Nómina, meaning "payroll" in Spanish, refers to both the process of paying employees and the payroll register document itself. Across Latin America, managing nómina involves navigating country-specific tax tables, social security rates, mandatory benefits, and reporting requirements that differ significantly from one country to another.
Key Payroll Components
A typical Latin American nómina includes base salary (salario base), overtime (horas extra), bonuses and commissions, mandatory benefits like aguinaldo or prima de servicios, employee deductions for income tax, pension, and health insurance, and employer contributions for social security, workplace insurance, and housing funds. Each component follows country-specific rules.
Pay Frequency
Pay frequency varies across Latin America. Mexico commonly uses biweekly (quincenal) or weekly payroll. Argentina and Chile typically pay monthly. Colombia allows both biweekly and monthly. Brazil pays monthly, by the 5th business day of the following month. The pay period affects how deductions and benefits are calculated.
EOR Relevance
An EOR processes nómina for each country using local payroll software and expertise, ensuring all calculations, deductions, and filings comply with current regulations. This eliminates the need for companies to set up payroll systems and stay current with frequent regulatory changes in each Latin American country.