Can I hire contractors instead of employees in Argentina?

Last verified: 27 Oct 2026 · Status: Changing

Short answer. Yes, if the work is genuinely independent. Since 2024 an invoicing contractor (monotributista or VAT registered) is no longer presumed to be an employee. But invoices are not a shield: if the person works under your technical, legal and economic dependence, a court can still reclassify the relationship and order severance and back contributions.

As of 26 Oct 2026. Rules in force at that date.

Key rules

Employment is defined by dependence, not by the label. There is an employment contract "whatever its form or name" whenever a person provides services for another under that person's dependence, for pay (LCT art. 21); art. 22 defines the employment relationship the same way. Both as replaced by Law 27.802 arts. 11 and 12, in force since 6 March 2026.
The presumption is narrower. Services provided "in a situation of dependence" make an employment contract presumed. The presumption does not apply where works, professional services, trades or any other services without dependence are contracted and invoices or receipts are issued, or payment goes through the banking or other systems set by regulation. That exclusion covers social security too (LCT art. 23, as replaced by Law 27.802 art. 13). It applies whatever the number of invoices or clients (Decree 847/2024, Annex II, art. 3). The worker can still prove dependence under art. 21. How labor courts will weigh the new art. 23 is not settled in the sources (unconfirmed).
Independent worker with up to 3 collaborators. A self employed person may work with up to 3 other self employed people with no employment link, where at least one typical note of dependence (technical, legal or economic) is absent (Law 27.742 art. 97). All must register with ARCA as non employees and file a sworn statement of independence; collaborators may work for others and either side may exit at any time (Decree 847/2024, Annex II, art. 24). The single monthly quota that art. 97 promises has not been set in any source reviewed (unconfirmed).
Platform workers. Delivery and ride hailing providers on apps are independent by law and outside the LCT (LCT art. 2(f); Law 27.802 arts. 119 to 128). Decree 407/2026 art. 3 (BO 1 Jun 2026) named the Transport Secretariat and the Labor Secretariat as enforcement authorities. No other implementing rules were found (unconfirmed).
Penalties. The old worker fines (Law 24.013 arts. 8 to 17; Law 25.323) were repealed by Law 27.742 arts. 99 and 100. A reclassified worker still recovers severance, notice, SAC and vacation, updated by CPI plus 3% a year (LCT art. 276). ARCA can fine an employer ARS 200,000 to 7,500,000 (US$ 128 to 4,796) per Law 11.683 art. 40 (amount set by Law 27.799 art. 29) and assess contributions, net of what the contractor already paid under the monotributo (Law 24.013 art. 7 quater).
Foreign contractors. Banks may pay an unrelated non resident from the date of the service, a related one after 90 calendar days (BCRA FX rules, points 13.2.5 and 13.2.6). If the fee is Argentine source income, such as advice from abroad (Income Tax Law art. 13), the payer withholds 35% on a presumed 60% or 90% of the payment (arts. 102 to 104), subject to treaties. A VAT registered user self assesses 21% VAT (VAT Law arts. 1(d) and 28).

What changes the answer

Facts of dependence. Fixed hours, a supervisor, exclusivity and your equipment point to employment under art. 21.
Existing misclassified staff. The PER amnesty covers relationships begun up to 5 Mar 2026 and still current. It forgives 90% (micro and small), 80% (medium) or 70% (others) of contributions and interest, and 100% of health system, ART and life insurance amounts (Decree 409/2026 arts. 3 and 4). The deadline is 28 Nov 2026 (ARCA RG 5862/2026 arts. 1 and 6). It does not cover the worker's own labor claim.
VAT registered contractor. A responsable inscripto adds 21% VAT (VAT Law art. 28), a real cost if you cannot recover it.
Foreign provider and residence. A foreigner working in Argentina needs a residence that allows work; see /guide/labor/foreigners/.

Worked examples

A company pays a developer ARS 2,000,000 a month. Pesos at dólar MEP ARS 1,563.90 per US$ on 23 Oct 2026, the rate (dólar MEP selling rate (dolarapi.com)) (live rate). ART at 2.97% is an illustration only (unconfirmed).

Item	Time	Cost ARS	Cost USD
A. Contractor, 12 invoices (type C, no VAT)	Monthly	24,000,000.00	15,346.25
B. Employee, same gross, full annual cost	Monthly, SAC Jun and Dec	33,232,822.09	21,249.97
Extra cost of employing (B minus A)	Per year	9,232,822.09	5,903.72
Exposure if reclassified after 2 years	At judgment	20,573,441.76 to 27,873,441.76	13,155.22 to 17,823.03

Step by step:

Contractor. ARS 24,000,000 a year is within the category C limit of ARS 24,670,494.31, so the developer pays ARS 66,020.12 (US$ 42.22) a month in monotributo, covering tax, pension and health (ARCA table from 1 Aug 2026; Law 24.977 Annex art. 8). The developer keeps ARS 1,933,979.88 (US$ 1,236.64) a month.
Employee. Gross 13 salaries ARS 26,000,000, vacation uplift, 18% unified contribution (SME, Law 27.541 arts. 19 and 22), 6% health insurance (Law 23.660 art. 16) and ART: ARS 33,232,822.09 (ARS 32,455,078.09 without ART), as computed in the payroll question page. The employee nets 83%, ARS 1,660,000 (US$ 1,061.45), before income tax.
Reclassification after 2 years (dismissal at month end, no notice, pay constant): severance 2 × 2,000,000 = 4,000,000 (LCT art. 245); notice 2,000,000 (arts. 231, 232); 4 unpaid SAC halves 4,000,000 (arts. 121, 256). Labor claim ARS 10,000,000 (US$ 6,394.27) before vacation items and CPI plus 3% updating.
Social security. 24% of ARS 48,000,000 = 11,520,000, less monotributo pension and health at category C (47,773.26 × 24 = 1,146,558.24) = ARS 10,373,441.76 (US$ 6,633.06), plus interest (unconfirmed). Simplified: ignores the art. 22 deduction, past monotributo amounts and the unwithheld 17% employee share (unconfirmed).
Fine. ARS 200,000 to 7,500,000. Total exposure ARS 20.6 to 27.9 million, above the 2 year saving of ARS 18,465,644.18 (US$ 11,807.43).

Cost to do it: no government fee, no capital; monotributo registration is online with ARCA (unconfirmed). The contractor bears the monthly monotributo.

Practical traps

Treating invoices as proof. Art. 23 removes the presumption, not the worker's right to prove dependence.
Single client for years. Decree 847/2024 says the number of clients does not matter for the presumption, but economic dependence is still one of the three notes.
Category drift. Fees above the category K limit trigger automatic exclusion from the monotributo (Law 24.977 Annex arts. 20 and 21).

FAQ

Can I convert contractors to employees cheaply? New hires registered 1 May 2026 to 30 Apr 2027 may qualify for the RIFL 2% plus 3% rate for 48 months, including some former monotributistas (Law 27.802 art. 159; Decree 315/2026 arts. 1 and 3). Converting existing contractors may be challenged as substitution of staff (art. 160) (unconfirmed).

How long can a worker claim? Two years from when each credit was due (LCT art. 256).

Are delivery riders employees? Not under Law 27.802 Title XII. How courts will treat a given app's facts is untested (unconfirmed).

Published 27 Oct 2026 from our research draft. Points marked (unconfirmed) have not yet been checked against the official text; rely on the primary sources linked below.