What Is the Mandatory Christmas Bonus (Aguinaldo) in Mexico?

The mandatory Christmas bonus, known as Aguinaldo, is a legally required payment that every employer in Mexico must give to their employees each year. It is one of the most important benefits under Mexican labor law and must be paid no later than December 20.

The bonus is designed to support employees during the holiday season and recognize their annual effort.

• Simple definition
  Aguinaldo is a yearly cash bonus equal to at least 15 days of the employee’s salary. Employers may offer more, but never less.
  
  

• Purpose of the benefit
  It helps employees manage end-of-year expenses and ensures fair economic support during the holidays.
  
  

• Applicability to all employees
  Every employee in Mexico is entitled to Aguinaldo, including those with temporary or part-time contracts. It is calculated based on actual days worked.
  
  

Aguinaldo is a mandatory and protected right, making it a core part of Mexico’s compensation system.

Legal Basis: What the Law Says About Aguinaldo

Aguinaldo is not optional or negotiable. It is a benefit fully protected by Mexican labor law, and every employer must pay it on time each year. The rules are clear, strict, and apply to all types of employment relationships.

Understanding the legal foundation behind Aguinaldo helps employers avoid penalties and ensures employees receive their full rights.

• Article 87 of the Federal Labor Law (LFT)
  Article 87 states that all employees in Mexico must receive a Christmas bonus of at least 15 days of salary each year. It must be paid in cash and delivered no later than December 20. This rule applies equally to permanent, temporary, part-time, and remote employees.
  
  

• Why Aguinaldo (Christmas bonus) is mandatory for all employers
  The law considers Aguinaldo a fundamental economic right. Employers cannot replace it with gifts, vouchers, or alternative payments. Even if a contract says otherwise, the legal requirement overrides any agreement.
  
  

• Who enforces compliance
  Compliance is monitored by the Ministry of Labor (STPS) and labor inspectors. If an employer fails to pay or pays less than required, authorities can impose fines, and employees may file claims before labor courts.
  
  

This legal foundation ensures Aguinaldo remains a guaranteed benefit for every employee in Mexico.

Who Is Eligible for the Aguinaldo (Christmas Bonus) in Mexico?

Mexican labor law states that almost all employees working in Mexico are entitled to the Aguinaldo (Christmas bonus). Eligibility is based on the existence of an employment relationship, not on work schedule, job type, or location.

Any employee who performs services under the direction or supervision of an employer must receive this benefit. Only true independent contractors are excluded.

• Full-time employees
  All full-time employees receive the full Aguinaldo benefit, calculated from their daily salary. They must receive at least 15 days of pay each year.
  
  

• Part-time employees
  Part-time employees are equally entitled. Their Aguinaldo is calculated in proportion to the number of days worked throughout the year.
  
  

• Remote employees
  Employees working from home or another location remain fully protected by the LFT. Remote work does not remove the employer’s obligation to pay the Christmas bonus.
  
  

• Domestic employees
  The law specifically includes domestic employees, such as housekeepers and caretakers. They must also receive Aguinaldo according to the days they worked.
  
  

• Not applicable to independent contractors
  True individual contractors do not qualify because they operate autonomously and do not work under subordination. If a contractor works under supervision, the law may classify them as an employee, making Aguinaldo mandatory.
  
  

Eligibility is broad, ensuring that all employees in Mexico receive fair end-of-year compensation.

Minimum Amount Required by Mexican Law

The Aguinaldo (Christmas bonus) is a legally protected benefit, and the law clearly defines the minimum amount employers must pay. While companies may offer more as part of competitive compensation, they can never pay less than the legal standard.

The calculation must always be based on the employee’s real daily integrated salary and the time they have worked during the year.

• Minimum 15 days of salary
  By law, all employees must receive at least 15 days of salary as Aguinaldo (Christmas bonus) each year. This is the absolute minimum. Many companies choose to offer higher amounts, but they cannot offer less or replace it with gifts, vouchers, or in-kind benefits.
  
  

• Pro-rata calculation for employees with less than one year
  Employees who worked fewer than 12 months still have the right to Aguinaldo. Their bonus is calculated proportionally based on the number of days they actually worked during the year. Even a few weeks of service must be compensated.
  
