LATAM Year-End Payroll Guide

This article is about Justworks EOR (Employer of Record). What product am I using?

Managing payroll in LATAM involves complex statutory contributions, social security requirements, and country-specific compliance obligations. This guide brings together essential year-end payroll considerations and reference information to support accurate payroll operations across the region.

Justworks helps you navigate local requirements so you can focus on supporting your team with confidence.

Updated for 2025 year-end processing and 2026 employer payroll tax requirements.

2026 Employer Payroll Tax Updates

Disclaimer
These rates have been confirmed by our local payroll partners as of January 2026. Tax laws are subject to legislative updates and government decrees. This information is for budgetary purposes and does not constitute legal or tax advice.

2025 Key Year-End Payroll Dates

Payday Reminder

Most countries in Latin America have special bonus requirements and fixed deadlines in December. Final payrolls are generally processed by December 26 to accommodate local holidays and ensure bank availability.

Payroll Processing Deadlines by Country

• Brazil:
  • 13th salary (second installment or lump sum) paid December 13
  • Final payroll processed by December 26
• Chile:
  • Optional Aguinaldo typically paid before December 15
  • Final payroll processed by December 26
• Colombia:
  • Second half of the 13th-month bonus (“prima de servicios”) paid December 13
  • Final payroll processed by December 26
• Costa Rica:
  • 13th salary payment completed by December 13
  • Final payroll processed by December 26
• Peru:
  • 14th-month salary (December bonus) paid by legal deadline (date TBD)
  • Final payroll processed by December 26

Bank Holidays and Office Closures

Please take into account national holidays and reduced availability near year-end. While specific office closures vary, most Justworks operations remain open as usual unless otherwise noted.

Common Bank Holidays

• December 25: Christmas Day
• December 31: New Year’s Eve (Chile only)
• January 1: New Year’s Day (Peru only)

Office Closures

• Brazil, Colombia, Costa Rica, Peru: Business as usual
• Chile: Half-day closures on December 24 and December 30

Year-End Tax Filings and Forms

Each country has specific employer obligations for annual income reporting. Justworks manages all required submissions on your behalf.

Deadlines by Country

• Brazil: Comprovante de Rendimentos due by February 28
• Chile: Certificado de Rentas y Retenciones due by March 14
• Colombia: Certificado de Ingresos y Retenciones due by March 31
• Costa Rica: Comprobante de Rendimientos due by February 28
• Peru: Certificado de Rentas y Retenciones due by March 14

No action is required on your part—Justworks will ensure accurate and timely submission

Bonus and 13th Salary Requirements

Latin American labor laws often require employers to provide end-of-year bonuses or additional monthly payments:

• Brazil: 13th salary is mandatory and may be split into two parts.
• Colombia: The 13th-month bonus ("prima de servicios") is mandatory and split between June and December.
• Costa Rica: 13th salary is required and paid in December.
• Peru: Both 13th- and 14th-month salaries are mandatory (paid in July and December).
• Chile: Aguinaldo is optional, but widely practiced.

Justworks processes these payments according to each country’s requirements and timelines.

We've Got You Covered

Justworks handles year-end payroll and bonus processing across Latin America—from compliance with country-specific regulations to timely tax filings. There's no action required from you.

For questions or support, contact international-support@justworks.com or reach out to your International Customer Success Manager.

Disclaimer

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for accounting, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.