Employee Holiday & Leave Entitlement in Mexico
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 ⬇️
Key takeaway
✔️ After one year of service, employees receive a minimum of 12 paid vacation days, increasing with each year.
✔️ Employers must pay a 25% vacation premium in addition to the employee’s regular salary during vacation.
✔️Vacation days must be used within 6 months of accrual to avoid expiration.
✔️ Unused vacation is compensated upon termination, ensuring fair treatment for departing employees.
Statutory Annual Leave in Mexico
Understanding vacation entitlement is key for both employers and employees in Mexico. The Federal Labor Law (Ley Federal del Trabajo, or LFT) outlines the legal foundation for paid time off. Employees in Mexico earn vacation days based on the length of service with their employer. These vacation rights are not optional—they are a legal obligation that all employers must fulfill.
Eligibility
To qualify for statutory vacation in Mexico, employees must complete twelve continuous months of service with the same employer. This rule applies regardless of the type of employment contract, whether indefinite or fixed-term.
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.
If the employee changes employers, the service period resets, and vacation entitlement accrues again from zero, exept in cases of company mergers or acquisitions.
Holiday Entitlement in Mexico
As of the most recent reform to Article 76 of the Federal Labor Law, employees in Mexico now benefit from increased vacation entitlements. After completing one full year of service, an employee earns a minimum of twelve (12) working days of paid vacation. This amount rises progressively with continued service:
After the first year: 12 days
Second year: 14 days
Third year: 16 days
Fourth year: 18 days
Fifth year: 20 days
Starting from the sixth year, employees gain an additional two vacation days for every five years of continuous service. This system ensures that long-term employees are rewarded with more rest and recovery time.
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Accrual Period and Rate
Employers do not grant vacation days in advance. Employees must complete one full year of service before becoming eligible for statutory vacation leave. The vacation period accrues on a per-month basis at a rate of 1 day per month.
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.
Taking a Holiday Leave
In most cases, the employee submits a vacation request in writing or through the internal HR portal. The employer has the responsibility to approve and schedule the vacation.
Importantly, the employer must ensure the employee takes vacation within 6 months after the end of the service year in which it was accrued. If this does not happen, the vacation days may expire unless the delay was caused by the employer.
“Vacations must be granted to employees within six months following the completion of one year of service. Employers shall annually provide their employees with a certificate indicating their length of service, the vacation period to which they are entitled based on that seniority, and the date on which the vacation must be taken.” – Federal Labor Law, Article 81
While the law guarantees 12 continuous days, workers may choose to split them across different periods based on their personal needs — as long as it aligns with company policies and operational considerations.
“Of the total vacation period granted in accordance with Article 76 of this Law, the employee shall take at least twelve consecutive days. This period may, at the employee’s discretion, be distributed in the manner and at the time they require.” – Federal Labor Law, Article 78
Holiday Payment
Mexican law requires employers to pay a vacation premium (prima vacacional) in addition to the employee’s regular daily salary during vacation. This premium is equal to 25% minimum.
For example, if an employee earns MXN 1,000 per day and takes 12 vacation days, the total vacation pay will be MXN 15,000. This includes MXN 12,000 in base pay and MXN 3,000 as the vacation premium.
Employers must pay the vacation premium in full before or during the vacation period.
Carrying Over and Selling Annual Leave
The law in Mexico does not allow indefinite carryover of vacation days. Employees must use their leave within 6 months following the contract anniversary. After that period, the entitlement expires unless otherwise agreed in a collective agreement or contract.
Mexican law does not allow selling unused vacation days, unless the employment relationship ends. In that case, employers must pay the value of unused days along with the corresponding vacation premium.
Payment of Accrued, Unused Vacation on Termination
When an employee leaves the company—whether through resignation, dismissal, or contract expiration—they must receive a final payment. This includes:
The proportional part of the vacation days not taken
The corresponding vacation premium (25%)
Timely and accurate settlement protects both parties and avoids legal disputes.
To learn more about other types of leave in Mexico, visit our detailed guide on End of Employment and Termination in Mexico
Public holidays in Mexico
Mexico recognizes federal public holidays, known locally as “Días Feriados”. The law sets out 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 double the daily wage, in accordance with the LFT.
Additionally and, to learn more about other types of leave in Mexico, visit our detailed guide on special leave entitlements.
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 LEAVES
Mexico does not currently have a regulation to grant a marriage license.
📘 Related Reading: Special Leave Entitlements in Mexico
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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.
