Global payroll & payroll outsourcing, all of Latin America
Global Payroll and Payroll Outsourcing Across Latin America
LATAM payroll fails on the calendar, not the arithmetic. Every country has its own contribution deadlines, mandatory bonuses and year-end obligations, and a missed filing is a penalty plus an inspection trigger, not a note in the reconciliation.
What is global payroll Latin America?
Global payroll in Latin America means running gross-to-net, statutory contributions, mandatory bonuses and severance reserves in each country's own system, currency and filing calendar. US companies either outsource payroll on their own local entity, or use an Employer of Record where no entity exists, consolidated into one USD invoice.
What multi-country LATAM payroll actually covers
- Gross-to-net calculation in local currency with local labour-code rules
- Employer and employee social security, pension and health contributions
- 13th month, aguinaldo, prima and profit-sharing where they are mandatory
- Vacation, seniority and severance reserves accrued rather than discovered at exit
- Statutory filings, e-invoicing and year-end reporting per country
- One consolidated USD invoice with a per-country, per-employee cost breakdown
Two ways to run it
- You hold the entity: we operate payroll, filings and treasury as your outsourced payroll function.
- You have no entity: our EOR entity employs and pays, and payroll is included in the per-employee fee.
- Mixed reality: most US clients run both at once, so we report them on one calendar and one invoice.
The costs that get missed in the budget
Employer burden ranges from roughly 25% of salary in the lightest LATAM markets to over 50% in Brazil once FGTS, INSS and 13th month are counted. Add severance provisioning, mandatory profit-sharing and currency movement and a salary-only budget is routinely 30% to 45% short of landed cost.
Indicative employer burden and payroll obligations by market
| Country | Indicative employer burden | Mandatory extra pay | Payroll frequency |
|---|---|---|---|
| Mexico | 25%–35% | Aguinaldo, PTU profit share | Bi-weekly |
| Colombia | 30%–45% | Prima, cesantías | Monthly or bi-weekly |
| Brazil | 40%–55% | 13th salary, FGTS | Monthly |
| Argentina | 25%–35% | Aguinaldo (SAC) | Monthly |
| Costa Rica | 26%–38% | Aguinaldo | Bi-weekly |
| Chile | 20%–30% | Gratificación | Monthly |
Get the LATAM landed-cost benchmark
Employer burden, salary bands and total monthly cost across every market. One email, no call required.
Get a multi-country payroll cost model
Tell us the situation and you get the recommended structure, the landed cost range and the realistic timeline, before anyone asks you to book a call.
- Entities we own across core LATAM markets
- Every lane under one agreement: recruit, employ, manage, deliver
- Backed by Gracemark, an operator across all of Latin America
Get my compliance and engagement quote
Tell us the worker type and country. You get the compliant engagement path (EOR, AOR or payroll) and a landed monthly cost.
Takes about 40 seconds. You see the recommended model first, the email comes last.
Frequently asked questions
Market, model, landed cost and a 90-day sequence, free and without an email.