Argentina is the third largest economy in Latin America and the second largest in South America.
The average salary in Argentina is 45,200 Argentine Peso (ARS) or 199 US Dollars per month (as per the exchange rate in May 2023). However, the amount differs based on the individual’s profession, education, and city of residence.
In this article, we’ll discover the average salary in Argentina and how it differs across various factors. We’ll also compare it against the average salaries of other countries and highlight the five reasons for outsourcing to Argentina.
Table of Contents
- What is the average salary in Argentina?
- Salary comparison in Argentina
- Average salary in Argentina vs. the world
- 5 reasons to choose Argentina as your outsourcing destination
What is the average salary in Argentina?
Argentina has a workforce of nearly 20 million, most of whom are employed in commerce, tourism, social services, and manufacturing industries.
According to Salary Explorer, the average salary in Argentina is 45,200 ARS per month, which includes standard employee benefits like housing, transport, medical, and others.
However, the salary and perks offered by an employer differ across various industries. For instance, an accountant can earn 33,200 ARS per month, whereas a dietician can make up to 93,700 ARS per month.
Here are some other aspects of the Argentine salaries:
1. Salary range
The country’s average salary ranges from 11,400 ARS per month (actual minimum salary) to 202,000 ARS per month (actual maximum salary).
The highest salary in the country is higher than the highest average salary.
2. Median salary
The median salary in Argentina is 38,500 ARS/month.
It indicates that 50% of the working population in Argentina earn less than 38,500 ARS and the remaining 50% earn more than 38,500 ARS.
3. Salary percentile
The salary percentile includes the 10th, 25th, 50th (median salary), 75th, and 90th percentiles, indicating how much the wages vary for an occupation.
Based on the salary surveys in 2023 by Salary Explorer, 25% of the Argentine working population earn less than 27,800 ARS, and the remaining 75% make more than 27,800 ARS.
The report also shows that 75% of the workforce earn less than 58,400 ARS, and the remaining 25% make more than 58,400 ARS.
4. Average annual salary increment
Typically, employees in Argentina receive a 9% salary increment every 17 months, higher than the world average of 3% every 16 months.
However, the annual salary increment rate may differ depending on the employee’s experience and industry:
Employees in senior management positions are more likely to earn a higher increment rate as they’re tougher to recruit and retain.
|Average Annual Salary Increment Rate
|15% – 20%
|10% – 15%
|6% – 9%
|3% – 5%
In general, employees in flourishing industries like real estate and travel get higher and more frequent raises.
However, the increment rate is also determined by the country’s economic situation.
|Average Annual Increment Rate
5. Average hourly wage
The average wage per hour in Argentina is 260 ARS. It means that the average employee in Argentina earns approximately 260 ARS for every working hour.
6. Minimum wage
Minimum wage refers to the lowest amount a worker can be legally paid for their work.
According to the data from Trading Economics, the national minimum wage in Argentina is set to hit $87,987 per month in June of 2023.
Salary comparison in Argentina
The average salary and the 13th salary (or end-of-year bonus) in Argentina differ mainly depending on the person’s education level, professional experience, work location, and other factors.
Let’s compare the average income based on these criteria:
1. Work experience
Work experience highly influences an individual’s income in Argentina. Typically, more experience results in higher pay.
Here’s what employees with different work experience earn in Argentina:
- Employees with experience of two to five years earn on average 32% more than freshers or interns across all sectors and occupations.
- Employees with more than five years of experience tend to earn on average 36% more than those with five or lesser years of work experience.
- Working professionals with 10+ years of experience get a salary increment of 21%, and those with 15+ years of experience earn 14%.
2. Employee education
Here’s what employees with different educational qualifications earn in Argentina:
- Employees with a certificate or diploma earn 17% more than their co-workers who have only completed high school level education.
- Working professionals with a Bachelor’s Degree earn 24% more than those who’ve attended a certificate or diploma.
- Employees with a Master’s Degree earn 29% more than those with a Bachelor’s Degree.
- Candidates having a Ph.D. in their relevant field earn 23% more than those with a Master’s Degree.
3. Government vs. private sector
In Argentina, workers in the public sector earn on average 7% more than their private sector counterparts across various work disciplines.
