Legal Framework

 

-Christmas bonus: or 13th month is an additional monthly salary paid in December as a whole month if the employee has worked 12 Month or as a proportional allowance of the time worked.

-14 th month pay is an additional month salary or proportional to the time worked and is paid on June.

-Maternity: employer must provide 42 paid days prior and after childbirth and one hour daily for six month.

-Education bonus: paid once a year only to employees whose children attend school and whose salary is equivalent to up 2 minimum wages ($52/year/employee)

-Social security: the labor code establishes that an employer must pay 7.5% over and up to Lps. 4,800 of an employee. The employee pays 3.5% over the same amount.

-Government training school: by law the employer pays monthly 1% of the total payroll amount to the government.

-Severance: if a work contract is terminated without any justification, the employer must pay employee an indemnity equivalent to one month pay per each worked year, being 15 years the maximum.

 

Important Elements related with the employee employer relationship.

	Day shift	Night shift	Mix shift
Working hrs/week	44	36	42
Time	5 am-7 pm	7 pm-5 am	Mixed
Excess on daily wage	-	25%	-

 

-If more than 3 hours of the mixed shift fall on the night shift, the entire shift will be considered night shift
-work on holidays are paid double the ordinary salary, there are 11 paid holidays per year.

 

-Vacations are calculated as follows:

Consecutive years of work	Paid vacation days
1	10
2	12
3	15
4 / more	20