Latin America’s annual leave landscape is more varied than most employers expect. Brazil provides 30 calendar days with a mandatory one-third vacation bonus. Mexico’s 2023 reform increased the minimum to 12 days with a 25% premium. Argentina’s entitlement scales with age and service. Chile adds a day for every three years after a decade. Colombia sits at a straightforward 15 working days.
This guide breaks down the annual leave rules in five major Latin American economies so you can build compliant policies, set accurate expectations with your teams, and avoid the compliance pitfalls that catch international employers when they try to apply a single regional policy.
Quick Comparison Table
| Feature | Brazil | Mexico | Argentina | Chile | Colombia |
|---|---|---|---|---|---|
| Statutory minimum | 30 calendar days | 12 days (year 1), +2/yr to 20 | 14 days (year 1), scales by age | 15 working days | 15 working days |
| Qualifying period | 1 year | 1 year | 6 months | 1 year | 1 year |
| Vacation premium | 1/3 bonus (constitutional) | 25% minimum (prima vacacional) | None | None | None |
| Seniority bonus | No | No (but entitlement scales) | Yes (scales by age/service) | Yes (after 10 years) | No |
| Carry-over penalty | Double pay if not granted | None (but lost after year) | None (but lost after year) | None (but lost after year) | None (but lost after year) |
| Cash-out | Up to 1/3 (employee right) | No | No | No | No |
| Public holidays | ~13–18 (national + local) | ~9–14 (official + non-official) | ~19 (inamovibles + trasladables) | ~15–19 (including election days) | ~18 |
Brazil: 30 Days, the One-Third Bonus, and the Double-Pay Penalty
Brazil’s annual leave is governed by the Consolidação das Leis do Trabajo (CLT) and the Federal Constitution. Every employee is entitled to 30 calendar days of paid annual leave after each 12-month acquisition period. This is one of the most generous statutory entitlements in the region.
The One-Third Vacation Bonus (Terço Constitucional)
The most distinctive feature of Brazilian leave is the mandatory constitutional one-third bonus: every vacation period must include an additional payment equal to one-third of the employee’s gross salary. This bonus applies to every leave period, whether the employee takes the full 30 days or exercises their right to cash out up to one-third.
The Abono Pecuniário: Cash Out Up to 10 Days
Brazilian employees have the right to convert up to one-third (10 days) of their 30-day entitlement into a cash payout, known as the abono pecuniário. This is an employee right — the employer cannot force it, but must comply if the employee requests it at least 15 days before the end of the acquisition period. The one-third bonus still applies to the cashed-out portion.
The Double-Pay Penalty
If the employer fails to grant leave within the 12-month concession period following the acquisition period, they are legally obligated to pay double the vacation salary as a penalty. This is one of the strictest leave-granting enforcement mechanisms in the region.
Attendance-Based Reduction
If an employee has more than five unjustified absences in a year, their 30-day balance is reduced on a sliding scale: 6–14 absences reduce leave to 24 days, 15–24 absences to 18 days, and 25–32 absences to 12 days.
For the full breakdown, see our Brazil annual leave guide.
Mexico: 12 Days Scaling to 20 with the 25% Premium
Mexico’s annual leave is governed by the Ley Federal del Trabajo (Federal Labour Law). Following the 2023 reform, the minimum entitlement starts at 12 working days in the first year and increases by 2 days per year until reaching 20 days in the fifth year. After that, it increases by 2 days every 5 years.
The Vacation Premium (Prima Vacacional)
Every vacation period in Mexico must include a minimum 25% premium (prima vacacional) on top of the employee’s normal remuneration. This is a constitutional requirement and applies to every day of leave taken.
Carry-Over and Forfeiture
Mexican law requires that leave be taken within the year following the accrual period. Unused leave that is not taken within this window is forfeited — the employee loses the entitlement. There is no carry-over right, and no cash-out option for unused leave (unlike Brazil’s abono pecuniário).
Public Holidays
Mexico observes approximately 9 official public holidays per year, plus additional non-official holidays (such as the two days of Pascuas) that many employers grant as paid days off. The total effective holidays range from 9 to 14 depending on the employer.
For the full breakdown, see our Mexico annual leave guide.
Argentina: 14 Days Scaling by Age with the Seniority Bonus
Argentina’s annual leave is governed by the Ley de Contrato de Trabajo (Employment Contract Law), article 150. The entitlement starts at 14 calendar days for employees under 50 with less than 5 years of service, and scales based on age and tenure.
The Entitlement Scale
| Age and service | Annual leave |
|---|---|
| Under 50, less than 5 years of service | 14 days |
| Under 50, 5 to 10 years of service | 21 days |
| 50 or older, less than 5 years of service | 21 days |
| 50 or older, 5 to 10 years of service | 28 days |
| 10 to 20 years of service (any age) | 35 days |
| 20+ years of service (any age) | 42 days |
This is one of the most generous seniority-based scales in the region. An employee with 20+ years of service receives 42 calendar days — more than double the entitlement in many European countries.
The Qualifying Period
Argentina’s qualifying period is six months — shorter than the one-year requirement in Brazil, Mexico, Chile, and Colombia. Employees become entitled to pro-rated leave after six months of service.
Public Holidays
Argentina observes approximately 19 public holidays per year, including national holidays, movable holidays (feriados trasladables), and tourism holidays (feriados turísticos). This is one of the highest public holiday counts in the region.
For the full breakdown, see our Argentina annual leave guide.
