Social security contributions in detail
The contribution rate payable by the employer will remain at 20.40% until 31 December 2019 and will then be gradually reduced to 19.50% by 2022. There is also an amount payable under labour accident insurance, which is dependent on the rates applicable to each employer.
The employee is also required to pay a contribution equal to 14% of salary. This will be automatically deducted from salary by the employer, together with the employer’s contribution.
Social security covers retirement, health insurance, unemployment insurance, family benefits and work accident and illness insurance.
The overall cap on the employee’s contributions is ARS 81,918.55 (EUR 1,917.16). The overall cap on the employer’s contribution is ARS 105,233.32 (EUR 2,462.81). The payments are made by the employer at the time the salary is paid. The employer must declare the taxable earnings and corresponding contributions to the tax authorities.
It is possible for employees to make voluntary pension contributions.
Author: Funes de Rioja & Asociados
Date: March 2019
Note: All currency conversions into EUR were made on 1 February 2019, using a mid-market rate.