Legal Requirement: The thirteenth salary, known as "prima de servicios," is mandated by Colombian labor laws.

Payment Schedule: The payment is typically made in two installments:

Calculation: The thirteenth salary is equivalent to one-twelfth of the total salary earned by the employee during the respective half-year period. It includes base salary and any other regular compensation.

Accrual Process: The prima is accrued progressively throughout the year. For the first-half Prima, accrual occurs from January to May, with no accrual appearing in June employer cost statements as the payout is made that month. Similarly, for the second-half Prima, accrual occurs from July to November, with no accrual appearing in December employer cost statements due to the payout.

Eligibility: All employees are eligible for this benefit, regardless of the type of employment contract. Part-time employees receive a prorated amount based on their earnings.

Timely Payment: Employers must ensure that the prima de servicios is paid on time as stipulated by law.

Record Keeping: Employers should maintain accurate records of payments made to each employee to ensure compliance.

Accrual and Cost Reporting: Employers must progressively accrue the prima over the months leading up to the payout periods (June and December). During these payout months, no accruals should appear in employer cost statements as they are distributed across prior months. Employers should also ensure that accruals are calculated accurately and align with Colombian labor regulations to avoid compliance issues.

Entitlement: Employees are entitled to receive the prima de servicios regardless of their job position or contract type.

Transparency in Reporting: Employees have the right to access clear and accurate information about the accrual and payment of their prima, ensuring transparency in employer cost statements.