Vacaciones proporcionales, meaning "proportional vacation" or "proportional holidays," refers to the vacation days and corresponding pay that employees earn for partial years of service. When an employee's employment ends before completing a full annual cycle, they are entitled to vacation pay proportional to the time worked.
Calculation by Country
In Chile, employees earn 1.25 days of vacation per month worked (15 days per year ÷ 12 months), and proportional vacation must be paid in the finiquito. In Argentina, employees accrue vacation based on seniority brackets (14 to 35 days per year), and proportional vacation pay is calculated on termination. In Brazil, employees earn proportional férias (vacation) at 1/12 of their annual entitlement per month worked, plus one-third vacation bonus.
Payment Obligations
In most Latin American countries, unused proportional vacation must be paid out in cash upon termination, regardless of whether the employee resigned or was terminated. The payment is typically calculated using the employee's current salary rate. Some countries also require payment of a vacation bonus or premium on top of the base vacation pay.
EOR Relevance
EOR providers track vacation accrual for each employee according to the applicable country's rules and ensure correct proportional payment upon termination. This prevents disputes over unpaid vacation, which is one of the most frequent labor claims across Latin America.