Pension — employee

Argentina's employee pension contribution is a mandatory deduction from worker salaries, currently set at 10 percent of gross wages. This contribution funds the Sistema Integrado de Jubilaciones y Pensiones (SIJP), Argentina's integrated pension and benefits system, which provides retirement, disability, and survivor benefits to covered workers.

The rule applies to all employees in Argentina earning taxable income, with limited exemptions for certain categories such as domestic workers under specific thresholds and some public sector employees covered by alternative schemes. The contribution is calculated on the employee's gross salary and is withheld by the employer before payment to the worker.

The governing legislation is the Ley de Reforma Previsional (Law 24,241) and subsequent amendments, including modifications under Ley 27,426 and related decrees issued by Argentina's Superintendencia de Seguros de Desempleo y Seguridad Social (SSDSS). The current 10 percent rate has remained stable, though the regulatory framework has undergone periodic adjustments regarding contribution bases and benefit calculations.

Employers must withhold the 10 percent pension contribution from each employee's salary and remit these funds to the designated pension administrator (AFJP or the public system) by the legally specified deadline, typically within the first ten days of the following month. Payroll teams must maintain accurate records of contributions and ensure compliance with SSDSS reporting requirements. Failure to remit contributions on time incurs penalties and interest charges. Employers should verify the current pension administrator assignment for each employee, as workers may be enrolled in either private pension funds (AFJPs) or the public system (ANSES), each with distinct remittance procedures.