The Employment Law team of Andersen Latam has prepared the study “Labor Cost in Latin America 2026”, a collaborative work that compiles and compares relevant information from 17 countries in the region regarding the main costs and obligations faced by employers when hiring employees under an employment relationship.
The document provides a practical and comparative overview of the elements that impact labor costs and constitutes a useful tool for companies operating or planning to operate in Latin America, as well as for legal advisors and human resources teams.
The study addresses, among other matters, the following items:
- Monthly labor cost in cash, including:
- Statutory minimum wage.
- Salary surcharges for night work, overtime and work performed on rest days or public holidays.
- Monetary employment benefits, such as:
- Additional remuneration.
- Holiday or Christmas bonus (statutory bonus).
- School allowance bonuses or equivalent benefits.
- Reserve funds, severance payments or other labor capitalization systems.
- Employees’ participation in the employer’s profits.
- Employer-funded retirement schemes, where applicable.
- Other associated costs, including:
- Mandatory social security enrollment.
- Pension and health contributions borne by the employer and the employee.
- Mandatory employment benefits established under local legislation.
- Annual paid leave and its economic impact on the employer.
The report was developed with the participation of member firms and collaborating firms of Andersen Global in Latin America, including PPO Indacochea (Bolivia), Lotti e Araújo Sociedade de Advogados (Brazil), Andersen in Colombia, Chirgwin (Chile), Central Law-Law (Costa Rica), firms in El Salvador, Guatemala, Honduras, Nicaragua and Panama, Andersen in Ecuador, Andersen in Mexico, Picón & Asociados, Pellerano & Herrera, Andersen in Uruguay and LEĜA Abogados.
For further information or inquiries, please contact the Andersen Latam Employment Law team at
LatinAmericaEmployment@Andersen.com.
