Prima de servicios, meaning "service premium" or "service bonus," is a mandatory employment benefit in Colombia that functions as a 13th-month salary. Every employer must pay it to all employees, regardless of the size of the company or the employee's position.
Payment Schedule
The prima de servicios is paid in two equal installments: the first half by June 30 and the second half by December 20 of each year. Each installment equals 15 days of salary, totaling one full month's salary per year. Employees who haven't worked the complete semester receive a proportional payment.
Calculation Basis
The calculation base includes basic salary plus any fixed payments that constitute salary under Colombian law, such as commissions and regular bonuses. Transportation allowance (auxilio de transporte) is also included in the calculation for employees earning up to two minimum wages. Variable pay is averaged over the relevant semester.
EOR Relevance
An EOR operating in Colombia handles prima de servicios calculations, including the correct salary base and proration for partial periods. Late payment can result in fines from the Ministry of Labor and gives employees grounds to claim the payment plus penalty interest.