Mandatory December Payment Due: Aguinaldo 2021
Tara A. Spears
During the holiday season many people enjoy tipping workers a little extra but in Mexico, a Christmas Bonus/aguinaldo is not optional. I think what confuses the issue for foreigners is the translation of the Spanish. In English, bonus implies an extra unexpected payment but the Spanish term literally defines the salary payment timeline. It’s important that one understands that the aguinaldo is a mandatory salary payment, not a tip.
The Christmas bonus is one of the most anticipated Mexican job benefits year after year. This benefit is the equivalent of a minimum wage of 15 days, plus the worker’s normal payroll. All people who have an employment relationship or perform any work that is governed by the Federal Labor Law are eligible. This includes domestic workers such as house cleaners, gardeners. Even if these workers provide their services only once a month for a specified rate of pay, they need to receive the aguinaldo before December 20.
This labor benefit is designed to enable the minimum wage earners to be able to have resources for the extra expenses associated with the end of the year. You’ll notice lots of promotions (“Buen Fin offers”/good end) beginning in November because the government/public employment sector receives their aguinaldo payment at that time.
There is a specified formula for determining the amount of the Christmas payment on the Mexican government website. Basically the amount is based on 15 days daily wage. Since I only have part-time employees, I take their monthly salary and divide it in half; it is added to their December payment. Example: $400 monthly, half is $200 for the aguinaldo therefore the December payment is $600 pesos plus a small gift.
Even if you terminated an employee that worker should receive aguinaldo. Workers who were dismissed but they had worked more than a year for you, your final payment must include the equivalent of 15 days of work. However, those who voluntarily quit a job are not entitled to the aguinaldo payment. It is a sensible idea to have the worker sign a receipt for the aguinaldo/Christmas bonus amount.
During the Christmas season, there are two statutory holidays to consider. One is Christmas day, and the other New Year’s Day. The Federal Labor Law stipulates that if an employee works a statutory holiday, he or she must be paid double time. But this is in addition to their regular time, which in effect is triple time. If the day happens to fall on a regularly scheduled work day, and they have the day off, they still must be paid even though they do not work.
Especially in December 2021 with the global economic recession due to the pandemic, it is vital to pay your help fairly. We are so fortunate to be welcomed in this beautiful country. Let’s all celebrate the holiday season joyfully!
