Contractor vs Full-Time in Argentina: The Decision That Could Cost You 40%
Some companies waste money on EOR when 95% of startups hire contractors. Here's what actually works.
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The Numbers Don't Lie
When hiring in Argentina, your choice between contractor and full-time dramatically impacts your costs and your talent's take-home pay.
Goal: $100K to talent
Same talent take-home, very different employer cost.
| Contractor | Full-Time (EOR) | |
|---|---|---|
| Company Pays | $110–115K | ~$165K |
| Difference | — | +$50K (43% more) |
| Talent Receives | $100K | $100K |
- To give an engineer $100K/year net, you pay ~$115K as a contractor vs ~$165K through EOR.
- The $50K difference comes from payroll taxes and tax treatment differences.
- Talent prefers contractors too—they face lower tax burdens and higher net compensation.
- Healthcare in Argentina costs $3–5K/year for top coverage vs. $20K+ in tax savings.
Quote
“The difference between making $20,000 less or more through taxes is way more impactful than getting any kind of benefits a company offers.”