Maternity leave and statutory hiring costs in seven Latin American countries vs. the US
The US federal baseline provides unpaid, job-protected family leave, while each Latin American market covered here mandates paid maternity leave and additional employment costs that must be included in hiring budgets.
TL;DR
- US federal law provides eligible workers up to 12 weeks of unpaid, job-protected FMLA leave. State paid-leave requirements vary.
- All seven Latin American (LatAm) countries covered here mandate paid maternity leave. Minimum entitlements start at 12 weeks, with longer leave available in some markets.
- Employers must also budget for requirements such as severance, 13th-month pay, social security contributions, and other country-specific benefits.
- Howdy supports COR and EOR hiring in Mexico, Colombia, Brazil, Chile, Peru, and Uruguay, and it also administers direct contracts and custom arrangements. In Argentina, Howdy manages local employment requirements through an in-country structure.
- A contractor of record (COR) engages a worker as an independent contractor through a local entity, while an employer of record (EOR) hires the worker directly as an employee. Both models let a company pay a worker in these markets without setting up its own local entity first.
Maternity and parental leave across LatAm and the US at a glance
The figures below cover qualifying workers under the standard statutory rules. Social insurance or the employer may replace wages, and some countries split the payment between them. Eligibility requirements and payment caps can apply.
| Market | Maternity leave and pay | Paternity or parental leave and pay | Headline statutory benefits |
| Mexico | 12 weeks at 100% through social insurance for eligible workers | 5 working days at full employer-paid wages | Aguinaldo of at least 15 days, 25% vacation premium, profit sharing, and dismissal compensation that can include three months of wages |
| Colombia | 18 weeks at 100% | 2 weeks at 100% | Prima equal to one month per year, cesantías equal to one month's salary per year, cesantías interest, and employer social contributions |
| Brazil | 120 days at 100%. Empresa Cidadã participants can provide 180 days | 5 days at 100%, or 20 days through Empresa Cidadã | 13th salary, monthly FGTS deposits of 8%, and a 40% FGTS penalty for qualifying dismissals |
| Argentina | 90 days with a social security allowance generally replacing wages | 2 calendar days at full pay | Aguinaldo paid in two installments and dismissal compensation generally equal to one month per year of service |
| Chile | 18 weeks at full statutory subsidy, followed by 12 weeks of postnatal parental leave | 5 paid working days | Profit-based or statutory gratificación and severance generally equal to 30 days per year, capped at 11 years |
| Peru | 98 days at 100% through social insurance | 10 calendar days at full pay, with longer periods for specified medical circumstances | Two annual gratificaciones, semiannual CTS deposits, and dismissal compensation generally equal to 1.5 monthly salaries per year, capped at 12 monthly salaries |
| Uruguay | 14 weeks at 100% through social insurance | Up to 20 days in 2026, plus subsidized part-time parental care | Aguinaldo and dismissal compensation generally equal to one month per year, capped at six monthly salaries |
| US federal | Up to 12 weeks under FMLA, unpaid | The same unpaid FMLA entitlement covers qualifying family leave | No federal 13th-month pay or general statutory severance requirement |
US states impose separate paid-leave requirements. State rules differ in coverage, contribution rates, wage replacement, and maximum leave, so you must apply them alongside FMLA.
Mexico
Mexico provides eligible workers with 12 weeks of maternity leave through social insurance, while employers provide five working days of paternity leave at full wages under the Federal Labor Law. Before setting payroll assumptions, confirm the current leave durations, eligibility rules, wage replacement limits, and reimbursement procedures with the Mexican Social Security Institute. An employer may still carry part of the cost when a worker lacks sufficient social security coverage or required documentation.
Your annual budget must also include aguinaldo, Mexico’s mandatory year-end payment. Termination costs vary according to the reason for separation and may include accrued wages, benefits, seniority-related payments, and statutory compensation. Calculate each departure under the applicable Federal Labor Law rules rather than applying one standard severance percentage.
Howdy supports Mexican hires through contractor of record (COR) and employer of record (EOR) coverage, and it also offers direct contracts and custom arrangements. Howdy administers contracts and payroll under the arrangement you select.
Colombia
Colombia requires 18 weeks of paid maternity leave and two weeks of paid paternity leave. The health insurance system generally funds qualifying leave, but the employer administers payroll and supporting documents. Employers should verify current eligibility, reimbursement, and wage-replacement rules before relying on these figures for a 2026 budget.
Mandatory costs extend beyond parental leave. Employers usually pay the prima de servicios, equal to one month of salary per year, in two installments. They also fund annual cesantías, a severance savings benefit, plus statutory interest. Employer contributions for health insurance, pensions, workplace risk coverage, and other payroll programs add to the worker’s base salary. Contribution rates vary with salary and risk category, and available exemptions may reduce them.
Colombian labor law changes can affect leave and contribution calculations. Ask local counsel to confirm the current figures before you finalize a hiring budget.
Brazil
Employers must also budget for the 13th salary and deposits into the employee severance fund, or FGTS. The 13th salary is an extra annual payment that employers usually make in installments. Employers deposit FGTS contributions throughout employment, and a dismissal without cause can trigger an additional employer-funded penalty based on the account balance. Collective bargaining agreements may create further obligations for certain roles or locations.
