What should the company know in the event of a delay in salary payment?

 

Ensuring regularity in salary payments not only avoids labor conflicts but also reinforces internal trust and projects an image of compliance to employees, suppliers, and public entities.

Delay as an infringement and possible cause for contract termination

Repeated or unjustified delays in salary payments are considered a serious administrative offense according to current labor legislation.
Furthermore, it may enable the worker to terminate their contract voluntarily, with the right to the compensation provided in the event of unfair dismissal.

Therefore, failures in remuneration not only generate economic responsibilities but can also result in the loss of qualified personnel and an increased risk of labor disputes.

10% late interest: an additional economic obligation

Labor regulations establish that, in case of salary payment delays, the company must pay a 10% annual late interest on the amounts owed.
This interest is compensatory and restorative, not punitive, and is calculated from the date the salary should have been paid until the moment of payment or judgment.

Its application aims to compensate the harm caused to the worker by the delay in receiving their salary, preventing the non-compliance from benefiting the company.

Interest application: only at the worker's request

Late interest is not applied automatically. It is necessary for the worker to expressly request it in their claim or lawsuit.
This means that, even if the company subsequently pays the outstanding salary, it could be required to pay the surcharge if the worker claims the delay in court or administratively.

Tax implications for the company

From a tax perspective, the interests paid for delays are not considered employment income but capital gains for the worker.
Therefore, they are not subject to withholding tax at the source, although they must be reflected in the accounting documentation and, if applicable, in the communication of payments made.

Due to their compensatory nature, it is recommended that the company adequately document the payments made for late interest to avoid issues in future labor or tax inspections.

Difference from other surcharges or penalties

A distinction must be made between late interest for salary payment delays and surcharges for non-compliance with court judgments or resolutions.
While the former directly stems from the payroll delay, the latter is imposed once there is a final court ruling requiring payment.

Delaying salary payments poses an unnecessary risk for any organization. In addition to potential surcharges and penalties, it affects employee motivation and can deteriorate corporate culture.