Handling Vacation Days in Mexico
Vacation days in Mexico and the paying the Mexico vacation bonus
Handling Vacation Days in Mexico
A landmark labor reform that went into effect, January 1, 2023, substantially increased the number of mandatory paid vacation days for employees.
A key provision of the new law grants employees the right to take their twelve initial vacation days continuously if they so choose. This is a significant shift from previous practices where employers often dictated the scheduling of vacation time.
The law guarantees six (12) days of vacation for the first year of services. Thereafter it increases by two working days successively until reaching thirty two (32) days, after the 35th year, as indicated in Art. 76 of the Federal Labor Law.
Here is a chart on how vacations days increase:
Year 1 = 12 days
Year 2 = 14 days
Year 3 = 16 days
Year 4 = 18 days
Year 5 = 20 days
Year 6-10 = 22 days
Year 11-15 = 24 days
Year 16-20 = 26 days
Year 21-25 = 28 days
Year 26-30 = 30 days
Year 31-35 = 32 days
This schedule is the federal minimum for vacation days in Mexico. An increase in the vacation days can be negotiated into the employment contract between the employer and the employee on a case by case basis.
VACATION BONUS
Employees are entitled to a minimum vacation bonus of not less than twenty five (25%) percent over the salaries that correspond to them during the vacation period, as indicated in Art. 80 of the Federal labor law.
To calculate the vacation bonus based on 25% and a salary of $50,000 USD per year:
$50,000 USD divided by 365 days = $136.99 USD daily pay rate
$136.99 USD daily pay rate multiplied by 25% = $34.25 USD
$34.25 USD multiplied by 12 vacation days (first year) = $410.96 USD vacation bonus
