Social security contributions in detail

Social security covers retirement, health insurance, unemployment insurance, family benefits, and work accident and illness insurance.

The employee is required to pay a contribution equal to 17% of salary. This is automatically deducted from salary by the employer, together with the employer’s contribution.

If the employer is a large organisation, the employer’s contribution is 26.4% of the employee’s gross salary. If the employer is a medium-sized organisation, the employer’s contribution is 24% of the employee’s gross salary.

There is also an amount payable for labour accident insurance, which is dependent on accident and illness rates in the employer organisation, along with certain safety statistics.

The minimum taxable amount for the employer’s contributions is currently ARS 7,003.68, which will be increased during 2020 to ARS 15,810.81. The overall cap on the employee’s social security contributions is ARS 159,028.05; there is no cap for the employer’s contributions. 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.

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Author: Funes de Rioja & Asociados

Date: April 2020

Note: All currency conversions into EUR were made on 1 February 2019, using a mid-market rate.