Aguinaldo Legal Mexico

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Thirteenth salaries like the Aguinaldo can be found all over the world, but are subject to their own variations. For example, it is mandatory for Bolivian employers to pay a second aguinaldo if the country`s gross domestic product increases by more than 4.5%. In the event of the death of an employee during the year, the Aguinaldo indemnity is paid to the employee`s hired beneficiaries. This is also required by the Federal Labour Act. If you work from home for an employer, you should be eligible for Aguinaldo in Mexico. The main exception is freelancers who are self-employed and not part of a company`s established payroll. In that case. You are not eligible for an Aguinaldo bonus. The Aguinaldo ensures a seasonal increase in demand for retail products such as automobiles, household appliances, clothing and furniture. Much of this extra revenue is spent in department stores. Some employers are increasing Aguinaldo payments to boost sales during El Buen Fin, the Mexican equivalent of Black Friday.

If a company chooses not to comply with the law, it may face lawsuits or other legal liabilities at the local and federal levels. As already mentioned, the Aguinaldo must be paid no later than December 20 – no situation excuses an employer from the payment to employees. These benefits must be met, whether or not a company is facing economic problems, for example. In the event of the death of an employee, the Aguinaldo allowance is paid to the employee`s dedicated beneficiaries. This is also required by law; If a company chooses not to comply with the law, it may face lawsuits or other legal liabilities at the local and federal levels. Mexican labor laws require employers to pay their employees a bonus or aguinaldo each year. This is in addition to their regular salaries and other benefits. The law, introduced by a 1970 law, requires workers to be entitled to an annual bonus equivalent to at least 15 daily wages in December.

An aguinaldo may be proportional for those who have been employed for less than a year. Critics believe that these mandatory payments can put financial pressure on struggling businesses, which could lead to layoffs and/or closures. To counter this risk, companies are allowed to make Aguinaldo payments to their employees in installments, unless they defer the entire payment. In addition to the legal obligation, employers can use Aguinaldo to improve employee retention. An employer can opt for the “13-month bonus”, which effectively doubles the aguinaldo but gives the employee the feeling that their hard work is appreciated by the employer. The actual payment is calculated solely on the basis of income. This means that low-income workers receive a proportionately lower aguinaldo. The final value of an aguinaldo varies depending on the daily payment calculated by an employee. The values used for the calculation depend on the employment contract; Daily wage contracts are calculated differently from employees with hourly contracts.

In the contract of a day employee, the salary is specified. For an hourly worker, the wage can vary greatly from day to day depending on the hours of work. In this case, the calculation of the daily wage is based on the total earnings divided by the number of days in a year (365 or the total number of days the employee worked that year). In summary, employers must withhold taxes from Aguinaldos because they are subject to tax. Employees are not required to pay income tax on their Aguinaldo payment up to 30 days of the legal daily minimum wage. For example, if the daily minimum wage is 60 pesos, the tax-exempt amount of the aguinaldo is 1,800 pesos, or 60 pesos x 30 days. The Aguinaldo payment is one of the most important rights that workers have in Mexico. In addition to its legal status, Aguinaldo can be a blessing for employee retention. Contract workers sometimes do not have the opportunity to obtain subjective bonuses and other benefits (especially at lower levels of the organization), but Aguinaldo is something that all workers can receive and enjoy. While the Aguinaldo was never intended as a Christmas/vacation bonus, employees who don`t have a good budget can find themselves in a financial dilemma as the money runs out, especially for those who have kids or travel to spend time with distant relatives.

