term is the rule. Written or oral contract is valid, but registration in the digital work card (CTPS) and eSocial is mandatory from day one. Fixed term is the exception.Arts. 442, 443 and 29 CLT
Probation (experiencia)Experience contract: fixed term of up to 90 days, one extension allowed within the 90 days. Early end without cause pays half the remaining term.Art. 445 sole para. and Arts. 479, 481 CLT
Fixed-term contractsAllowed only for temporary activities or the experience period. Maximum 2 years, one extension. A second consecutive contract within 6 months makes it indefinite.Arts. 443 and 445 CLT
Part-time and intermittentPart-time up to 30 hours (no overtime) or up to 26 hours plus up to 6 overtime hours. Intermittent work needs written contract and 3 days call notice.Arts. 58-A and 452-A CLT
Remote work (home office)Teleworking must be stated in the contract. Employer equipment or cost reimbursement must be agreed in writing. Productivity-based remote work is outside hour control.Arts. 75-A to 75-E CLT; Lei 14.442/2022
Non-compete and confidentialityNot regulated by the CLT. Courts accept limited, paid non-competes with clear time and territory. Confidentiality clauses are valid.Case law (TST)
Collective agreementsEmployees are covered by the CCT of their union and category, set by base state. Negotiated terms prevail over statute on the topics listed in the CLT.Arts. 611-A and 611-B CLT
Highly paid graduatesAn employee with a degree earning at least twice the INSS ceiling may negotiate individually on topics of Art. 611-A, with the same weight as a collective deal.Art. 444 sole para. CLT
Employer cost simulator
Pick a salary. Figures use the current rates and ceilings for a standard professional salary. Estimates, not a quote.
Gross yearly salary (BRL)
Employer share of statutory contributions
R$40,560
33.8% of gross salary
Estimated total employer cost
R$161,160 – R$167,760
Gross salary + contributions + other employer costs (R$600 to R$7,200)
INSS employer contribution (patronal)
No salary ceiling on the employer side. Some sectors pay a revenue-based levy (CPRB) instead, being phased out. Standard rate shown.
R$24,000FGTS (severance fund deposit)
Deposited monthly into the employee's account. 2% for apprentices. No ceiling.
R$9,600Salario-educacao
Third-party levy on payroll.
R$3,000Sistema S, INCRA and SEBRAE (third parties)
Typical total for commerce and industry (SESI/SESC, SENAI/SENAC, SEBRAE, INCRA). Varies by sector, about 3% to 5.8% combined with salario-educacao.
R$3,960Employer share of statutory contributions
R$60,840
33.8% of gross salary
Estimated total employer cost
R$241,740 – R$251,640
Gross salary + contributions + other employer costs (R$900 to R$10,800)
INSS employer contribution (patronal)
No salary ceiling on the employer side. Some sectors pay a revenue-based levy (CPRB) instead, being phased out. Standard rate shown.
R$36,000FGTS (severance fund deposit)
Deposited monthly into the employee's account. 2% for apprentices. No ceiling.
R$14,400Salario-educacao
Third-party levy on payroll.
R$4,500Sistema S, INCRA and SEBRAE (third parties)
Typical total for commerce and industry (SESI/SESC, SENAI/SENAC, SEBRAE, INCRA). Varies by sector, about 3% to 5.8% combined with salario-educacao.
R$5,940Employer share of statutory contributions
R$81,120
33.8% of gross salary
Estimated total employer cost
R$322,320 – R$335,520
Gross salary + contributions + other employer costs (R$1,200 to R$14,400)
INSS employer contribution (patronal)
No salary ceiling on the employer side. Some sectors pay a revenue-based levy (CPRB) instead, being phased out. Standard rate shown.
R$48,000FGTS (severance fund deposit)
Deposited monthly into the employee's account. 2% for apprentices. No ceiling.
R$19,200Salario-educacao
Third-party levy on payroll.
R$6,000Sistema S, INCRA and SEBRAE (third parties)
Typical total for commerce and industry (SESI/SESC, SENAI/SENAC, SEBRAE, INCRA). Varies by sector, about 3% to 5.8% combined with salario-educacao.
R$7,920Employer share of statutory contributions
R$121,680
33.8% of gross salary
Estimated total employer cost
R$483,480 – R$503,280
Gross salary + contributions + other employer costs (R$1,800 to R$21,600)
INSS employer contribution (patronal)
No salary ceiling on the employer side. Some sectors pay a revenue-based levy (CPRB) instead, being phased out. Standard rate shown.
R$72,000FGTS (severance fund deposit)
Deposited monthly into the employee's account. 2% for apprentices. No ceiling.
R$28,800Salario-educacao
Third-party levy on payroll.
R$9,000Sistema S, INCRA and SEBRAE (third parties)
Typical total for commerce and industry (SESI/SESC, SENAI/SENAC, SEBRAE, INCRA). Varies by sector, about 3% to 5.8% combined with salario-educacao.
R$11,880Employer share of statutory contributions
R$162,240
33.8% of gross salary
Estimated total employer cost
R$644,640 – R$671,040
Gross salary + contributions + other employer costs (R$2,400 to R$28,800)
INSS employer contribution (patronal)
No salary ceiling on the employer side. Some sectors pay a revenue-based levy (CPRB) instead, being phased out. Standard rate shown.
R$96,000FGTS (severance fund deposit)
Deposited monthly into the employee's account. 2% for apprentices. No ceiling.
R$38,400Salario-educacao
Third-party levy on payroll.
R$12,000Sistema S, INCRA and SEBRAE (third parties)
Typical total for commerce and industry (SESI/SESC, SENAI/SENAC, SEBRAE, INCRA). Varies by sector, about 3% to 5.8% combined with salario-educacao.
R$15,840RAT (work accident insurance) is 1%, 2% or 3% by risk class, multiplied by the FAP factor (0.5 to 2.0). Provisions for 13th salary and vacation with 1/3 bonus (about 19% of base) are not included.
Pay and contribution rules
Minimum wageR$1,621 per month from 1 Jan 2026 (federal decree). Some states set higher floors for categories without a national floor. Union floors may be higher.Federal decree on 2026 minimum wage; Art. 7 IV CF
13th salaryOne extra monthly salary per year. First instalment (50%) by 30 November, second by 20 December. Proportional for months worked (15 days or more counts).Lei 4.090/1962; Lei 4.749/1965
Vacation payVacation pay plus a one third bonus, paid at least 2 days before the start. The employee may sell up to one third of the leave (abono pecuniario).Art. 7 XVII CF; Arts. 142-143 CLT
Income tax withholding (IRRF)Employer withholds monthly under a progressive table. From 2026, income up to R$5,000 per month is exempt, with a phase-out up to R$7,350.Lei 15.270/2025
Payroll cycle and payslipPay by the 5th business day of the following month, with a payslip. Reporting runs through eSocial. Salary above the minimum can be paid by bank transfer.Art. 459 CLT
Benefits and profit sharingTransport voucher is mandatory on request (employee bears up to 6% of base pay). Meal voucher comes from CCT or company plan. Profit sharing (PLR) is optional and negotiated.Lei 7.418/1985; Lei 10.101/2000
Salary protectionWage cuts need a collective agreement. Deductions are limited to those allowed by law or agreed in writing. Salary must be paid in Brazilian currency.Art. 462 CLT; Art. 7 VI CF
Working time
Standard hours8 hours per day and 44 hours per week. A constitutional amendment to cut the week to 40 hours is pending in the Senate (see below).Art. 7 XIII CF; Art. 58 CLT
6x1 scale and reform statusChamber passed a PEC on 27 May 2026 (40 hours, 5x2). The Senate committee approved it on 2 Sep 2026 and floor debate opened on 6 Oct 2026. A Senate floor vote in two rounds is pending. Check before signing.PEC on the 6x1 scale; Senate floor debate opened Oct 2026
OvertimeUp to 2 hours per day by agreement. Pay at least 50% above the normal rate. Hours bank: individual deal for 6 months, collective deal for up to 1 year.Arts. 59, 59-A and 7 XVI CF
Breaks and rest1 to 2 hours break for shifts over 6 hours (15 minutes for 4 to 6 hours). 11 hours rest between shifts. 24 hours weekly rest, preferably Sunday.Arts. 66, 67 and 71 CLT
Night, Sunday and holiday workNight work 22:00 to 05:00 pays at least a 20% premium, with a 52 min 30 s night hour. Work on a rest day or holiday is paid double unless a day off is given.Art. 73 CLT; Lei 605/1949
12x36 and time recording12-hour shift with 36 hours rest is allowed by individual written agreement. Companies with 20 or more staff must record working hours.Arts. 59-A and 74 CLT
Leave and absences
Annual leave30 calendar days after each 12 months, reduced by unjustified absences (to as little as 12 days). Can be split in up to 3 periods, one of at least 14 days.Arts. 130 and 134 CLT
Sick leaveEmployer pays the first 15 days. From day 16 the INSS pays the incapacity benefit. Medical certificate is required.Lei 8.213/1991 Art. 60
Maternity leave120 days paid by the employer and offset against INSS. Employers in the Empresa Cidada programme extend it to 180 days.Art. 392 CLT; Lei 11.770/2008
Paternity leave5 days in 2026, 20 days under the Empresa Cidada programme. Lei 15.371/2026 raises it to 10 days in 2027, 15 in 2028 and 20 in 2029, paid by the employer and reimbursed by the INSS.Art. 10 para. 1 ADCT; Lei 15.371/2026 (20 days phased in by 2029)
Other paid absencesExamples: 2 days on death of a close relative, 3 consecutive days for own wedding, 1 day per year for blood donation, up to 5 days for the birth of a child (paternity).Art. 473 CLT
Statutory minimum paid leave, in weeks
How Brazil compares with the other markets in this guide, for a 5-day week. Each country has its own verified figure.
