Mexican labor law guarantees every payroll employee a minimum benefits package: an aguinaldo year-end bonus of at least 15 days' pay by December 20, 12 vacation days from the first year with a 25% vacation premium, profit sharing (PTU), paid rest days, a Sunday premium, overtime pay, a seniority premium, and social security (IMSS, Infonavit and a retirement account). At the national median of the Talentosy Salary Index ($36,000 MXN a month, ≈ $2,050 USD), the aguinaldo alone is worth $18,000 MXN (≈ $1,050 USD). USD figures use 17.44 MXN/USD (ECB reference rate, September 23, 2026).
What benefits does Mexican law require employers to provide?
Mandatory benefits in Mexico (prestaciones de ley) come from the Ley Federal del Trabajo (LFT, Federal Labor Law) plus social security law. They can't be waived: no contract can offer less.
| Benefit | Legal minimum | Article |
|---|---|---|
| Aguinaldo (year-end bonus) | 15 days' pay, before December 20 | LFT Art. 87 |
| Vacation | 12 working days from year one | LFT Art. 76 |
| Vacation premium | 25% of the pay for vacation days | LFT Art. 80 |
| Weekly rest | 1 paid day per 6 worked | LFT Art. 69 |
| Sunday premium | 25% extra for working on Sunday | LFT Art. 71 |
| Mandatory rest days | 8 fixed dates a year, plus election days | LFT Art. 74 |
| Overtime | Double pay; hours above the legal cap, triple | LFT Arts. 66 and 68 |
| Profit sharing (PTU) | 10% of company profits, distributed | LFT Art. 117 |
| Seniority premium | 12 days' pay per year of service | LFT Art. 162 |
| Social security | IMSS, Infonavit housing fund, retirement (Afore) | Social Security Law and Infonavit Law |
All of this applies to payroll employees. Independent contractors get none of it by law — see the guide to remote work for US companies from Mexico for how the two setups compare. Employers budgeting these costs should read IMSS and aguinaldo payroll costs.
How much is the aguinaldo and when is it paid?
The minimum aguinaldo in Mexico is 15 days' pay, due before December 20; employees with less than a full year receive a prorated share. At the Talentosy Salary Index national median ($36,000 MXN a month, $1,200 MXN a day), the minimum aguinaldo is $18,000 MXN (≈ $1,050 USD). At the 2026 general minimum wage of $315.04 MXN a day, it's $4,725.60 MXN (≈ $250 USD).
How many vacation days does Mexican law require?
Since the December 2022 reform, employees get 12 vacation days after their first year, rising by 2 days a year to 20 in year five. From year six, the entitlement rises 2 days for every 5 years of service. At least 12 of those days must be taken consecutively if the employee asks (Art. 78).
| Years of service | Vacation days |
|---|---|
| 1 | 12 |
| 2 | 14 |
| 3 | 16 |
| 4 | 18 |
| 5 | 20 |
| 6 to 10 | 22 |
| 11 to 15 | 24 |
| 16 to 20 | 26 |
How is the vacation premium calculated?
The vacation premium (prima vacacional) is at least 25% of the pay an employee receives during vacation days. At the Talentosy Salary Index median ($36,000 MXN a month) with 12 vacation days, vacation pay is $14,400 MXN and the minimum premium is $3,600 MXN (≈ $200 USD). Many employers pay more than 25%.
What is profit sharing (PTU) and when is it paid?
PTU is 10% of a company's taxable profit, split among employees: half by days worked and half by salary. Companies pay it by late May; individual employers by late June. Since 2021 each employee's share is capped at three months' salary or the average received over the last three years, whichever is higher. No profit means no PTU.
Which mandatory rest days are paid in Mexico?
Mexico's paid mandatory rest days are January 1, the first Monday of February, the third Monday of March, May 1, September 16, the third Monday of November, December 25, and October 1 every six years (presidential inauguration), plus federal and local election days. Employees who work one of those days get double pay on top of their regular pay for the day (Art. 75).
What changes with Mexico's 40-hour workweek?
The LFT reform published in the Diario Oficial on May 1, 2026 cuts the maximum workweek from 48 to 40 hours in steps, with no reduction in pay or benefits: 46 hours in 2027, 44 in 2028, 42 in 2029 and 40 in 2030, starting January 1, 2027. The Labor Ministry (STPS) published an FAQ on the 40-hour workweek. For employees, every hour above the new cap is paid as overtime; for employers, the same salary buys fewer hours. The full timeline and overtime rules are in our guide to Mexico's 40-hour work week.
What can an employee do if benefits aren't paid?
- Check IMSS registration with your social security number: if you're not listed, your employer isn't contributing for you.
- Request unpaid benefits in writing (aguinaldo, vacation or PTU) and keep your payslips.
- Contact Profedet, the federal labor defense office, which advises workers for free, or your state's labor conciliation center.
- If you've already left, pending benefits belong in your final settlement — see how finiquito severance pay works.
Compare offers on what they add above the legal minimum (grocery vouchers, private medical insurance, extra vacation). The Talentosy job board shows the salary range for every role, and Mexico salary data lets you benchmark pay against your field's median. US employers can find the full compliance picture in Mexico labor laws for US employers.
FAQ
What are the mandatory employee benefits in Mexico?
Aguinaldo (15 days' pay), vacation (12 days from year one), a 25% vacation premium, profit sharing (PTU), a 25% Sunday premium, paid mandatory rest days, overtime pay, a seniority premium, and social security (IMSS, Infonavit and Afore).
Do mandatory benefits apply to independent contractors in Mexico?
No. Federal Labor Law benefits apply to employment relationships. A contractor who keeps a fixed schedule and takes direct orders can, however, claim that the relationship is really employment.
How is the aguinaldo prorated for a mid-year hire?
Divide 15 days by 365 and multiply by days worked in the year. An employee with 182 days worked receives about 7.5 days' pay.
Does the 40-hour workweek reduce salaries in Mexico?
No. The 2026 reform prohibits cutting pay or benefits during the transition, which runs from 46 hours in 2027 to 40 hours in 2030.
