--- title: "#ElSalvador 🇸🇻 #BDS_LaborAlert: Passed Reform to Amend Year-End Bonus Calculation and Payment Window" description: Passed Reform image: https://publicaciones.bdsasesores.com/hubfs/close-up-man-holding-paper-currency.jpg --- [![BDS blanco ingles](https://publicaciones.bdsasesores.com/hs-fs/hubfs/BDS%20blanco%20ingles.png?width=100&height=50&name=BDS%20blanco%20ingles.png "BDS blanco ingles")](https://www.bdsasesores.com) - [Team](https://www.bdsasesores.com/en/team/) - [Services](https://www.bdsasesores.com/en/services/) - Blog - [Labor Law](https://publicaciones.bdsasesores.com/en-us/blog) - [Corporate Law](https://publicaciones.bdsasesores.com/apriori-blog?hsLang=en-us) - [Store](https://www.bdsasesores.com/en/tienda/) - [Contact](https://www.bdsasesores.com/en/contact/) - English - [English](https://publicaciones.bdsasesores.com/blog?hsLang=en-us) - [Español](https://publicaciones.bdsasesores.com/blog?hsLang=es-cr) ![](https://publicaciones.bdsasesores.com/hs-fs/hubfs/raw_assets/public/Theme-Delight%20BDS%20Asesores/images/logo-BDS-blanco-jul25.png?width=200&name=logo-BDS-blanco-jul25.png) ##### Oct 1, 2026, 5:00:00 PM ##### 1 min. read #ElSalvador 🇸🇻 #BDS\_LaborAlert: Passed Reform to Amend Year-End Bonus Calculation and Payment Window 2:31 # #ElSalvador 🇸🇻 #BDS\_LaborAlert: Passed Reform to Amend Year-End Bonus Calculation and Payment Window The Executive Branch recently submitted a bill to the Legislative Assembly proposing **amendments to Articles 197, 200, and 202 of the Labor Code**, changing the rules governing the **calculation and payment of the year-end bonus *(aguinaldo).*** Key Proposed Changes **1. Reference Date for Calculation** The year-end bonus will once again be calculated using **December 12 of each year as the reference date**. This date will determine: - Whether an employee is entitled to a full or proportional year-end bonus. - The applicable tier under Article 198 of the Labor Code. **2. Extension of the Payment Period** Employers will be permitted to pay the year-end bonus on any date **between October 1 and December 20** of each year. Companies may select a payment date within this timeframe, provided that: - The bonus is paid in a single installment. - Payment is made to all employees on the selected date. - Payment is made no later than December 20 under any circumstances. Extending the payment window affects only the timing of the payment; December 12 remains the mandatory reference date for determining entitlement and the applicable tier. **3. Annually Renewed Hirings** When an employee's employment agreement is renewed annually with the same employer, the **original start date** of the employment relationship must be used to determine the employee's length of service and the corresponding year-end bonus tier. **4. Terminations Before December 12** If an employment relationship is terminated with employer liability, or if an employee is dismissed without cause before December 12, the employee must receive a **proportional year-end bonus** based on the time served. **Recommendations for Companies** In anticipation of the potential entry into force of this reform, we recommend that companies take the following steps: - Calculate entitlement to the year-end bonus using December 12 as the reference date, even when payment is made in advance. - Identify employees under annual contract renewals and retain their original hiring date for length-of-service calculations. **Effective Date** This reform was approved by the Legislative Assembly on September 23. It will enter into force on the date of its publication in the *Official Gazette*. Please do not hesitate to contact us should you have any additional questions or require further assistance regarding this matter. 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