On November 30, 2021, the Ministry of Labor, Employment and Social Welfare, issued a communication by which it reminds private sector employers and public sector entities of the obligation they have to pay the Christmas Bonus for year 2021, in accordance with the Instructions summarized below:
- Entities obliged to pay : Any institution, public, private, commercial, industrial, service company and any other activity or business for profit or non-profit, whose employees are under the scope of the General Labor Law.
- Beneficiaries: all workers who provide services for others, under conditions of subordination and dependence, who receive remuneration in any of its forms and whatever the type of work, without any exclusion, with the sole consideration that the employees had worked for a minimum of three months uninterruptedly and workers one calendar month in the present year, either through a fixed-term, indefinite contract or any other legally recognized modality.
- Calculation basis : the average of the total earned in the last three months prior to payment or the three months prior to the termination of the employment relationship. In the case of workers who have worked one calendar month during the management, the calculation basis will be made by virtue of the remuneration corresponding to that month.
- Amount to be paid: one month’s salary or remuneration. However, when the full twelve months of the present management have not been worked, their payment will be made by twelfths in proportion to the time worked in the management, only considering the services provided in the same entity, company or public or private institution, and that it has been carried out for a minimum of three months without interruption during the fiscal management, including the incorporations made until October 1 in the case of employees and in the case of workers, until before December 1 of the present year. Likewise, it is clarified that the payment of the Christmas bonus should not be made in goods of any kind.
- Limitations: The Christmas bonus is not subject to judicial seizure, retention, deduction for taxes or contributions, waiver, compensation or transaction, and must be paid in full according to the proportion established by Law.
- Payment date : In the private sector, payment must be made until MONDAY, DECEMBER 20, 2021 without delay.
- Date of presentation of special forms : UNTIL FRIDAY, DECEMBER 31, 2021.
- Public Sector: Instructions to be issued by the Ministry of Economy and Public Finance.