2017 Holiday Season Pay Rules for Mexican Workers ~ Aguinaldos !

Nov. 21, 2017
As all the Christmas holiday chatzkies are appearing on store shelves, and as we make our holiday plans … It’s time to remember our beloved household help and employees (including muchachas y mozos).

Please plan ahead to pay them their end of the year Aguinaldos by December 20’th. (and to also pay them for their vacation days – which is paid time off) … The Aguinaldo is NOT a optional bonus. Our Mexican workers and their families count-on and depend on these critical annual payments owed to them.

Basically the Aguinaldo is 15 days of pay. (calculated on a 7 day work wk)

Aguinaldo
The annual aguinaldo is the equivalent of 15 days of “Daily Rate” pay.

It is not a Christmas bonus.   It is a mandatory wage payment that is due by the 20’th of December.   The aguinaldo is equivalent to at least “15 days wages”, and may be pro-rated if the employee has been working for you for less than a full year.

Simplified Version to Determine Aguinaldo in $ Pesos $:
# Days Worked per Week   x   # Weeks Worked   x    Rate per Day   x   15 Days / 365 Days =

Note.  The “Daily Rate” is based on a full week.  For example, if your maid only works two days per week,  and gets paid $700 pesos per week ($350 pesos per day of work).  You take the weeks salary of $700 divided by 7
=>  $100 pesos is the Daily Rate.

Aguinaldo in $ Pesos $
** If a worker is hired to work by the week, the “Daily Rate” equals their weekly pay … divided by 7.   If he / she  is hired by the month, the “Daily Rate” is the monthly amount divided by 30. 

**Daily Rate Simplest Example…  If you have an employee who works two days a week ~ for the entire year ~ for $350 pesos each day = $700 pesos a week:

$700 pesos / 7 days = $100 pesos per day at their “Daily Rate”
$100 pesos “Daily Rate” x 15 days of Aguinaldo pay = $1500 pesos

mexico-ramirez-family
Note that if they work only a part year:
An alternate way of calculating the aguinaldo is determined by multiplying the total days they worked in current year by 15, then divide by 365 days, and then multiply by the daily rate:

For a part-year worker coming in for 2 days a month for 9 months =>
18 days … x  … 15 days of Aguinaldo = 270
270 / 365 = 0.7392 …    0.74 x   $Daily Rate ($100 pesos?)   = $ _____

Note.  The “Daily Rate” is based on a full week.  For example, if your maid only works two days per week,  and gets paid $700 pesos per week ($350 pesos per day of work).  You take the weeks salary of $700 divided by 7  =  $100 pesos is the Daily Rate.

==================================

Vacation Pay
Vacation pay for current year worked. … Remember that this is the official Mexican Labor Law’s “Daily Rate” ** (see below) … and remember they should also receive this pay for all past years worked.

1st year – 6 days salary
2 years – 8 days
3 years – 10 days
4 years – 12 days
5 to 9 years – 14 days
10 to 14 years – 16 days
15 to 19 years – 18 days
20 to 24 years – 20 days
25 to 29 years – 22 days
30 to 34 years – 24 days
35 to 39 years – 26 days

Happy Holidays !

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See more details at our Full Articles:
https://yucalandia.com/answers-to-common-questions/labor-law-for-household-employees-in-mexico-what-must-we-pay/

… and   https://yucalandia.com/answers-to-common-questions/mexicos-new-2012-labor-law-and-the-effects-on-expats-with-household-help/

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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

Read on, MacDuff.

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2 Responses to 2017 Holiday Season Pay Rules for Mexican Workers ~ Aguinaldos !

  1. yucalandia says:

    Another Perspective:
    Many Gringos claim: … “I just pay them 2 weeks pay … for the Aguinaldo.”

    That sounds good, but is 15 = 14 ?

    Mexican law says 15 days pay … and the Gringos who pay just “2 weeks” (14 days) are cheating their beloved employees out of 7%.

    Then realize, that we also owe them PAID TIME OFF as vacation pay – listed above.
    If the employee wants to work those vacation days, then they get the Vacation Pay by Dec. 20’th +plus you pay them their salary for the extra days worked (that were supposed to be vacation).

    Basically: 1 year of employment earns them one (1) weeks worth of paid vacation days off work …
    So, a part time employee who works 2 days a week, gets 2 days off + the pay for those days at the end of their first year.

    For 2’nd year employees, it’s 10 days Vacation days Paid Time Off (for full time employees) … and so on.

    Happy Holidays!
    steve

  2. yucalandia says:

    Some readers have asked how to handle workers who have
    1. Worked only part time.
    and~or
    2. Worked only part of the year.
    and~or
    3. Worked different amounts of time each week, or at different $$ rates of pay.
    and~or
    4. The worker is paid by the month. (28 day month = 30 day month = 31 day month)
    ???

    In those cases, some labor lawyers have advised to calculate the worker’s “Daily Rate” based on the whole year’s pay.

    Calculate the total salary you paid the worker for the whole year (in $Pesos) and divide by 365 days to get their “Daily Rate” for Aguinaldo (15 day) pay and Vacation pay.

    Let’s pick a really complex (but ultimately simple) example:
    Imagine a worker started on May 1, 2017 (a Monday) …. who worked 1 day a week for 3 months (as a trial period) for $150 pesos each week, and you liked their work, and then on Aug. 1, you decided to give them 2 days a week of work at $300 pesos a week,

    Total Pay for 2017:
    April 1 – July 31, 2017 Total Pay: (13 weeks)
    13 weeks x $150 per week = $1,950 … Total Pay April – July

    Aug. 1 – Dec 31 2017 Total Pay (22 weeks)
    22 weeks x $300 per week = $6,600 … Total Pay Aug – Dec.

    Annual Total Pay = $1,950 + $6,600 = $8,550 Total Pay for 2017

    Daily Rate for 2017:
    $8,550 Pesos / 365 Days = $23.42 per Day for Daily Rate calculations

    AGUINALDO 2017 pay (15 days):
    15 Days x $23.42 Daily Rate = $351 pesos of Aguinaldo pay for 2017

    Vacation Pay (for 1 year = 6 paid vacation days):
    6 days x $23.42 = $141 pesos.

    Total Aguinaldo + Vacation Pay (paid by Dec. 20’th) = $492 pesos

    with paid Vacation time off of: 1½ work days off.

    Makes sense?

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