Argentina2 weeks
Mexico2.4 weeks
Brazil4.3 weeks
Public holidays 2026
National days plus regional days. Hover a dot to see its name.
JFMAMJJASOND
Thu 1 JanNational
New Year's Day (Confraternizacao Universal)Fri 3 AprNational
Good Friday (Sexta-feira Santa)Tue 21 AprNational
Tiradentes DayFri 1 MayNational
Labour DayMon 7 SepNational
Independence DayMon 12 OctNational
Our Lady of AparecidaMon 2 NovNational
All Souls' Day (Finados)Sun 15 NovNational
Republic Proclamation DayFri 20 NovNational
Black Consciousness DayFri 25 DecNational
Christmas DayCarnival (16-17 Feb) and Corpus Christi (4 Jun) are optional days (ponto facultativo) at federal level, but many states and cities make them holidays. Republic Day falls on a Sunday in 2026. State and city holidays are extra.
Notice periods set by the employer
Hover a row. Bars are drawn to scale.
Experience contract (up to 90 days)No notice. Early end pays half the remaining term
Under 1 year30 days
1 to 2 years33 days
3 years39 days
5 years45 days
10 years60 days
15 years75 days
20 years or more90 days (maximum)
30 days plus 3 days per completed year after the first, up to 90 days (Lei 12.506/2011). Employee resigning gives 30 days. Employer may pay in lieu. During notice, hours are cut by 2 hours per day or 7 days off. Mutual agreement pays half.
Rules for ending an employment
Dismissal without causeEmployer pays notice, salary balance, proportional 13th and vacation with 1/3 bonus, and a 40% fine on the FGTS balance. The employee withdraws the FGTS and may claim unemployment insurance.Art. 477 CLT; Lei 8.036/1990 Art. 18
Dismissal for causeOnly for listed serious acts (e.g. theft, insubordination, habitual neglect). No notice, no 40% fine, no FGTS withdrawal. Misuse is the most common cause of claims.Art. 482 CLT
Mutual agreementNotice is paid at 50%, the FGTS fine is 20%, and the employee withdraws 80% of FGTS. No unemployment insurance.Art. 484-A CLT
Special protectionsJob stability: pregnant employees (from confirmation to 5 months after birth), work accident (12 months after return), CIPA representatives, union leaders.Art. 10 II ADCT; Lei 8.213/1991 Art. 118
Payment and procedurePay termination amounts within 10 days of the end date. Union or Ministry homologation is no longer required. Deliver the TRCT and FGTS release forms.Art. 477 paras 6 and 8 CLT
Collective dismissalTreated like individual dismissals. No prior union authorisation is needed. Case law still values prior talks with the union in large layoffs.Art. 477-A CLT
With FreelanX EOR, ending an employment is run by FreelanX EOR under local law, and the process is agreed with you before any step.
Six signals checked by the authorities
No single signal decides. Authorities and courts weigh the whole picture and look at how the work is really done, not only at the contract.
Source for the criteria: Arts. 2, 3 and 9 CLT (primacy of reality); Art. 442-B CLT; Lei 13.429/2017 on outsourcing. Confirm with a local lawyer for a specific case.
Getting certainty on the status
How to check the status in advance, or what happens in an audit.
1Draft a service contract with real scope
Define deliverables, price and independence. A contract is not enough: labour courts judge the actual facts.
2Avoid control signals
No fixed hours, no manager approvals, no company title or email unless justified. Allow substitution and other clients.
3Use a company with real structure
Check that the PJ is a registered legal entity with its own invoices, taxes and bookkeeping.
4On inspection or claim
Labour inspectors can fine for unregistered employment, and a worker can sue in the Labour Court. Keep contracts, invoices and proof of independence.
There is no official ruling procedure to certify a contractor. Where the work is full-time and ongoing, an EOR employment is the safer route.
What a reclassification can cost
Back-payment of contributions, penalties and, in some countries, personal liability.
5 years
A worker can claim the last 5 years of rights, within 2 years after the end of the engagement.
Art. 7 XXIX CF; Art. 11 CLT
FGTS + INSS
Reclassification triggers unpaid FGTS, 13th, vacation, overtime, INSS contributions plus interest and fines.
Arts. 457-458 CLT; Lei 8.212/1991
Fine per worker
Fixed administrative fine for each unregistered employee, updated yearly. Tax and social security authorities may also fine and pursue the company.
Art. 47 CLT (base R$3,000 per worker, R$800 for micro and small firms)
Joint liability
Hiring through intermediaries does not remove liability. In outsourcing, the client is subsidiarily liable for labour debts.
Lei 6.019/1974 Art. 5-A para. 5
STF and the pejotizacao debate (2025-2026)
STF Tema 1389In 2025 the STF recognised general repercussion and suspended cases nationwide on the validity of PJ and autonomous contracts and on labour court jurisdiction. On 18 June 2026 the suspension was partly lifted: cases can proceed up to the regional labour courts (TRTs) but are held at the TST until the STF rules. No final thesis has been set yet.ARE 1.532.603 (Tema 1389); merits pending
Earlier STF lineThe STF has upheld outsourcing of any activity and civil contracts such as road transport, which reduced labour court reclassification. Fraud is still reviewed.ADPF 324 and RE 958.252 (Tema 725); ADC 48
Suspended enforcementOn 6 July 2026 a justice suspended execution of a final labour ruling on pejotizacao, pending Tema 1389. This shows the issue is still open.Rcl 96.493 (STF, 6 July 2026)
Work with independents in Brazil, with the paperwork handled
FreelanX Contractors: from $19 per month. FreelanX Contractors+ from $279.
Work permits: key figures
Where a figure is from a past year, the text says so.
VITEM V
Work visa with employerTemporary visa and residence for a foreign employee with a Brazilian employer, usually 2 years and renewable.
2/3
Brazilian staff ruleCompanies with 3 or more employees must keep two thirds of staff Brazilian, with exceptions.
Work permits in practice
Legal basisMigration Law and its decree set the framework. Residence authorisations for work are governed by Normative Resolutions of the National Immigration Council (CNIg), by activity.Lei 13.445/2017; Decree 9.199/2017; CNIg Normative Resolutions
Employer-sponsored work visaThe Brazilian employer files with the Ministry of Labour; the visa (VITEM V) is issued by the consulate. After arrival the foreigner registers with the Federal Police.Lei 13.445/2017 Art. 14; Decree 9.199/2017
DocumentsTypically: employment contract, degree or proof of experience, criminal record, company papers. Foreign documents are apostilled and translated.Ministry of Justice (MJSP) guidance
Digital nomad visaRemote worker visa for up to 1 year (extendable), income from abroad of about USD 1,500 monthly or USD 18,000 in funds. It does not allow work for Brazilian clients.CNIg RN 45/2021
Mercosur residenceCitizens of Mercosur and associated states can get residence without a job offer, and may work freely.Mercosur Residence Agreement; Decree 9.199/2017
Tax and registrationForeign employees get a CPF (tax ID) and a CTPS, and join INSS and FGTS like Brazilians. Social security treaties may exempt some workers.Lei 8.212/1991; bilateral social security agreements
Family and permanent residenceSpouses and children may obtain family reunion residence. Temporary residents can convert to permanent residence after a qualifying period.Lei 13.445/2017 Art. 30
Processing times and thresholds change by ordinance; confirm with the Ministry of Labour before filing.
