Aguinaldo and salario vacacional: what they are and how they're taxed

If you have employees (or you are one), there are two extra payments on top of salary: the aguinaldo and the salario vacacional. They aren't optional — they're a right. Here's what they are, when they're paid and how they're taxed.

The aguinaldo (13th salary)

The aguinaldo is, basically, an extra salary per year. The law defines it like this:

The law defines the aguinaldo like this:

«Por sueldo anual complementario se entiende la doceava parte del total de los salarios pagados en dinero por el patrón en los doce meses anteriores al 1.º de diciembre de cada año.»

In English: The annual complementary salary is understood as one-twelfth of the total salaries paid in money by the employer in the twelve months before 1 December of each year.

In practice it's paid in two stages: what's accrued up to 31 May, in June; and what's accrued from June to November, before 20 December (the exact dates are set by a decree each year). If the relationship ends, you get the proportional part.

The salario vacacional

It's an extra sum paid for the better enjoyment of leave (your holidays): besides being paid your leave days, you receive this top-up to enjoy them. It's computed on the leave days you're entitled to.

How are they taxed?

Both are taxed as salary: they carry social-security contributions and count in the IRPF calculation. They aren't “tax-free money”; they're treated as remuneration. So it's wise to plan for them in your numbers.

If you have employees

As an employer, the aguinaldo and salario vacacional are costs you owe, on top of the salary. Factor them in when budgeting a hire — we also cover this in the hiring-your-first-employee post.

At a glance

In short: the aguinaldo is a twelfth of the year's pay, paid in two stages, and the salario vacacional is a top-up for your holidays — both taxed as salary. Verify the current decree's dates and consult the MTSS or your accountant.