Uruguay Expats Blog December Archive blog.topic

Aguinaldo... twice a year 'Bonus' for your employees

By Lee at 12/27/08 06:20

I'm a bit late in writing this post... but it's an important topic: Aguinaldo.

In Uruguay, aguinaldo is a payment to employees twice a year. In June and in December. Employers are supposed to set aside the amounts for this payment.

Whether you set it aside or pay from your current account... the calculation for aguinaldo is easy! Just total the wages you paid for the past 6 months (ie: June - Nov) and divide by 12.

That means that employees are really paid for 13 months each year. Keep that added cost in mind when calculating the cost of employees. Santiago tells me that the amount of the aguinaldo is included in calculations for the employees taxes.

Remember, in December this is an important bonus for your employees and help them with their Christmas shopping!