Main sources
The law or official source behind each key point, as of October 2026.
TopicSource
Minimum wage 2026 (R$1,621)Federal decree; press reports (several outlets)
INSS 20%, FGTS 8%, Sistema S ratesLei 8.212/1991, Lei 8.036/1990; general guides
Notice periods (Lei 12.506)Lei 12.506/2011; Art. 487 CLT
40% FGTS fine and Art. 484-ALei 8.036/1990 Art. 18; Art. 484-A CLT
Probation (90 days, Art. 445)Arts. 445, 479, 481 CLT
Annual leave and 1/3 bonusArt. 7 XVII CF; Arts. 130-143 CLT
13th salary datesLei 4.090/1962; Lei 4.749/1965
Working week and 6x1 amendmentPress reports of 2 Sep 2026
Home office rulesArts. 75-A to 75-E CLT; Lei 14.442/2022
Reclassification test (Arts. 2, 3, 9 CLT)CLT text
STF pejotizacao Tema 1389 statusSTF, ARE 1.532.603 (Tema 1389)
National holidays 2026Lei 14.759/2023; calendar computation
Income tax exemption 2026Lei 15.270/2025
Visas (VITEM V, digital nomad)Lei 13.445/2017; Decree 9.199/2017; CNIg resolutions
General information, updated monthly. It is not legal advice: for a decision, talk to us or to your counsel.
What to watch
Rules that are changing, or that vary by region or sector.
- 6x1 / 40-hour constitutional amendment (PEC 221/2019): the Senate opened floor debate on 6 October 2026, with the first-round vote planned for mid-October and the second round after 25 October. If adopted, employers get two rest days and a 42-hour week two months after promulgation, and the 40-hour week twelve months later.
- STF Tema 1389 (pejotizacao): no final ruling yet. Since 18 June 2026 cases can again go through the labour courts up to the regional courts (TRTs), but they are held at the TST until the STF decides.
- Yearly figures: the INSS contribution ceiling is updated every January (R$8,475.55 in 2026). Since January 2026, monthly income up to R$5,000 is exempt from income tax under Lei 15.270/2025. Check the current tables before running payroll.
- Paternity leave rises under Lei 15.371/2026: 10 days in 2027, 15 in 2028 and 20 in 2029 (the last step depends on fiscal targets). The employer pays and is reimbursed by the INSS.
Changelog
Oct 2026Guide rebuilt for Brazil with 2026 figures and sources.Brazil
Next reviewJanuary 2027, when new yearly rates are published.Planned
Hire in Mexico, start to finish
FreelanX EOR is the legal employer in Mexico. We issue the contract, run payroll and declarations, and you manage the work day to day.
1Request
Tell us the role, salary and start date.
2Contract
Mexico employment contract and written terms prepared.
3Registrations
Tax, social security and insurance registrations.
4Start date
Your collaborator starts, on payroll from day one.
5–20 days in totalfor Latin America with FreelanX EOR. The exact time depends on how fast documents arrive.
Labour law is federal
The LFT applies in all states. Only payroll tax (ISN) and some procedures differ by state.
Dismissal is costly
Without a proven cause the employee may claim reinstatement or severance of 3 months plus 20 days per year, with back pay.
Mandatory year-end bonus
Aguinaldo of at least 15 days of pay is due by 20 December each year.
Profit sharing (PTU)
Employers owe 10% of taxable profit to employees, paid within 60 days after the annual tax return. Limits and exemptions apply.
Outsourcing is restricted
Since 2021 subcontracting of personnel is banned. Only specialised services by REPSE-registered providers are allowed.
40-hour week is phasing in
The 2026 reform cuts the weekly maximum from 48 hours to 40 hours in steps by 2030. Check current rules before setting schedules.
Five mistakes to avoid
The ones we see most often when a team hires in Mexico for the first time.
Treating staff as honorarios
Calling a full-time, directed worker a contractor does not stop the law presuming an employment relationship.
Art. 20 and 21 LFTUsing a subcontracting scheme for staff
Supplying personnel through a third party is prohibited and the receiving company becomes the employer. Specialised services need a REPSE registration.
Art. 12-15 LFT (reform of 23 Apr 2021)Dismissing without written notice
A dismissal for cause must be notified in writing with date and reasons. Missing notice makes it unjustified by default.
Art. 47 last paragraph LFTUnder-declaring salary to IMSS
Social security is based on integrated daily salary (SBC), which includes aguinaldo, vacation premium and regular benefits. Under-reporting brings assessments and fines.
Art. 27 Ley del Seguro SocialSkipping signed settlements
A resignation or settlement agreement is only safe if it is in writing, itemised and ratified before the labour authority.
Art. 33 LFTContract rules that matter
Form of contractA written contract is required. If missing, the employer bears the burden and the relationship is presumed indefinite. Contents include job, place, pay, hours and start date.Art. 24, 25, 26 LFT
Contract durationIndefinite is the default. Fixed-term or specific-work contracts are valid only if the nature of the work requires it, and renew automatically while the work continues.Art. 35-39 LFT
ProbationUp to 30 days, extendable to 180 days for management, technical or specialised posts. Must be written, and cannot be repeated for the same worker.Art. 39-A, 39-B LFT
Initial trainingA paid initial training period of up to 3 months (up to 6 months for management and specialised posts) may be agreed in writing.Art. 39-B LFT
Non-competePost-employment non-competes are weakly enforceable because they can restrict the constitutional freedom to work. Confidentiality clauses are the safer tool.Art. 5 Constitution; Art. 5 LFT
Remote workWhere a worker works from home for over 40% of the time, telework rules apply: written terms, equipment and cost reimbursement, and a right to disconnect.Art. 330-A to 330-K LFT; NOM-037
Collective agreements and unionsCollective bargaining agreements require union legitimacy checks since the 2019 reform. Employers must also comply with NOM-035 on psychosocial risks.Art. 390 Bis LFT; NOM-035-STPS
Platform workersA 2024 reform created specific rules for digital platform delivery and ride workers, with social security coverage based on income. It does not affect ordinary employees.Decree of 24 Dec 2024 amending LFT (Chapter IX Bis, Arts. 291-A to 291-U)
Employer cost simulator
Pick a salary. Figures use the current rates and ceilings for a standard professional salary. Estimates, not a quote.
Gross yearly salary (MXN)
Employer share of statutory contributions
MX$72,940
20.3% of gross salary
Estimated total employer cost
MX$448,875 – MX$456,075
Gross salary + contributions + other employer costs (MX$15,935 to MX$23,135)
IMSS sickness and maternity: excess over 3 UMA
Employer rate on SBC above 3 UMA only. Cap is 25 UMA (UMA 2026 MX$117.31 per day). A fixed quota is listed separately.
MX$2,547IMSS pensioners medical expenses
On SBC up to 25 UMA.
MX$3,780IMSS cash benefits (sickness)
On SBC up to 25 UMA.
MX$2,520IMSS work risk premium
Class I (office work) minimum premium. Actual premium depends on risk class and claims history.
MX$1,957IMSS disability and life
On SBC up to 25 UMA.
MX$6,300IMSS childcare and social benefits
On SBC up to 25 UMA.
MX$3,600SAR retirement
Paid to the worker's individual pension account.
MX$7,200Cesantia and vejez (employer)
2026 rate for SBC above 4.01 UMA under the 2020 pension reform (phased in from 2023). Lower bands: 3.15% (1 minimum wage) to 6.61% (3.51-4.00 UMA). Rises each year to 2030.
MX$27,036INFONAVIT housing fund
Paid to the worker's housing account on SBC up to 25 UMA.
