How severance works in Bolivia: the finiquito explained
When employment ends in Bolivia, the employer must settle all social benefits in a document called the finiquito and pay it within 15 calendar days (Supreme Decree 28699, art. 9). This calculator estimates the four main items under the General Labour Law (LGT): the years-of-service indemnity, the desahucio (dismissal compensation), untaken vacation and the proportional aguinaldo (Christmas bonus). Everything is computed on the indemnity base: the average “total ganado” of the last 3 months, which includes base salary, the seniority bonus, overtime and other regular payments.
| Item | Unjustified dismissal | Voluntary resignation |
|---|---|---|
| Indemnity (1 salary per year + twelfths) | Yes | Yes, with more than 90 days of continuous work (DS 110/2009) |
| Desahucio (3 average salaries) | Yes | No |
| Untaken vacation | Yes | Yes |
| Proportional aguinaldo | Yes, with at least 3 months in the year | Yes, with at least 3 months |
Rules in force in 2026
| Item | 2026 rule |
|---|---|
| National minimum wage | Bs 3,300 (DS 5516, a 20% increase effective 01 Jan 2026) |
| Indemnity | 1 average salary per year of continuous work, plus twelfths for the months of the final fraction (LGT art. 13) |
| Desahucio | 3 average salaries, only for dismissal without a legal cause under LGT art. 16 (DS 28699) |
| Vacation | 15 working days for 1 to 5 years of service, 20 for 5 to 10, and 30 beyond 10 years (LGT art. 44) |
| Aguinaldo | Average of the last 3 months × months worked ÷ 12; minimum 3 months in the year |
| Seniority bonus | DS 21060 scale (5% to 50%) on 3 minimum wages (Bs 9,900) in productive companies or 1 (Bs 3,300) in service companies |
| Late-payment penalty | 30% of the total settlement plus UFV indexation if not paid within 15 days |
Statutory severance benefits and the aguinaldo are tax-exempt: no 12.71% pension contribution to the Gestora and no RC-IVA withholding (Law 843, art. 19).
How to use the calculator
- Pick the termination cause: the tool switches the desahucio on or off accordingly.
- Enter the average total earnings of your last 3 months; if your figure excludes the seniority bonus, tick the box and choose the base (3 minimum wages or 1).
- Enter your service time as full years plus extra months.
- Add any untaken vacation days from past years and the months worked in the current year for the aguinaldo.
Worked example
Unjustified dismissal after 3 years and 6 months in a productive company. Base salary of Bs 5,000 plus a 5% seniority bonus on 3 minimum wages (5% × 9,900 = Bs 495), so the indemnity base is Bs 5,495. Vacation up to date (only the proportional part, on the 15-day scale) and the aguinaldo left out:
- Indemnity: 3 × 5,495 = 16,485, plus twelfths 5,495 × 6 ÷ 12 = 2,747.50 → Bs 19,232.50.
- Desahucio: 3 × 5,495 = Bs 16,485.00.
- Proportional vacation: 15 days × 6 ÷ 12 = 7.5 working days × (5,495 ÷ 30 = 183.17) = Bs 1,373.75.
- Total settlement: Bs 37,091.25, payable within 15 calendar days; if the employer is late, a 30% penalty applies (an extra Bs 11,127.38) plus UFV indexation.
Frequently asked questions
Do I get the indemnity if I resign?
Yes. Since DS 110 of 01 May 2009 the indemnity is also paid on voluntary resignation, provided you have more than 90 days of continuous work; the old five-year requirement no longer applies. What you do not get on resignation is the desahucio.
When is the 3-salary desahucio owed?
Only for unjustified dismissal, meaning termination without one of the legal causes of LGT art. 16. It is not owed on resignation, on dismissal for a justified cause, or when a fixed-term contract expires (in that case twelfths of indemnity, aguinaldo and vacation are paid, but no desahucio).
Is the settlement taxed?
No. Indemnity and desahucio paid according to the law are not subject to RC-IVA (Law 843, art. 19), and the aguinaldo is exempt from both pension contributions and RC-IVA; it must also be paid in cash, never in kind.
Will there be a double aguinaldo in 2026?
It is not expected. The second aguinaldo “Esfuerzo por Bolivia” (DS 1802) only triggers when GDP grows above 4.5% over the July-June period, and the 2026 projections are far below that threshold (the IMF projects a contraction). The INE confirms it in October-November; it has not triggered since 2019.
Does the 30% penalty apply if I resigned?
For dismissals it is clear: past the 15-day deadline the employer owes 30% of the total plus UFV indexation. For resignations the case law is mixed (constitutional ruling SCP 642/2012 extended it), so do not take it as guaranteed.
This tool provides an informational estimate under the rules in force in 2026; it does not replace legal advice or the settlement endorsed before Bolivia’s Ministry of Labour. Review it every year: the minimum wage (Bs 3,300 under DS 5516) and the ministry’s instructions change annually.