How much severance do you pay when firing an employee in Argentina?

Last verified: 26 Oct 2026 · Status: Changing

Short answer. After probation, dismissal without cause costs one month of the best monthly salary of the last year per year of service or fraction above three months (base capped at 3 times the collective agreement average, never below 67% of real pay), plus one or two months of notice, the rest of the month, and proportional vacation and SAC.

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

Key rules

Severance. One month of salary per year of service or fraction above 3 months. The base is the best monthly, normal and habitual pay accrued in the last year. SAC, vacation pay and bonuses not paid monthly are excluded; variable monthly items (commissions, overtime) are averaged over 6 months, or 12 if better for the worker. The base cannot exceed 3 times the average monthly salary of the applicable collective agreement, but the cap can never cut it below 67% of the real base. Minimum severance: one month (LCT art. 245, as replaced by Law 27.802 art. 51, in force since publication on 6 March 2026).
Notice. 1 month if seniority is up to 5 years, 2 months above 5 years, or pay in lieu. No notice during probation (LCT arts. 231(b) and 232).
Integration month. If you dismiss without notice on a day other than the last of the month, you also pay salary for the remaining days of that month (LCT art. 233).
Final pay, any cause. Proportional vacation (art. 156) and proportional SAC, one twelfth of pay accrued in the semester (art. 123). Everything is due within 4 business days of termination (LCT arts. 128 and 255 bis).
With cause. A breach serious enough to prevent continuing the relationship (art. 242), stated in writing (art. 243), removes severance, notice and integration. Vacation and SAC remain due.

Severance funds: what is in force and what is not. A collective agreement may replace art. 245 with a termination fund paid by the employer, and an employer may set up its own fund to finance severance (LCT art. 245; Law 27.742 art. 96). Separately, Law 27.802 creates mandatory Labor Assistance Funds (FAL): 1% of payroll (large companies) or 2.5% (MiPyMEs), offset by lower employer contributions (arts. 60 and 76). The FAL starts on 1 December 2026, so it is not in force at the date of this page, and pays nothing until 12 monthly contributions are in (Decree 408/2026 arts. 15 and 27, as replaced by Decree 1228/2026). It does not change the amount owed (Law 27.802 art. 58), and the employer stays fully liable (art. 68).

What changes the answer

Collective agreement cap. A high earner under an agreement with a low average may see the base cut, never below 67% (art. 245).
Protected situations. Pregnancy, recent birth or notified marriage add one year of pay (arts. 178, 181, 182); dismissal during paid sick leave adds wages to the end of the leave (art. 213); a court proven discriminatory dismissal adds 50%, up to 100% (art. 245 bis).
More than 5 years. Notice doubles to 2 months (art. 231(b)).
Variable pay. Monthly commissions and overtime raise the base; annual bonuses and SAC do not (art. 245).

Worked examples

Hired 16 July 2022, dismissed without cause and without notice effective 15 October 2026: 4 years and 3 months. Best monthly salary ARS 2,000,000, fixed, no variable pay; 2026 leave not yet taken. Pesos at dólar MEP ARS 1,563.90 per US$ on 23 Oct 2026 (dolarapi.com selling rate) (live rate).

Item	Time	Cost ARS	Cost USD
Severance, 4 years (art. 245)	due within 4 business days	8,000,000	5,115
Notice in lieu, 1 month (arts. 231, 232)	same	2,000,000	1,279
Integration, 16 days (art. 233)	same	1,066,667	682
October days worked, 15 days	same	1,000,000	639
Proportional vacation (arts. 150, 155, 156)	same	883,726	565
Proportional SAC (art. 123)	same	583,333	373
Total gross		13,533,726	8,654

Step by step.

Seniority. 16 July 2022 to 15 October 2026 is exactly 4 years and 3 months. The fraction is not "above" 3 months, so it counts 4 years. One more day of service would make it 5 years and add ARS 2,000,000 (US$1,279).
Severance. 4 × 2,000,000 = ARS 8,000,000 (US$5,115), assuming the agreement cap (3 × agreement average) is above ARS 2,000,000. If the cap binds hard, the 67% floor gives a base of ARS 1,340,000 and severance of ARS 5,360,000 (US$3,427). Check the cap published for the worker's agreement.
Notice in lieu. Under 5 years: 1 month, ARS 2,000,000. The cap applies only to the severance base (art. 232).
Integration. 16 to 31 October is 16 days × (2,000,000 / 30) = ARS 1,066,667 (US$682) (dividing the month by 30 is common practice, not a rule in the text).
Days worked. 15 × 66,667 = ARS 1,000,000 (US$639), salary owed anyway.
Vacation. Seniority at 31 December 2026 is under 5 years: 14 days (art. 150). Days of 2026 worked: 288 of 365. 14 × 288 / 365 = 11.05 days × (2,000,000 / 25) = ARS 883,726 (US$565) (arts. 155 and 156) (calendar day proration is common practice, not a rule in the text).
SAC. Pay accrued 1 July to 15 October: 3 × 2,000,000 + 1,000,000 = 7,000,000 / 12 = ARS 583,333 (US$373). Whether SAC is also owed on notice, integration and vacation pay is not settled in the law text; courts differ.

Cost to do it: about ARS 12.5 million (US$8,014) on top of the October salary, payable within 4 business days, no capital, no fees. Employer social security contributions on notice, integration, vacation and SAC are not included, and which items bear them is not covered here. Severance is exempt from income tax for the worker; notice pay is not (Income Tax Law art. 26(i)).

Practical traps

The 3 month fraction. Exactly 3 months does not count; one more day does. Working out a notice period keeps the contract alive (art. 238) and can push seniority over the line.
Weak cause. If a court rejects the stated cause, you owe everything above, updated by CPI plus 3% a year (art. 276). The cause cannot be changed after the letter (art. 243).
Counting on the FAL. At 26 October 2026 it is not in force; even later it needs 12 contributions and only covers workers registered at least 12 months (Law 27.802 art. 58).

FAQ

Is there severance during probation? No severance, notice or integration (arts. 92 bis, 231, 233). Vacation and SAC are still owed.

Can the employee claim more than the statutory amount? Not for the dismissal itself: severance is the only remedy, except for claims based on criminal offences (art. 245). The added indemnities for protected situations remain.

Can we agree a different amount? Yes, through a mutual termination by public deed or before the labor authority, with the worker present (art. 241), and settlements need homologation (LCT art. 15).