MX$18,000Employer share of statutory contributions
MX$122,508
20.4% of gross salary
Estimated total employer cost
MX$743,243 – MX$755,243
Gross salary + contributions + other employer costs (MX$20,735 to MX$32,735)
IMSS sickness and maternity: excess over 3 UMA
Employer rate on SBC above 3 UMA only. Cap is 25 UMA (UMA 2026 MX$117.31 per day). A fixed quota is listed separately.
MX$5,187IMSS pensioners medical expenses
On SBC up to 25 UMA.
MX$6,300IMSS cash benefits (sickness)
On SBC up to 25 UMA.
MX$4,200IMSS work risk premium
Class I (office work) minimum premium. Actual premium depends on risk class and claims history.
MX$3,261IMSS disability and life
On SBC up to 25 UMA.
MX$10,500IMSS childcare and social benefits
On SBC up to 25 UMA.
MX$6,000SAR retirement
Paid to the worker's individual pension account.
MX$12,000Cesantia and vejez (employer)
2026 rate for SBC above 4.01 UMA under the 2020 pension reform (phased in from 2023). Lower bands: 3.15% (1 minimum wage) to 6.61% (3.51-4.00 UMA). Rises each year to 2030.
MX$45,060INFONAVIT housing fund
Paid to the worker's housing account on SBC up to 25 UMA.
MX$30,000Employer share of statutory contributions
MX$184,469
20.5% of gross salary
Estimated total employer cost
MX$1,111,204 – MX$1,129,204
Gross salary + contributions + other employer costs (MX$26,735 to MX$44,735)
IMSS sickness and maternity: excess over 3 UMA
Employer rate on SBC above 3 UMA only. Cap is 25 UMA (UMA 2026 MX$117.31 per day). A fixed quota is listed separately.
MX$8,487IMSS pensioners medical expenses
On SBC up to 25 UMA.
MX$9,450IMSS cash benefits (sickness)
On SBC up to 25 UMA.
MX$6,300IMSS work risk premium
Class I (office work) minimum premium. Actual premium depends on risk class and claims history.
MX$4,892IMSS disability and life
On SBC up to 25 UMA.
MX$15,750IMSS childcare and social benefits
On SBC up to 25 UMA.
MX$9,000SAR retirement
Paid to the worker's individual pension account.
MX$18,000Cesantia and vejez (employer)
2026 rate for SBC above 4.01 UMA under the 2020 pension reform (phased in from 2023). Lower bands: 3.15% (1 minimum wage) to 6.61% (3.51-4.00 UMA). Rises each year to 2030.
MX$67,590INFONAVIT housing fund
Paid to the worker's housing account on SBC up to 25 UMA.
MX$45,000Employer share of statutory contributions
MX$219,679
18.3% of gross salary
Estimated total employer cost
MX$1,452,414 – MX$1,476,414
Gross salary + contributions + other employer costs (MX$32,735 to MX$56,735)
IMSS sickness and maternity: excess over 3 UMA
Employer rate on SBC above 3 UMA only. Cap is 25 UMA (UMA 2026 MX$117.31 per day). A fixed quota is listed separately.
MX$10,362IMSS pensioners medical expenses
On SBC up to 25 UMA.
MX$11,240IMSS cash benefits (sickness)
On SBC up to 25 UMA.
MX$7,493IMSS work risk premium
Class I (office work) minimum premium. Actual premium depends on risk class and claims history.
MX$5,819IMSS disability and life
On SBC up to 25 UMA.
MX$18,733IMSS childcare and social benefits
On SBC up to 25 UMA.
MX$10,705SAR retirement
Paid to the worker's individual pension account.
MX$21,410Cesantia and vejez (employer)
2026 rate for SBC above 4.01 UMA under the 2020 pension reform (phased in from 2023). Lower bands: 3.15% (1 minimum wage) to 6.61% (3.51-4.00 UMA). Rises each year to 2030.
MX$80,393INFONAVIT housing fund
Paid to the worker's housing account on SBC up to 25 UMA.
MX$53,524Employer share of statutory contributions
MX$219,679
12.2% of gross salary
Estimated total employer cost
MX$2,064,414 – MX$2,100,414
Gross salary + contributions + other employer costs (MX$44,735 to MX$80,735)
IMSS sickness and maternity: excess over 3 UMA
Employer rate on SBC above 3 UMA only. Cap is 25 UMA (UMA 2026 MX$117.31 per day). A fixed quota is listed separately.
MX$10,362IMSS pensioners medical expenses
On SBC up to 25 UMA.
MX$11,240IMSS cash benefits (sickness)
On SBC up to 25 UMA.
MX$7,493IMSS work risk premium
Class I (office work) minimum premium. Actual premium depends on risk class and claims history.
MX$5,819IMSS disability and life
On SBC up to 25 UMA.
MX$18,733IMSS childcare and social benefits
On SBC up to 25 UMA.
MX$10,705SAR retirement
Paid to the worker's individual pension account.
MX$21,410Cesantia and vejez (employer)
2026 rate for SBC above 4.01 UMA under the 2020 pension reform (phased in from 2023). Lower bands: 3.15% (1 minimum wage) to 6.61% (3.51-4.00 UMA). Rises each year to 2030.
MX$80,393INFONAVIT housing fund
Paid to the worker's housing account on SBC up to 25 UMA.
MX$53,524State payroll tax (ISN) on total payroll. It varies by state, often about 2% to 4%. Mexico City is 4% since 1 January 2025. Rate and base differ by state, so confirm locally.
Pay and contribution rules
Minimum wage 2026MX$315.04 per day in the general zone (up 13% from 2025) and MX$440.87 per day in the northern border free zone. Applies to all workers regardless of age.CONASAMI resolution for 2026
AguinaldoAt least 15 days of salary, paid by 20 December. Partial years are paid pro rata. It is part of the SBC base for social security.Art. 87 LFT
Vacation premiumAt least 25% of the pay for vacation days, paid when the leave is taken.Art. 80 LFT
Profit sharing (PTU)10% of taxable profit shared among employees, paid within 60 days of the annual tax filing (about end of May for companies). Capped at 3 months of pay or the 3-year average PTU, whichever is higher.Art. 117, 120, 122, 127 LFT
Income tax withholdingEmployer withholds monthly income tax (ISR) on a progressive scale with a top rate of 35% and pays it to the tax authority. Low earners may get an employment subsidy.Art. 96 Ley del ISR
Payslip and e-invoiceEach payroll must be issued as a digital tax receipt (CFDI de nomina) through the tax authority. Pay must be in legal currency and at set intervals.Art. 99 Ley del ISR; Art. 88 LFT
Payroll cycleManual workers are paid at most weekly, other workers at most every 15 days. Monthly pay is not usual for employees.Art. 88 LFT
Working time
Weekly hours 2026The reform lowers the legal weekly maximum in steps: 48 hours in 2026, 46 in 2027, 44 in 2028, 42 in 2029, 40 in 2030, with no pay cut. Constitutional reform published March 2026.Constitutional reform, DOF 3 Mar 2026; LFT amendment, DOF 1 May 2026
Daily limitsDay shift 8 hours, night shift 7 hours, mixed shift 7.5 hours. Daily hours including overtime may not exceed 12 hours.Art. 60, 61 LFT
OvertimePaid at 200% for the first overtime hours per week (9 hours in 2026, rising to 12 by 2030) and 300% above that. Overtime is capped at 4 hours a day on up to 4 days a week. Needs worker agreement.Art. 66-68 LFT as amended 2026
Rest days and SundayOne paid rest day for each six days worked. Work on a rest day is paid double on top of normal pay. Sunday work carries a 25% premium. Work on a public holiday is paid double.Art. 69, 71, 73, 75 LFT
BreaksA rest of at least 30 minutes is required when the shift is continuous.Art. 63 LFT
Time recordingThe 2026 reform requires an electronic record of start and end of each shift. The labour ministry will set scope and exceptions.LFT amendment, DOF 1 May 2026 (electronic record from 1 Jan 2027)
Leave and absences
Annual leave12 working days after year 1, then +2 days a year to 20 days in year 5, then +2 days for every five years of service. Must be taken within 6 months of the anniversary.Art. 76, 81 LFT (reform 2023)
Sick leaveNo employer sick pay. IMSS pays 60% of SBC from the 4th day for up to 52 weeks, extendable by 52 weeks. Work-risk absences are paid at 100%.Art. 96, 58 Ley del Seguro Social
Maternity6 weeks before and 6 weeks after birth (transferable up to 4 weeks), paid at 100% by IMSS. Right to return to the same job within one year.Art. 170 LFT; Art. 101 LSS
Paternity5 paid working days for fathers on birth or adoption, paid by the employer.Art. 132 XXVII Bis LFT
Public holiday payStatutory holidays are paid. Work on those days is paid double on top of the normal day.Art. 74, 75 LFT
Statutory minimum paid leave, in weeks
How Mexico compares with the other markets in this guide, for a 5-day week. Each country has its own verified figure.
