Mandatory Christmas Bonus in Mexico (Aguinaldo Guide)
Learn about the mandatory Christmas bonus (Aguinaldo) in Mexico, how it’s calculated, who qualifies, deadlines, obligations, and penalties for non-payment
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 is Aguinaldo (Christmas bonus) 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.Temporary, project-based, or fixed-term employees
Employees hired for seasonal work (continuous or discontinuous), a specific project, or a fixed-term contract are entitled to Aguinaldo. The Aguinaldo (Christmas bonus) must be paid on a proportional basis according to the actual time worked during the year, regardless of the contract type or duration.Trusted employees
Trusted employees, including those in managerial, administrative, or supervisory roles, are also entitled to Aguinaldo. There are no legal exceptions. They must receive, at a minimum, the equivalent of 15 days of salary per year, or any higher amount granted by the employer.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 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, the monthly salary must be divided by 30. For employees with variable income (fluctuating earnings) the average of the gross variable income received during the last 30 days must be used to calculate Aguinaldo correctly.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 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:
Situation | Daily Salary | Days Worked | Aguinaldo Calculation | Result |
Full-year employee | $500 MXN | 365 | 500 × 15 | $7,500 MXN |
Employee with 180 days | $400 MXN | 180 | (180 × 15 ÷ 365) × 400 | ~$2,958 MXN |
Employee with variable income | Avg. daily $550 | 365 | 550 × 15 | $8,250 MXN |
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 Aguinaldo correctly, you must first identify what is legally considered “salary” under Mexican labor law and PROFEDET criteria.
Aguinaldo is calculated using the employee’s real daily salary, not just the fixed monthly amount shown in the contract. Using the wrong salary base can result in underpayment, employee claims, and labor compliance issues during inspections.
Below is how salary must be determined depending on the type of compensation.
Fixed salary
When an employee receives a fixed salary, Aguinaldo is calculated using the daily salary in effect at the time of payment. The daily rate is obtained by dividing the monthly salary by 30. No additional income is included if the employee does not receive variable or recurring compensation.Variable salary
If the employee earns variable income such as piece-rate pay, task-based compensation, or fluctuating earnings, Aguinaldo must be calculated using the average daily salary from the last 30 days actually worked. All compensation received during that period must be included in the average.Salespeople, agents, and similar roles
For salespeople, insurance agents, promoters, and similar roles hired under the Federal Labor Law, Aguinaldo is calculated using the average income earned over the last year of service. If the employee has worked less than a year, the average is calculated based on the actual time worked.Exclusions
Non-salary benefits must not be included in the Aguinaldo calculation. This includes food vouchers, transportation allowances, meal cards, pantry cards, company gifts, and other legally non-salary items.
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 UMAs – Units of Measure and Update)
The first part of the Aguinaldo is exempt from ISR up to the value of 30 UMAs. 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 UMAs. 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) increases an employee’s earnings in December and requires proper payroll management, especially for ISR calculation and CFDI issuance. However, for social security purposes, the payment of Aguinaldo does not modify the employee’s registered salary with IMSS.
Employers must understand these impacts to avoid errors in tax withholdings, CFDI issuance, and year-end payroll processes. Proper handling of Aguinaldo is essential for transparent and compliant payroll.
Whether Aguinaldo affects the IMSS base salary (SBC)
Aguinaldo is not included in the IMSS Base Salary (SBC) and does not trigger any salary updates. Although it is a mandatory annual benefit, its value is already integrated into the Integrated Daily Salary (SDI) through the integration factor established under the Social Security Law, so no IMSS salary movements are required.How it impacts INFONAVIT and other contributions
Because Aguinaldo is already included in the SDI through the statutory integration factor, its payment does not increase IMSS or INFONAVIT contributions in December. Contributions only change when permanent salary elements are modified, such as base salary, vacation days, vacation premium, or fixed benefits.Required CFDI payroll receipts
Employers must issue a specific CFDI payroll receipt for the Aguinaldo payment, correctly reflecting the exempt portion (up to 30 UMAs) and the taxable portion in accordance with ISR law. An incorrect CFDI may lead to payroll discrepancies and issues with the SAT.
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 under Mexican labor law. Leave for work-related injury, maternity, or paternity is treated as time worked for Aguinaldo, while leave due to general illness is excluded because IMSS pays the disability subsidy and work obligations are suspended during the approved period.Employees with unjustified absences or unpaid leave
Unjustified absences and periods of unpaid leave suspend the obligation to pay salary for those days. Since these periods are not considered time actually worked and do not generate salary, they must not be included when calculating Aguinaldo (Christmas bonus).Employees with variable income
For employees who earn 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.
In addition, some global EOR platforms rely on irregular practices to reduce costs, such as rotating salaries, simulating income, or manipulating the salary base to pay fewer statutory benefits and lower IMSS contributions.
These practices place employees at direct risk. When workers are not properly registered, they may lose access to medical care, disability coverage, workplace risk benefits, survivor pensions in case of death, and, over time, their retirement pension at age 60 or older.
These omissions also create significant legal and financial risks for foreign employers, including fines, penalties, surcharges, and potential joint liability.
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, have more than 16 years of physical operations in Mexico, and provide real bilingual HR support directly on the ground.
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.
