Introduction
While the Christmas bonus, or “aguinaldo,” is typically given in December, a select group of workers will receive it as early as November. This change is due to a presidential decree issued by Claudia Sheinbaum, the head of Mexico City’s government, which affects public servants working in federal departments, the Mexican Foreign Service, and the armed forces.
Public Sector Workers Receiving Early Bonuses
The decree, published in the Diario Oficial de la Federación (DOF), mandates that these public servants, excluding those under “special honoraria contracts,” will start receiving their bonuses from November 10th. This timing coincides with El Buen Fin, one of the year’s strongest sales seasons.
Christmas Bonuses in the Private Sector
For private sector workers, the Federal Labor Law (LFT) allows bonuses to be paid before December 20th. The minimum bonus is equivalent to at least 15 days’ worth of salary for those with a year of service. For employees with less than a year of tenure, they are entitled to a proportional bonus based on their months of service.
The LFT also stipulates that the Christmas bonus is non-negotiable and cannot be exchanged for any service or product. Employers failing to provide the full bonus or paying an incomplete amount face penalties ranging from 5,657 to 565,700 pesos per affected employee.
Although the minimum bonus is 15 days, many formal companies—especially medium and large enterprises—offer amounts exceeding this minimum.
According to AON’s Non-Unionized and Unionized Employee Compensation Survey, 80% of large companies provide a Christmas bonus above the legal minimum for unionized workers, while 91% of companies offer bonuses exceeding the minimum for non-unionized employees.
Legislative Efforts to Improve Private Sector Bonuses
During the current legislative period, four proposals have been introduced to enhance private sector workers’ Christmas bonuses. However, none have succeeded so far. Recently, a focus has been on eliminating the Income Tax (ISR) from the bonus payments.
Key Questions and Answers
- Who is eligible for the early November bonuses? Public servants working in federal departments, the Mexican Foreign Service, and the armed forces are eligible, excluding those under special honoraria contracts.
- What is the minimum Christmas bonus according to Mexican law? The legal minimum is 15 days’ worth of salary for those with a year of service.
- What happens if an employer fails to provide the full Christmas bonus? Employers may face penalties ranging from 5,657 to 565,700 pesos per affected employee.
- Are there companies offering bonuses above the legal minimum? Yes, many formal companies, especially medium and large enterprises, provide bonuses exceeding the legal minimum.
- What legislative efforts are being made to improve private sector Christmas bonuses? Four proposals have been introduced during the current legislative period, with a recent focus on eliminating the Income Tax (ISR) from bonus payments.