Argentina2 weeks
Mexico2.4 weeks
Brazil4.3 weeks
Public holidays 2026
National days plus regional days. Hover a dot to see its name.
JFMAMJJASOND
Thu 1 JanNational
New Year's DayMon 2 FebNational
Constitution Day (first Monday of February)Mon 16 MarNational
Benito Juarez birthday (third Monday of March)Fri 1 MayNational
Labour DayWed 16 SepNational
Independence DayMon 16 NovNational
Revolution Day (third Monday of November)Fri 25 DecNational
Christmas DaySeven statutory days, all on weekdays in 2026. Holy Thursday and Good Friday (2-3 April) are customary, not statutory, unless the contract says so. Federal election days and the 1 October presidential handover (next in 2030) are extra holidays.
Notice periods set by the employer
Hover a row. Bars are drawn to scale.
Probation (up to 30 or 180 days)No notice. Employer may end the relationship if the worker fails the evaluation
Under 1 yearNo notice. Unjustified dismissal: 3 months pay plus 20 days per year
1 to 2 yearsNo notice. Severance about 3.7 to 4.3 months of pay
3 to 5 yearsNo notice. Severance about 5 to 6.3 months of pay
5 to 10 yearsNo notice. Severance about 6.3 to 9.7 months of pay
10 to 20 yearsNo notice. Severance about 9.7 to 16.3 months of pay
Over 20 yearsNo notice. Severance over 16.3 months of pay, plus seniority premium
The LFT sets no notice period for employer terminations. Dismissal for cause needs written notice with reasons. Employees may resign freely, and no notice is legally required, though contracts often ask for 15 to 30 days. Seniority premium of 12 days per year (daily pay capped at 2 minimum wages) is added at termination.
Rules for ending an employment
Form and procedureDismissal for cause requires written notice stating date and reasons, given to the worker or filed with the labour authority. Without it the dismissal is presumed unjustified.Art. 47 LFT
Valid groundsSerious fault by the worker, such as dishonesty, violence, repeated absence, or disobedience. Dismissal for economic reasons needs a collective procedure. Employer must prove the cause.Art. 47, 51 LFT
Unjustified dismissalWorker may choose reinstatement or severance: 3 months of pay plus 20 days per year of service, plus back pay up to 12 months, then 2% monthly interest on 15 months of pay.Art. 48, 50 LFT
Seniority premium12 days of pay per year of service, daily pay capped at twice the minimum wage. Due on dismissal and on resignation after 15 years.Art. 162 LFT
Special protectionsDismissal linked to pregnancy, union activity, sexual harassment complaints, illness or discrimination is risky and can lead to forced reinstatement. Trusted (confidence) staff and some roles may lose reinstatement but keep severance.Art. 49, 133, 154 LFT
Collective dismissalMass termination for economic reasons needs authorisation and a specific procedure with the labour tribunal and worker representatives.Art. 434-439 LFT
Claims and conciliationDismissal claims must be filed within 2 months, other claims within 1 year. Mandatory conciliation at the federal or state conciliation centre comes before court.Art. 516, 518, 684-A LFT
With FreelanX EOR, ending an employment is run by FreelanX EOR under local law, and the process is agreed with you before any step.
Six signals checked by the authorities
No single signal decides. Authorities and courts weigh the whole picture and look at how the work is really done, not only at the contract.
Source for the criteria: Art. 20 and 21 LFT (employment relationship presumed whenever personal subordinated work is given); labour courts apply substance over contract label. Confirm with a local lawyer for a specific case.
Getting certainty on the status
How to check the status in advance, or what happens in an audit.
1Contract for services
Use a professional services contract with a defined deliverable, fee and no supervision. The label alone does not decide the case.
2Documents of independence
Keep tax registration, invoices (CFDI), proof of other clients and proof of own tools.
3Tax and social set-up
The contractor invoices with a valid tax regime. Client may need to withhold tax and VAT on certain payments, as the rules differ by regime.
4Review before audit
Check each contract against the six criteria yearly. If the person works like an employee, move them to payroll.
There is no official ruling procedure. An employee-type claim is decided by the labour court after the fact, with the burden of proof on the client.
What a reclassification can cost
Back-payment of contributions, penalties and, in some countries, personal liability.
Employment presumed
A relationship that meets Art. 20 is treated as employment. The client owes all benefits retroactively: aguinaldo, vacation, premium, PTU and severance.
Art. 21 LFT
1 year
Labour claims normally expire after 1 year, and claims on dismissal after 2 months from the date of dismissal.
Art. 516, 518 LFT
5 years
Unpaid social security contributions can be assessed for up to 5 years, with surcharges and fines.
Art. 67 Codigo Fiscal; Ley del Seguro Social
Fines
Labour inspections can fine employers per affected worker. Subcontracting breaches also affect tax deductibility and VAT credit.
Art. 992-994 LFT; 2021 outsourcing reform
Self-employed contractors: tax and social security
Tax regimesIndividuals can invoice under professional services (honorarios), business activity or the simplified RESICO regime (low flat rates, annual income cap of MX$3.5 million).Ley del ISR, RESICO (Arts. 113-E to 113-J)
Social securityIndependent workers are not forced into IMSS. They can join voluntarily (Modalidad 10) and pay both employer and worker shares.Ley del Seguro Social
Company withholdingA company paying an individual for professional services usually withholds income tax and part of VAT. The amounts depend on the tax regime.Ley del ISR Art. 106; Ley del IVA Art. 1-A
Work with independents in Mexico, with the paperwork handled
FreelanX Contractors: from $19 per month. FreelanX Contractors+ from $279.
Work permits: key figures
Where a figure is from a past year, the text says so.
4 years
Temporary residentResidente Temporal with permission to work is issued for up to 4 years and tied to a job offer.
90%
Mexican staff ruleAt least 90% of employees in each category must be Mexican, with limits for foreigners in technical roles.
Work permits in practice
Main permitTemporary resident visa with permission to work. The employer registers with the national immigration institute (INM), submits a job offer, and receives a case number for the consulate.Ley de Migracion Art. 52; Reglamento
StepsEmployer files the offer with INM, the worker applies at a Mexican consulate, enters Mexico, then exchanges the visa for a residence card within 30 days.Ley de Migracion; INM guidance
Work not allowedVisitor status without permission to carry out paid activities does not allow work. Paid work without permission risks fines and removal.Ley de Migracion Art. 52, 144
Employer proportionForeign employees must stay below 10% of each category in a company, and cannot hold general-manager or similar certain roles in some cases.Art. 7 LFT
Permanent residenceTemporary residents can apply for permanent residence after 4 years. Other routes exist for family and a points system.Ley de Migracion Art. 54
FamilySpouse and children can be granted temporary residence as dependants, with permission to work in some cases.Ley de Migracion Arts. 52 and 55
Remote workersThere is no specific digital nomad permit. Foreigners paid from abroad generally use temporary resident rules and income tests set by the consulate.INM and consular guidelines (Lineamientos)
TimingProcessing depends on the consulate and INM office. Plan several weeks. Rules and fees change often.INM
Foreign employees working in Mexico are covered by IMSS and taxed in Mexico on Mexican-source income. Immigration rules change often, so confirm with INM before hiring.
Main sources
The law or official source behind each key point, as of October 2026.
