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For companies managing payroll across Latin America, June marks an important month with multiple legal deadlines. From mid-year bonuses to profit-sharing obligations, it’s essential to stay informed to avoid penalties and ensure full compliance.
Here’s what companies need to know.
Colombia – Prima de Servicios (Service Bonus)
Deadline: June 30
Amount: Equivalent to 15 days of salary for each semester worked (~8.33%)
Applies to: All private sector employees
This bonus is mandatory and must be paid by the end of June. It recognizes the contribution of employees and helps ensure fair compensation practices.
Mexico – PTU (Profit Sharing)
Deadline:
May 30 for legal entities
June 29 for individuals with business activity
Amount: 10% of the company’s taxable profit, distributed among employees
Delays in PTU payments can result in labor fines and employee disputes, making timely compliance crucial.
Brazil – 13th Salary (1st Installment)
Commonly Paid in June (optional advance payment)
Amount: 1/12 of annual salary per worked month (~8.33%)
This partial payment can be requested together with vacation pay (by January). Though not mandatory this month, many companies choose to pay it now as part of mid-year planning.
Argentina – Medio Aguinaldo (Half-Year Bonus)
Deadline: June 30
Amount: 50% of the highest monthly salary earned during the semester
This bonus is mandatory for all employees and must be paid regardless of seniority.
Legal Update: Brazil Tightens Penalties for Delayed Termination Payments
Brazil’s Superior Labor Court (TST) has issued a new interpretation of Article 477 of the CLT, increasing employer liability for late termination payments.
What changed?
Previously, the fine was calculated only on base salary.
Now, the fine applies to all salary-related items, including:
- Salary balance
- Indemnified prior notice
- Proportional 13th salary
- Proportional and accrued vacation (+1/3)
- Overtime
- Commissions and variable payments
- Additional premiums (e.g. night shift, hazard pay, etc.)
Key compliance point:
Employers must pay all outstanding amounts and deliver termination documents within 10 calendar days of contract end. Any delay may result in a heavier financial penalty, making timely processing more critical than ever.
Need help staying compliant?
At Serviap Global, we help companies navigate local payroll obligations with ease—whether it’s calculating mid-year bonuses, handling profit-sharing, or ensuring legal compliance across LATAM.
From EOR and payroll outsourcing to termination processing and advisory, we ensure your operations meet every labor requirement. Talk to our experts and avoid unnecessary risks.
