SAC stands for Sueldo Anual Complementario, which translates to "Supplementary Annual Salary." It is Argentina's version of the 13th-month pay, a legally required bonus that every employer in the country must provide to all workers regardless of their role or seniority.
How SAC Is Calculated
The SAC equals 50% of the highest monthly gross salary earned during each semester. The first installment covers January through June and is paid by June 30. The second covers July through December and is paid by December 18. If an employee's salary changed during the semester, the calculation uses the highest month's gross pay.
Tax Treatment in Argentina
SAC payments are subject to income tax (Impuesto a las Ganancias) and social security contributions, just like regular salary. However, there are specific exemptions for lower-income employees. The employer must withhold the appropriate taxes when processing SAC payments.
EOR Relevance
An EOR operating in Argentina handles SAC calculations, tax withholding, and timely payment automatically. This is critical because late or incorrect SAC payments can trigger labor complaints and fines from Argentina's Ministry of Labor.