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Vacation, Aguinaldo and Termination Pay Calculations


solajijic

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Once again I have had to try, try, try to explain to someone about these calculations. Would someone who has a really good explanation please post it here and then MAYBE we could get a moderator to sticky it. That time of year is coming up fast and the woman I talked to recently was aghast at the amounts. I told her to put aside at least another 25% of what she pays every week to cover these.

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Once again I have had to try, try, try to explain to someone about these calculations. Would someone who has a really good explanation please post it here and then MAYBE we could get a moderator to sticky it. That time of year is coming up fast and the woman I talked to recently was aghast at the amounts. I told her to put aside at least another 25% of what she pays every week to cover these.

Visit rollybrook.com

Rolly's website has all the information you're seeking.

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Once again I have had to try, try, try to explain to someone about these calculations. Would someone who has a really good explanation please post it here and then MAYBE we could get a moderator to sticky it. That time of year is coming up fast and the woman I talked to recently was aghast at the amounts. I told her to put aside at least another 25% of what she pays every week to cover these.

Why not just bookmark this-http://www.rollybrook.com/employee-pay.htm

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Here is the complete list - as far as I know it is accurate -

Aguinaldo (Christmas Bonus)

The aguinaldo must be paid on or before the 20th of December. The aguinaldo must be paid in cash; gifts, Christmas baskets, and other presents do not fulfill the requirement.

The aguinaldo must equal 15 days of salary. To calculate the amount for a part-time employee, divide the number of days worked during the year past by 365. Multiply that figure by 15 x the daily salary to determine the amount of the aguinaldo.

Examples:

If you have an employee who works one day a week for $50 pesos:

52/365 x 15 x 50 = $106.85 pesos

If the worker is paid by the week and has worked a full year, use a multiplier of 2.14 to make the math easier. If the worker is paid $500 pesos per week, then it is $500 x 2 .14 = $1070 pesos

If the weekly worker has not worked a full year, divide the number of weeks worked by 52.14 x 15 x the daily salary (weekly salary divided by 7) to determine the amount of the aguinaldo.

Vacación (Vacation)

The vacación must be paid in cash, either before the vacation or before the end of the year if no vacation has been taken.

The vacación pay must equal 6 days of salary plus and additional 25% of the six-day amount. To calculate the amount, divide the number of days worked during the year past by 365. Multiply that figure by 7.5 to determine the amount of the vacación pay due. As you can see this is exactly 1/2 of the aguinaldo.

Examples:

If you have an employee who works one day a week for $50 pesos:

52/365 x 7.5 x 50 = $53.42 pesos = vacación

If the worker is paid $500 pesos per week:

$500 x 1.07 = $535 pesos = vacación

Note: The 6-day minimum vacation is only for the first year worked. The basis increases by 2 days each year through the 4th year. The 5th year it increases 3 days to 15 days. Thereafter, the time increases by 3 days each 5th year.

Year 1 -- 6 days

Year 2 -- 6 + 2 = 8 days

Year 3 -- 8 + 2 = 10 days

Year 4 -- 10 + 2 = 12 days

Year 5 -- 12 + 3 = 15 days

Year 10 -- 15 + 3 = 18 days

Year 15 -- 18 + 3 = 21 days

etc

Holidays:

If your worker works on any of the Mexican legal holidays, you must pay double time plus the regular pay; i.e., triple time. If the worker is paid for the holiday, but doesn't work, you cannot deduct the day from the "days worked" in the preceding computations for aguinaldo or vacación.

If your worker works on any Sunday, you must pay an additional 25% of the daily wage. For weekly workers, you divide the salary by 7, then add 25% to the daily amount for the Sunday pay. This assumes that you have given the employee some other day off during the week. If the employee worked the full 7 days that week you owe overtime pay also. That gets much more complicated. Talk with your accountant.

The Mexican legal holidays are:

Jan 1, New Year's Day

1st Monday in Feb, Constitution Day

3rd Monday in March, Benito Juarez's Birthday

May 1, Labor Day

Sep 16, Independence Day

3rd Monday in Nov, Revolution Day

Dec 25, Christmas

There are several other commonly accepted holidays (the banks may even be closed), but these seven are the only legal holidays.