  

• Proposed reform to increase the minimum to 30 days
  A recent legislative proposal would raise the minimum Aguinaldo from 15 to 30 days. As of now, this reform has not been fully approved, so the legal minimum remains 15 days. Employers must track updates closely to stay compliant.
  
  

These rules ensure employees receive fair, consistent end-of-year compensation across all industries in Mexico.

Deadline to Pay the Christmas Bonus in Mexico

The Aguinaldo (Christmas bonus) must be paid within a strict legal timeframe. Mexico’s Federal Labor Law sets a clear annual deadline, and employers must follow it without exception. Paying late or paying less than the required amount can lead to fines, employee claims, and labor inspections.

Understanding the timing rules helps employers stay compliant and avoid unnecessary risks.

• Mandatory deadline: December 20
  All employers must pay the Aguinaldo no later than December 20 every year. This deadline applies to all employees, including full-time, part-time, remote, and domestic employees. Payments made after this date are considered late, even if only by one day.
  
  

• What counts as late payment
  Any payment delivered after December 20 is legally late. Late payments may trigger fines from the Labor Ministry (STPS), and employees can file a claim for delayed rights. Paying less than the full amount is also treated as non-compliance.
  
  

• Rules for early payments or split payments
  Employers may pay Aguinaldo earlier in the year if desired, especially to support employees before holiday expenses begin. Split payments are allowed, but the full amount must still be completed before December 20. Early or partial payments must be documented in payroll records.
  
  

Following the deadline ensures full compliance and supports employees during the holiday season as the law intends.

How to Calculate the Aguinaldo (Christmas Bonus) Correctly

Calculating Aguinaldo (Christmas bonus) correctly is essential for payroll compliance in Mexico. The calculation must use the employee’s real daily salary and reflect the exact number of days worked during the year.

Errors can lead to underpayments, fines, and employee claims, so employers must follow the formula precisely for every employment situation.

• Daily rate calculation method
  The first step is determining the employee’s daily salary. For fixed salaries, divide the monthly salary by 30. For employees with an integrated salary (salary + benefits), use the daily integrated salary required for IMSS calculations.
  
  

• Formula for full-year employees
  Aguinaldo = Daily Salary × 15.
  Employers may offer more, but 15 days is the legal minimum. If the company pays 20 or 30 days as policy, the formula adjusts accordingly.
  
  

• Formula for partial-year employees
  Employees with less than one year of service receive Aguinaldo on a pro-rata basis.
  Formula: (Days Worked × 15) ÷ 365 × Daily Salary.
  Even employees who worked only a few weeks must receive a proportional amount.
  
  

• How variable salary affects the calculation
  For employees who earn commissions, incentives, or fluctuating income, employers must calculate the average daily salary based on earnings over the last 30 days. This prevents underpayment.
  
  

Examples for different situations

Here is a simple table showing how different employee situations are calculated:

Correct calculation ensures employees receive their lawful benefit and keeps employers compliant with the Federal Labor Law.

What Counts as “Salary” for Aguinaldo (Christmas Bonus) Calculation

To calculate the Aguinaldo (Christmas bonus) correctly, employers must understand what the law considers “salary.” Aguinaldo is based on the employee’s real daily earnings, not just the fixed monthly amount.

This means all recurring, work-related income must be included, while certain non-salary benefits are excluded. Using the wrong salary base can lead to underpayment and compliance issues.

• Base salary
  The fixed daily wage is always the starting point. For salaried employees, the daily rate is the monthly salary divided by 30.
  
  

• Commissions
  When commissions are a regular part of the employee’s income, they must be included in the Aguinaldo calculation. Employers should use the average commissions from the last 30 days.
  
  

• Bonuses or incentives
  Productivity bonuses, sales incentives, or other regular earnings must be added when they are part of the employee’s normal compensation pattern.
  
  

• Overtime
  Overtime payments count as salary if they are consistent. If overtime is occasional, it may be excluded, but regular overtime must be included in the daily average.
  
  

• Exclusions
  Non-salary benefits like food vouchers, transportation support, pantry cards, company gifts, and legally non-taxable items are excluded from the calculation. These do not impact the Aguinaldo amount.
  
  

Using the correct salary base ensures accurate calculations and full compliance with Mexican labor law.