Argentina
Argentina's labor rules are notably intricate, and requirements shift by sector, collective bargaining agreement, and individual case. Howdy serves as the trusted local partner here, managing local contracts, payroll, and benefits so a company does not have to interpret Argentine labor law on its own.
In broad terms, Argentina mandates paid maternity leave around childbirth, a short period of paid paternity leave, a mandatory supplementary salary paid in installments, and severance tied to length of service. Actual entitlements and costs depend on the worker's situation and the applicable agreements.
Howdy works through those specifics directly with each client, applying the correct requirements through local payroll and benefits administration rather than a one-size-fits-all formula.
Chile
Chile provides six weeks of paid prenatal leave followed by 12 weeks of paid postnatal leave. An eligible parent can then take 12 weeks of full-time postnatal parental leave or 18 weeks while working part time, subject to statutory subsidy rules. Fathers receive five paid working days after birth, and mothers may transfer part of the parental leave period to them.
Employers must also budget for gratificación, Chile’s statutory profit-sharing payment, using one of the calculation methods allowed by law. Chilean law can require employers to pay one month per year of service, and it generally caps the calculation at 11 years. Private employers do not automatically owe an aguinaldo unless an employment agreement, collective agreement, or established practice requires it.
Chile can update eligibility rules and indexed benefit caps. Ask Chilean counsel to verify the current Labor Code and social security figures before you approve a 2026 budget.
Peru
Peru provides 98 days of maternity leave with full wage replacement through social insurance and 10 calendar days of employer-paid paternity leave. Specified medical circumstances can extend the paternity leave period. Employers should confirm eligibility, reimbursement procedures, and any applicable extensions before setting a final budget.
Peruvian employers must also account for Compensation for Time of Service, or CTS. Employers fund CTS through periodic deposits that provide workers with financial support after employment ends. Private-sector workers may also receive statutory gratificaciones, which serve the role that aguinaldo or 13th-month payments fill elsewhere in Latin America. Eligibility and calculation rules depend on the worker’s status and service period.
Howdy supports hiring in Peru through COR and EOR coverage, and it also offers direct contracts. Howdy administers contracts and payroll under the arrangement you select.
Uruguay
For births in 2026, eligible workers in Uruguay receive 14 weeks of maternity leave through social insurance, while eligible fathers can receive up to 20 days of paternity leave. After maternity leave ends, Uruguay’s parental care program allows either eligible parent to work reduced hours and receive a social security subsidy. Because recent reforms have expanded paternity leave, employers should verify eligibility and wage-replacement rules when setting a 2026 budget.
Employers must also budget for aguinaldo, the mandatory annual bonus that they commonly pay in two installments. Dismissals without just cause can trigger severance based on pay and length of service, subject to statutory limits. Ask Uruguayan counsel to confirm the current formula and any worker-specific treatment.
Budgeting for statutory costs across a multi-country LatAm team
A budget spanning the seven Latin American (LatAm) markets in this article must include costs beyond base salary. Each country sets different amounts and payment schedules for employer contributions, paid leave, annual bonuses, and potential severance.
Build each hire’s budget around the worker’s country and employment structure, starting with base compensation and employer payroll contributions. Add accruals for required annual payments, such as aguinaldo or a 13th-month salary, and model paid leave and temporary coverage. Set aside a termination reserve for severance and other end-of-employment costs.
Cash timing also affects a multi-country plan. Some statutory payments accrue throughout the year but become payable in specific months, while severance can create an unplanned expense when employment ends. A monthly accrual keeps those obligations visible and prevents a mandatory annual payment from appearing as a sudden budget overrun.
Howdy administers the local employment arrangement you select in each market. Howdy provides COR and EOR coverage where those models apply, while direct contracts and custom arrangements are available in other cases. Howdy uses its in-country structure for Argentina. You can request a quote that lists each country’s obligations and payment calendar.
Frequently asked questions
How does maternity leave vary by country in Latin America?
Maternity leave provides paid time away from work before and after childbirth, and every country covered here mandates it. Howdy manages each country’s requirements, while the comparison table and country sections list the applicable duration and pay rules. If you are hiring outside LatAm, consult Howdy's global maternity leave guide for the applicable requirements.
Which LatAm country offers the longest combined leave framework?
How does paternity leave compare across the seven countries?
Paternity leave gives a worker paid time away after the birth or adoption of a child. Howdy applies each country’s leave period and eligibility rules, and the comparison table explains who funds the benefit. You should budget by work location rather than applying one regional policy.
Which statutory benefits apply beyond parental leave?
National labor law requires employers to provide statutory benefits in addition to salary. Depending on the country, Howdy administers 13th-month payments, severance obligations, paid vacation, social contributions, and other required benefits.
What is the total employer cost across all seven markets?
Total employer cost combines compensation with mandatory contributions, paid leave, statutory bonuses, and potential termination costs. Howdy calculates and administers those obligations under a structure suited to each location. Calculating each location separately produces a more accurate hiring budget than applying one regional percentage.
Budget for statutory costs before hiring in Latin America
National laws require you to budget for statutory leave and employer-funded benefits when hiring across LatAm. Include them in pre-hire budgets so your payroll and contracts reflect each country’s rules.
Howdy administers local employment requirements across all seven markets. It offers COR and EOR coverage where those arrangements apply, and it supports direct contracts and custom arrangements elsewhere. Request hiring options from Howdy to build a budget based on each country’s requirements.