As per the salary surveys by Salary Explorer, here’s the difference between the salary earned by public sector employees and private sector employees.
The average annual salary for Argentine employees varies depending on the demand and scope of the work field.
Here’s a list of the average annual salaries of different professions in Argentina:
|Average Annual Salary
|Human Resources Manager
|IT Project Manager
The average salary in Argentina differs from one city to the other due to the varying cost of living and labor.
Here’s a list of the average salary in different cities in Argentina:
|Average Annual Salary
Average salary in Argentina vs. the world
The average monthly salary of Argentina is way lower than that of developed countries in North America like the United States or even the United Kingdom.
According to the World Bank, Argentina has displayed uneven economic growth punctuated by rampant inflation and extreme recession.
The same report indicates the negative impact of the Coronavirus pandemic on the country’s GDP, which dropped by 9.9% during 2020.
Moreover, Argentina has a huge labor workforce, making labor costs lower than in most countries.
Here’s a list of the average salary in Argentina vs. other countries:
|Average Monthly Salary
Note: These figures are averages derived from salary reports of employees in Argentina, including expats. Consequently, they may vary depending on experience, location, industry, etc., and are only to be used as a general guideline.
Now that we’ve gone through the various factors influencing salaries in Argentina, let’s check out the primary reasons for choosing Argentina as your outsourcing country.
5 reasons to choose Argentina as your outsourcing destination
Many global companies partner with Argentina for their outsourcing needs, especially in the IT and software sectors.
Here’s what makes Argentina a desirable outsourcing location:
1. Similarities with the western culture
The country possesses a global outlook and internationally accepted work ethics, which helps different cultures interact and collaborate for work.
In the technology sector, the nation adopts agile development methodologies like Scrum, Kanban, or Lean, deployed by most US businesses.
Additionally, the United States and Argentina share similarities in social customs and living patterns. In fact, the amenities in cities like Buenos Aires are pretty close to those in New York or Chicago.
So relatable work practices and lifestyles make it easier for foreign companies and outsourcing agents to communicate freely about the desired work results.
2. Reduced time zone barriers
As opposed to major Asian outsourcing destinations, Argentina is only one hour ahead of New York and other cities in the United States.
It helps teams stay connected and engage in real-time discussions about ongoing projects, where neither party has to spend half a day waiting for an email reply or necessary attachment.
3. Hub of tech-savvy talent
Argentina has no shortage of talent for skilled technicians and software developers. As per the 2020 Statista Report, the number of employees in Argentina’s IT sector is over 111 thousand.
In fact, the Argentine Government along with The Software & IT Services Chamber of Commerce from Argentina (CESSI) and other organizations (IBM, Microsoft, Oracle) have implemented steps to train the workforce to meet the rising IT demand.
4. Resourceful and bilingual workforce
The 2021 Statista Report reveals that Argentina scored the highest points in the English Proficiency Index 2021 among all countries in Latin America. In fact, the capital city of Buenos Aires ranks above all other Latin American cities with the highest English proficiency score.
Argentina has a large pool of English speakers who can comfortably handle business requirements from native English-speaking countries.
5. Government initiatives
Since IT is a major service sector in Argentina, the Government offers income tax benefits to most tech companies for training and recruiting local workers. They attract foreign investors and businesses by building a skilled and talented workforce.
The nation protects its citizens against the unemployment rate by implementing three types of labor policies: severance payments, unemployment insurance, and temporary public works.
Additionally, all Argentine employees have guaranteed benefits of healthcare insurance, paid leave, etc. The Government uses revenue from the social security rate (labor income tax charged to the company and employee) to implement social programs, including welfare, healthcare, and many other benefits.
Such initiatives and policies ensure a conducive working environment and encourage employees to offer top-notch services to foreign companies. Moreover, the flexible tax regime and competent staff enable foreign businesses to develop profitable outsourcing business relations with Argentine companies.
Argentina is a promising outsourcing destination due to its technologically competent staff, beneficial government policies, and fluent English-speaking population.
The country’s GDP per capita is equivalent to 90% of the world’s average and is projected to increase in the coming years.
Having said that, you’ll need to consider your outsourcing requirements and if the third-party agent meets your budget and quality expectations. You can refer to this article for details about the average salary in Argentina and make the right choice for your business.