Finance

Argentina Severance Pay Calculator (Dismissal Without Cause)

Q: What components are included in a final settlement for unjust dismissal?

Six components: (1) **seniority indemnity** (Art. 245, 1 month per year), (2) **notice period** (15 days, 1 month, or 2 months depending on seniority), (3) **month integration** (remaining days of the dismissal month), (4) **proportional SAC (aguinaldo)**, (5) **unused vacation**, and (6) **SAC on notice, integration, and vacation**. The calculator adds them all automatically.

Q: What happens if I have 4 years and 4 months of seniority?

That counts as **5 computable years**. The 4-month fraction exceeds 3 months, so it rounds up to a full additional year for Art. 245 purposes. If you had 4 years and 2 months, it would be only 4 computable years.

Q: Is the severance payment subject to income tax?

The **Art. 245 seniority indemnity** is **tax-exempt** per Supreme Court rulings "Negri" (2014) and "De Lorenzo" (2009). It's also exempt from social security contributions (17%). However, **notice period, month integration, proportional SAC, and vacation pay are taxable** just like regular salary.

Q: What if the employer doesn't pay the full amount?

You can file a claim under **Law 25.323 Art. 2**, which increases the severance by up to **50%** if you must go to court to collect. Before litigation, you must attempt mediation (mandatory in Buenos Aires). Consult a labor lawyer.

Q: Is seniority counted from actual start date or registration date?

**From the actual start date**, always. If you worked informally ('off the books') for a period, you can claim it under **Law 24.013** (National Employment Law), which also **doubles the severance** if the employment was not properly registered. You need to prove it with witnesses, receipts, messages, or bank records.

Q: How much notice period pay am I entitled to?

Depends on seniority: **15 days** if under 3 months, **1 month** between 3 months and 5 years, **2 months** if over 5 years. The employer pays the equivalent salary for that period plus proportional SAC (1/12) on the amount.

Q: How is unused vacation calculated?

Using the formula **salary / 25 x corresponding days** (vacation daily rate, Art. 155 LCT). Days depend on seniority: 14 days up to 5 years, 21 days from 5 to 10, 28 days from 10 to 20, and 35 days with 20+ years. It's prorated based on months worked in the current year.

Calculate Argentine severance pay for unjust dismissal: Art. 245 seniority, notice period, month integration, proportional SAC, and unused vacation.

Data verified · June 2026
Edited by Martín Rodríguez
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Data updated: May 30, 2026 · Source: Law 20.744 (LCT) - Arts. 231, 232, 233, 245

Edited by: Martín Rodríguez (editorial policy )

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Calculator specific to Argentina. Laws, brackets and values are those currently in force in Argentina (ARCA, BCRA, ANSES).

Severance pay for unjust dismissal in Argentina is regulated by Article 245 of the Labor Contract Law (LCT 20.744) and consists of several components that add up: seniority indemnity (1 month per year), notice period pay, month integration, proportional SAC (aguinaldo), and unused vacation. This calculator gives you the total gross final settlement applying the Vizzoti ruling from the Supreme Court (floor of 67% of your best remuneration), the collective bargaining agreement cap if applicable, and the fraction-greater-than-3-months rule that adds an extra year to the computation. It works for employees under the LCT, any collective agreement (Commerce, Metalworkers, Construction, Healthcare, etc.), any seniority level, and takes into account that Art. 245 severance is tax-exempt per Supreme Court rulings.

When to use this calculator

You were fired without cause and want to verify the amount owed before signing any agreement.
You're considering resigning but want to know what you'd receive if terminated instead.
You're a labor lawyer needing a quick calculation for a settlement negotiation.
HR offers a voluntary retirement package and you want to compare it with what the law mandates.
You have several years of seniority and want to estimate your severance before a salary increase.

