The New Christmas Bonus in Mexico: Discordant

The new Christmas bonus in Mexico is a topic of labor discussion, as employers consider it an inappropriate expense at the moment. As you may know, Christmas bonuses are an annual payment applied in certain countries, serving as a year-end bonus.

The Christmas bonus is a labor right that exists in a few countries around the world, fortunately granted in Mexico.

According to the Federal Labor Law, Article 87 stipulates that employers must provide the equivalent of at least 15 days of salary to their employees as a Christmas bonus.

However, in August 2023, lawmakers from the Morena party proposed increasing the Christmas bonus from 15 to 40 days.

This proposal for the new Christmas bonus in Mexico was referred to the Labor and Social Welfare Commission.

This initiative, which would modify the first paragraph of Article 87 of the Federal Labor Law, is very appealing to Mexican employees, and they unequivocally support it.

The proposal for the new Christmas bonus in Mexico is currently on hold in the Chamber of Deputies, largely due to the opposition from the employer sector, which argues that it is not the right time to implement this measure.

According to the business sector, it would represent an additional burden on their labor costs, which have significantly increased due to the reform that came into effect this year, raising employer contributions to social security and eliminating outsourcing.

Employers also oppose the Christmas bonus increase because it would not only mean an additional 25 days of salary but would also raise social security contributions for this benefit and income tax payments.

-New Christmas Bonus in Mexico: Still Pending –

Although it is estimated that the project modification, the new 40-day Christmas bonus in Mexico, only applies to the public sector, the private sector would have to pay 30 days instead of the customary 15.

In contrast, some experts argue that providing more days of Christmas bonus is a factor for attracting and retaining talent.

There is a misconception that only formal businesses and companies should provide Christmas bonuses to their employees. In Mexico, every worker who receives orders from an employer, even in the informal sector, is entitled to this payment.

In this regard, some employers fail to acknowledge the employment relationship and neglect their obligation to pay the Christmas bonus.

Employees in the informal economy may receive some Christmas bonus from their employers at times, although they are legally obligated to do so.

In any case, workers can always demand or report that this obligation is not being fulfilled, even if it is not recognized by the employer.

The deadline established by law should be December 19, as it stipulates that the Christmas bonus must be provided before the 20th of that month.

In practice, many employers wait until the 20th to give the Christmas bonus.

Also read: Remittances to Mexico in August Reached Another Record Level.