In Mexico, an Aguinaldo is a legally mandated annual Christmas bonus that businesses must pay to their employees. It’s a significant perk for Mexican workers and plays a big role in the holiday season. Here’s what you need to know about it:
What it is:
- An extra payment equivalent to at least 15 days of an employee’s regular wages.
- Considered a thirteenth salary in some contexts.
- A mandatory benefit under Mexican labor law (Ley Federal del Trabajo).
When it’s paid:
- Must be paid by December 20th of each year.
Who receives it:
- All employed people, regardless of their type of employment (full-time, part-time, temporary, etc.).
- This includes workers on base salaries, confidential positions, fixed-term contracts, unionized workers, and even some freelancers and commission-based employees.
How it’s calculated:
- The minimum amount is 15 days of regular wages. However, employers can choose to pay more.
- Calculations can be based on salary alone, or include bonuses and other regular income received in the past year.
Significance of the Aguinaldo:
- Provides a financial boost for families during the holiday season, allowing them to celebrate and purchase gifts.
- Boosts the economy as workers spend their Aguinaldo on goods and services.
- Helps promote employee loyalty and motivation.
Additional points:
- The Aguinaldo is subject to withholding taxes based on predetermined caps.
- Employees who have worked less than a year may receive a proportionally smaller Aguinaldo.
- Disputes regarding Aguinaldo payments can be filed with the Procuraduría Federal de la Defensa del Trabajo (Profedet).
Overall, the Aguinaldo is a cherished tradition and a valuable benefit for Mexican workers. It plays a vital role in the holiday season and contributes to the overall economic well-being of the country.
I hope this information clarifies what an Aguinaldo is in Mexico. Feel free to ask if you have any further questions!
