Good news. December is a fact and, with its arrival, the Christmas bonus too. This charge must be effective, in accordance with Colombian law, within the first fifteen days of the month. However, the deadline to receive it is next December 20. The year-end bonus is a right that employees assigned to a payroll have and this may be fully or partially paid based on the time worked in the last six months.
The Christmas bonus is part of a labor benefit that consists of the collection of 30 days of additional salary per year, which is divided into two equal parts: the first is deposited in June; the second on the start of December, as established by Law 1788 of 2016. In such a way that the formal worker will have, in addition to the recurring charge that he receives per fortnight, a similar or proportional part to the time worked during the last semester of the year.
When should the payment of the Christmas premium be reflected in Colombia?
Although the government of former President Ivan Duque advanced the payment of the Christmas bonus a few days in the last two years, this year it will be delivered regularly in relation to what the law dictates. It is then expected that the collection of this bonus will be made within the first fortnight of December. Employers, however, will have until the 20th of the same month at the latest to make the deposit to the workers’ payroll.
The Ministry of Labor warns that, if the payment is not made within said period, the employer could be fined up to 5,000 minimum wages.
How is the Christmas premium calculated?
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If the employee maintained a stable employment relationship during the last six months of the year, he may receive the amount equivalent to a full fortnight of work, according to the monthly salary declared in his contract. But if it was not so, he must make a calculation to deduct the proportional payment according to the time he has been working in the company.
The operation is simple. If the worker is regular and was on the staff for at least the last full half year, he must take the amount of his monthly salary and multiply it by the days worked (180, for the six months). The result, in turn, will have to be divided by 360 (year) to obtain the figure equivalent to a fortnight of work.
For those who have been hired during the last semester, they can make the proportional calculation based on the same formula, but they must replace the 180 days, similar to six months, by the exact number of days worked within the company.
Who does not receive a Christmas bonus?
The Colombian Government calculates that close to 10 million formal workers will benefit from this right. On the other hand, employees with non-salaried labor regimes are excluded from this. For example, the case of those who have been hired as service providers, or through apprenticeship or temporary agreements.
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