Vacation Bonus (Prima vacacional) in Mexico
When it comes to employee benefits, the Vacation Bonus in Mexico (Prima Vacacional) plays a significant role. This mandatory payment ensures that workers receive additional compensation during their vacation period. In this article, we will break down what the vacation bonus is, how it is calculated, and what both employers and employees should know to ensure compliance and fair compensation.
📖 For a complete overview of mandatory benefits, refer to our comprehensive guide on Employee Mandatory benefits in Mexico.
Key Takeaways
✔️ Employers must pay at least 25% of the employee’s daily salary as a vacation bonus.
✔️ Applies after 12 months of continuous service.
✔️Must be paid concurrently with vacation leave.
What Is the Vacation Bonus in Mexico?
The Vacation Bonus is a legally required benefit under the Mexican Federal Labor Law (Ley Federal del Trabajo). It guarantees employees an extra payment when they take their annual vacation. The law aims to support workers in enjoying their vacation time without financial strain.
According to Article 80 of the Federal Labor Law, employees are entitled to receive at least 25% of their regular salary as a bonus during their vacation days. This bonus is in addition to their standard pay.
“Employees shall be entitled to a bonus of no less than twenty-five percent of the wages corresponding to them during their vacation period.” – Federal Labor Law, Article 80
Eligibility for the Vacation Bonus
Employees become eligible for a vacation bonus after completing one full year of continuous service with the same employer. Once this requirement is met, they gain the right to take vacation days and receive the corresponding bonus.
Even if the employee does not take their vacation immediately after the one-year mark, the bonus remains due once they decide to use their vacation entitlement. The bonus also applies proportionally if the employee resigns or is terminated before taking their vacation.
How Is the Vacation Bonus Calculated?
The formula is straightforward:
Vacation Bonus = Number of Vacation Days × Daily Salary × 25%
For example:
An employee earns MXN 600 per day.
After one year, they are entitled to 12 vacation days (as per recent reforms).
Calculation:
12 days × MXN 600 × 0.25 = MXN 1,800
This amount represents the total vacation bonus the employer must pay in addition to the salary paid during the vacation period.
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Payment Timing
The vacation bonus must be paid at the same time the vacation is granted. Employers cannot delay this payment. If the employee receives their vacation pay in advance, the bonus must be included in that amount.
Failing to pay the bonus on time can lead to legal consequences, including labor claims and fines from the labor authorities.
Impact on Payroll and Taxes
The vacation bonus is considered taxable income and must be included in the employee’s payroll report. Therefore, employers must calculate the applicable income tax (ISR) and social security contributions (IMSS) based on the gross amount.
However, according to the Ley del Impuesto Sobre la Renta (LISR), the vacation bonus has an exemption up to 15 times the UMA (Unidad de Medida y Actualización). For 2025, the daily UMA is MXN 113.14, making the exempt amount MXN 1,697.10. Any amount exceeding this is subject to ISR.
Using a professional payroll provider or accountant helps ensure that tax withholdings and declarations remain compliant.
Carryover and Payment Upon Termination
Employees who don’t use their vacation days still retain the right to their vacation bonus. At the end of employment, whether due to resignation or dismissal, the employer must pay:
Proportional vacation days not taken
Corresponding vacation bonus (25%)
This payment should be part of the final settlement and delivered on the employee’s last day or within legal deadlines.
What to Do If the Vacation Bonus Is Not Paid
If an employee does not receive their vacation bonus, they should:
Review their employment contract and payslips to confirm the omission.
Communicate with their employer to address the issue.
If unresolved, seek assistance from the Procuraduría Federal de la Defensa del Trabajo (PROFEDET), which offers free legal advice.
Consider a conciliation process through the Centro de Conciliación y Registro Laboral before pursuing legal action.
File a labor claim if necessary, keeping in mind there’s a one-year statute of limitations from the date the bonus was due.
Final Thoughts
The Vacation Bonus in Mexico is more than just an extra payment—it’s a legal right designed to protect employees’ ability to rest and recharge. For employers, staying compliant with vacation bonus rules ensures a positive workplace and reduces legal risks.
If you need support managing payroll and employee benefits in Mexico, Europortage can help you navigate every step. From contract design to compliance, we simplify international employment.
For more information, check out our articles on Employee Benefits in Mexico.
