Argentina Severance Pay Calculator
This calculator estimates the severance for dismissal without cause in Argentina under the Employment Contract Law (LCT). It adds the seniority compensation (art. 245), the payment in lieu of notice and the integration of the dismissal month when no notice was given, plus the prorated year-end bonus (SAC) and the accrued unused holidays. Enter your best gross monthly salary, the start date, the dismissal date and whether notice was given.
Estimated total severance
Seniority (art. 245)
Omitted notice
Month integration
Prorated bonus (SAC)
Prorated holidays
Simplified estimate of dismissal without cause under Argentina's LCT (arts. 232, 233, 245, 156). It does NOT apply the collective-agreement cap or the Vizzoti doctrine to the art. 245 base, and it ignores penalties, agreement-specific items, personal circumstances and income tax. Consult a labour lawyer or accountant for the exact figure.
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How it works
The seniority compensation equals one month of the best normal and regular salary for each year of service or fraction greater than three months (art. 245). If the employer gave no notice, the calculator adds the payment in lieu of notice (15 days if seniority is under 3 months, one month up to 5 years and two months beyond 5 years) and the integration of the dismissal month, which pays the remaining days of that month. It then adds the prorated SAC of the half-year and its share on the notice and integration, plus the accrued unused holidays with their SAC. For example, seniority of 5 years and 4 months counts as 6 months of salary.
Seniority compensation by years worked
Art. 245 of the LCT pays one month of the best normal and regular salary for each year of service, and counts any fraction over three months as a whole year. That is why 5 years and 4 months count as 6 months of salary. With a reference best salary of $1,000,000, the seniority compensation (before adding notice, integration or SAC) works out like this:
| Seniority | Months (art. 245) | Compensation (reference salary $1,000,000) |
|---|---|---|
| 1 year | 1 | $1,000,000 |
| 3 years | 3 | $3,000,000 |
| 5 years | 5 | $5,000,000 |
| 5 years and 4 months | 6 | $6,000,000 |
| 10 years | 10 | $10,000,000 |
The art. 245 cap and the Vizzoti doctrine
The art. 245 base is not unlimited: the law caps it at three times the average of the salaries in the applicable collective agreement. Because that cap often falls below the real salary, the Supreme Court ruled in "Vizzoti v. AMSA" (2004) that the base cannot be reduced by more than 33%; in other words, at least 67% of the best normal and regular salary must always be respected. This calculator does not apply the cap because it depends on each sector's agreement, so in activities without an agreement or with low salaries the result matches the best salary, while with high salaries it could be reduced down to that 67% floor.
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Preguntas frecuentes
- How is the seniority compensation calculated?
- Under art. 245 of the LCT, it is one month of the best normal and regular monthly salary for each year of service or fraction greater than three months. For example, 5 years and 4 months count as 6 months of salary.
- What is the notice payment and when is it due?
- If the employer dismisses without advance notice, it must pay compensation in lieu of notice: 15 days of salary if seniority is under 3 months, one month up to 5 years and two months beyond 5 years.
- What is the integration of the dismissal month?
- When the dismissal happens on a day other than the last of the month and no notice was given, the employer must pay the days remaining to complete that month. This is the integration of the dismissal month (art. 233).
- Are the year-end bonus (SAC) and holidays included?
- Yes. The final settlement includes the prorated SAC of the half-year and its share on the notice and integration, plus the accrued unused holidays with their corresponding SAC.
- Does this calculator apply the collective-agreement cap or Vizzoti?
- No. It is a simplified estimate that does NOT apply the collective-agreement cap or the Vizzoti doctrine to the art. 245 base, nor does it consider penalties or specific items. For an exact figure, consult a labour lawyer.