As December approaches, many Mexican workers look forward to their Christmas bonus or also known as end of year bonus. In this informative post, we will be mentioning you everything about the Christmas bonus in Mexico, from what it is, what are the origins of this fundamental Mexican labor law and how it is calculated.
The labor laws of the Republic of Mexico vary for each type of employee and each type of employer. Unfortunately, very few of those who hire housekeepers and gardeners are hired in accordance with the law. They are all hired "under the table," so to speak.
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The reason for this short article is due to the Christmas holidays, that in reality there is almost nothing left for us to reach the last month of the year. No matter what kind of business you have or domestic help you may have, all employees deserve to receive the bonus in Mexico according to labor law. Beyond the law, this also maintains a good relationship with employees.
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In this article you will find:
What is the Christmas bonus in Mexico?
Also known as "payment of the 13th month", the Christmas bonus in Mexico is a year-end payment that is disbursed in the month of December. The origins of the payment are rooted in the Mexican labor law system.
Designed to enhance and protect workers' rights, benefits, payroll services and social security (among other matters), Mexican labor law is governed by the Federal Labor Law, which was established in 1930.
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The payment of the Christmas bonus in Mexico today It was developed from a reform of this law in 1970, with the addition of Article 87. This update specifies that workers will be entitled to an annual bonus to be paid in December, equivalent to a specific percentage of a worker's salary.
Employees are entitled by law to receive 15 days of pay for their Christmas bonus. Therefore, if an employee normally earns 2000 pesos in a period of 15 days, then this amount would also be his Christmas bonus. Some calculations may be required, but this is what you are entitled to. If the employee has been in your employment for less than one year, these amounts are prorated.
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The law also states that this Christmas bonus must be paid before December 20. Because many of us have domestic service on a part-time basis, so We generally recommend this payment will be made on the 15th, because we cannot see these employees until after the 20.
It is important to review the calendar and mark it for the day that is needed to give the bonus. For the full-time employees you see every day, the 20th is the deadline.
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Who receives the bonus?
Given the legal basis of the Christmas bonus in Mexico, it is important to recognize that in fact it is not a Christmas bonus, it is a fundamental legal right. This distinction is important because unlike bonuses (which may be subjectively based on trade agreements, work performance or benevolence on the part of the employer) the payment of the Christmas bonus, and who receives it, is governed by the Federal Job.
Under Mexican law, all employees (including housemaids, gardeners, and cooks) deserve a Christmas bonus. You also create and maintain a good and healthy relationship with your employees.
From domestic workers to executives, the type of employee's contract does not influence whether or not an employee will receive a bonus. Regardless of his status, Every person who works for a company or business in Mexico has the right to this protected benefit. The only exclusion for the recipients of the Christmas bonus are the self-employed; generally self-employed are self-employed and are not actually part of the established payroll.
In the event of the death of an employee, the Christmas bonus benefit is disbursed to the employee's dedicated beneficiaries. This is also a legal mandate. If a business chooses not to adhere to the law, it may face lawsuits or other legal responsibilities at both the local and federal levels.
How is it calculated?
The bonus in Mexico is determined by taking the value of the daily salary and multiplying it by the minimum of 15 days.
Christmas bonus = daily salary x 15 days
The final value of a Christmas bonus varies according to an employee's calculated daily pay. The values used for the calculation depend on the employee's contract. Daily wage contracts are calculated differently than hourly workers. In a daily employee's contract, the salary is predetermined.
For an hourly worker, the salary can vary drastically from day to day depending on the amount of time worked. In this case, the daily wage calculation is based on total earnings divided by the number of days in a year (365, or the total number of days the employee worked that year).
In summary, for part-time employees, following the “rules” for 15 days of salary, the calculation is:
- The number of days worked
- Divided by 365
- Multiplied by 15 and
- Then multiplied by the daily wage
So, if for example, the gardener worked a full year at 2 days per week and $ 120 pesos per day, the calculation would be:
52 weeks x 2 days = 104 (days) divided by 365 = 0.285 x 15 x 120 = $ 512.88. Obviously, if I only worked 6 months, it would be half.
With this calculation, personally, we would pay $ 520 pesos.
If you pay the domestic lady $ 160 pesos per day, twice a week: 52 weeks x 2 days = 104 days / 365 = 0.285 x 15 x 160 = $ 684.00 ...
Personally, we would pay $ 700 pesos.
You pay your housekeeper $ 200 per day, five days a week: 52 weeks x 5 days = 260 days / 365 = 0.712 x 15 x 200 = $ 2136.00 pesos
Personally, we would pay $ 2200 pesos.
