What are the Christmas Bonus (Aguinaldo) and Vacation Premiums in Mexico?

In Mexico, labor laws are designed to ensure that employees receive fair compensation and benefits. Two significant benefits that all employees should be aware of are the Christmas bonus (Aguinaldo) and the Vacation Premium. These benefits are mandated by law and play an important role in protecting employee rights in the country.


1. Christmas Bonus (Aguinaldo)

What is Aguinaldo?
Aguinaldo is a mandatory annual bonus that all employees in Mexico are entitled to receive. It is a year-end bonus provided separately from the regular salary, intended to help employees manage additional expenses during the holiday season.


How Much is the Aguinaldo?
The law requires that the Aguinaldo amount be at least 15 days of the employee's salary. However, some employers may offer more as part of their benefits package, 


When is Aguinaldo Paid?
Aguinaldo is paid by December 20th of each year.  If the employee onboarding in the middle of the year, the Aguinaldo would be paid proportionally


Example Calculation:
If an employee earns MXN 30000 per month as basic, onboarded before or on 1st Jan of the year, the Aguinaldo would be:

  • MXN 30000/30  x 15 days = MXN 15000.


If an employee earns MXN 30000 per mont as basic, onboarded on 1st July of the year, the Auguinaldo in the porated amount would be


  • MXN 30000/30 x 15(184/365) = MXN 7561.65  





2. Vacation Premium

What is the Vacation Premium?
The Vacation Premium is an additional payment given to employees when they take their legally entitled vacation days. This payment is designed to ensure that employees can enjoy their vacations without financial worry.


How Much is the Vacation Premium?
The Vacation Premium must be at least 25% of the employee's daily salary for each vacation day taken. This is calculated based on the employee’s salary at the time of their work anniversary.


When is the Vacation Premium Paid?
The Vacation Premium is paid when the employee takes their vacation days, usually at the time of their work anniversary.


Example Calculation:
If an employee earns $500 per day and takes 10 vacation days, the Vacation Premium would be:

  • $500/day x 25% = $125/day (Vacation Premium)
  • $125/day x 10 days = $1,250 as the total Vacation Premium for the vacation period.


Eligibility:
Both Aguinaldo and Vacation Premium are applicable to all employees in Mexico, regardless of their position or length of service. Employees who have not completed a full year of service are entitled to a proportional amount of Aguinaldo based on the time they have worked.

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