Employee Holiday & Leave Entitlement in Mexico
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In Mexico, all employers must grant paid time off to employees. The employees acquire the days at a rate of 1 day for each month of work totaling up to 12 days for the full year of work the first year. On top of the employee holiday, you have to add national holidays (7 per year) and other state holidays. Let’s discover more about Employee Holiday & Leave Entitlement in Mexico ⬇️
1 day per month (1st year) => 12 days per year + 7 public holidays
Holiday entitlement in Mexico
Annual leave, also known as holiday pay or paid time off, allows you to be paid while you take time off work.
Eligibility
All employees and workers in Mexico can take this holiday leave including:
- full-time and part-time employees
- regardless of their seniority, employment qualifications, nature of compensation, and working hours.
Also, part-time employees have the same rights as full-time employees.
Vacation bonus
Vacation bonus is additional money that employers grant to employees as a supplement for the days off taken during the year. Indeed, the Article 80 of the Mexican Labour Law establishes what is the vacation bonus and how it works. For instance, it states: « Workers shall be entitled to a bonus of no less than twenty-five percent of the wages they are entitled to during the vacation period ».
What does this mean? It means that all workers are entitled to receive a remuneration equivalent to 25% of their gross monthly salaries during their vacation period.
Accrual period and rate
Accrual rate
Employees start accruing paid holiday leave from the moment they sign their employment contract. Employees receive 1 day of paid leave per month of actual work during the first year.
The recent reform, Reforma de Vacaciones Dignas, states that employees will be entitled to 12 days off in the first year worked. After each year, two days will be increased until reaching 20 days and then two days will be added for every five years. See the chart below:
Accrual period
The holiday leave is accrued during the first year which goes from the start date of the contract and last one year.
For instance, if your new employee starts 02/03/2025, the acquisition period will go from 02/03/2025 to 01/03/2026 and the employee would not be able to go on holidays before 01/03/2026.
Completing an entire year of work is required before being eligible for holiday leave.
Taking a holiday leave
Employees acquire 1 working days per month during the first year, which comes to 12 calendar days per year. For the purpose of counting holidays, Mexicans consider working day, from Monday to Friday.
Employers shall deliver annually to their employees a certificate containing their seniority and in accordance with the holiday period that corresponds to them and the date on which they must enjoy it.
Installments
In accordance with Article 81 of the Mexican Labor Law, vacations must be granted to employees within six months following the completion of one year of service.
Since January 2023, Mexican employee have the go on holidays during 12 days. The period can be of 12 days or can be divided.
Holiday payment
In Mexico, the employer pay holiday leave. During the holiday leave, employees don’t receive their usual salary (their employment contract is suspended). Instead, they receive a holiday allowance.
On top of the regular wage during the time off, employers must also give employees a vacation bonus, which equals 25% of their monthly salary.
Although the Federal Labor Law does not specify the exact date of payment, this benefit must be paid to the employee upon completion of one year of service or when the employee takes vacation after one year of service.
Carrying over and selling annual leave
Typically, an employee is not able to carry over unused vacation into the following reference year. Thus, if the employee does not go on holiday, he will lost it.
In addtition, vacations must never be compensated with any remuneration, i.e. the employer must grant to the employee the total amount of day off he has accumulated.
Payment of Accrued, Unused Vacation on Termination
An employer must pay all accrued, unused holiday leave (holiday indemnity) unless termination was due to serious and gross misconduct.
Public holidays in Mexico
Public holidays are legislated at a Federal level and dates given as a holiday by statute are termed locally as “Dias Feriados.”
The FLL legislate Public holidays also named « Dias Feriados ». There are currently seven statutory holidays in Mexico, as well as a range of civic holidays and regional/national festivities. The days of mandatory holiday are:
- 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)
- Presidential Inauguration Day (every six years – December 1)
- Christmas Day (Dec 25)
According to article 74 of the Mexican Federal Labor Law, employees are not to work on the federally mandated holidays.
Sick leave
Mexican employees are entitled with paid-time off if they provide their employer with a medical certificate from the Instituto Mexicano del Seguro Social (IMSS) (Mexican Social Security Institute).
Employees are entitled to up to 52 weeks (one full year) of paid leave.
To be eligible for sick leave, an employee must have been employed and contributing to the Mexican social security (IMSS) for at least 7 weeks.
Employee will receive their full salary during the first three days of illness. After that, they will be compensated at 60% of their regular pay rate. This payment is the responsibility of the IMSS.
Learn more about Sick leave in Mexico.
Parental leave
Parental leave in Mexico is paid time off work 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 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 LEAVES
Mexico does not currently have a regulation to grant a marriage license.
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 ?
Yes, with the Dignified Vacation reform, Article 78 of the Federal Labor Law will read as follows:
« 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. »
Then, an employee shall be entitled to receive his vacation is an unbroken period unless otherwise mutually agreed upon between the employee concerned and the legal employer.
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.
Manage employee holiday compliantly with Europortage
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.
Get in touch to find out more and start hiring top talent in Latin America!
