Introduction to the Proposed Reform
In the Mexican Senate, a reform to the Federal Labor Law (LFT) is being analyzed to progressively increase the Christmas bonus, ranging from 15 to 30 days of salary based on work seniority. This proposal has also been mentioned in the Chamber of Deputies.
Background on the Current Situation
Senators from Movimiento Ciudadano (MC) have presented an initiative to amend the current scheme of 15 days for Christmas bonuses, raising it to 30 days according to the employee’s work experience. They argue that although labor conditions have changed, this particular annual payment has remained virtually unchanged for decades.
How the Proposed Reform Would Increase Christmas Bonuses
The initiative aims to maintain 15 days of salary as the base for calculating Christmas bonuses in the first year of employment. Employees with less than a year of service would still receive proportional payment based on their time worked, regardless of whether they are employed at the bonus payment date.
- Second to third year of service: At least 20 days of salary
- Fourth to fifth year of service: At least 25 days of salary
- Sixth year of service and beyond: At least 30 days of salary
The Senate proposal aligns with a similar reform presented by the Chamber of Deputies at the end of November, where MC representatives sought a gradual increase in the bonus according to work seniority. Other proposals presented in the Chamber of Deputies aimed to reduce or eliminate the income tax (ISR) on Christmas bonuses, but no progress has been made.
Benefits of Increasing Christmas Bonuses
MC senators believe that a gradual increase based on work seniority provides a more fitting economic recognition aligned with employees’ contributions and sustained efforts without imposing excessive burdens on workplaces.
- Addressing economic changes over the past few decades
- Helping families cover expenses and debts
- Improving employee commitment, motivation, loyalty, and well-being
The initiative is currently under review by the Senate’s Commissions on Labor and Prevision Social, and Estudios Legislativos, Primera. It may be discussed in 2026, as part of the Congress of the Union’s objective to align labor conditions improvements internationally, including Christmas bonus schemes.
For comparison, Bolivia has guaranteed this benefit since 1944, equivalent to a full salary. In Spain and Colombia, it equals one month’s salary, paid in two installments. Meanwhile, China calculates 30 days but distributes the payment on different dates.
Key Questions and Answers
- What is the proposed reform about? Senators from Movimiento Ciudadano (MC) in Mexico have proposed a reform to the Federal Labor Law (LFT) to progressively increase Christmas bonuses based on work seniority, ranging from 15 to 30 days of salary.
- Why is this reform necessary? Although labor conditions have evolved, the Christmas bonus has remained unchanged for decades, failing to keep up with economic changes and the rising cost of living.
- How does the proposed reform work? The initiative maintains 15 days of salary as a base for the first year, then gradually increases to 30 days by the sixth year of service. The changes aim to better align with employees’ contributions and sustainable work efforts.
- What are the benefits of this reform? The gradual increase in Christmas bonuses helps families cover expenses and debts, improves employee commitment and motivation, and strengthens loyalty and well-being.
- Where does this initiative stand? The proposal is currently being reviewed by the Senate’s Commissions on Labor and Prevision Social, and Estudios Legislativos, Primera. It may be discussed in 2026 as part of broader labor conditions improvements aligned with international standards.