Chile: 15 Days with the Seniority Bonus After 10 Years
Chile’s annual leave is governed by the Código del Trabajo (Labour Code). The statutory minimum is 15 working days (three weeks) of paid annual leave per year. After 10 years of service with the same employer, the entitlement increases by one day for every three additional years of service.
The Seniority Bonus
| Years of service with same employer | Annual leave | | ———————————– | ———–– | — | | Less than 10 | 15 days | | 10 | 16 days | | 13 | 17 days | | 16 | 18 days | | 19 | 19 days | | 22 | 20 days (max) | |
The maximum entitlement is 20 working days. This seniority bonus only applies when the employee has continuous service with the same employer — changing employers resets the clock.
Public Holidays
Chile observes approximately 15 to 19 public holidays per year, including national holidays, movable holidays, and election days that are declared as official holidays. The exact number varies by year.
For the full breakdown, see our Chile annual leave guide.
Colombia: 15 Working Days with the Strong Enforcement
Colombia’s annual leave is governed by the Código Sustantivo del Trabajo (Substantive Labour Code). The statutory minimum is 15 working days of paid annual leave per year, available after one year of service.
Enforcement and Penalties
Colombia is notable for its strong leave enforcement: employers who fail to grant leave face penalties, and employees have the right to take leave within the year following the accrual period. Unused leave does not carry over and is generally lost.
Public Holidays
Colombia observes approximately 18 public holidays per year, including national holidays, religious holidays, and regional celebrations. This is one of the highest public holiday counts in South America.
For the full breakdown, see our Colombia annual leave guide.
Key Differences That Matter in Practice
1. The Vacation Premium Is Not Universal
Brazil’s one-third constitutional bonus and Mexico’s 25% prima vacacional are mandatory additional costs on top of the leave wage. Argentina, Chile, and Colombia do not have a statutory vacation premium. An employer budgeting for Latin American leave must account for these premiums in Brazil and Mexico — they add 25–33% to the cost of leave.
2. Cash-Out Rules Vary Dramatically
Brazil allows employees to cash out up to one-third of their leave (abono pecuniário). Mexico, Argentina, Chile, and Colombia do not permit cash-out during employment. An employer applying a single cash-out policy across the region will be out of step in at least four of five countries.
3. Carry-Over and Forfeiture Are Inconsistent
Brazil imposes a double-pay penalty if leave is not granted within the concession period. Mexico, Argentina, Chile, and Colombia simply forfeit unused leave. There is no carry-over right in any of the five countries (unlike some European jurisdictions). This means employers must actively ensure leave is taken during the year it accrues.
4. The Seniority Bonus Applies Only in Argentina and Chile
Argentina’s age-and-tenure scale and Chile’s post-10-year bonus create escalating costs for long-serving employees. Brazil, Mexico, and Colombia have flat entitlements (though Mexico’s entitlement scales in the first five years). An employer with a tenured workforce in Argentina or Chile faces higher per-employee leave costs than in the other three countries.
5. Public Holiday Counts Are High Across the Region
All five countries have 13 or more public holidays per year, with Argentina and Colombia reaching 18–19. This means the effective total time off (leave plus public holidays) is significantly higher than the statutory leave figure alone suggests.
Practical Tips for Multi-Country Latin American Employers
1. Budget for the Vacation Premium in Brazil and Mexico
The one-third bonus in Brazil and the 25% premium in Mexico are mandatory costs. Include them in your compensation planning from the start.
2. Track the Seniority Scale in Argentina and Chile
Argentina’s age-and-tenure scale and Chile’s post-10-year bonus require active tracking. Build automatic escalation into your leave management system so the entitlement updates when the employee crosses each threshold.
3. Ensure Leave Is Taken During the Year
All five countries either forfeit or penalise unused leave. Build leave-take-up reminders into your workflow so employees use their entitlement before it expires.
4. Handle the Brazilian Abono Pecuniário Correctly
If you have Brazilian employees, be prepared for abono pecuniário requests. The one-third bonus applies to the cashed-out portion, and the employer must comply if the request is made at least 15 days before the end of the acquisition period.
5. Track Public Holidays Per Country
With 13–19 public holidays per country, the calendar is complex. Your leave management system must track public holidays per country and exclude them from the annual leave count.
6. Understand the Colombian Enforcement Environment
Colombia’s strong leave enforcement means that non-compliance carries real risk. Ensure leave is granted within the statutory window and that records are accurate enough to survive an inspection.
How Leave Balance Makes Latin American Leave Simple
Managing leave across five different legal frameworks with different premiums, seniority scales, and forfeiture rules is exactly the kind of complexity that breaks spreadsheets.
Leave Balance lets you configure country-specific policies that reflect the actual rules:
- Brazil: 30 calendar days with one-third bonus tracking, abono pecuniário workflow, and double-pay penalty alerts
- Mexico: 12-to-20-day scaling with 25% prima vacacional and forfeiture deadlines
- Argentina: Age-and-tenure-based entitlements from 14 to 42 days with automatic escalation
- Chile: 15 working days with post-10-year seniority bonus
- Colombia: 15 working days with enforcement-compliant granting timelines
Your Latin American employees can request leave through Slack or Teams in their normal workflow. Managers see a unified view across countries, and the system handles the underlying complexity.
At $10/month flat rate — regardless of how many employees you have across Brazil, Mexico, Argentina, Chile, Colombia, or anywhere else — you get compliant leave management without the per-head costs that make other tools expensive for growing international teams. Start your 14-day free trial today.
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