Paid vacation days in Mexico are few compared to many other countries. Recently the Mexican government made headway in improving work-life balance for employees with legislation that provides six additional days of paid time off. The reform was published in the Official Journal of the Federation on December 27th, 2022, and went into effect on January 1st, 2023.
Although the Vacation Premium amount itself has not been modified, employers should be aware that in addition to the cost of six more days of paid vacation, this change will increase their premium payment costs as well, which is 25% of an employee’s salary for each paid day off. For example, if an employee makes $10 a day, they make an additional $2.50 for a vacation day. The Vacation Premium does not apply to mandatory rest days and bank holidays.
According to the National Law Review, the bill sets out the accrual for paid vacation days as outlined in the table below.
|Former Leave Accrual||New Leave Accrual|
|Years Worked||Vacation Days||Years Worked||Vacation Days|
|1||6 days||1||12 days|
|2||8 days||2||14 days|
|3||10 days||3||16 days|
|4||12 days||4||18 days|
|5 to 9||14 days||5||20 days|
|10 to 14||16 days||6 to 10||22 days|
|15 to 19||18 days||11 to 15||24 days|
|20 to 24||20 days||16 to 20||26 days|
|25 to 29||22 days||21 to 25||28 days|
|30 to 34||24 days||26 to 30||30 days|
|31 to 35||32 days|