Latin America Severance Pay Estimator

Evaluate statutory severance packages for select Latin American countries. Enter the ISO country code, monthly salary, tenure, and optional unused vacation to see an estimated payout with the underlying assumptions noted for each jurisdiction.

Use the two-letter ISO code in uppercase (MX, AR, CO, CL, PE).
Average monthly compensation in USD; include recurring allowances typically used in severance calculations.
Total continuous tenure in years (for example, 4.5 for four years and six months).
Optional. Defaults to 0 if blank; enter remaining paid days owed on termination.

Examples

  • MX, $1,800 salary, 4.5 years, 10 vacation days ⇒ Mexico severance estimate: $12,390.41 (base severance $11,650.68, vacation payout $739.73). Includes 90-day constitutional severance, 20 days per year, and 25% vacation premium.
  • CL, $2,100 salary, 6 years, vacation blank ⇒ Chile severance estimate: $12,600.00 (base severance $12,600.00, vacation payout $0.00). One monthly salary per year of service up to 11 years.
  • AR, $2,400 salary, 3.2 years, 5 vacation days ⇒ Argentina severance estimate: $9,600.00 (base severance $9,600.00, vacation payout $493.15). Includes one month per year plus month-in-lieu of notice.

FAQ

Why is the country list limited?

This calculator focuses on countries with relatively standardised severance rules. Expanding coverage requires encoding local salary caps, social security ceilings, and sector-specific variations.

How are partial years handled?

Partial years are pro-rated for day-based formulas. For Argentina, tenure is rounded up to the next full year per legal precedent.

Can I include discretionary bonuses?

Add recurring bonuses into the monthly salary input if they form part of regular compensation that labour courts would include in the base.

Does the estimate include payroll taxes?

No. The output reflects gross severance only. Consult local payroll rules to account for social security, income tax withholding, or employer contributions.

Additional Information

  • Calculations assume monthly salary includes fixed compensation and recurring allowances typically considered salary for severance purposes.
  • Vacation payout adds a 25% premium, reflecting benefits mandated in Mexico and common across the region for untaken days.
  • Currency is normalised to USD for comparison—convert from local payroll currency if necessary before entering values.
  • Actual severance may vary with salary caps, collective agreements, tenure rounding, and sector-specific rules defined by each labour code.

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