Mandatory Benefits in Mexico
Benefits Required for all Employees in Mexico
Mandatory benefits in Mexico are a cornerstone of our labor laws, aiming to protect employees' rights, ensure their well-being, and additional economic security. These benefits are legally required for all employees and failing to provide them can result in significant penalties for employers.
Mandatory Benefits in Mexico:
Christmas Bonus (Aguinaldo): A minimum of 15 days' salary, paid by December 20th.
Paid Vacation and Vacation Bonus: A minimum of 12 days after the first year (increasing with tenure), plus a minimum of 25% bonus on top of regular salary during vacation.
Profit Sharing (PTU): Companies must distribute 10% of their annual taxable profits to eligible employees.
Social Security (IMSS): Contributions by both employer and employee for healthcare, disability, life insurance, and pensions.
Weekly Rest Day and Sunday Premium: At least one paid day off per week, with a 25% bonus if working on Sunday.
National Holidays: Paid days off for designated national holidays, with triple pay if required to work.
Overtime Pay: Higher rates (double or triple time) for hours worked beyond the standard workweek, increasing for extended overtime.
Maternity and Paternity Leave: Paid leave for new mothers and fathers.
Severance Pay: Compensation provided upon termination of employment, with specific rules depending on the reason for termination. Severance pay is equivalent to 90 days of salary plus benefits.
