What is the payroll cut-off for onboarding new hires on LATAM countries?

Article author
Flora Katsou
  • Updated

To make sure your new team member is paid on time, it's important to understand the payroll cut-off dates in the country where you're hiring. In most LATAM countries, local labor laws require that team members are paid in the same month they start working. This means that onboarding must be completed by the payroll cut-off (on or around the 15th), or the start date will be moved to the first business day of the following month.

New Hires cut-off per country - only applicable for onboardings -

Country Payroll
Cut-off
Payment
Dates*
Payroll Cycle
Argentina* 20th of each month Last working day of the month Monthly
Bolivia 15th of each month 30th of each month Monthly
Brazil 15th of each month 15th & last day of each month Advance
- Monthly
Chile 15th of each month Last working day of the month Monthly
Colombia 13th of each month 25th of each month Monthly
Costa Rica 15th of each month 25th of each month Monthly
Dominican Republic* 20th of each month Last working day of the month Monthly
Ecuador 15th of each month 25th of each month Monthly
El Salvador** 15th of each month 25th of each month Monthly
Guatemala 15th of each month 25th of each month Monthly
Honduras 15th of each month 25th of each month Monthly
Jamaica 15th of each month 25th of each month Monthly
Mexico Changes
every month - Link
15th & last day of each month Bi-monthly
Nicaragua 15th of each month 25th of each month Monthly
Panama 15th of each month 15th & last day of each month Bi-monthly
Paraguay 15th of each month Last working day of the month Monthly
Peru* 15th of each month 25th of each month Monthly
Uruguay* 15th of each month 25th of each month Monthly
Payment dates can change according to weekends, public holidays and bank holidays.

*Countries where ad-hoc requests may be granted with Payroll approval. This option might have additional fees. Have in mind that the employee won’t be paid in the same month, but in the first weeks of the following month. 
** Be aware that for El Salvador, employees must receive their first payment deposit in the same month they are hired.

Why does the payroll cut-off matter when I’m adding a new hire?

In countries with strict payroll cut-offs, team members can only be added to the monthly payroll if their onboarding is completed before the local cut-off. If the deadline is missed:

  • The team member can’t legally start working due to labor laws that require individuals to be paid in the same month they begin working.
  • Their first paycheck may be delayed until the next month which isn’t compliant.
  • It may cause frustration for you and the new team member.

What happens if my team member’s start date is after the cut-off?

In countries with strict payroll cut-offs, if the onboarding process isn’t completed by the payroll cut-off, our team will move the start date to the first business day of the following month.

In countries with *, ad-hoc requests may be granted with Payroll approval. This option might have additional fees. Have in mind that the employee won’t be paid in the same month, but in the first weeks of the following month.

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