TopicSource
2026 minimum wageCONASAMI 2026 resolution; hacecuentas.com, Lockton note
UMA 2026 and 25 UMA capINEGI release 1/26; hacecuentas.com
Employer CEAV rates 2026Art. 168 LSS (transitory 2020 reform); elcontribuyente.mx
Other IMSS employer ratesLey del Seguro Social
INFONAVIT 5% and SAR 2%Ley del INFONAVIT; LSS Art. 168
State payroll tax (ISN)State fiscal codes
Aguinaldo and vacation premiumArt. 80, 87 LFT
Vacation reform 2023Art. 76 LFT
PTU 10%Art. 117-127 LFT
Outsourcing reform 2021 and REPSEDOF 23 Apr 2021
40-hour week reformBaker McKenzie Apr 2026; Holland & Knight Mar 2026; Expansion
Severance and terminationArt. 47-50, 162 LFT
Public holidays 2026Art. 74 LFT
Work permitsLey de Migracion; INM
Contractor risk (Art. 20, 21 LFT)LFT
General information, updated monthly. It is not legal advice: for a decision, talk to us or to your counsel.
What to watch
Rules that are changing, or that vary by region or sector.
- Employer pension contributions (CEAV) rise every year until 2030 for pay above the minimum wage, under the 2020 pension reform. Use the current IMSS table for the year.
- 40-hour week: the weekly limit drops in steps from 48 hours in 2026 to 40 hours in 2030. The LFT amendment published in the DOF on 1 May 2026 also sets new overtime limits and makes electronic time records mandatory from 2027.
- State payroll tax (ISN) is set by each state, so the rate depends on where staff work. Mexico City raised its rate from 3% to 4% from 1 January 2025.
Changelog
Oct 2026Guide rebuilt for Mexico with 2026 figures and sources.Mexico
Next reviewJanuary 2027, when new yearly rates are published.Planned
Hire in Argentina, start to finish
FreelanX EOR is the legal employer in Argentina. We issue the contract, run payroll and declarations, and you manage the work day to day.
1Request
Tell us the role, salary and start date.
2Contract
Argentina employment contract and written terms prepared.
3Registrations
Tax, social security and insurance registrations.
4Start date
Your collaborator starts, on payroll from day one.
5–20 days in totalfor Latin America with FreelanX EOR. The exact time depends on how fast documents arrive.
LCT 20.744 sets the floor
National labour law applies across all provinces. Collective agreements (CCT) by sector add pay scales and benefits that employers must follow.
Reform in force, still contested
Ley 27.802 (published 6 Mar 2026) is in force since a court suspension was lifted on 23 Apr 2026. The CGT union challenge on the merits is pending.
Two aguinaldo payments
Employees receive a half-month bonus (SAC) each half year, due 30 June and 18 December. It is a mandatory cost of about 8.33% of pay.
Employer costs about 26% plus ART
Social security contributions are charged up to a monthly ceiling that changes monthly (AR$4,594,798 from Aug 2026). ART accident cover is extra.
Employee must be registered
The employer must register the worker with ARCA (alta temprana) before work starts. Unregistered work carries heavy exposure.
Contractors are risky
Argentine law presumes an employment relationship where services are provided. Monotributo invoices do not protect against reclassification.
Five mistakes to avoid
The ones we see most often when a team hires in Argentina for the first time.
Treating a monotributista as a contractor
Long-term, exclusive, supervised work billed by monotributo invoice is often reclassified as employment, with back pay and contributions.
Arts. 21-23 LCT 20.744Missing the alta temprana
Starting work before registering the employee with ARCA creates unregistered-work exposure and penalties, even for one day.
Law 24.013; ARCA alta temprana rulesUsing outdated probation or notice rules
Older guides say 3 months probation and 15 days notice in probation. Probation became 6 months for hires from 9 July 2024 (Law 27.742), and Law 27.802 removed the notice in 2026. Confirm the rule in force at the hire date.
Art. 92 bis and Art. 231 LCT as amended by Law 27.802Ignoring the sector collective agreement
CCT scales and allowances often exceed the SMVM. Paying only the minimum wage can leave large arrears claims.
Law 14.250Paying in foreign currency without checking
Law 27.802 allows pay in foreign currency, and US dollar salary accounts exist since July 2026. Exchange rules still limit transfers abroad, so set up the payment flow first.
Law 27.802 (Art. 105 LCT); BCRA exchange rulesContract rules that matter
Form of contractOpen-ended is the default. Written form is not required for ordinary contracts, but is advisable. Fixed-term, seasonal and eventual contracts need a justified cause.Arts. 90, 93-99 LCT
ProbationLaw 27.742 (2024) raised probation from 3 to 6 months, with up to 8 months (6 to 100 staff) or 12 months (up to 5 staff) where a collective agreement allows. Law 27.802 kept 6 months and removed notice during probation. Dismissal in probation needs no notice or severance.Art. 92 bis LCT as amended by Laws 27.742 and 27.802
Fixed-term contractsAllowed only if the nature of the work justifies it, in writing, maximum 5 years. If longer than 1 year, notice of 1 to 2 months is needed before the end.Arts. 90, 93, 94 LCT
RegistrationThe employer must register the employee with ARCA before the start date and give an electronic CUIL-linked record. Payroll is filed monthly with ARCA (F.931).Law 24.013 art. 7; ARCA
Collective agreementsSector CCTs, negotiated by unions, apply to all employees of the sector and set pay scales, allowances and extra rules. Union dues and the 2% cap for non-members were changed by the reform.Law 14.250; Law 27.802
Non-compete and confidentialityThe LCT has no explicit post-employment non-compete rule. Courts accept reasonable, limited and paid restrictions. Duty of loyalty and confidentiality apply during employment.Arts. 85, 88 LCT; case law
Remote workThe telework law 27.555 applies today. Law 27.802 repeals it from 1 January 2027. Check the replacement rules before hiring remote staff.Law 27.555; Law 27.802
Employer cost simulator
Pick a salary. Figures use the current rates and ceilings for a standard professional salary. Estimates, not a quote.
Gross yearly salary (ARS)
Employer share of statutory contributions
AR$7,923,000
26.4% of gross salary
Estimated total employer cost
AR$38,177,695 – AR$38,537,695
Gross salary + contributions + other employer costs (AR$254,695 to AR$614,695)
Pension (SIPA)
Rate for services and commerce employers above MiPyME limits. MiPyME employers pay a lower total (18%). Ceiling AR$4,594,798 per month from Aug 2026.
AR$3,705,000PAMI (INSSJP)
Retirees health institute. Standard rate for larger employers.
AR$474,000Family allowances
Asignaciones familiares (SUAF).
AR$1,620,000National Employment Fund
Fondo Nacional de Empleo.
AR$324,000Obra social (health)
Employer share to the worker's chosen health fund. Cap for this item not fully confirmed.
AR$1,800,000Employer share of statutory contributions
AR$11,884,500
26.4% of gross salary
Estimated total employer cost
AR$57,259,195 – AR$57,799,195
Gross salary + contributions + other employer costs (AR$374,695 to AR$914,695)
Pension (SIPA)
Rate for services and commerce employers above MiPyME limits. MiPyME employers pay a lower total (18%). Ceiling AR$4,594,798 per month from Aug 2026.
AR$5,557,500PAMI (INSSJP)
Retirees health institute. Standard rate for larger employers.
AR$711,000Family allowances
Asignaciones familiares (SUAF).
AR$2,430,000National Employment Fund
Fondo Nacional de Empleo.
AR$486,000Obra social (health)
Employer share to the worker's chosen health fund. Cap for this item not fully confirmed.
AR$2,700,000Employer share of statutory contributions
AR$14,561,835
24.3% of gross salary
Estimated total employer cost
AR$75,056,530 – AR$75,776,530
Gross salary + contributions + other employer costs (AR$494,695 to AR$1,214,695)
Pension (SIPA)
Rate for services and commerce employers above MiPyME limits. MiPyME employers pay a lower total (18%). Ceiling AR$4,594,798 per month from Aug 2026.
AR$6,809,491PAMI (INSSJP)
Retirees health institute. Standard rate for larger employers.
AR$871,174Family allowances
Asignaciones familiares (SUAF).
AR$2,977,429National Employment Fund
Fondo Nacional de Empleo.
AR$595,486Obra social (health)
Employer share to the worker's chosen health fund. Cap for this item not fully confirmed.
AR$3,308,255Employer share of statutory contributions
AR$14,561,835
18.2% of gross salary
Estimated total employer cost
AR$95,216,530 – AR$96,176,530
Gross salary + contributions + other employer costs (AR$654,695 to AR$1,614,695)
Pension (SIPA)
Rate for services and commerce employers above MiPyME limits. MiPyME employers pay a lower total (18%). Ceiling AR$4,594,798 per month from Aug 2026.