Maternity Leave:

A woman is entitled to six weeks before and six weeks after delivery with full pay. If she is unable to return to work after that leave, she's entitled to a period not to exceed 60 days at half pay.

Termination Pay:

The labor laws are very pro worker. Nowhere is this more evident than in the draconian termination law. When an employee is terminated, he is entitled to termination pay; unless:

1. The employment was for a specified period of time, such as while building a house, or for house sitting for the winter while the owner is away, etc. It is best to have the time stipulation in writing.

2. For just cause. This is a very complicated issue, and you may need the help of a labor lawyer if the employee appeals to the labor review board. Just cause is spelled out in detail in the law.

The termination pay shall include 3-months salary plus 20 days for each year worked plus prorated vacation and Christmas pay. If this termination package cannot be paid at the time of termination, regular salary shall continue until the termination is paid in full.

If the employee quits voluntarily, termination pay is not required. A common tactic to avoid termination pay is to induce the employee to quit. One must take care with this because the law cited above spells out what an employer cannot do to harass a worker and his family.

**********

Do not forget to have your workers sign for any aguinaldo and vacation pay. Many do not like the idea but for everybody's protection in case of a later misunderstanding, those signed papers are very helpful for a settlement.

Here is an example from another poster:

I always add at the end after writing down the calculations, the following:

"SR or SRA (your name_ en calidad de patron, entrega a (name of employee) por consepto vacacional (dates) or aguinaldo (year), la suma de ......Pesos, que esta asu vez recibi a su entera sarisfaccion".

RECIBI:

(SIGNATURE OF EMPLOYEE).

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Here is the complete list - as far as I know it is accurate -

Updated 9/13/11 - to clarify monies that an employee would earn for vacation pay and aquinaldo

Aguinaldo (Christmas Bonus)

The aguinaldo must be paid on or before the 20th of December. The aguinaldo must be paid in cash; gifts, Christmas baskets, and other presents do not fulfill the requirement.

The aguinaldo must equal the amount the employee would earn in 15 days. To calculate the amount for a part-time employee, divide the number of days worked during the year past by 365. Multiply that figure by 15 x the daily salary to determine the amount of the aguinaldo.

Examples:

If you have an employee who works one day a week for $50 pesos:

52/365 x 15 x 50 = $106.85 pesos

If the worker is paid by the week and has worked a full year, use a multiplier of 2.14 to make the math easier. If the worker is paid $500 pesos per week, then it is $500 x 2 .14 = $1070 pesos

If the weekly worker has not worked a full year, divide the number of weeks worked by 52.14 x 15 x the daily salary (weekly salary divided by 7) to determine the amount of the aguinaldo.

Vacación (Vacation)

The vacación must be paid in cash, either before the vacation or before the end of the year if no vacation has been taken.

The vacación pay must equal the amount the employee would earn in 6 days plus and additional 25% of the six-day amount. To calculate the amount, divide the number of days worked during the year past by 365. Multiply that figure by 7.5 to determine the amount of the vacación pay due. As you can see this is exactly 1/2 of the aguinaldo.

Examples:

If you have an employee who works one day a week for $50 pesos:

52/365 x 7.5 x 50 = $53.42 pesos = vacación

If the worker is paid $500 pesos per week:

$500 x 1.07 = $535 pesos = vacación

Note: The 6-day minimum vacation is only for the first year worked. The basis increases by 2 days each year through the 4th year. The 5th year it increases 3 days to 15 days. Thereafter, the time increases by 3 days each 5th year.

Year 1 -- 6 days

Year 2 -- 6 + 2 = 8 days

Year 3 -- 8 + 2 = 10 days

Year 4 -- 10 + 2 = 12 days

Year 5 -- 12 + 3 = 15 days

Year 10 -- 15 + 3 = 18 days

Year 15 -- 18 + 3 = 21 days

etc

Holidays:

If your worker works on any of the Mexican legal holidays, you must pay double time plus the regular pay; i.e., triple time. If the worker is paid for the holiday, but doesn't work, you cannot deduct the day from the "days worked" in the preceding computations for aguinaldo or vacación.

