Paid Vacation Laws for Part Time Workers

[Susannah]

Hi everyone! 

I have a question about the Mexican laws for part time workers with regards to paid vacation. 
 

I have been researching a bit and this is what I understood so far: 

• The law is the same for part time and full time workers.
• Vacation pay is calculated with the "daily rate" as 6 days of salary for the 1st year, 8 days of salary for the 2nd year, and so on (following the specific table with length of service and paid days off). 
• They need to have worked for a year before they can receive their vacation (pay).
• There is a minimum of 25% holiday bonus for while they are on vacation. 

 

My question is as follows: 

According to the Mexican law, how would I approach this for (for example) my cleaning lady who works 1 day a week? 

1. Is she entitled to 6 working days off (theoretically 6 weeks in the year)? 
2. If she decides not to take the vacation, I assume she would still be entitled to the vacation pay for that year, is that correct?
3. Is the 25% bonus applicable only if she takes the vacation, not if she decides to continue working? Or is it something she is entitled to regardless of whether she takes days off? 

I would appreciate anyone who could shed some light on this for me, or point me in the right direction.
Thank you!

 

______________________

These are some of the websites that I referenced: 

• https://insights.tetakawi.com/mexico-labor-law-employee-benefits-basics
• https://content.next.westlaw.com/3-502-9997?transitionType=Default&contextData=(sc.Default)&__lrTS=20200606164632130&firstPage=true
• https://yucalandia.com/answers-to-common-questions/labor-law-for-household-employees-in-mexico-what-must-we-pay/

[jrod]

You are correct in that nobody is exempt, and part- and full-time workers are treated equally under the law. However, the calculation is proportional for a part-time worker. And the "holiday bonus" is not a discretionary bonus--the aguinaldo is required by law. Therefore, the math gets a bit complicated. Smartest and safest advice is to go to one of our well-regarded local attorneys to have the calculation confirmed for you and a contract drawn up. You can then use this contract as a template for future workers.

[Bisbee Gal]

As far as I know, Rolly's calculations remain valid.  https://rollybrook.com/employee-pay.htm

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 required number of vacation days of salary plus and additional 25% of the amount. To calculate the amount, divide the number of days worked during the year past by 365.  Multiply that figure by number of vacation days times 1.25 to determine the amount of the vacación pay due. 

Examples:

If you have an employee for one year who works one day a week for $50 pesos:
52/365 x 6 x 1.25 x 50 = $53.42 pesos = vacación

If the worker is paid $500 pesos per week, convert the weekly rate to a daily rate by dividing by 7.

500/7 x 6 x 1.25  = $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 2 days to 14 days.  Thereafter, the time increases by 2 days each 5th year.

For example:  A maid has worked for 5 years, so she is due 14 days vacation.  She works 3 days per week for $760 per week. which is $253.33 per day.  3 x 52 = 156 days worked per year.

156/365 x 14 x 1.25 x 253.33 = $2642.71

If we ignore that she works only 3 days and consider her a weekly employee, then

760/7 x 14 x 1.25 = $1900

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 + 2 = 14 days
Year 10 -- 14 + 2 = 16 days
Year 15 -- 16 + 2 = 18 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.

[Mad_Max]

not sure I understand vacation pay - 

lets say I have an employee that is entitled to one week's paid vacation.

So he takes the week off and I pay him.

Now I owe an additional 25% or do I have to pay another week plus 25%

[Usvetsinmexico]

Its so much easier to just hire a company and not a person. Switched to a cleaning company and after all the vacation bonuses and such it was cheaper to pay a company and much less hassle

[Mad_Max]

From a perspective of payment, yes, easier to hire a cleaning company. But a cleaning company won't bring you flowers and cake on your birthday - nor  fresh berries from the berry farm - yesterday she brought 3 pts of raspberries.  So for me, lots of benefits in having a cleaning helper instead of a cleaning company.

Still looking for vacation pay advice

not sure I understand vacation pay - 

lets say I have an employee that is entitled to one week's paid vacation.

So he takes the week off and I pay him.

Now I owe an additional 25% or do I have to pay another week plus 25%

[ibarra]

Aguinaldo is easy.  2 weeks pay x 2.14.   Example:  300 pesos salary for 2 weeks. 300 x 2.14  = 642 pesos.  Our lawyer told us last year that the .14 covers the requirement to pay for 25%.

[Mad_Max]

17 minutes ago, ibarra said:

Aguinaldo is easy.  2 weeks pay x 2.14.   Example:  300 pesos salary for 2 weeks. 300 x 2.14  = 642 pesos.  Our lawyer told us last year that the .14 covers the requirement to pay for 15 days as most of us from NOB think 2 weeks is 14 days.  

I am asking about vacation pay - which needs to be paid by year end - In addition to Aquinaldo.  Example one site says Employers must pay employees a vacation premium equivalent to 25 percent of the salary earned during the vacation days

 

[ibarra]

Perhaps one of these articles can help with your question. If not, IMHO, ask a lawyer.

https://www.mondaq.com/mexico/employee-benefits--compensation/1277940/mexico-increases-paid-vacation-for-employees

 

https://insights.tetakawi.com/mexico-labor-law-employee-benefits-basics

 

[Mad_Max]

from insights link above   - 

The vacation “premium,” or prima, is calculated as a minimum of 25 percent of the salary added to the daily pay rate for those vacation days. This cash benefit is intended for employees to use on their vacation, although it can be paid out either at the time of vacation or after a year of service. Some companies will provide a bonus that’s between 50 to 100 percent of the daily pay rate, and this may depend upon the local union’s bargaining power.

[Natasha]

I did NOT click on ibarra's links, but only wish to note:   Legislation effective January 1, 2023...... when calculating holiday pay ONLY re: days per years worked:   

1 year = 12 days   2 yrs = 14 say  3 yrs  = 16  4 yrs =  18  5 yrs  = 20      6-10 = 22 yrs      11 - 15 yrs   0  24 days    chucked my old calculation sheet when I wrote these down,   so not sure... but I think these almost doubled