Latin American sick leave is a patchwork of social security handovers. Brazil splits the cost at day 15 — employer pays, then INSS takes over. Mexico operates a similar model under the IMSS regime with a three-day waiting period. Argentina has no fixed waiting period but ties the subsidy to the employee’s CUIL registration. Chile uses a licencia médica processed through FONASA/Isapre. Colombia follows the EPS model with a two-thirds employer contribution. No two countries handle the handover the same way.
This guide compares sick leave in Brazil, Mexico, Argentina, Chile, and Colombia in 2026: the employer obligations, the social security handovers, the payment rates, and the practical differences that matter for employers operating across Latin America.
Key takeaways
- Brazil: Employer pays full salary for 15 days, then INSS pays 91% of the benefit base for the remainder.
- Mexico: Employer pays full salary for the first 3 days, then IMSS pays 60% of salary from day 4.
- Argentina: No statutory waiting period — the employer pays the first 20 days at 50%, then the ART or social security takes over.
- Chile: Employer pays full salary for 3 days, then FONASA/Isapre pays ~70% subsidy from day 4.
- Colombia: Employer pays the first 2 days at 100%, then EPS pays ~66.67% of salary from day 3.
Country-by-country comparison
Brazil
Brazil’s sick leave is governed by Law 8.213/91. The structure is:
| Period | Payer | Rate |
|---|---|---|
| Days 1–15 | Employer | 100% of salary |
| Day 16 onwards | INSS | 91% of benefit base |
The 60-day linking rule means related absences within 60 days are treated as a single episode — the employer does not restart the 15-day count. Work accidents are treated separately: the employer pays 15 days, then INSS pays 100% (not 91%) from day 16, and the employee has 12 months of job stability.
Mexico
Mexico’s sick leave is governed by the Federal Labour Law (LFT) and administered by the Mexican Social Security Institute (IMSS). The structure is:
| Period | Payer | Rate |
|---|---|---|
| Days 1–3 | Employer | 100% of salary |
| Day 4 onwards | IMSS | 60% of salary (up to a cap) |
The 3-day employer waiting period is one of the shortest in Latin America. IMSS payments are subject to a daily cap that is adjusted annually. For employees earning above the cap, the employer bears the full cost beyond the IMSS maximum.
Employers must register the absence with IMSS and file the “Aviso de Incapacidad Temporal” to initiate the subsidy. Failure to file within the required timeframe can result in the employer bearing the full cost.
Argentina
Argentina’s sick leave is governed by the Ley de Contrato de Trabajo (LCT). The structure is more complex:
| Period | Payer | Rate |
|---|---|---|
| Days 1–20 | Employer | 50% of salary (in some cases 100%) |
| Day 21 onwards | ART / ANSES | 75% of salary (capped) |
The employer’s obligation during the first 20 days depends on the employee’s situation. For employees registered with the Sindicato (union), the union may cover a portion. For employees not covered by an ART (Aseguradora de Riesgos del Trabajadores), the employer pays 50% of salary.
From day 21, ANSES (the national social security administration) pays a subsidy at 75% of salary subject to a cap. The employer must process the claim through the employee’s CUIL (unique labour identification number).
The absence must be certified by a medical professional, and the certificate must be filed with the employer and, where applicable, the ART.
Chile
Chile’s sick leave is governed by article 168 of the Código del Trabajo. The structure is:
| Period | Payer | Rate |
|---|---|---|
| Days 1–3 | Employer | 100% of salary |
| Day 4 onwards | FONASA / Isapre | ~70% of taxable income |
The licencia médica is the key document. The employer must forward it to the health insurer (FONASA or Isapre) within 3 working days or lose the subsidy. The 180-day recovery period after the licencia médica expires prevents termination without a statutory cause.
Chile’s model is unique in that the employer is the intermediary who processes the claim rather than the direct payer of the government benefit. The employer advances the salary and receives the subsidy from the insurer.
Colombia
Colombia’s sick leave is governed by the Substantive Labour Code (Código Sustantivo del Trabajo). The structure is:
| Period | Payer | Rate |
|---|---|---|
| Days 1–2 | Employer | 100% of salary |
| Day 3 onwards | EPS | ~66.67% of salary (capped) |
The employer pays the first 2 days at full salary. From day 3, the EPS (Entidad Promotora de Salud — the employee’s health insurer) pays a subsidy at approximately two-thirds of the employee’s salary, subject to a cap.
The employee must be registered with an EPS and the absence must be certified by the EPS’s medical professional. The employer must process the claim through the EPS system.
