Do I have to be paid in Peso?

[Tyuis]

Hi All

Hoping for some insight

Moving to Argentina next month for work purposes. Company has headquarters in Europe and we have small office in BA to which I will be based for a year.

Looking forward to the move.

However, have been told that I will have to receive my salary in Peso due to my visa - have received a Temporary work visa for 12months. This will be paid into an Argentina bank account

Is this normal or should I expect to still be paid in Euro?

What have been your experiences of remuneration when being expatriated to work in Argentina?

Worried due to the fact it is difficult to set up a bank account for a foreigner and also due to potential loss on exchange rate.

Thanks for your help

 

[Davidglen77]

If you are registered legally in Argentina your employer will have to set up a bank account for you where you will receive your salary. You can only be paid your salary in Argentine pesos. When they give your work contract to migraciones to approve your salary has to be stated in pesos. If you don't want to lose money, have them give you another document (for your eyes only) that states you will be paid your salary in Argentine pesos each month, based on the current euro exchange rate on your payday.

If you are a legally registered employee with residency whether it be temporary or permanent, there is no problem at all to set up a bank account since you will have a CUIT and will be waiting for your DNI.

Good luck

 

[trennod]

I think you will find most expats down here for work are being paid in their local currency from their home location.

I am not sure if you or your work has thought of these, but being in a similar situation (I was transferred here with my company in Aust and although received a relocation allowances and receive some other allowances in AUD, I receive the majority of my salary in pesos):
- inflation adustements: private estimates put it at about 25-30% per annum. If you are being paid in pesos you may want to consider a clause which allows an inflation adjustment review or adjustments linked to private estimates;
- accommodation: is your company helping you / paying for this? It would atleast be helpful if they put you up for the first few weeks, if you dont know the city that may give you some time to feel for where you may want to live. Be aware that furnished apartments on shorter term leases are more expensive as longer term rentals require a garantia (property security from someone living in Buenos Aires) and also usually have 2 year contracts.
- stocking up before you leave: in addition to the import restrictions here making it difficult to access many foreign products, due to import taxes those that are available here are expensive. Better value for money particularly for clothing, electronics in Europe, USA etc.

Good luck with the move!!!

 

[el_expatriado]

Just be aware that the peso is not a hard currency. The money you are paid can only be spent here in Argentina. If you want to convert your pesos back to Euros to be able to save in a hard currency, you are going to take a 30% hit.

 

[sleslie23]

If you are paid IN Argentina, then it is a legal requirement that you be paid in pesos. However, it is not a requirement that you be paid IN Argentina. However, your company, in addition to paying all of your benefits, taxes, etc. in your home country will also be required to pay all relevant benefits, taxes, etc in Argentina. This is very expensive and most multinationals aren't willing to fork over that much money unless they really need YOU to be HERE. In these cases, you would generally have a contract that has a fixed term (6mos, 1 year, 2 years). This is what you should try to get!

If not, you will have to be paid in pesos in Argentina. Others have suggested things to do to mediate that, which may or may not be possible. In any case, you should get EVERYTHING in WRITING from the HR department in your home country. Especially a binding agreement that states the conditions of your employment here as well as your return. This is the most important document you can possess.

I won't go into all the details publicly, but I was transferred here without a formal agreement for my return, which was fine because I could always find another job back home and I trusted all of the parties involved. Fast forward 5 years .... There is now a recession and my previous employer was acquired by another that is not keen on international transfers.

It's not the end of the world, but it's not exactly the position you want to be in. The moral of the story is .... try to get paid in anything other than pesos and get everything in writing.

PM me if you have questions.

 

[davonz]

I know some expats who are paid part of the salary in peso's and part in there home currency, which is put in there home country bank account.

I wouldnt have all my salary in pesos, just because if you save any and then when you leave you will be stuck with pesos which cant be exchanged anywhere for US$ or Euro's or any hard currency.

 

[sleslie23]

I think you will find most expats down here for work are being paid in their local currency from their home location.

Most, but not all. It definitely gives one a different perspective on current events!

 

[tomdesigns]

Hi All

Hoping for some insight

Moving to Argentina next month for work purposes. Company has headquarters in Europe and we have small office in BA to which I will be based for a year.

Looking forward to the move.

However, have been told that I will have to receive my salary in Peso due to my visa - have received a Temporary work visa for 12months. This will be paid into an Argentina bank account

Is this normal or should I expect to still be paid in Euro?

What have been your experiences of remuneration when being expatriated to work in Argentina?

Worried due to the fact it is difficult to set up a bank account for a foreigner and also due to potential loss on exchange rate.

Thanks for your help

I would take a long hard look at spending the next year here to be honest. What is publicized and what is reality are two different things.

And what is going on here is not pretty there is a recession starting with inflation that is staggering. So you will take a hit on your conversions and in cost of living which is sky rocketing and shows no signs of letting up.

So it is possible you will get hit on both sides of that unless they are paying you in a way that compensates for those issues.

The restaurants and markets now put open white squares in the price entry areas so they can raise the prices without reprinting. Things you have to see to believe. And the prices are going up 2 or 3 times a week in some places. A little here a little there but the pace is amazing.

 

[Tyuis]

Hey folks

Many thanks for the replies so far. Lot's of useful information. Much food for thought.

I was hoping to be paid in Euro but have been told that as part of visa this is not possible. It is a fixed term contract for one year so as long as I have enough money to live reasonably well then I will make do.

I know that I will not be a rich man after the year but hopefully will be rich with new skills and language.

 

[trennod]

Your last sentance if a great way of looking at it. Given its 1 year and you have a contract I think you have more to gain than lose.