Background and Relevance of the Proposed Reform
In the Mexican Senate, a reform proposal to the Federal Labor Law (LFT) aims to progressively increase Christmas bonuses based on employees’ work seniority. This initiative, presented by senators from the Movement of Citizens (MC) party, seeks to revise Article 87 of the LFT. The aim is to modify the current system, which offers 15 days of bonus, to a maximum of 30 days depending on the employee’s length of service.
This proposal comes at a time when labor conditions have evolved, yet the Christmas bonus has remained largely unchanged for decades. The senators argue that updating this annual payment is crucial to ensure fair working conditions, as it significantly impacts the economic well-being of millions of families.
How the Proposed Reform Would Increase Christmas Bonuses
Under this reform, the base calculation for Christmas bonuses would remain at 15 days of salary for the first year of employment. For those with less than a year of service, they would still receive a proportional amount based on the time worked, regardless of their employment status at the bonus payment date.
From the second to the third year of service, the bonus would be at least 20 days’ salary. By the fourth and fifth years, it would increase to 25 days. Upon completing six years of service, employees would receive a minimum of 30 days’ salary. In all cases, the payment deadline remains before December 20th.
This Senate proposal aligns with a similar reform presented in the Chamber of Deputies at the end of November. The MC bloc in the Chamber sought a gradual increase in the bonus amount according to employees’ length of service within the same company. Other proposals presented in the Chamber aimed to reduce or eliminate the income tax (ISR) on Christmas bonuses, but these have not progressed.
Benefits of Increasing Christmas Bonuses
According to the MC senators, a gradual increase based on work seniority provides a more fitting economic recognition for employees’ consistent contributions and lengthy service without imposing excessive burdens on workplaces.
Increasing the number of Christmas bonus days is vital to address economic changes over recent decades, enabling families to cover expenses and debts while also enhancing employee commitment. Feeling valued and motivated, employees are more likely to remain loyal and content with their jobs.
The reform proposal is currently under review by the Senate’s Commissions on Labor and Social Security Prevision, and Estudios Legislativos, First. It may be discussed in 2026. The Mexican Congress aims to align labor condition improvements with international standards, including Christmas bonus schemes.
For comparison, Bolivia has guaranteed a full salary Christmas bonus since 1944. In Spain and Colombia, the bonus equals one month’s salary, paid in two installments. China calculates 30 days’ worth but distributes it across various dates.
Key Questions and Answers
- What is the proposed reform about? The Mexican Senate is considering a reform to increase Christmas bonuses based on employees’ work seniority, ranging from 15 to 30 days of salary.
- Why is this reform necessary? The current Christmas bonus amount has remained unchanged for decades, despite evolving economic conditions and living costs.
- How does the proposed reform work? The bonus will increase gradually: 15 days for the first year, 20 days from the second to third year, 25 days from the fourth to fifth year, and 30 days for those with six or more years of service.
- What other proposals were presented in the Chamber of Deputies? Other proposals aimed to reduce or eliminate income tax on Christmas bonuses, but these have not advanced.
- What are the benefits of increasing Christmas bonuses? It helps align economic recognition with employees’ contributions and length of service, enhances employee commitment, and keeps pace with economic changes.