And although the payment is not “officially” due by December 20 at the latest, it is very appreciated that the employer makes the payment at the beginning of December. This prepayment ensures better planning and a more relaxed purchase of Christmas gifts for his family. When calculating the aguinaldo, it is important that employees who are paid per week are actually paid for 7 days, Sunday being a paid day of rest. When determining the daily rate, the weekly wage is divided by 7 days to determine the daily rate. Thus, the Aguinaldo is determined by taking the value of the daily wage and multiplying it by the minimum of 15 days. To improve customer loyalty, many companies choose to pay a full monthly salary (30 days), hence the term “13th month bonus” that is often mentioned in conversations about Aguinaldo. However, the entire cash wage premium is negotiated between the employer and the employee. We have created this online calculator to help you estimate the Aguinaldo payment legally required for your employees in Mexico. Please keep in mind that this is only an approximation, if you want a more detailed breakdown, we recommend talking to your HR team or a payroll outsourcing company in Mexico. From domestic workers to executives, the type of employee contract does not affect whether or not an employee receives an Aguinaldo.

Regardless of their status, anyone working for a company or corporation in Mexico is entitled to this protected benefit. The only exclusion for Aguinaldo beneficiaries are freelancers – as a rule, freelancers are freelancers and are not really part of the established payroll. This income is subject to SRI (income tax) and as an employer you are supposed to withhold and file the tax, but if the aguinaldo is less than one month`s salary, it is exempt from income tax. As mentioned earlier, Aguinaldos are prorated for employees who have been employed for less than a year. Thus, someone who works only six months gets the equivalent of 7.5 days before December 20. The term Aguinaldo refers to an annual Christmas bonus that Mexican companies are legally required to pay to their employees. The payment, sometimes called thirteenth salary, must be made no later than December 20 of each year. Companies that do not make Aguinaldo payments can be fined up to 5,000 times the legal daily minimum wage.

Other Latin American countries, such as Costa Rica, also require employers to pay an aguinaldo to their employees. Also known as the “13th month salary,” the Aguinaldo is a year-end payment made in December. The origins of payment are rooted in Mexico`s labour law system. Mexican labor law was developed to improve and protect workers` rights, benefits, wages, and social security, among other things, and is subject to the Ley Federaldel Trabajo,” which was introduced in 1930. Today`s Aguinaldo payment was born from a reform of this law in 1970 with the addition of Article 87. This update states that employees are entitled to an annual bonus payable in December and equal to a certain percentage of an employee`s salary. The Aguinaldo provides workers with additional income at a time of year when money may seem scarce. Many workers rely on the annual aguinaldo to pay off debt at the end of the year, except on a rainy day, or to bring some joy into the holiday season.

Overall, this payment gives the employee the feeling that their hard work is valued and paid appropriately. Suppose someone has been employed by the same company for 10 years and their annual salary is 180,000 pesos. According to the law, their employer must pay them an aguinaldo or a bonus of 7,500 pesos. Here`s how it`s calculated: As December approaches, many workers in Mexico are eagerly awaiting their annual year-end bonus, also known as Aguinaldo. In this article, we will review the origins of this basic Mexican labor law, who receives it and how to calculate it. Despite the consequences, only a minority of Mexican workers receive pay due to unfavourable working conditions, such as informal contracts and fixed-term jobs. For example, a part-time gardener without a formal contract cannot receive an Aguinaldo payment. Some people may choose to tip their workers, including housekeepers, letter carriers, delivery men, before the holidays, even if they don`t have to. Employees who receive an Aguinaldo payment are more likely to show loyalty to a company that appreciates it.

Loyal employees tend to be more productive and less likely to go out, which reduces recruitment and training costs. The aguinaldo is determined by taking the value of the daily wage and multiplying it by the minimum of 15 days. An Aguinaldo (German: bonus) is an end-of-year payment that is distributed no later than December 20. There is no situation that exempts an employer from paying the bonus to employees. According to the Federal Labour Act, services must be provided even if the company is facing economic problems. If an eligible employee dies during the year, his or her Aguinaldo payment will be made among that employee`s designated beneficiaries. El pago de aguinaldo les corresponde a todos los trabajadores, de base, de confianza, de planta, sindicalizados, por obra o tiempo determinado, eventuales, comisionistas, agentes de comercio, de seguro, vendedores y otros semejantes que se rijan por la Ley Federal del Trabajo. The Aguinaldo is based on 15 days` salary for each worker who is on duty for one year or more, and if the employee is less than one year old, the bonus is prorated.