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Full-Time vs. Part-Time employee Benefits in Latin America

Aug 15th, 2023

In Latin America, the distinction between what full-time and part-time benefits employees receive carries significant weight because of the region’s robust employment laws. Latin American countries strive to have federal regulations that protect workers from mistreatment and usually require employers to provide comprehensive benefits, either 1) directly or 2) indirectly through the country’s social security system.

Full-time employees typically enjoy a comprehensive package of benefits designed to support their well-being and job security. Such benefits include health insurance, 13th-month bonus salary, retirement plans, paid vacations, and access to training and professional development opportunities.

On the other hand, part-time employees, who work fewer hours per week, may receive limited or scaled-down benefits, which can vary depending on local labor regulations and company policies. 

Below, we’ll distinguish what benefits employers are required to provide for both full-time and part-time employees in: 

As businesses strive to strike a balance between operational flexibility and employee welfare, understanding the contrasting benefits between full-time and part-time roles becomes crucial.

What’s the difference between full-time vs. part-time employees in Latin America? 

In Latin America, the difference between full-time and part-time employees is generally similar to the distinctions found in other regions. 

However, it's essential to consider that employment laws and practices vary significantly from country to country within the region.

The following are some common differences between full-time and part-time employees in Latin America. 

Work Hours

Full-time employees in Latin America typically work a standard number of hours per week, which can range from 35 to 48 hours, depending on the country's labor regulations and industry norms.

Part-time employees work fewer hours per week compared to full-time employees. The number of hours can vary, but part-time roles generally involve working less than the standard full-time work week, and are therefore entitled to less benefits.

Employee Benefits:

Full-time employees in Latin America are more likely to be eligible  for a comprehensive package of benefits. These benefits may include health insurance, retirement plans, paid time off (vacation and sick leave), bonuses, and other additional perks.

Part-time employees may also be entitled to some benefits, but the extent and availability of benefits can be more limited compared to full-time employees.

Job Stability and Legal Protections

Full-time employees in Latin America typically enjoy greater job stability and may have more legal protections in case of termination or layoffs. Labor laws in many Latin American countries often provide stronger job security for full-time employees.

Part-time employees may have less job stability, as their work hours may be subject to change based on business needs, and they may have fewer legal protections compared to full-time employees.

Pay and Compensation

Full-time employees in Latin America may receive a fixed monthly salary or an annual wage, depending on the country's pay practices and labor laws.

Part-time employees are often paid on an hourly basis or receive a portion of a full-time salary, reflecting the number of hours they work.

Opportunities for Advancement

Full-time employees have more opportunities for career growth and advancement within the company, as they are likely to have a more significant presence in the organization and can take on additional responsibilities.

Part-time employees may have fewer advancement opportunities within the same company due to their reduced work hours and (potentially) the temporary nature of their roles.

Overtime Regulations

Full-time employees are entitled to overtime pay for hours worked beyond the standard workweek, according to labor laws in their respective countries.

Part-time employees are usually eligible for overtime pay if they work more than the maximum number of hours defined by labor regulations for part-time employment.

Full-time vs. part-time employee benefits throughout Latin America

Although Latin American countries do have many of the same protections for their workers, each country has their own set of regulatory requirements for full-time vs. part-time employee benefits. 

Let’s explore a general overview of major distinctions that differentiate each country.

Mexico

In Mexico, the benefits for full-time and part-time employees differ significantly due to labor regulations and company policies.

Here's a short breakdown of the typical benefits each receives:

Full-time employees:

  1. Health Insurance: Full-time employees are entitled to health insurance coverage, either through the government's social security system (IMSS) or private health plans provided by their employers.

  2. Retirement Plans: They often have access to government-mandated retirement programs like AFOREs (retirement savings accounts) and employer-sponsored pension plans.

  3. Paid Vacation: With the passage of “Vacaciones Dignas” at the beginning of 2023, full-time employees are entitled to 12 paid vacation days after 1 year of continuous service. 

  4. Maternity/paternity leave: Full-time employees in Mexico are entitled to 15 weeks of paid maternity leave and new fathers are entitled to 5 days of paid paternity leave. 

  5. Paid Holidays: Workers enjoy 10 paid national holidays.

  6. Bonuses: Full-time employees in Mexico are entitled to a Christmas bonus or “Aguinaldo” at the end of the year equivalent to at least 15 days of salary.

  7. Profit-sharing: Full-time employees who have worked at least 60 days for an employer, are entitled to 10% profit sharing of the company’s taxable income. 

Part-time employees:

  1. Limited Health Coverage: Part-time employees may have access to health insurance, but the coverage is often less comprehensive compared to what full-time employees receive.

  2. No or Reduced Retirement Benefits: Part-time workers might not be eligible for some retirement programs, and if they are, the contributions may be lower.

  3. Prorated Vacation: Part-time employees receive paid vacation days based on the number of hours they work, typically on a prorated basis.