Tax Treatment of the Christmas Bonus in Mexico

Aguinaldo (Christmas bonus) is considered taxable income in Mexico, but not all of it is subject to ISR. The Federal Labor Law and SAT tax rules define how employers must calculate the exempt portion and how much is taxable.

Understanding these rules is essential because incorrect tax treatment can result in payroll errors or employee complaints.

• ISR (income tax) rules
  Aguinaldo is subject to ISR withholding. Employers must calculate the taxable and exempt portions, then apply the correct SAT withholding method during payroll.
  
  

• Exempt threshold (30 days’ minimum wage)
  The first part of the Aguinaldo is exempt from ISR up to the value of 30 days of the general minimum wage. Any amount above this limit becomes taxable. This exemption applies to all employees in Mexico.
  
  

• How taxable and exempt portions are calculated
  The employer first determines the total Aguinaldo amount. The exempt portion equals 30 days of minimum wage. The remaining balance is added to the employee’s income for the period and taxed according to SAT’s ISR tables.
  
  

• Payroll implications for employers
  Employers must record the Aguinaldo correctly on CFDI payroll receipts, calculate ISR accurately, and ensure all taxable amounts align with SAT rules. Errors can trigger payroll mismatches or SAT adjustments.
  
  

Proper tax treatment ensures employees receive the correct net amount and keeps payroll fully compliant.

Payroll, Social Security, and IMSS Impact

Aguinaldo (Christmas bonus) does more than increase an employee’s earnings in December. It also affects payroll calculations, social security records, and how benefits are reported to IMSS.

Employers must understand these impacts to avoid errors in contributions, CFDI reporting, and year-end calculations. Treating Aguinaldo correctly is essential for clean and compliant payroll.

• Whether Aguinaldo affects the IMSS base salary (SBC)
  Aguinaldo does not enter the daily IMSS base salary (SBC) directly. However, because it is a recurring annual benefit, it increases the employee’s integrated daily salary (SDI), which is used to calculate social security contributions. This adjustment ensures IMSS receives accurate long-term contribution amounts.
  
  

• How it impacts INFONAVIT and other contributions
  A higher SDI means higher IMSS and INFONAVIT contributions over time. Although the Aguinaldo itself is paid once per year, its value is distributed proportionally within the SDI calculation, affecting contributions throughout the year. Employers must update SDI values to keep records aligned.
  
  

• Required CFDI payroll receipts
  Employers must issue a CFDI payroll receipt specifically for the Aguinaldo payment. This digital tax document must detail the exempt and taxable ISR portions and reflect the correct calculation. Missing or incorrect CFDIs may trigger SAT payroll inconsistencies.
  
  

Proper handling of Aguinaldo ensures accurate contributions, correct payroll filings, and full compliance with social security and tax regulations.

Aguinaldo Obligations for Terminated or Resigned Employees

Aguinaldo (Christmas bonus) is a guaranteed benefit under Mexican labor law, and employees earn it day by day throughout the year. For this reason, employees who resign or are terminated still have the right to receive a proportional Aguinaldo based on the time they worked.

Employers must calculate it correctly and pay it at the moment the employment relationship ends.

• Employees who resign
  When an employee resigns voluntarily, they must still receive a proportional Aguinaldo. The amount is based on the number of days worked in the year up to their final day. Resignation does not cancel the right to this benefit.
  
  

• Employees terminated with or without cause
  Whether termination is with cause or without cause, the employer must pay the proportional Aguinaldo earned. Even in justified dismissals, Aguinaldo cannot be withheld because it is a right already accumulated.
  
  

• Pro-rata payment obligations
  The formula remains the same for all cases: (Days Worked × 15 ÷ 365) × Daily Salary.
  If the company pays more than 15 days as policy, the proportional calculation uses the higher amount.
  
  

• Payment deadlines upon termination
  The Aguinaldo portion must be paid in the final settlement, delivered on the same day or within a very short period depending on state practice. Delays can lead to legal claims or labor inspections.
  
  

Handling Aguinaldo correctly during termination ensures legal compliance and avoids disputes with former employees.

Special Cases for Aguinaldo Employers Must Know

Some employees fall into situations that require special attention when calculating Aguinaldo (Christmas bonus). Mexican labor law ensures that all employees receive the benefit fairly, even if their work situation is unique.

