Ministerial Resolution No. 1031-1015 issued by the Ministry of Labor (the "Resolution") which regulates the payment of the second Christmas Bonus "Effort for Bolivia" ("Second Bonus"); the norm confirms that the benefit shall include all private sector workers who are subject to the General Labor Law (“LGT”), with an individual employment contract or employment relationship in terms of remuneration and dependence, paid employment, who receive a remuneration in any form and under any type of contract and commenced work at a company prior to October 1, 2015.
The Resolution provides that payment of the Second Bonus is not mandatory for the staff of private companies, which hold higher ranked positions, such as, president, vice president and board members; CEO and executive vice president; manager, assistant manager, general manager or positions of equal rank and exempts payment for specialized personnel in strategic areas that have a basic salary higher than that established for the President of the Plurinational State of Bolivia, which reaches Bs. 21.483.- (Twenty one thousand four hundred eighty three 00/100 Bolivian).
The calculation for payment of the Second Bonus, shall be the average of the total earned for the last three (3) months prior to the payment of bonuses, or before the three months prior to the termination of employment. The Second Bonus is not subject to judicial attachment, garnishment, deduction for taxes or contributions, resignation, compensation or transaction, it must be paid in full according to the proportion set in regulations.
The only change to the payment of the Second Bonus for 2015 is the extension the private sector has, until March 31, 2016, to comply with the payment. To be eligible for the extraordinary extension of the deadline for payment of this benefit, the Resolution sets forth the presentation of the four conditions set by the Supreme Decree No. 2631, which are: (i) simple photocopy of the Employers Mandatory Registry (“ROE”); (ii) Certificate of No Debts to long-term social security issued by the Pension Fund Administrators (“AFP”) up to November 30, 2015; (iii) photocopies of the payroll and the Sworn Statement of payment of the second bonus for 2014; Sworn Statement Form of the cash flow up to November 30, 2015 that reflects the financial deficit.
The enabling of the extension of time until March 31, 2016, shall apply from the time the application is submitted with the Ministry of Labor, at their departmental or regional offices.