Seasonal Bonus: Pay your Workers
by Nayarit Editor Tara A. Spears
Ho ho ho it’s holiday time and time to pay your workers their Aguinaldo-the Christmas bonus pay. According to the Mexican labor website, Aguinaldo 2018 deadline for paying the end-of-the-year bonus for workers of private companies or private individuals has changed to December 15 which is moved up five days. It should be noted that the bonus must be paid in cash. It is forbidden to make the payment in merchandise, vouchers, tokens or any other representative token that is intended to substitute for currency.
By law, in 2018, all employers must pay the Christmas bonus before December 15. The simplest way to determine the amount of the December installment: the Christmas bonus should be 50% of the highest remuneration obtained during the time that begins in July and ends on December 15. Keep in mind that this rule only applies if the worker provided services throughout the semester. If he only worked part-time or for a portion of the yearly time, the bonus must be calculated proportionally to the number of days worked during the semester.
Who is entitled to receive the Aguinaldo? According to Mexican Law 23.041, all workers in the private sector, workers in the state or federal government, as well as people who perform a service for individuals must be given this extra salary in December plus their regular pay.
If employees do not receive it on that date, they may file a complaint with Profeco, so that companies/individuals that violate the stipulated period may be liable to fines of thousands of pesos. The end-of-year bonus, Aguinaldo, is a Mexican benefit established in 1970 went it became a labor law. It is a compulsory payment for employers. The payment corresponds to a minimum amount of 15 days of salary.
Not only must employees receive the additional Aguinaldo payment but if they work on a federal holiday they must be paid more. If an employee works a statutory holiday he/she actually does receive double time, but this is in addition to their regular time, which in effect is triple time. This is true for any statutory holiday throughout the year on which an employee may work. If the day happens to fall on a regularly scheduled work day, and they have the day off, they still must be paid. And again, if they work that day, they get triple time.
I’m sure that this law was designed in an attempt to provide a special meal and gifts for working men’s families but over time it has also had a positive economic impact. Investopedia magazine concludes that the aguinaldo is credited with providing a seasonal boost to demand for retail products such as automobiles, appliances and furniture in addition to the tradition items.
While Aguinaldo is termed a gift or gratuity that is given to a person for Christmas, this extraordinary compensation that is paid to a worker in December is in actuality a part of their annual salary. If you want to show your appreciation for their performance, you could also add a gift of something for their family. I usually give food or items for the kids in addition to the cash payment. Everyone likes being appreciated; providing the Aguinaldo payment with a smile is an easy way to have a good relationship with your workers.