AR$6,809,491PAMI (INSSJP)
Retirees health institute. Standard rate for larger employers.
AR$871,174Family allowances
Asignaciones familiares (SUAF).
AR$2,977,429National Employment Fund
Fondo Nacional de Empleo.
AR$595,486Obra social (health)
Employer share to the worker's chosen health fund. Cap for this item not fully confirmed.
AR$3,308,255Employer share of statutory contributions
AR$14,561,835
12.1% of gross salary
Estimated total employer cost
AR$135,536,530 – AR$136,976,530
Gross salary + contributions + other employer costs (AR$974,695 to AR$2,414,695)
Pension (SIPA)
Rate for services and commerce employers above MiPyME limits. MiPyME employers pay a lower total (18%). Ceiling AR$4,594,798 per month from Aug 2026.
AR$6,809,491PAMI (INSSJP)
Retirees health institute. Standard rate for larger employers.
AR$871,174Family allowances
Asignaciones familiares (SUAF).
AR$2,977,429National Employment Fund
Fondo Nacional de Empleo.
AR$595,486Obra social (health)
Employer share to the worker's chosen health fund. Cap for this item not fully confirmed.
AR$3,308,255ART work-accident insurance varies by insurer and sector risk, plus a fixed monthly sum per worker. From 1 Nov 2026 the FAL (Fondo de Asistencia Laboral) adds 1% of pay for large employers and 2.5% for MiPyMEs, to fund severance; some employer contribution reductions apply. New hires under RIFL get reduced employer rates for 48 months.
Pay and contribution rules
Minimum wage (SMVM)AR$391,200 monthly from 1 Oct 2026 (AR$1,956 per hour). Scheduled: AR$398,800 Nov, AR$406,400 Dec 2026, AR$414,200 Jan 2027. Source dated 2 Sep 2026.Resolution 4/2026 Consejo del Salario
Aguinaldo (SAC)50% of the highest monthly pay in each half year, paid by 30 June and 18 December. Proportional if the employee worked less than the full half year.Law 23.041; Decree 1078/84
Payment rulesPay by bank transfer, monthly, within 4 business days after month end. A payslip (recibo) is required. Salary is protected from most deductions.Arts. 124, 128, 138-140 LCT
Income tax withholdingEmployer withholds Ganancias (4th category) from pay under progressive monthly scales. Bracket amounts are updated during the year, so use ARCA's current table.Ley de Impuesto a las Ganancias; ARCA
Employee contributionsEmployee pays about 17% (11% pension, 3% PAMI, 3% obra social), withheld by the employer, up to the same monthly ceiling.Law 24.241; Law 19.032; Law 23.660
Foreign currency payLaw 27.802 authorises pay in pesos or foreign currency (Art. 105 LCT). Since 27 July 2026 banks can open US dollar salary accounts (BCRA Communication A 8460). Currency transfers abroad still have rules.Law 27.802 (Art. 105 LCT)
Profit sharingNo general mandatory profit sharing for private employees. Some CCTs and company policies add bonuses and allowances.LCT; CCTs
Working time
Standard hours8 hours a day and 48 hours a week. Night work (21:00 to 06:00) is limited to 7 hours a night and 36 hours a week.Law 11.544; Arts. 196-200 LCT
OvertimePaid at 50% extra on weekdays and 100% extra on Saturday after 13:00, Sundays and holidays. Limits: 3 hours a day, 48 a month, 320 a year.Art. 201 LCT; Decree 484/87
Hours bankLaw 27.802 allows overtime to be compensated with an hours bank and compensatory days off if minimum rest is kept. Rules in the CCT may apply.Law 27.802 (Art. 105 LCT)
Rest periods12 hours minimum between workdays. Weekly rest of 35 consecutive hours (Saturday 13:00 to Monday). Work on the weekly rest day needs a compensatory day.Arts. 197, 204 LCT; Law 18.204
Part-timeLaw 27.802 removed the previous limit of two thirds of the usual working day for part-time contracts. Pay is proportional.Art. 92 ter LCT as amended by Law 27.802
Time recordsEmployers must keep a record of hours worked and overtime. Hours are inspected by the labour authority.Art. 52 LCT; Law 11.544
Leave and absences
Annual leave14 calendar days under 5 years of service, 21 from 5, 28 from 10, 35 from 20 years. Needs half the year worked. Law 27.802 allows splitting into blocks of at least one week.Arts. 150-151 LCT; Law 27.802
Sick leavePaid up to 3 months a year with 5 years or less of service and no dependants, 6 months with dependants. Doubled with more than 5 years of service. Medical certificates are required.Art. 208 LCT
Maternity90 days of paid leave (45 before and 45 after birth), paid by ANSES. Employee may choose 30 before and 60 after.Art. 177 LCT
Paternity and family2 days paternity leave, 10 days for marriage, and days for bereavement. Collective agreements may grant more.Art. 158 LCT
Public holidaysEmployees working on a public holiday are paid double. 11 holidays do not move, others are movable by decree.Law 27.399; Art. 166-167 LCT
Statutory minimum paid leave, in weeks
How Argentina compares with the other markets in this guide, for a 5-day week. Each country has its own verified figure.
Argentina2 weeks
Mexico2.4 weeks
Brazil4.3 weeks
Public holidays 2026
National days plus regional days. Hover a dot to see its name.
JFMAMJJASOND
Thu 1 JanNational
New Year's DayMon 16 FebNational
Carnival MondayTue 17 FebNational
Carnival TuesdayMon 23 Mar
Bridge day (non-working day)Employer may choose
Tue 24 MarNational
Day of Remembrance for Truth and JusticeThu 2 AprNational
Malvinas Veterans Day (also Holy Thursday)Fri 3 AprNational
Good FridayFri 1 MayNational
Labour DayMon 25 MayNational
May Revolution DayMon 15 JunNational
Gen. Martin Miguel de Guemes (moved from 17 June)Sat 20 JunNational
Gen. Manuel Belgrano Day (Saturday)Thu 9 JulNational
Independence DayFri 10 Jul
Bridge day (non-working day)Employer may choose
Mon 17 AugNational
Gen. Jose de San Martin DayMon 12 OctNational
Day of Respect for Cultural DiversityMon 23 NovNational
National Sovereignty Day (moved from 20 Nov)Mon 7 Dec
Bridge day (non-working day)Employer may choose
Tue 8 DecNational
Immaculate ConceptionFri 25 DecNational
Christmas DayBridge days (23 Mar, 10 Jul, 7 Dec) are non-working days: the employer decides if staff work, and pay rules differ. Belgrano Day falls on Saturday 20 June. Bridge days set by Jefatura de Gabinete Resolution 164/2025.
Notice periods set by the employer
Hover a row. Bars are drawn to scale.
Probation (up to 6 months)No notice or severance (Art. 92 bis LCT; Law 27.802)
After probation, under 1 year1 month
1 to 5 years1 month
5 to 10 years2 months
10 to 20 years2 months
Over 20 years2 months
Employee notice is 15 days. Notice must be in writing and starts the day after notification. Employer may pay in lieu plus the remaining month (integracion). Notice is waived in just cause dismissal and is not required during probation.
Rules for ending an employment
FormDismissal must be in writing (carta documento), stating the cause for just cause dismissal. Resignation can use a physical or digital telegram under Law 27.802.Arts. 231, 242 LCT; Law 27.802
Valid groundsOpen-ended dismissal needs no cause but pays severance. Just cause needs a serious breach that makes continuing impossible. Employer must act promptly.Arts. 242-245 LCT
Severance (Art. 245)One month of best normal monthly pay per year of service or fraction over 3 months, minimum 1 month. SAC and non-monthly items are excluded under the reform. Cap rules still apply.Art. 245 LCT as amended by Law 27.802
Fondo de asistencia laboral (FAL)Law 27.802 creates an employer-funded individual fund (not an employee fund) to pay severance. It starts 1 Nov 2026 (ARCA RG 5907), with a waiting period. Does not limit employer liability.Law 27.802 arts. 58-65; Decree 408/2026; RG 5907
Special protectionIncreased severance for dismissal linked to pregnancy (7.5 months window), marriage (3 months before to 6 after), and union representatives. Sick-leave dismissal is risky.Arts. 177-182, 213 LCT; Law 23.551
Collective dismissalNeeds a prior procedure with the labour authority if dismissals affect a set share of staff within 60 days (15% under 400 employees, 10% for 400 to 1,000, 5% above).Law 24.013 arts. 98-105
With FreelanX EOR, ending an employment is run by FreelanX EOR under local law, and the process is agreed with you before any step.
