PTO Guidelines When Hiring Tech Contractors in LatAm

PTO Guidelines When Hiring Tech Contractors in LatAm

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In the future, Latin America is expected to grow at a rate similar to that of China, but for enterprises to be lucrative and successful, they must be conversant with the complex labor laws of the various countries.

There are exceptional chances in Latin America. However, any corporation would be well to steer clear of the land mines strewn throughout the field of labor law in every jurisdiction.

In many ways, Latin American labor and employment laws reflect the specific nation’s political history, customs, and beliefs, offering a setting that is distinctly different from what businesses are accustomed to in the United States.

If you intend to hire tech roles from the LatAm region, it may be best to read this article first to know about PTO guidelines and where to find a tech recruiting agency in Latin America.

Benefits and the Minimum Wage as Compensation

Most South American countries need a minimum wage and a consistent annual pay increase.

Frequently, the annual increase in the minimum wage is based on an inflation rate that the government sets.

Therefore, while making salary modifications, businesses should be mindful of the minimum wage rate requirements in the relevant jurisdiction.

Benefits are often expensive for businesses but advantageous to employees. Most jurisdictions also call for overtime pay, paid holidays, weekly relaxation, and a Christmas bonus in addition to paid vacation days, which can last anywhere from 15 to 35 consecutive days.

The employee’s seniority determines the amount of paid vacation days.

Profit-sharing benefits are very common in the region. Businesses must give their employees 30% of their yearly revenues in Chile.

The required payment in Venezuela is 15% based on the company’s yearly net income. The sector that a company operates in influences the percentages under Peru’s profit-sharing scheme.

Employers should be aware that certain nations have strict definitions of equal pay for equal effort.

As a result, in Colombia, a company may grant another employee in the same position the opportunity to request the same amount of money if they decide to award one employee better compensation due to their performance.

In most of Latin America, any changes in pay—even a one-time bonus—may result in additional employer obligations and alter employees’ overall compensation packages, including the number of vacation days, bonuses, profit-sharing contributions, and severance payments.

While other countries may not be as strict as Colombia in requiring that equal pay for equal work apply to all employees, this is true even in countries that do not have the same strict laws.

Businesses are not required to pay employees more than what is required by law. Thus they should take prudence while doing so. They should first investigate the laws governing employee compensation in the countries where they conduct business.

If a collective bargaining agreement governs the employment relationship, the employer should also search for provisions restricting its ability to award overtime compensation unilaterally.

If you want to leave the tedious work to experts, you may hire a tech recruiting agency in LatAm.

Paid Vacations By Country In Latin America

In Latin America, employees are only allowed 30 days of legally mandated paid vacation yearly. Only Brazil, Cuba, Panama, Peru, and Nicaragua provide this much in terms of paid annual leave.

The Caribbean nations of Trinidad and Tobago and Saint Vincent, and the Grenadines, whose legislative systems do not require a specific number of paid vacations for employees, are on the other extreme of the spectrum.

Employees in Mexico were only guaranteed a minimum of six paid holidays annually as of 2021.

Which Countries Have The Most Vacation Days?

Brazil: Workers are entitled to 30 days of vacation after a minimum 12-month duration of service. In addition, paid relaxation is frequently requested in blocks of three hours or all at once. At least one of the ranges must contain 14 days to split.

Panama: After completing their 11 months of employment, the professional will be entitled to 30 days of paid leave annually, provided they did so within the same employer.

Peru: Employees across several industries are entitled to 30 days of paid vacation annually. It should be made clear that since they are entitled to at least 15 days of paid vacation, employees of SMEs are excluded from this requirement.

Uruguay: Each company’s human capital in Uruguay is entitled to 20 consecutive paid vacation days for each year of employment. Employees will also be eligible for an extra day of leave for every four years of seniority beginning with their fifth year of employment.

Venezuela: Workers are entitled to 15 working days of paid leave under the Organic Labour Law, which governs the entire nation and is headed by Nicolás Maduro.

It’s important to remember this information if you plan to relocate to another country and look for new job opportunities to enhance your career.


Using the services of a tech recruiting agency in Latin America is an effective way to fill in the IT talent gap. By leveraging the agency’s expertise in the region, organizations can benefit from a more efficient recruitment process and access to a larger talent pool.

The agency can provide access to a broad selection of candidates with the right technical and cultural fit for the company. Furthermore, the agency can provide insights into the local market, helping organizations make better hiring decisions.

LatamRecruit helps you source and prescreen the best tech talent and high-quality engineers in all of LatAm. Contact our tech recruiting agency in Latin America today!

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