What is Aguinaldo (Christmas Bonus) in Mexico?
The Aguinaldo, or Christmas bonus, is a mandatory annual payment in Mexico, serving as a cornerstone of employee benefits. Governed by the Federal Labor Law, it underscores the importance of fair compensation during the festive season. This guide will provide insights into its requirements, calculations, and impact on employer-employee relationships.
Key Takeaways
✔️ The Aguinaldo is a mandatory Christmas bonus in Mexico, equivalent to at least 15 days’ base salary.
✔️Employers must disburse the Aguinaldo by December 20 each year to remain compliant with labor laws.
✔️ Employees with less than a year of service or part-time workers receive a prorated amount based on days worked.
What Is an Aguinaldo?
An Aguinaldo is a legally required annual bonus that employers in Mexico must pay to their employees. According to Article 87 of the Federal Labor Law, the Aguinaldo serves as a gesture of goodwill and financial support during the holiday season. Employers must pay the equivalent of 15 days’ base salary or a proportional amount for employees who have worked less than a year.
“Workers will be entitled to an annual bonus that must be paid before December 20, equivalent to at least fifteen days of salary.” – Federal Labor Law, Article 87
Who Is Eligible to Receive an Aguinaldo in Mexico?
The Aguinaldo applies to all employees working under a formal employment relationship, regardless of their tenure. Key eligibility criteria include:
- Full-time employees: Guaranteed the full 15 days of salary.
- Part-time or remote employees: Eligible for a proportional Aguinaldo based on hours worked.
- Employees with less than a year of service: Entitled to a prorated amount based on the number of days worked.
Even employees who resign or are terminated during the year are entitled to a prorated Aguinaldo for the period they worked.
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How to Calculate the Aguinaldo Christmas Bonus
The Aguinaldo is based on an employee’s daily base salary. Here’s the formula:
Base Formula: Base daily salary x 15 days
For employees with less than a year of service: Base daily salary 15 days x (days worked / 365 )
Example 1: Full-Time Employee
An employee earning MXN 500 per day and working a full year:
Base salary: MXN 500/day
- Aguinaldo = MXN 500 x 15 = MXN 7,500
Example 2: Part-Time Employee (6 months of service)
An employee earning MXN 300 per day, working for six months:
Base salary: MXN 300/day
Days worked: 180
- Aguinaldo = MXN 300 x 15 x (180/365) ≈ MXN 2,219
Example 3: Severance Pay with Aguinaldo
If an employee is terminated in October after earning MXN 400 per day, the prorated Aguinaldo calculation includes:
400 × 15 × (300 ÷ 365) = MXN 4,931.51 Aguinaldo
For severance cases, employers must include this amount in the final settlement.
When Is the Aguinaldo Payment Deadline?
Employers must pay the Aguinaldo by December 20 each year. Missing this deadline can result in fines from labor authorities, ranging from 50 to 5,000 times the daily minimum wage, as stipulated in Article 992 of the Federal Labor Law.
FAQ
Are Remote Employees Eligible for Aguinaldo?
Yes. Remote workers are entitled to the same benefits as on-site employees, including the Aguinaldo. Employers must calculate their bonus based on their agreed salary.
What Circumstances Qualify for Reduced Aguinaldo Payments?
Employees who work less than a full year or are part-time receive a prorated Aguinaldo. Employers must calculate the payment proportionally to their time worked.
How Can the Aguinaldo Improve Retention?
Paying the Aguinaldo on time and transparently shows employees they are valued, which can boost loyalty and retention.
Conclusion: Navigating Aguinaldo Obligations with Europortage
Complying with Aguinaldo regulations demonstrates an employer’s commitment to fair labor practices in Mexico. By understanding the legal requirements and following best practices, businesses can maintain compliance and foster positive relationships with their teams.
If you need assistance navigating labor laws, including Aguinaldo compliance, Europortage offers tailored payroll and HR solutions for businesses operating in Mexico. Contact us today to learn more!