  4. Prorated Paid Holidays: Similarly, workeres receive paid time off during holidays, but the number of days off is proportionate to their working hours.

  5. Bonuses: Some part-time workers may still be eligible for "Aguinaldo," but the amount is adjusted based on their working hours and tenure with the company. 

Colombia

Similar to Mexico, in Colombia, there are distinct differences in the benefits offered to full-time and part-time employees. Labor regulations and company policies play a significant role in shaping these disparities.

Here's a general overview of the benefits typically received by each category:

Full-time employees:

  1. Health Insurance: Full-time employees are entitled to health insurance coverage through the government's social security system. 

  2. Retirement Plans: They have access to the government-managed pension system, known as the Colombian Pension Fund which provides retirement benefits based on their contributions.

  3. Paid Vacation: Full-time employees receive paid vacation days based on their length of service, usually ranging from 15 to 30 days per year.

  4. Paid Holidays: They enjoy paid time off for 18 national holidays and other public observances.

  5. Bonuses: Employers must provide year-end bonuses, known as "Prima" equivalent to at least one month's salary. 

  6. Maternity/paternity leave: New mothers are entitled 14 weeks of paid maternity leave while new fathers are entitled to 2 weeks of paid paternity leave. 

  7. Severance Pay: Full-time employees are entitled to severance pay based on their salary and length of service if their employment is terminated without just cause.

Part-time employees:

  1. Limited Health Coverage: Part-time employees may have access to health insurance through the EPS, but the coverage might be less comprehensive compared to what full-time employees receive.

  2. Retirement Benefits: Part-time workers may not be eligible for the AFP-managed pension system, depending on the number of hours they work and their employment contract. However, they might have access to contributing to a voluntary savings retirement fund.

  3. Prorated Vacation: Part-time employees receive paid vacation days based on the number of hours they work, calculated on a prorated basis.

  4. Prorated Paid Holidays: They get paid time off during holidays, but the number of days off is proportionate to their working hours.

  5. Limited Bonuses: Part-time workers might receive prorated end-of-year bonuses based on the number of hours worked and company policies.

  6. Severance Pay: Part-time employees are still entitled to severance pay if their employment is terminated without just cause, calculated based on their hourly wage and length of service. 

Brazil

Brazil is one of the most employee-friendly countries and offers some of the most extensive social protection for workers in the world.

Here's an overview of the typical differences in benefits:

Full-time employees:

  1. Health Insurance: Full-time employees must be registered for the government's social security system (Sistema Único de Saúde) by their employer for health insurance. 

  2. Retirement Plans: Workers have access to the Brazilian social security system, which includes benefits like retirement pensions, disability pensions, and family allowances, all funded through contributions from employers and employees.

  3. Paid Vacation: Full-time employees receive paid vacation days based on their length of service, typically ranging from 30 to 45 days per year with 30 being the minimum amount of days an employee must take. 

  4. Paid Holidays: They enjoy 13 paid national holidays.

  5. Maternity/paternity leave: Both types of leave are paid directly through government funding. New mothers are entitled to 120 days of maternity leave and new fathers are entitled to 5 days.  

  6. Bonuses: Full-time employees are entitled to 13th-month pay equal to 1 month's salary. 

  7. Severance Pay: Full-time employees are entitled to severance pay if their employment is terminated without just cause, calculated based on their salary and length of service. Employees in Brazil have strong protections by the government for wrongful termination–so understanding compliance is crucial in avoiding legal repercussions for employers. 

Part-time employees:

  1. Limited Health Coverage: Part-time employees usually still have access to health insurance through the SUS, but it might not be as comprehensive as what full-time employees receive.

  2. Retirement Benefits: Part-time workers may not have access to the full range of benefits from the social security system. However, they may have the option to contribute to a voluntary pension plan (Previdência Complementar).

  3. Prorated Vacation: Part-time employees receive paid vacation days based on the number of hours they work. 

  4. Prorated Paid Holidays: They get paid time off during holidays, but the number of days off is proportionate to their working hours.

  5. Bonuses: Part-time workers may receive bonuses based on the number of hours worked and company policies, but they might not receive the full 1 month of additional salary. 

  6. Severance Pay: Part-time employees are entitled to severance pay if their employment is terminated without just cause and are able to bring their cases before a Brazilian court. 

Costa Rica

Costa Rica is another country that strongly protects their workers. Jobs in Costa Rica are rarely given to foreigners if the position cannot be filled internally by a citizen. 

However, there are still notable differences in the benefits provided to full-time and part-time employees.  

Here's a breakdown of the typical differences in benefits between the two categories:

Full-time employees:

  1. Health Insurance: Full-time employees are entitled to health insurance coverage through the Costa Rican Social Security System (Caja Costarricense de Seguro Social - CCSS), which provides comprehensive healthcare services.

  2. Retirement Plans: Full-time employees can participate in the national pension system, where contributions are made to a retirement fund managed by the CCSS or other private pension funds.