Argentina Severance: Key Components by Seniority (Art. 245 LCT)

Component	Rule	Seniority threshold	Amount
Seniority indemnity (Art. 245)	1 month × computable years	Fraction >3 months = +1 year	Best gross salary × years
Notice period	15 days	<3 months seniority	Salary / 2
Notice period	1 month	3 months – 5 years	Best gross salary
Notice period	2 months	>5 years	Best gross salary × 2
Vacation days (Art. 150)	14 calendar days	Up to 5 years	Salary / 25 × 14
Vacation days (Art. 150)	21 calendar days	5 – 10 years	Salary / 25 × 21
Vacation days (Art. 150)	28 calendar days	10 – 20 years	Salary / 25 × 28
Vacation days (Art. 150)	35 calendar days	Over 20 years	Salary / 25 × 35
Vizzoti floor (CSJN 2004)	67% of salary	Applies when cap < 67%	Min base = salary × 0.67
Proportional SAC	1/2 salary × months / 6	Current semester only	Prorated to dismissal month
Month integration (Art. 233)	Days to month end	Any seniority	Salary × remaining days / 30

Fuente: Law 20.744 (LCT) Arts. 150, 231–233, 245; CSJN ruling 'Vizzoti v. AMSA' (09/14/2004). Art. 245 indemnity is income-tax exempt (rulings 'Negri' 2014 and 'De Lorenzo' 2009).

How it works

How Severance for Unjust Dismissal Is Calculated

When an employer terminates an employee without cause in Argentina, they must pay a final settlement composed of several legally mandated components under the Labor Contract Law (LCT 20.744).

1. Seniority Indemnity (Art. 245 LCT)

The core component: one month's salary per year worked (or fraction greater than 3 months = one additional year). The base is the best regular monthly gross remuneration of the last year.

Art. 245 Indemnity = best_salary x computable_years

Example: 4 years and 5 months = 5 computable years (because 5 > 3). 4 years and 2 months = 4 computable years.

2. Collective Agreement Cap and Vizzoti Ruling

The original Art. 245 applies a cap of 3x the average salary of the collective bargaining agreement. However, the Vizzoti v. AMSA ruling by the Supreme Court (09/14/2004) declared it unconstitutional when the cap reduces the base by more than 33%. Therefore, 67% of your best remuneration is used as a floor.

Situation	Base Applied
Your salary <= agreement cap	Your full salary
Your salary > cap but cap > 67% of salary	Agreement cap
Your salary > cap and cap < 67% of salary	67% of your salary (Vizzoti)

3. Notice Period (Arts. 231-232 LCT)

If the employer doesn't give advance notice, they must pay:

Seniority	Notice Period
Less than 3 months	15 days
3 months - 5 years	1 month
More than 5 years	2 months

Notice period pay includes SAC on notice (1/12 of the amount).

4. Month Integration (Art. 233 LCT)

You're entitled to pay for the remaining days of the month (from dismissal date to month end), plus SAC on that amount.

5. Proportional SAC

Proportional aguinaldo for the current semester: (salary / 2) x (months worked in semester / 6).

6. Unused Vacation + SAC

Days earned in the current year, paid at salary / 25 per day (vacation daily rate, Art. 155 LCT). SAC on vacation is added (1/12).

Vacation Days by Seniority

Seniority	Vacation Days
Up to 5 years	14 calendar days
5 - 10 years	21 calendar days
10 - 20 years	28 calendar days
More than 20 years	35 calendar days

Tax Treatment

Art. 245 (seniority): EXEMPT from income tax (Supreme Court rulings "Negri" and "De Lorenzo"). No social security contributions.

Notice period: subject to income tax and social security if above the tax-free threshold.

Month integration: subject to income tax and social security like regular salary.

Proportional SAC and vacation: subject to income tax and social security.

What This Calculator Does NOT Include

Moral damages or discriminatory dismissal: Arts. 178, 182 (pregnancy, marriage) multiply Art. 245 by 13.

Art. 80 penalty: if the employer doesn't provide the employment certificate (3 additional salaries).

Law 25.323 Art. 1: unregistered employment (doubles the indemnity).

Law 25.323 Art. 2: if you must go to court to collect (50% surcharge).

Labor lawsuit costs: legal fees and court costs calculated separately.

Common Mistakes

1. Using net salary: Art. 245 is always based on GROSS best remuneration.
2. Not counting the fraction over 3 months: 4 years and 4 months = 5 years, not 4.
3. Applying the agreement cap without checking Vizzoti: Vizzoti almost always gives a higher number.
4. Forgetting SAC on notice, integration, and vacation: these are separate line items in the settlement.
5. Not requesting the employment certificate: if not provided, you're owed 3 additional salaries (Art. 80).