Six signals checked by the authorities
No single signal decides. Authorities and courts weigh the whole picture and look at how the work is really done, not only at the contract.
Source for the criteria: Arts. 4, 21, 22, 23 LCT 20.744 (presumption of employment), with Law 27.802 changes to Art. 2 (exclusions) and Art. 23. Confirm with a local lawyer for a specific case.
Getting certainty on the status
How to check the status in advance, or what happens in an audit.
1Document the relationship
Use a civil or commercial services contract with deliverables, price per result and no instructions.
2Check tax registration
Contractor should be registered with ARCA (monotributo or autonomo) and issue invoices.
3Avoid control signs
Do not require fixed hours, company email or exclusivity. Do not mix them with employees.
4Take local advice
For long or full-time engagements, consider hiring as an employee through a local entity or EOR.
There is no official ruling procedure. Reclassification is decided by a labour court or ARCA inspection after a claim. The reform strengthens exclusions for independent workers, but the presumption of employment remains.
What a reclassification can cost
Back-payment of contributions, penalties and, in some countries, personal liability.
2 years
Labour claims expire 2 years after each credit becomes due. The reform did not repeal this rule.
Art. 256 LCT
5 years
Unpaid social security contributions can be claimed for up to 10 years, with interest. The term drops to 5 years if returns were filed and paid on time.
Law 14.236 art. 16 (as amended by Law 27.799); Law 11.683
Back pay
Court can award salary differences, aguinaldo, vacation pay and severance as if registered from the first day.
Arts. 245, 232 LCT
Joint liability
Company and directors may be liable with the contracting entity. Group and subcontracting liability rules were changed by Law 27.802.
Arts. 29, 30, 31 LCT as amended by Law 27.802
Self-employed registration and payment constraints
MonotributoSimplified regime for small independents, combining tax and social security. Category K income limit about AR$126.6 million per year from 1 Aug 2026. Scales change twice a year.Law 24.977; ARCA scales
AutonomosLarger independents above monotributo limits register as autonomos, with higher social contributions and VAT and income tax filing.Law 24.241; Law 20.628
Foreign currency and transfersExchange controls were largely relaxed in 2025, but some limits remain on payments abroad and company dividends. Check current bank and BCRA rules before cross-border payments.BCRA rules
Work with independents in Argentina, with the paperwork handled
FreelanX Contractors: from $19 per month. FreelanX Contractors+ from $279.
Work permits: key figures
Where a figure is from a past year, the text says so.
1 year
Temporary worker residenceNormally granted for 1 year and renewable. The law allows up to 3 years. Requires an employer with a signed employment pre-contract.
Mercosur
Regional nationalsCitizens of Mercosur states can apply for residence under a regional agreement without a job offer.
Work permits in practice
Permit typeResidencia temporaria as trabajador migrante: for dependent work with an Argentine employer. Not designed for freelancers or foreign-remote workers.Law 25.871 art. 23; Migraciones
Employer requirementsEmployer needs ARCA registration, registration in the registry of employers of foreigners (RENURE), and a certified pre-contract with CUIT.Law 25.871; Migraciones requirements
DocumentsPassport, regular entry proof, Argentine and foreign criminal records (apostilled and translated), Argentine address. Filed through RADEX.Migraciones; RADEX
Right to workA foreigner in irregular status may not work. Employers may be inspected and must keep documents of foreign staff.Law 25.871 arts. 53, 53 bis as amended by Decree 366/2025
Decree 366/2025Changed migration law in 2025. Some parts (precaria, health, citizenship) are legally unsettled after a June 2026 court ruling. Check current Migraciones instructions.Decree 366/2025
Permanent residenceUsually after a period of temporary residence. Applicants need a clean criminal record and must meet current Migraciones requirements.Law 25.871 art. 22 as amended
FamilySpouses, children and parents of Argentine citizens or residents can apply for residence as relatives. Check current Migraciones requirements.Law 25.871 art. 22
ProcessingNo published time standard. Decisions are made case by case. A provisional permit (precaria) is not automatic.Direccion Nacional de Migraciones
Visa and residence rules are in flux after Decree 366/2025. Confirm with Migraciones before hiring a foreign national.
Main sources
The law or official source behind each key point, as of October 2026.
TopicSource
Law 27.802 in forceBoletin Oficial 6 Mar 2026; law firm summaries
Court status of Law 27.802Cámara Sala VIII ruling 23 Apr 2026, press
DNU 70/2023 labour chapterCNAT 2024 ruling; superseded in part by Law 27.802
SMVM 2026Resolution 4/2026 (BO 2 Sep 2026)
Contribution ceilingANSES Res. 232/2026 (Aug 2026)
Employer contribution ratesARCA page, payroll guides
FAL rates and startRG 5907 ARCA, Decree 408/2026
Probation lengthLaw 27.802 summaries
Notice 1 or 2 monthsArt. 231 LCT; payroll guides
Severance Art. 245Art. 245 LCT; reform base changes
Vacation 14/21/28/35 daysArt. 150 LCT
Public holidays 2026Press reports of decrees
Visa rulesMigraciones; Decree 366/2025 (contested)
RIFL reduced rates for new hiresLaw 27.802
General information, updated monthly. It is not legal advice: for a decision, talk to us or to your counsel.
What to watch
Rules that are changing, or that vary by region or sector.
- Fondo de Asistencia Laboral (FAL): employer contributions start with the November 2026 payroll (ARCA RG 5907/2026). They are offset by a reduction in certain employer social security contributions.
- Law 27.802 court challenge: the law is in force since the appeals court lifted the injunction on 23 April 2026. The Supreme Court declined to fast-track the case, so the CGT union challenge on the merits continues in the labour courts.
- Pay in foreign currency: Law 27.802 allows wages in pesos or foreign currency, and since 27 July 2026 banks can open US dollar salary accounts (BCRA Communication A 8460). Exchange rules still apply to transfers abroad.
Changelog
Oct 2026Guide rebuilt for Argentina with 2026 figures and sources.Argentina
Next reviewJanuary 2027, when new yearly rates are published.Planned
Hire in Brazil with FreelanX EOR
From $499 per employee per month, billed yearly ($549 monthly). Onboarding in 5–20 days.
Employer cost
Statutory contributionsR$40,560
Estimated totalR$161,160–R$167,760
Statutory contributionsR$60,840
Estimated totalR$241,740–R$251,640
Statutory contributionsR$81,120
Estimated totalR$322,320–R$335,520
Statutory contributionsR$121,680
Estimated totalR$483,480–R$503,280
Statutory contributionsR$162,240
Estimated totalR$644,640–R$671,040
Gross yearly salary · estimate
A question on Brazil?
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Hire in Mexico with FreelanX EOR
From $499 per employee per month, billed yearly ($549 monthly). Onboarding in 5–20 days.
Employer cost
Statutory contributionsMX$72,940
Estimated totalMX$448,875–MX$456,075
Statutory contributionsMX$122,508
Estimated totalMX$743,243–MX$755,243
Statutory contributionsMX$184,469
Estimated totalMX$1,111,204–MX$1,129,204
Statutory contributionsMX$219,679
Estimated totalMX$1,452,414–MX$1,476,414
Statutory contributionsMX$219,679
Estimated totalMX$2,064,414–MX$2,100,414
Gross yearly salary · estimate
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Hire in Argentina with FreelanX EOR
From $499 per employee per month, billed yearly ($549 monthly). Onboarding in 5–20 days.
Employer cost
Statutory contributionsAR$7,923,000
Estimated totalAR$38,177,695–AR$38,537,695
Statutory contributionsAR$11,884,500
Estimated totalAR$57,259,195–AR$57,799,195
Statutory contributionsAR$14,561,835
Estimated totalAR$75,056,530–AR$75,776,530
Statutory contributionsAR$14,561,835
Estimated totalAR$95,216,530–AR$96,176,530
Statutory contributionsAR$14,561,835
Estimated totalAR$135,536,530–AR$136,976,530
Gross yearly salary · estimate
A question on Argentina?
We reply within 24 working hours.