If your worker works on any Sunday, you must pay an additional 25% of the daily wage. For weekly workers, you divide the salary by 7, then add 25% to the daily amount for the Sunday pay. This assumes that you have given the employee some other day off during the week. If the employee worked the full 7 days that week you owe overtime pay also. That gets much more complicated. Talk with your accountant.

The Mexican legal holidays are:

Jan 1, New Year's Day

1st Monday in Feb, Constitution Day

3rd Monday in March, Benito Juarez's Birthday

May 1, Labor Day

Sep 16, Independence Day

3rd Monday in Nov, Revolution Day

Dec 25, Christmas

There are several other commonly accepted holidays (the banks may even be closed), but these seven are the only legal holidays.

Maternity Leave:

A woman is entitled to six weeks before and six weeks after delivery with full pay. If she is unable to return to work after that leave, she's entitled to a period not to exceed 60 days at half pay.

Termination Pay:

The labor laws are very pro worker. Nowhere is this more evident than in the draconian termination law. When an employee is terminated, he is entitled to termination pay; unless:

1. The employment was for a specified period of time, such as while building a house, or for house sitting for the winter while the owner is away, etc. It is best to have the time stipulation in writing.

2. For just cause. This is a very complicated issue, and you may need the help of a labor lawyer if the employee appeals to the labor review board. Just cause is spelled out in detail in the law.

The termination pay shall include 3-months salary plus 20 days for each year worked plus prorated vacation and Christmas pay. If this termination package cannot be paid at the time of termination, regular salary shall continue until the termination is paid in full.

If the employee quits voluntarily, termination pay is not required. A common tactic to avoid termination pay is to induce the employee to quit. One must take care with this because the law cited above spells out what an employer cannot do to harass a worker and his family.

**********

Do not forget to have your workers sign for any aguinaldo and vacation pay. Many do not like the idea but for everybody's protection in case of a later misunderstanding, those signed papers are very helpful for a settlement.

Here is an example from another poster:

I always add at the end after writing down the calculations, the following:

"SR or SRA (your name_ en calidad de patron, entrega a (name of employee) por consepto vacacional (dates) or aguinaldo (year), la suma de ......Pesos, que esta asu vez recibi a su entera sarisfaccion".

RECIBI:

(SIGNATURE OF EMPLOYEE).

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Once again I have had to try, try, try to explain to someone about these calculations. Would someone who has a really good explanation please post it here and then MAYBE we could get a moderator to sticky it. That time of year is coming up fast and the woman I talked to recently was aghast at the amounts. I told her to put aside at least another 25% of what she pays every week to cover these.

I went to my notario. He figured everything out for us. Charged 400 pesos to write the document and have it signed by both parts (me and our maid). The original is mine with a copy for the employee. Paid a 400 pesos and avoid the confusion and stress of doing it myself.

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  • 3 years later...

Still not clear on maternity pay. 12 weeks full pay seems a lot especially if they have 4 other employers. in my case it would be 4000 from me and probably three other similar amounts if they all pay according to the 12 week rule.

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Guest bennie2

vacation is not one days pay as suggested here. its 2 days pay. (like xmas). i take an average of her one a week p/t day & double that. if she makes average 160 pesos: both bonus/vacation is $320 plus a little more. there were times in the past i had given much more for xmas. there are long threads about this, where spencer has commented. all this complex math! as for maternity you are not obligated for p/t help. i have always had older maids anyway, w/grown children. as for holidays, i dont have the maid work. we mutually change the day. triple pay is not done, but whatever. (thats IMO). if she wants to work on holiday, she gets normal pay. except for xmas/newyears day, holidays dont mean much to her. the best site for all this is on yucalandia. there are also questions& answers. the member who runs the site is snowyo.

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