Example: Dismissal with 7 years 5 months and ARS 2,000,000 gross

Best gross salary of the last year: ARS 2,000,000.

Seniority: 7 years and 5 months = 8 computable years (5-month fraction > 3 months adds 1 year).

Seniority (Art. 245): 2,000,000 x 8 = ARS 16,000,000.

Notice period (>5 years = 2 months): 2,000,000 x 2 = ARS 4,000,000. + SAC on notice: 4,000,000 / 12 = ARS 333,333.

Month integration (dismissed on day 10, 20 days remaining): 2,000,000 x 20/30 = ARS 1,333,333. + SAC on integration = ARS 111,111.

Proportional SAC (4 months in semester): 2,000,000 / 2 x 4/6 = ARS 666,667.

Unused vacation (5 months = 6 days): 2,000,000 / 25 x 6 = ARS 480,000. + SAC on vacation = ARS 40,000.

Total gross: approx. ARS 22,964,444. Notice period and month integration are subject to 17% social security deductions and potentially income tax. The Art. 245 seniority indemnity is tax-exempt.

Disclaimer: Indicative estimate based on the stated rules. Agreements, caps, and individual circumstances may change the result; verify with HR, the labor authority, or a qualified professional.

Frequently asked questions

What components are included in a final settlement for unjust dismissal?

Six components: (1) seniority indemnity (Art. 245, 1 month per year), (2) notice period (15 days, 1 month, or 2 months depending on seniority), (3) month integration (remaining days of the dismissal month), (4) proportional SAC (aguinaldo), (5) unused vacation, and (6) SAC on notice, integration, and vacation. The calculator adds them all automatically.

What happens if I have 4 years and 4 months of seniority?

That counts as 5 computable years. The 4-month fraction exceeds 3 months, so it rounds up to a full additional year for Art. 245 purposes. If you had 4 years and 2 months, it would be only 4 computable years.

What is the Vizzoti ruling and when does it apply?

A Supreme Court ruling (09/14/2004) that declared it unconstitutional to apply the collective agreement cap when it reduces the severance base by more than 33%. In practice, 67% of your best remuneration is almost always used as the floor, because agreement caps tend to be low relative to actual salaries.

Is the severance payment subject to income tax?

The Art. 245 seniority indemnity is tax-exempt per Supreme Court rulings "Negri" (2014) and "De Lorenzo" (2009). It's also exempt from social security contributions (17%). However, notice period, month integration, proportional SAC, and vacation pay are taxable just like regular salary.

What if the employer doesn't pay the full amount?

You can file a claim under Law 25.323 Art. 2, which increases the severance by up to 50% if you must go to court to collect. Before litigation, you must attempt mediation (mandatory in Buenos Aires). Consult a labor lawyer.

Is seniority counted from actual start date or registration date?

From the actual start date, always. If you worked informally ('off the books') for a period, you can claim it under Law 24.013 (National Employment Law), which also doubles the severance if the employment was not properly registered. You need to prove it with witnesses, receipts, messages, or bank records.

How much notice period pay am I entitled to?

Depends on seniority: 15 days if under 3 months, 1 month between 3 months and 5 years, 2 months if over 5 years. The employer pays the equivalent salary for that period plus proportional SAC (1/12) on the amount.

How is unused vacation calculated?

Using the formula salary / 25 x corresponding days (vacation daily rate, Art. 155 LCT). Days depend on seniority: 14 days up to 5 years, 21 days from 5 to 10, 28 days from 10 to 20, and 35 days with 20+ years. It's prorated based on months worked in the current year.

Sources & references

Methodology & trust

Editorial

Finance calculator with its formula verified automatically against Law 20.744 (LCT) - Arts. 231, 232, 233, 245, per our editorial policy and methodology.

Updates

Updated: June 2026. Parameters are verified periodically against the cited sources.

Privacy

Calculations run 100% in your browser. We do not store or transmit your data.

Limitations

Indicative results. For critical decisions, consult a professional.

📌 How to cite this calculator

Rodríguez, M. (2026). Argentina Severance Pay Calculator (Dismissal Without Cause). Hacé Cuentas. https://hacecuentas.com/en/severance-calculator-argentina

Content licensed under CC-BY 4.0 — reuse it citing the source with a link to Hacé Cuentas.

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