The Aguinaldo or “Christmas bonus” is a benefit provided for the Mexican worker and has been a part of the labor law since 1970. It is both compulsory and is not waivable. The payment is equal to at least 15 days of salary for the employee who has worked one year.
If the worker has not worked a full year with the employer, he/she must receive the corresponding percentage of the time worked. This payment must be paid before December 20th.
How is the bonus calculated?
For the employee who has completed a full year the bonus is equal to the payment of 15 days work. For this calculation you take the monthly salary and divide it by 30 days; the result will be the daily salary.
Example:
- A worker receives $6,000 pesos of salary per month
- $6,000 pesos / 30 days = $200 pesos (the daily wage)
- $200 pesos (the daily wage) x 15 corresponding days of “Aguinaldo” = $ 3,000 pesos
The worker will receive a $3,000 pesos bonus.
If the worker worked less than a year
It is necessary to calculate the daily wage using the same method as in the example already presented. When this calculation is done, the result must be multiplied by 15, and then divided by 365 days, and then multiplied by the days worked.
Example:
A worker receives $6,000 pesos of salary per month, but began his current job on July 1st, this person worked 214 days.
$6,000 pesos / 30 days = 200 pesos (the daily wage)
$200 pesos (the daily wage) x 15 corresponding days of aguinaldo = $3,000 pesos
$3,000 pesos are divided by 365 days =$8.21 pesos multiplied by 214 days worked = $1,758.90 pesos
The worker will receive $1,758.90 pesos for the Aguinaldo.
Is the Christmas bonus free of taxes and discounts?
The bonus is considered by the current labor law as an income for the worker, so it is subject to the payment of Income Tax and it will be mandatory for the employer to calculate and retain the corresponding tax. The only exception is when the bonus is less than the amount equal to 30 days of minimum wage. No other discount is contemplated by the labor law.
What to do when faced with an irregularity in the payment of the bonus?
If the employer makes an incomplete payment, does not cover the benefit or does it late, the worker can present their claim to the Federal Office of the Defense of Labor (Profedet) as of December 20, or for one year thereafter. The Profedet will present the demand before the Federal Board of Conciliation and Arbitration or, where appropriate, the local Labor Defense Attorney, who will file the claim with the Local Board of Conciliation and Arbitration.
For employers who do not comply with the payment of the bonus, pay it incomplete or late, the law provides for a fine equal to 50 to 5,000 times the minimum wage, which ranges from $4,418 pesos to $441,800 pesos.
The employee has the right to receive the bonus equal to the days he worked during the year, whether the employment relationship has ceased. As an example, if the worker started this year working for a company, but in the middle of the year resigned or was fired, the employer is still obligated to pay the bonus corresponding to the days the employee worked for the company.
San Miguel Times
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