Argentina Dismissal Without Cause Compensation Calculator
Argentina · EmploymentEstimate the compensation for dismissal without cause in Argentina (Article 245 of the Employment Contract Law, with the text in effect after Law 27,802): one month's salary for each year of service or fraction greater than three months. This is a rough estimate and doesn't include your final settlement.
Final settlement vs. compensation: compensation doesn't include your Christmas bonus or vacation. Also calculate your final settlement →
How is it calculated?
Compensation = base × computable years of seniority. Computable years: the full years of service plus one more if the remaining fraction is greater than three months; never less than one (compensation can't be lower than one month's salary). The base is the best normal and regular monthly compensation earned during the last year, or during the period worked if shorter; non-monthly items like the Christmas bonus (SAC), vacation, and non-monthly bonuses aren't part of the base. If your collective agreement sets a cap, you can enter it: the capped base can never fall below 67% of your compensation. Numelto doesn't know your specific agreement, which is why the cap is an optional field. Additionally, if the employer didn't give notice, the calculator can separately add the notice pay (1 month up to 5 years of seniority, 2 months if it exceeds 5) and the dismissal month's integration (the days remaining until month's end, at salary ÷ 30), with no Christmas bonus applied to those items. The law allows certain collective agreements to replace this regime with a severance fund or system: in that case, the calculation is different.
Examples
Exactly three years with a best salary of 1,000,000
3 computable years × 1,000,000: compensation of 3,000,000.
Two years and six months (the fraction over three months counts as a full year)
2 full years + a 6-month fraction = 3 computable years: compensation of 3,000,000.
Best salary of 2,000,000 with a collective agreement cap of 1,500,000 (8 years and 4 months)
Capped base of 1,500,000 (above the 67% floor) × 9 computable years: 13,500,000.
How the compensation's years are counted
One month's salary is paid for each year of service or fraction greater than three months, with a minimum of one month. The base is the best normal, regular monthly compensation from the last year.
| Seniority | Computable years |
|---|---|
| Exactly 3 years | 3 |
| 2 years and 6 months | 3 (the fraction exceeds 3 months) |
| 2 years and 2 months | 2 (the fraction doesn't exceed 3 months) |
| Less than 1 year | 1 (minimum of one month) |
Examples and other items
If the employer didn't give notice, notice pay and the dismissal month's integration are added separately. The prorated Christmas bonus and vacation aren't part of the compensation: they go in the final settlement.
Sources
- Argentine Employment Contract Law 20,744 (updated text) and Labor Modernization Law 27,802 (Official Gazette, 03/06/2026) — Christmas bonus, vacation, compensation, notice, and overtime — in effect since March 2026 · reviewed on September 24, 2026