Employee Leave in Mexico: Guide to PTO, Sick & Parental Leave
Understanding employee leave in Mexico is critical for any company hiring locally. Mexican labor law protects workers strongly, offering paid vacation, public holidays, sick leave, maternity and paternity benefits, and several special entitlements. For employers, managing leave correctly ensures compliance, accurate payroll, and satisfied employees.
This guide covers every type of leave: from PTO in Mexico to public holidays, sick leave, parental leave, and special leave. You’ll also learn how to calculate entitlements, handle carryover, and pay employees properly during their time off.
Let’s discover more about PTO and Paid Leave in Mexico: Complete Guide for 2025 ⬇️
Paid Time Off (PTO) in Mexico
Vacation Entitlement
Since the 2023 reform, employees in Mexico are entitled to 12 days of PTO after completing one year of service. The entitlement increases by two days per year until the sixth year, reaching 20 vacation days. From year seven onward, employees gain two extra days every five years.
| Years of Service | Vacation Days |
|---|---|
| 1 year | 12 days |
| 2 years | 14 days |
| 3 years | 16 days |
| 4 years | 18 days |
| 5 years | 20 days |
| 6+ years | +2 every 5 years |
Vacation days are not optional. Employers must grant this leave within six months of the entitlement date.
Vacation Bonus (Prima Vacacional)
During vacation, employees receive their regular pay plus a vacation bonus of at least 25% of salary. For example, if the daily wage is 1,000 MXN, the bonus adds 250 MXN for each vacation day. This bonus is mandatory and cannot be waived.
PTO Carryover and Forfeiture
By law, unused vacation days should be taken within six months after becoming eligible. Employers may allow additional flexibility by policy, but the legal baseline is strict. Vacation days cannot be sold or forfeited permanently. Employees must take them or be paid out if employment ends.
Even if an employee resigns or is terminated before completing the year, the employer must still pay a proportional vacation balance for the time worked.
PTO on Termination
When employment ends, the employer must pay all unused vacation days. The payment also includes the proportional vacation bonus. Failure to comply may result in legal claims and financial penalties.
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Public holidays in Mexico
Mexico recognizes federal public holidays, known locally as “Días Feriados”. The law sets out no less than seven mandatory public holidays that all employers must observe:
- New Year’s Day (Jan 1)
- Constitution Day (First Monday in February)
- Benito Juarez Day (Third Monday in March)
- International Labor Day (May 1)
- Independence Day (Sep 16)
- Revolution Day (Third Monday in November)
- October 1st every six years, when it coincides with the transfer of the Federal Executive Power;
- Christmas Day (Dec 25)
On these statutory holidays, employees must not work, unless extraordinary circumstances apply and the employer pays triple the daily wage, in accordance with the LFT.
Sick leave
Entitlement
Employees in Mexico have the right to paid sick leave, provided they:
- Submit a valid medical certificate from the Instituto Mexicano del Seguro Social (IMSS)—Mexico’s Social Security Institute.
- Have at least seven weeks of registered contributions with the IMSS.
Sick leave in Mexico allows employees to take up to 52 consecutive weeks (one full year) of leave, depending on the nature and severity of the illness.
Payment
During the first three days of illness, the employee remains unpaid unless stated differently in the employment contract. From day four onward, the IMSS takes over and provides 60% of the employee’s daily salary.
It’s important to note that the IMSS makes this payment directly to the employee. Employers should inform workers about the procedure for obtaining a certificate and ensure that the documentation is submitted correctly to avoid delays.
For more details on this entitlement and others, explore our full article on Sick leave in Mexico.
Parental leave
Parental leave in Mexico offers paid time off for new parents. This leave allows mothers or first carrier to recover from childbirth. It also gives both parents time to bond with their children and get used to life with a new family member.
Learn more about this topic in our full guide to Parental leave in Mexico.
MATERNITY LEAVE
The Article 170 of the Federal Labor Law grants pregnant employee the right to a minimum of 12-week (84 calendar days) maternity leave.
PATERNITY LEAVE
Ordinary paternity leave is 5 days.
** UPDATE ** Recently, the Mexican parliament introduced an amendment bill to increase paternity leave from 5 working days to 20 working days. In case of complications, the paternity leave will be increase by 10 more days. If the bill is approved by the Mexican Senate, this increase will be effective during 2024.
Other leaves in Mexico
BEREAVEMENT LEAVE
In Mexico, neither the Federal Labor Law (LFT) nor any regulation contemplates a leave of absence entitling the employee to be absent due to the death of a family member.
Since the LFT does not contemplate bereavement leave, it is at the discretion of the employer whether or not to grant such leave.
MARRIAGE LEAVE
Mexico does not currently have a regulation to grant a marriage license.
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Manage employee Holiday & Leave Entitlement in Mexico is complex especially when it comes to compliance. That’s why we recommend working with a direct and local partner like Europortage.
Our team of local experts is on hand to support you throughout the entire employee lifecycle, including time-off management. We can give you clear advice on local holiday and time-off regulations, in addition to handling employment contracts, payroll, and benefits. That way, you can focus on growing a world-class team and business.
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FAQ
Have questions? We have answers. If you can’t find what you are looking for, please get in touch.
Is vacation policy counted in calandar or business days ?
Vacation days equate to business days. Weekly rest days and holidays are not considered when calculating vacation days.
Are the vacation continuous ?
Article 78 of the Federal Labor Law now states:
“The worker will enjoy at least twelve days of continuous vacation. Said period, at the discretion of the worker, may be distributed in the manner and time required.”
This means that, by law, employees have the right to take a minimum of 12 consecutive vacation days after completing one year of service. However, in practice, many employees choose to split these days throughout the year, often based on operational needs and personal preference. Employers usually accept this flexibility as long as both parties reach an agreement in advance.
What if the PTO overlap a bank holiday ?
If a public holiday falls during the vacation period, it shall not be considered or counted as a vacation day.
Can you pay an employee in lieu of annual leave?
No. The Federal Labor Law prohibits the employer from paying an employee in lieu of annual leave.
