June's half-aguinaldo: what it is, when it's paid, and who owes it

If someone works for you, June brings a key date: the half-aguinaldo is paid before 30 June. Here's what it is, how it's computed, and what to keep in mind as a small employer.

What is the aguinaldo?

The aguinaldo, or sueldo anual complementario, is an extra yearly salary owed to every worker. The law defines it as:

Law No. 12,840 defines it as:

«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 sueldo anual complementario is the twelfth part of the total wages paid in cash by the employer in the twelve months prior to 1 December each year.

Paid in two halves: the first, before 30 June

The aguinaldo is paid in two installments: the first half before 30 June (for December–May) and the second before year-end. That's why June is a payment month. Check the current dates and rules with the MTSS:

How it's computed

Simply put: it's one-twelfth (1/12) of what you paid the worker in cash over the half-year. June's half takes the December–May salaries and divides by twelve. Contributions also apply on the aguinaldo.

As a sole trader: only if you have employees

Note: if you work alone, you don't pay yourself an aguinaldo — the owner of a sole proprietorship isn't an employee in a dependent relationship. The aguinaldo applies to the people you hire. If you have (or will have) an employee, budget it as another cost, along with the salario vacacional.

In short: the half-aguinaldo is due before 30 June and you only owe it if you have employees. Compute it as 1/12 of the half-year, add contributions, and verify the dates with the MTSS. When in doubt, your accountant.