The Christmas bonus is part of the inalienable rights of all workers in Mexico, therefore, it is also one of the main obligations that companies have at the end of the year. Here we give you answers to the most common questions that usually arise when receiving and paying this remuneration.
Meaning
The bonus is, by right, a benefit that consists of an annual payment in cash backed by Article 87 of the Federal Labor Law (LFT).
When is it paid?
Employers must pay the bonus by law to their employees before the day December 20th according to Federal Labor Law.
How is it calculated?
To calculate the total Christmas bonus, you must divide your monthly salary -without any benefits- between 30 days. What you find is multiplied by the number of days that your company grants you as a Christmas bonus, the legal minimum is 15 days.
Continuing with the previous example, if you earn 20,000 pesos with benefits, you must first deduct them from that amount, let’s say you have 18,500 pesos left. You divide this by 30, resulting in 616.66 pesos.
If your company pays you the equivalent of 15 days of salary as a bonus, you will have to receive 9,250 pesos in bonus less Income Tax, which will only be calculated by 6,681.50 pesos, which is the difference between what you get in bonus ( in this example) and the value of the monthly UMA.
Do I receive a Christmas bonus if I am temporary or do not have a year in the company?
Seniority at work influences the amount of remuneration received, as long as one year has not been completed in the workplace. Article 87 of the Federal Labor Law imposes an obligation on all employers to pay the Christmas bonus, even when their employees are newly hired.
Read: Did you work half a year? This corresponds to your Christmas bonus
So, like all other workers, you have the right to receive the proportional part of the bonus, according to the time you have been working. This rule should also be followed in case you no longer work for the company. If in this 2019 you worked for a few months in a work center, and then you stopped working there, you have the right to receive the proportional part of the Christmas bonus for the days you actually worked.
On the other hand, there must not be any influence or alteration of the Christmas bonus due to the different classifications that companies assign to job positions. Whether the worker is called base, unionized, temporary or trustworthy, everyone without exception must receive a Christmas bonus.
Employees of foreign companies receive a Christmas bonus?
Yes, all workers who work in Mexico must receive a bonus, regardless of the type of company they work for, it does not matter if it is a foreign or Mexican company. The minimum amount indicated by law is 15 days of salary in Mexican pesos.
Some foreign firms usually pay in currencies other than pesos both the salary and the bonuses or benefits of their workers, in this sense, the Federal Labor Law (LFT) does not prohibit that the payment of the bonus is made -for example- in dollars, as long as it is the equivalent of what corresponds to the employee in Mexican pesos.
In the United States and Canada, year-end remuneration is not called a Christmas bonus, it is an extra bonus that is commonly equivalent to one month’s salary. Some companies of these nationalities, which have a presence in Mexico, maintain this same benefit, equating it to the Christmas bonus.
Is maternity or paternity leave deducted from the Christmas bonus?
The total amount of the bonus does not have to be affected in the case of pregnant working women, as long as the maternity leave has been granted by the Mexican Institute of Social Security (IMSS) or the Institute of Security and Social Services of the State Workers (ISSSTE).
As it is also an inalienable right, these permits are considered as days that were worked, therefore, the Christmas bonus that you should receive should not have any discount for your maternity. The same happens with the paternity leave which are already contemplated in article 132 of the LFT, it is about five working days with pay that the employer has the obligation to grant to male workers for the birth of their children or in the case of adoption.
This paternity leave is granted by the company, and it is not a disability like the one that pregnant women receive from the IMSS or the ISSSTE. However, the person or institution that grants these permits has no relevance in the case of year-end remuneration, since they are considered days worked, so they cannot be deducted from the Christmas bonus in any way.
Are medical disabilities deducted from the Christmas bonus?
When it comes to a work risk, that is, if you had an accident at your workplace, or on the way from your home to it, or you got sick due to the work you do, the disability you have received is considered as if These are days worked, so the days you were absent should not be excluded when calculating your Christmas bonus.
In contrast, if during this year you had a general illness or an accident outside of your work, the duration of the medical disability is eliminated to calculate the amount of this annual remuneration. This means that you will be paid the proportional part of the bonus considering only the days actually worked.
Are taxes paid for the bonus?
Taxes are not paid for the Christmas bonus if it is less than the monthly value of the Measurement and Update Unit (UMA), which is currently 2,568.50 pesos. Since the majority of workers in our country receive an amount greater than that amount as a Christmas bonus, the surplus yes it is taxed with Income Tax (ISR).
For example, if you earn 20,000 pesos a month, already discounting benefits, your bonus will be 10,000 pesos, of these 2,568.50 pesos are tax-free, while the ISR payment must be calculated on the remaining 7,431.50.
Read: Do I have to pay taxes when I receive a Christmas bonus? The SAT responds
surya palaces Journalist and lawyer, specialist in legal analysis and human rights. She has been a reporter, radio host and editor.
