Paying Mexican workers Xmas bonus, vacation & Holidays

Posted by sparks on December 15, 2007, 3:22 pm
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The law requires that the following items be paid whether or not the worker is registered with the IMSS. Aguinaldo (Christmas Bonus) The aguinaldo must be paid on or before the 20th of December – many employers pay it on the payday which precedes that date. The aguinaldo must be paid in cash; gifts, Christmas baskets, and other presents do not fulfill the statutory requirement. The aguinaldo must equal 15 days of salary. To calculate the amount for a part-time employee, divide the number of days worked during the year past by 365. Multiply that figure by 15 x the daily salary to determine the amount of the aguinaldo. Examples: If you have an employee who works one day a week for $50 pesos: 52/365 x 15 x 50 = $106.85 pesos If the worker is paid by the week and has worked a full year, use a multiplier of 2.14 to make the math easier. If the worker is paid $500 pesos per week, then it is $500 x 2 .14 = $1070 pesos If the weekly worker has not worked a full year, divide the number of weeks worked by 52.14 X 15 X the daily salary (weekly salary divided by 7) to determine the amount of the aguinaldo. Vacación (Vacation) The vacación must be paid in cash, either before the vacation or before the end of the year if no vacation has been taken. The vacación pay must equal 6 days of salary plus and additional 25% of the six-day amount. To calculate the amount, divide the number of days worked during the year past by 365. Multiply that figure by 7.5 to determine the amount of the vacación pay due. As you can see this is exactly 1/2 of the aguinaldo. Examples: If you have an employee who works one day a week for $50 pesos: 52/365 x 7.5 x 50 = $53.42 pesos = vacación If the worker is paid $500 pesos per week: $500 x 1.07 = $535 pesos = vacación Note: The 6-day minimum vacation is only for the first year worked. The basis increases by 2 days each year through the 4th year. The 5th year it increases 3 days to 15 days. Thereafter, the time increases by 3 days each 5th year. Year 1 -- 6 days Year 2 -- 6 + 2 = 8 days Year 3 -- 8 + 2 = 10 days Year 4 -- 10 + 2 = 12 days Year 5 -- 12 + 3 = 15 days Year 10 -- 15 + 3 = 18 days Year 15 -- 18 + 3 = 21 days etc Holidays: If your worker works on any of the Mexican legal holidays, you must pay double time plus the regular pay; i.e., triple time. If the worker is paid for the holiday, but doesn't work, you cannot deduct the day from the "days worked" in the preceding computations for aguinaldo or vacación. If your worker works on any Sunday, you must pay an additional 25% of the daily wage. For weekly workers, you divide the salary by 7, then add 25% to the daily amount for the Sunday pay. This assumes that you have given the employee some other day off during the week. If the employee worked the full 7 days that week you owe overtime pay also. That gets much more complicated. Talk with your accountant. The Mexican legal holidays are: Jan 1, New Year's Day 1st Monday in Feb, Constitution Day 3rd Monday in March, Benito Juarez's Birthday May 1, Labor Day Sep 16, Independence Day 3rd Monday in Nov, Revolution Day Dec 25, Christmas

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