Horas extra, meaning "extra hours" or "overtime," refers to work performed beyond the standard working hours defined by each country's labor law. Latin American countries generally impose strict limits on overtime and require significant premium pay rates that exceed those common in the United States.
Standard Hours and Overtime Rates
In Mexico, the standard work week is 48 hours and the first 9 overtime hours are paid at double rate (200%), with hours beyond that at triple rate (300%). In Brazil, the standard is 44 hours per week with overtime at 50% premium (100% on Sundays and holidays). In Argentina, overtime on weekdays is paid at 50% premium and 100% on weekends/holidays. In Colombia, daytime overtime pays 25% premium and nighttime overtime 75% premium.
Legal Limits
Most countries cap overtime hours. Mexico allows a maximum of 9 overtime hours per week. Chile limits overtime to 2 hours per day with a maximum agreement period of 3 months. Argentina caps overtime at 3 hours per day and 30 hours per month. Exceeding these limits can result in fines and labor complaints.
EOR Relevance
An EOR ensures overtime is calculated at the correct premium rate for each country, tracks hours against legal limits, and includes overtime properly in social security contribution calculations. This prevents costly errors, as overtime miscalculations are among the most common findings in Latin American labor audits.