Employers must apply the correct rules for each case to avoid underpayment, disputes, or payroll inconsistencies.

• Employees hired mid-year
  Employees hired partway through the year must still receive Aguinaldo. The amount is calculated on a proportional basis using the exact number of days they worked. Even employees hired in December have the right to a small, pro-rated payment.
  
  

• Employees on maternity or paternity leave
  Time spent on legally protected maternity or paternity leave counts as time worked. Employers must include these days when calculating the employee’s Aguinaldo. Leave periods do not reduce the amount owed.
  
  

• Employees on medical leave (IMSS coverage)
  Employees on IMSS-approved medical leave remain in an active employment relationship. Although IMSS pays their temporary disability wage, the employer must still count these days as part of the Aguinaldo calculation.
  
  

• Employees with variable or commission-based income
  For employees who earn commissions or fluctuating pay, employers must calculate the daily salary using the average income from the last 30 days. This prevents underpayment and ensures a fair Aguinaldo amount.
  
  

Understanding these special cases helps employers calculate Aguinaldo accurately and maintain complete compliance with Mexican labor law.

Can Aguinaldo Be Paid in Goods or Substitutes?

Aguinaldo (Christmas bonus) is a legally protected monetary benefit in Mexico. The Federal Labor Law requires employers to pay it in cash, ensuring every employee receives real, usable income at the end of the year.

While employers may offer additional gifts or voluntary benefits, these cannot replace or reduce the legally required cash amount.

• Legal rules requiring monetary payment
  Aguinaldo must be paid entirely in money. The law does not allow employers to substitute the payment with products, store vouchers, gift cards, or company goods. Even if offered with good intentions, non-monetary items cannot count toward the minimum 15-day requirement.
  
  

• When in-kind benefits are allowed
  Employers may give extra gifts, food baskets, or bonuses if the employee agrees, but these are optional and separate from the Christmas bonus. They must be considered “additional perks,” not replacements for Aguinaldo. The employee must still receive the full monetary amount.
  
  

• Restrictions on non-cash bonuses
  Any attempt to replace Aguinaldo with goods, discounts, or services is considered non-compliance. Labor inspectors may treat this as underpayment, and employees can file claims for the missing amount.
  
  

Maintaining a cash-only Aguinaldo ensures employers comply with the law and employees receive the full benefit they are entitled to.

Penalties for Not Paying Aguinaldo (Christmas Bonus) Correctly or On Time

Failing to pay Aguinaldo (Christmas bonus) is a serious violation of Mexican labor law. Because Aguinaldo is a legally protected right, employers face financial and legal consequences if they pay late, pay less than required, or fail to pay it at all.

Both local and foreign employers are fully responsible for meeting the December 20 deadline and calculating the correct amount.

• Fines in UMA multiples
  STPS can impose fines measured in UMA (Unidad de Medida y Actualización). Penalties vary but often range from 50 to 5,000 UMAs depending on the severity of the violation. These fines can increase when multiple employees are affected.
  
  

• Consequences of non-payment
  Employers who fail to pay must still deliver the full amount owed plus possible surcharges. Non-payment damages employee trust and can trigger deeper inspections into payroll practices.
  
  

• Employees’ right to file complaints with PROFEDET
  Employees can file a formal complaint with PROFEDET or pursue their claim through labor courts. The law strongly favors employees in disputes involving unpaid benefits.
  
  

• Legal liabilities for employers
  Employers may face lawsuits, mandatory back payments, interest charges, and additional sanctions. Persistent violations can attract labor inspections or trigger IMSS and SAT reviews.
  
  

Complying with Aguinaldo rules protects employers from costly penalties and maintains fair treatment of employees.

What Foreign Companies and Global Employers Must Know

Foreign companies hiring employees in Mexico must follow the same Aguinaldo (Christmas bonus) rules as any local employer. The obligation applies regardless of where the company is based or whether it has a legal entity in Mexico.

As long as an employee performs work in Mexico under the company’s supervison, the Aguinaldo requirement becomes mandatory.

• Obligation applies even for remote employees in Mexico
  Remote employees living in Mexico are fully protected by the Federal Labor Law. If they work under supervision, follow schedules, or report to a manager, they are considered employees and must receive Aguinaldo.
  
