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Year end bonus, 12 days of paid vacation and a vacation premium are law, not perks

Last verified: 2026-10-27 · Status: Stable

Abroad, a year end bonus and paid vacation are often matters of company policy; in Mexico every worker is owed an aguinaldo of at least 15 days of salary before 20 December. After one year of service workers get at least 12 working days of paid vacation, rising by two days a year to 20 and then by two days every five years, plus a premium of at least 25 percent of vacation pay. Vacation cannot be swapped for money while the job continues, and workers who leave mid year are owed the proportional part of both.

USD conversions use MXN 18.6638 per US dollar, the US Federal Reserve H.10 noon buying rate in New York for 23 October 2026 (FRED series DEXMXUS), the latest observation available when this page was verified. Mexican law uses the Banxico FIX rate published in the DOF for foreign currency amounts, which differs slightly. Conversions are for orientation only.

Key facts

Annual bonus (aguinaldo), minimum, due before 20 December	15 days of salaryLFT art. 87, as of 2026-10-27 · in force
Minimum paid vacation after the first year of service	12 working daysLFT art. 76, as of 2026-10-27 · in force
Vacation rises by two days a year until reaching	20 working daysLFT art. 76, as of 2026-10-27 · in force
Minimum vacation premium on vacation pay	25 %LFT art. 80, as of 2026-10-27 · in force
Vacation must be granted within this period after each year of service	6 monthsLFT art. 81, as of 2026-10-27 · in force

The rule

1. Every worker is entitled to an annual bonus (aguinaldo) of at least 15 days of salary, paid before 20 December. Workers who have not completed the year, whether or not they are still employed on the payment date, are owed the proportional part for the time worked.
Cost to do it: At least 15 days of salary per worker per year, about 4.1 percent of annual base pay.
Example: A worker on MXN 1,000 a day is owed at least MXN 15,000 before 20 December; a worker on the 2026 general minimum wage of MXN 315.04 is owed at least MXN 4,725.60. A worker who left on 30 June after a full half year is owed about half. / About USD 804 and USD 253 respectively.Ley Federal del Trabajo (LFT), DOF 1 April 1970 (Chamber of Deputies consolidated text, last reform DOF 14 May 2026), Art. 87, 1975-12-31 official text · verified 2026-10-27

2. Workers with more than one year of service get paid annual vacation of at least 12 working days, increasing by two working days for each following year up to 20; from the sixth year it increases by two days for every five years of service. At least 12 of those days must be continuous, and the worker may distribute the rest. Vacation must be granted within six months after each year of service, and the employer must give each worker an annual record of seniority and vacation entitlement.
Cost to do it: No fee; the cost is paid time off.
Example: A worker starting the fourth year of service is entitled to 18 working days; in years six to ten, 22 days. / No US dollar effect.Ley Federal del Trabajo (LFT), DOF 1 April 1970 (Chamber of Deputies consolidated text, last reform DOF 14 May 2026), Arts. 76, 78 and 81, 2022-12-27 official text · verified 2026-10-27 · changed: The DOF 27 December 2022 decree, in force 1 January 2023, raised the first year minimum to 12 working days and set the new scale.

3. Workers are entitled to a vacation premium of at least 25 percent of the salary for the vacation period. Vacation cannot be replaced by a payment while the relationship continues; if the relationship ends before the year is completed, the worker is owed pay proportional to the time served.
Cost to do it: At least 25 percent of vacation pay.
Example: A worker on MXN 1,000 a day with 16 vacation days receives MXN 16,000 of vacation pay plus a premium of at least MXN 4,000. / About USD 214 of premium.Ley Federal del Trabajo (LFT), DOF 1 April 1970 (Chamber of Deputies consolidated text, last reform DOF 14 May 2026), Arts. 79 and 80, 1970-04-01 official text · verified 2026-10-27

Years of service	Working days
1	12
2	14
3	16
4	18
5	20
6 to 10	22
11 to 15	24
16 to 20	26

Minimum paid vacation by years of service (LFT art. 76, in force since 1 January 2023).

Item	Days	MXN	USD
Aguinaldo (art. 87)	15	15,000	804
Vacation premium, 25 percent of 16 days (art. 80)	4	4,000	214
Total	19	19,000	1,018

Minimum statutory annual cost on top of 365 days of salary for a worker on MXN 1,000 a day in the third year of service. USD at MXN 18.6638.

Worked example

A company hires an analyst on MXN 30,000 a month (MXN 1,000 a day) on 1 July 2026.
By 20 December 2026 it owes a proportional aguinaldo of about half of 15 days, MXN 7,500 (USD 402), for six months of service.
From 1 July 2027 the analyst is entitled to 12 working days of vacation, to be granted by 31 December 2027, plus a premium of at least MXN 3,000.

Step by step

1. Accrue aguinaldo and vacation premium monthly in payroll.
2. Pay aguinaldo before 20 December, including proportional amounts for leavers (art. 87).
3. Issue each worker an annual vacation record and schedule vacation within six months after each anniversary (art. 81).
4. Include proportional aguinaldo, vacation and vacation premium in every final settlement.

Common traps

Paying cash in lieu of vacation to a worker who stays employed does not discharge the vacation obligation (art. 79).
Aguinaldo and vacation premium form part of the integrated salary used for severance (arts. 84 and 89).
The 2023 vacation increase applies to all workers, including those hired before the reform.

Sources

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