Paid Vacation Days in Mexico Increase by 6 Days

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

 

Should you have further questions about employee benefits in Mexico, please contact Asinta, and we will put you in touch with INTERTEC, Asinta’s employee benefits consulting Partner in the country.