  

• Need to pay in Mexican pesos
  All salary and benefits, including Aguinaldo, must be paid in MXN. Paying in foreign currency can trigger payroll inconsistencies and SAT issues.
  
  

• Compliance required even without a Mexican entity
  Hiring directly from abroad does not remove the Aguinaldo obligation. The company is still legally responsible for full benefits, payroll taxes, and labor compliance.
  
  

• Risks of hiring contractors to avoid Aguinaldo
  Many foreign employers try to use contractor arrangements, but if the employee meets the subordination test, they are legally an employee. Contractors do not receive Aguinaldo, but misclassified “contractors” must receive full retroactive benefits.
  
  

• How violations trigger reclassification
  Improper contractor use often leads to IMSS audits, labor claims, and forced employee reclassification, which includes back payments of Aguinaldo and all other benefits.
  
  

Following these rules keeps foreign employers compliant and protects employees under Mexican labor law.

Why Many Global Companies Use an EOR in Mexico

Aguinaldo (Christmas bonus) is one of the many mandatory benefits that foreign employers must handle correctly when hiring in Mexico. Since Mexico’s labor and payroll rules are strict, global companies often choose an Employer of Record (EOR) to manage these obligations.

An EOR becomes the legal employer in Mexico, ensuring every part of payroll, taxes, and benefits is fully compliant.

• EOR ensures correct Aguinaldo calculation and payment
  The EOR calculates the daily rate, applies pro-rated formulas, handles taxable and exempt portions, and guarantees the payment is delivered before the December 20 deadline. This removes the risk of underpayment or late payment penalties.
  
  

• EOR handles tax withholding, IMSS, and CFDI
  An EOR manages ISR withholding, updates SDI for IMSS, processes INFONAVIT contributions, and issues compliant CFDI payroll receipts for Aguinaldo. This ensures all records match SAT and IMSS requirements.
  
  

• Helps avoid misclassification and legal risk
  Many foreign companies mistakenly classify Mexican employees as contractors to avoid benefits like Aguinaldo. An EOR prevents this by using legal employment contracts and full compliance with the Federal Labor Law.
  
  

Many foreign companies choose Human Resources Mexico (HRM) because we are the only REPSE-registered, has more than 16 years of physical operations in Mexico, and provides real bilingual HR support directly on the ground.

Unlike global “platform-only” EORs that rely on shell entities or hidden partners, HRM performs all employer responsibilities locally, legally, and transparently.

This gives international employers true compliance and full confidence when hiring in Mexico. Reach out today and request a custom proposal tailored to your hiring needs.

FAQs About Aguinaldo in Mexico

Is Aguinaldo mandatory?

Yes. Aguinaldo (Christmas bonus) is fully mandatory under Article 87 of the Federal Labor Law. Every employee in Mexico must receive it, and employers cannot waive, replace, or reduce it. Paying it correctly and before December 20 is a strict legal requirement for all companies, including foreign employers.

How many days are required?

The legal minimum is 15 days of salary per year. Employers may offer more by policy. Employees with less than one year of service must receive a proportional amount based on days worked. Although reforms proposing 30 days have been discussed, the current law still requires a minimum of 15 days.

Do contractors get Aguinaldo?

Independent contractors do not receive Aguinaldo because they are not employees. However, if a contractor works under supervision, follows schedules, or reports to a manager, the law may classify them as an employee. In that case, the employer must pay full Aguinaldo retroactively and correct the misclassification.

What if an employer doesn’t pay?

Failing to pay Aguinaldo leads to fines in UMA multiples, employee claims, and possible labor court actions. STPS may also investigate the company’s payroll practices. Employees have the right to file a complaint with PROFEDET to recover unpaid amounts and report non-compliance.

Can Aguinaldo be paid in parts?

Yes. Employers may split the Aguinaldo into installments or pay it early, as long as the full amount is paid before December 20. Split payments must be documented correctly in payroll records and CFDIs. Partial payments never replace the legal requirement to pay the complete amount by the deadline.

How does upcoming reform affect payments?

A proposed reform would increase the minimum Aguinaldo from 15 to 30 days of salary. It has not been fully approved yet, but employers should monitor legal updates. If the reform becomes law, payroll calculations, budgets, and employment contracts will need to be adjusted to meet the new requirement.