Argentina Severance Pay Calculator (Indemnización por despido)

About the Argentina Severance Pay Calculator (Indemnización por despido)

Work out what an employee in Argentina is owed when the job ends, under the Ley de Contrato de Trabajo (LCT) as it reads now: the severance pay (indemnización por antigüedad) of one month of the best monthly pay of the last year for each year of service or fraction over three months, the notice paid in lieu (preaviso), the rest of the month of dismissal (integración), the proportional aguinaldo (SAC), the unused vacation and the pay for the days worked, less the employee’s contributions on what is pay.

Enter the dates and the monthly pay; add variable pay, your collective agreement’s cap or a longer trial period if they apply. The calculator draws the years that count, lists every line of the settlement with its working, in English with the Spanish names, and shows what each way of ending gives. Nothing you type leaves your browser. Without a pass the page shows a free preview of your own result: the total to receive in full, with the first lines of the settlement, while every other figure stays hidden until you unlock it with a Pro pass.

How the severance is worked out

For a dismissal without cause after the trial period, the employer pays one month for each year of service or fraction over three months, on the best monthly, normal and habitual pay accrued in the last year, or in the time worked if that is shorter (LCT art. 245). Only items paid every month count: the SAC, vacation pay and premiums that are not monthly do not. Habitual items are those accrued in at least six months of the last calendar year; variable items such as monthly premiums, overtime and commissions count at their average of the last six months, or of the last year when that is better for the worker.

The base cannot exceed three times the average monthly pay of the collective agreement that applies, a cap its parties set; the cap never takes the base below 67% of the worker’s own, and the severance is never less than one month. A collective agreement may replace this severance with a severance fund (fondo de cese) paid by the employer. A dismissal for lack or reduction of work not attributable to the employer, or for force majeure, properly justified, gives half of it (art. 247).

A worker who ends the job because the employer has broken its obligations so seriously that the job cannot go on (art. 242) is treated as dismissed without cause: this constructive dismissal (despido indirecto) gives the same severance, notice pay and integration (LCT art. 246). A judge weighs the breach if the employer disputes it.

Notice and the rest of the month

The employer gives notice of one month up to five years of service and two months beyond; none is required in the trial period (LCT art. 231). Notice not given is paid in lieu: the pay of those months (art. 232). Notice runs from the day after it is served, and a dismissal without notice on a day that is not the last of the month also pays the days left to the end of that month, the integration, except in the trial period (art. 233). A worker who resigns gives 15 days of notice.

The trial period

A job for an indefinite time is on trial for its first six months; a collective agreement may extend it to eight months in firms of 6 to 100 workers, or to a year in firms of up to 5 (LCT art. 92 bis). A dismissal in the trial period owes no severance, no notice and no integration; the pay due, the SAC and the vacation are still owed.

SAC, vacation and the days worked

Whatever the reason the job ends, the SAC of the semester is paid in proportion to the time worked, on half of its highest monthly pay (LCT art. 123; Ley 23.041; Decreto 1078/84), and the leave of the year in proportion to the part of the year worked, at the monthly pay ÷ 25 a day (LCT arts. 150, 155 and 156). This calculator divides the month’s pay by its calendar days for the days worked and the integration, so the two make one whole month.

Contributions

The pay for the days worked and the SAC are pay: 11% for retirement (Ley 24.241 art. 11), 3% for PAMI (Ley 19.032 art. 8) and 3% for health insurance (Ley 23.660 art. 16; Ministry of Labour table) come off them. The severance, the notice pay, the integration and the unused vacation are not pay (Ley 24.241 art. 7), so nothing comes off them.

The law as it reads now

The LCT’s articles on seniority, notice, vacation timing and severance read as Ley 27.802 worded them, in force from its publication, and this calculator applies that text. A job that ended before then followed the earlier wording.

Limitations

• Applies the Ley de Contrato de Trabajo: construction, domestic, rural and public-sector work, and collective agreements with a severance fund, may have rules of their own.
• Fines and increases for unregistered work or late payment, the extra severance of a discriminatory dismissal (LCT art. 245 bis, set by a court) and income tax are not included.
• The cap on the pay the retirement contribution is worked out on (Ley 24.241 art. 9) is not applied: on very high pay the contributions are lower than shown.
• Earlier service with the same employer counts when you came back within two years (LCT art. 18); this calculator counts only the service between the dates you enter.
• The service counts both the first and the last day of work, so a job from the 4th of a month to the 3rd of the same month a year later is one whole year. A payroll that counts the difference between the two dates gets a day less; where a rule turns on that one day (a fraction just over 3 months, just over 5 years, the end of the trial period, a band of leave), the result says so.
• Works out a notice given in full or none at all; a notice that was too short, and fixed-term or seasonal contracts, are not covered.
• The SAC on the notice pay, the integration and the unused vacation is an option: the LCT articles applied here do not set it.
• Payrolls that divide the month’s pay by 30 for the days worked get slightly different amounts.
• MySmartCoPilot is not a law firm: the result is an estimate from the law, not legal advice. Check it with a lawyer or your union before you sign a settlement.

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