  3. Paid Vacation: Full-time employees receive paid vacation days based on their length of service, typically ranging from 10 to 30 days per year.

  4. Paid Holidays: They are entitled to paid time off for the country’s 11 national holidays.

  5. Bonuses: Full-time employees receive a mandatory 13th-month salary paid by December 20th of each year.

  6. Maternity/paternity leave: New mothers are entitled to 4 months of paid vacation. New fathers are entitled to 8 days of paid leave. The cost for both is split between the social security system and the employer. 

  7. Severance Pay: If full-time employees are terminated without just cause, they are entitled to severance pay, which includes a portion of their monthly salary multiplied by the number of years worked.

Part-time employees:

  1. Limited Health Coverage: Part-time employees may not be eligible for health insurance coverage through the CCSS. However, some employers might offer limited coverage depending on company policies and the number of hours worked.

  2. Retirement Benefits: Part-time workers may not have access to the national pension system. They may have the option to contribute to a private pension plan, but it is not mandatory for employers to provide such benefits.

  3. Vacation: Part-time employees receive paid vacation days based on the number of hours they work, calculated by their hourly wages or salary. 

  4. Prorated Paid Holidays: They get paid time off during holidays, but the number of days off is proportionate to their working hours.

  5. Bonuses: Part-time workers might be eligible for part of an "Aguinaldo" based on the number of months worked during the bonus period.

  6. Severance Pay: Part-time employees are entitled to severance pay if their employment is terminated without just cause. 

Chile

Employers are required to provide full-time workers a number of benefits. Full-time in Chile is considered 45 hours per week. Part-time employees may be entitled to some benefits but they are usually based on the employer and the amount that they work.

Full-time employees:

  1. Health Insurance: Full-time employees are entitled to health insurance coverage through the National Health Fund (Fondo Nacional de Salud). 

  2. Retirement Plans: They have access to the Chilean pension system, where contributions are made to an individual retirement account known as an "AFP" (Administradora de Fondos de Pensiones).

  3. Paid Vacation: Full-time employees receive 15 days of paid vacation or 3 weeks. 

  4. Paid Holidays: They are entitled to 15 paid bank holidays per year. 

  5. Bonuses: Full-time employees may receive a year-end bonus known as "Aguinaldo," which is equal to half a month's salary or more, depending on company practices and length of service. 13th-month salary is not required in Chile, but because of the culture surrounding bonuses throughout Latin America, are usually given by employers. 

  6. Maternity/paternity leave: Maternity leave is paid for 6 weeks while paternity leave is paid for 5 days. 

  7. Severance Pay: If full-time employees are terminated without just cause, they are entitled to severance pay, which includes one month's salary for each year worked.

Part-time employees:

  1. Limited Health Coverage: Part-time employees may not be entitled to health insurance through FONASA. However, some employers might offer limited health benefits, depending on company policies and the number of hours worked.

  2. Retirement Benefits: Part-time workers may not have access to the full range of benefits through the pension system. 

  3. Prorated Vacation: Part-time employees receive paid vacation days based on the number of hours they work. 

  4. Paid Holidays: They get paid time off during holidays, but the number of days off is proportionate to their working hours.

  5. Bonuses: Part-time workers might be eligible for some type of “Aguinaldo” based on specific employer practices–but 13th-month salary isn’t required. 

  6. Severance Pay: Part-time employees are entitled to severance pay if their employment is terminated without just cause and dependent upon the number of hours they worked and how long they were employed. 

How an EOR can help with employee benefit management in Latin America

An employer-of-record (EOR) handles various human resources tasks and assists with global hiring, including payroll, taxes, compliance, and employee benefit management.

Benefit tasks that an EOR takes care of include: 

  • Benefit administration 

  • Benefit plan selection and customization 

  • Enrollment support

  • On-the-ground support and help with compliance 

  • Communication and employee support

  • Cost management and reporting

By outsourcing employee benefit management to an employer-of-record that specializes in Latin American countries, companies can streamline their HR processes and ensure that they have on-the-ground support at all times for their employees and their business. 

Why companies partner with Via

Via makes hiring talent around the world and building your global team seamless by helping you onboard workers in as little as 2-3 business days. With our easy-to-use platform, Via helps you manage local HR processes for direct employment such as work visas & permits, employee data privacy compliance, benefits, global payroll, background checks, and more. Our team of local labor lawyers and on-the-ground experts provide 24-hour local support and ensure that your company remains compliant while expanding abroad. As your employer-of-record/entity abroad, Via assumes responsibility for employment liability, so that you can focus on what matters: recruiting and managing your team.

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Janelle Watson
Janelle Watson
My name is Janelle Watson and I'm a Colorado native. I have a BA in English from University of Colorado Colorado Springs and an MA in English from University of Colorado Denver. Before moving to blog and copywriting, I was an English teacher for 3 years at the University of Colorado in Denver. Prior to writing for Via, I wrote reviews and content for a local concert and promotion company in Denver.

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