Comparison table
| Country | Employer waiting period | Employer pays | Government benefit starts | Government benefit rate |
|---|---|---|---|---|
| Brazil | 15 days | 100% of salary | Day 16 | 91% of benefit base |
| Mexico | 3 days | 100% of salary | Day 4 | 60% of salary (capped) |
| Argentina | 20 days | 50% of salary | Day 21 | 75% of salary (capped) |
| Chile | 3 days | 100% of salary | Day 4 | ~70% of taxable income |
| Colombia | 2 days | 100% of salary | Day 3 | ~66.67% of salary (capped) |
Employer obligations across Latin America
The core obligations are consistent:
- Pay the employer’s share during the waiting period — 15 days in Brazil, 3 in Mexico, 20 in Argentina, 3 in Chile, 2 in Colombia.
- Register the absence with the relevant social security agency — INSS, IMSS, ANSES, FONASA/Isapre, or EPS.
- Apply the correct benefit rate when the government takes over.
- Process the medical certificate — licencia médica (Chile), certificado médico (Mexico), certificado de incapacidad (Argentina/Colombia), or atestado médico (Brazil).
- Maintain confidentiality of medical information in all five countries.
Common pitfalls
1. Applying one country’s waiting period to another
The waiting periods range from 2 days (Colombia) to 20 days (Argentina). Applying Argentina’s 20-day employer period to a Colombian employee vastly overstates the cost.
2. Not registering the absence with the social security agency
In all five countries, the employer must register the absence with the relevant agency. Failure to register means the employer bears the full cost — the government benefit does not activate automatically.
3. Missing the Chilean forwarding deadline
Chile’s 3-working-day forwarding deadline for the licencia médica is strictly enforced. Missing it means the employer loses the subsidy for the entire absence.
4. Confusing the benefit rates
The government benefit rates vary significantly — 91% (Brazil), 60% (Mexico), 75% (Argentina), 70% (Chile), 66.67% (Colombia). Applying the wrong rate to payroll creates both overpayment and underpayment risks.
5. Ignoring the caps
Mexico, Argentina, and Colombia all cap the government benefit at a maximum daily or monthly amount. High earners receive less than the stated percentage of their actual salary.
For more context, see our guide to types of leave, the overview of absence management, and our country-specific guides: Brazil, Chile.
Frequently asked questions
Which Latin American country has the longest employer waiting period?
Argentina, at 20 days. Brazil follows at 15, Mexico and Chile at 3, and Colombia at 2.
Is sick pay 100% in all Latin American countries during the waiting period?
Yes — in Brazil, Mexico, Chile, and Colombia, the employer pays 100% of salary during the waiting period. Argentina is the exception, where the employer pays 50% during the first 20 days.
How long does government sick pay last in Latin America?
There is no fixed cap on days in any of the five countries. Government benefits continue as long as medical assessment confirms incapacity. The caps are on the rate, not the duration.
Do medical certificates differ by country?
Yes. Brazil uses the atestado médico, Mexico uses the certificado médico de incapacidad, Argentina uses the certificado de incapacidad, Chile uses the licencia médica, and Colombia uses the certificado issued by the EPS. Each has its own filing requirements and deadlines.
Can an employer terminate during sick leave in Latin America?
In all five countries, the employee has some form of protection during a medically certified absence. Brazil provides the strongest protection — 12 months of job stability after accident-related benefit. Chile’s 180-day recovery period is also significant.
Putting it into practice
Five steps cover most Latin American sick leave compliance:
- Map each employee to the correct country-specific waiting period and payment rates.
- Build separate absence types for each country to prevent applying the wrong social security rules.
- Set up the agency registration process for each country — INSS, IMSS, ANSES, FONASA/Isapre, or EPS — so absences are registered on day one.
- Track the government benefit rate and cap for each country to ensure payroll accuracy.
- Maintain medical certificate records in each country’s required format and timeframe.
A leave management system that maps employees to country-specific sick leave rules, registers absences with the correct social security agency, and applies the right payment rates across Brazil, Mexico, Argentina, Chile, and Colombia keeps Latin American compliance manageable.
Sources
- Brazil — Law 8.213/91 (primary source)
- Mexico — Federal Labour Law (LFT) (primary source)
- Argentina — Ley de Contrato de Trabajo (LCT) (primary source)
- Chile — Código del Trabajo, article 168 (primary source)
- Colombia — Código Sustantivo del Trabajo (primary source)
Last updated: 26 July 2026. This article is general information, not legal advice. Latin American labour law and social security rules change frequently — confirm current entitlements with the relevant national agency in each country.