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Aguinaldo (13^th-Month Salary)¶

Calculate and manage the mandatory annual bonus for employees in Latin American countries. The aguinaldo is equivalent to one month’s average salary, prorated for partial years.

Overview¶

Aguinaldo provides:

• Country-Specific Benefit Years — Different start/end dates per country
• Automatic Calculation — Pulls payslip data to compute gross/net amounts
• Monthly Breakdown — Detailed earnings history across the benefit year
• Alimony Deductions — Court-ordered deductions handled automatically
• Audit Trail — Step-by-step calculation breakdown for compliance
• Termination Support — Proportional calculation when employees leave

What is Aguinaldo?¶

The aguinaldo (also called “decimo tercer mes” or “13^th-month salary”) is a mandatory annual bonus paid to employees in most Latin American countries. It represents one month’s average salary, prorated for the number of months worked during the benefit year.

Supported Countries¶

Calculation Formula¶

Step 1: Determine Benefit Year¶

Based on the employee’s country and the reference date (current date or termination date), determine the benefit year period.

Step 2: Collect Payslips¶

Gather all payslips within the benefit year period. Each payslip contributes:

• Gross Earnings — Base salary, overtime, commissions, bonuses
• Overtime Pay — Additional overtime compensation
• Bonus Pay — Performance, commission, referral bonuses

Step 3: Monthly Breakdown¶

Group payslips by calendar month and accumulate:

Monthly Total = Gross Earnings + Overtime Pay + Bonus Pay

Step 4: Calculate Base Amount¶

Base Amount = SUM(Monthly Totals) across all months in benefit year

Step 5: Proportional Factor¶

For employees who worked part of the benefit year:

Days Worked = MAX(Hire Date, Benefit Year Start) to Effective End Date
Months Worked = Days Worked / 30
Proportional Factor = MIN(1.0, Months Worked / 12)

Step 6: Gross Aguinaldo¶

Monthly Average = Base Amount / 12
Gross Aguinaldo = Monthly Average × Proportional Factor

This equals one month’s average salary, prorated for partial years.

Step 7: Alimony Deduction¶

Sum all active alimony orders whose effective period overlaps the benefit year:

Alimony Deduction = SUM(Amount) for Active Orders

Step 8: Net Aguinaldo¶

Net Aguinaldo = MAX(0, Gross Aguinaldo - Alimony Deduction)

Calculation Types¶

Annual Payment¶

Standard year-end aguinaldo calculation. The default and most common type.

Termination Proportional¶

Prorated aguinaldo when an employee leaves before the benefit year ends. Uses the termination date as the effective end date.

Using the Calculator¶

Calculating Aguinaldo¶

1. Navigate to the Aguinaldo tab in Payroll
2. Select an employee
3. Choose the Benefit Year (current year or previous years)
4. Click Calculate

Results Display¶

The calculator shows:

Monthly Earnings Breakdown¶

A detailed table showing each month’s earnings:

Only months with earnings > 0 are displayed.

Formula Used¶

The exact formula string used for the calculation is displayed for audit purposes.

Alimony Orders¶

Managing Alimony Orders¶

1. Navigate to Settings → Company Profile
2. Add a new alimony order:

Impact on Aguinaldo¶

• Only Active orders are included in calculations
• Orders must overlap the benefit year period
• The deduction is subtracted from the gross aguinaldo
• Net aguinaldo cannot be negative (floored at 0)

Audit Trail¶

Every calculation generates a 9-step audit log:

The audit trail is stored in payroll_aguinaldo_calculations and can be viewed for compliance verification.

What’s Next¶

• Payroll Runs — Execute payroll with aguinaldo integration
• Holidays — Manage public holidays and holiday pay
• Tax Compliance — Configure tax rules for 12 countries

Still questions? Ask on Discord or explore tutorials