Employing Help in Mexico - Vacation, Holiday, and Sunday Pay
Many and probably most Americans and Canadians living in Mexico have maids and staff. Learn the law for vacation and Sunday pay.
9/6/20231 min read
Vacation pay as per Article 77 of the LEY FEDERAL DEL TRABAJO is to be provided to workers including that provide seasonal and intermittent services in proportion to the number of work days in the year either before the vacation or before the year's end if no vacation was taken. Vacation pay is one lump sum. The vacation pay must equal required number of vacation days of salary plus 25% of the amount (vacation premium).
To calculate the amount of vacation pay use the amount earned in a week divided by 7 to determine the daily rate. Multiply that times the number of vacation days x 1.25 (that is the 25% premium).
Example: employee earns 700 pesos in a week, divided by 7 = daily rate of 100 pesos. Vacation days after year 1 is 6 days. Therefore, 6 x 100 =600 pesos x 25% extra for premium = 600 x 1.25 = 750 pesos.
Year 1 -- 6 days Year 2 - 8 days Year 3 - 10 days Year 4 - 12 days Year 5 - 14 days Year 10 - 16 days Year 15 - 18 days
For every year the employee continues to work for the employer, he/she will receive an additional 2 working days. After five years, the employee's vacation period will increase only 2 working days for every additional five years he/she works for the employer. In the formula above replace the “6” with the appropriate number of days.