The Christmas bonus is a right of workers and workers that, in many cases, helps families to cover extra expenses related to the holiday season, and also helps them reduce debts.
Although this benefit appears in the Federal Labor Law (LFT) since 1970we must remember that, previously, the payment to workers for this concept was discretionary for employers, that is, its amount was not an obligation.
Like any other income for employees, the Christmas bonus is regulated by the tax provisions in the Income Tax Law (ISR). Here are some things you should know about this right.
1. What happens if I don’t receive a Christmas bonus?
Currently, the Christmas bonus is a right of all workers, regardless of their employment status. That is, that they are grassroots, trustworthy, plant, unionized, contracted for specific work or time, eventual, among others, since labor legislation provides for the specific cases in which the labor force is entitled to this payment. This benefit is also applicable to commission agents, commercial agents, insurance agents, vendors and others who are governed by the LFT.
If the employer does not comply with this obligation in a timely manner, It can be sanctioned with a fine that ranges between $4,811.00 to $481,100.00 according to the value of the UMA. This breach can be denounced by workers, unions, federations or confederations.
Despite the legal framework, according to figures from the National Institute of Statistics and Geography (INEGI), 32.4 million people, that is, 55.4% of the Employed Population, are in the labor informality, which puts the perception of the Christmas bonus at risk.
2. Is it subject to tax?
As I mentioned, the Christmas bonus is not exempt from obligations before the Tax Administration Service (SAT), however, the maximum that they can withhold is up to 35 percent. Despite the above, if your Christmas bonus does not exceed 30 days of the Measurement and Update Unit (UMA), that is, $2,886.60, you will not pay Income Tax (ISR).
Several formulas can be applied to the taxable part of the Christmas bonus to calculate the ISR to be paid; regularly, the one that is most convenient for the worker is chosen.
3. When should you receive it?
Article 87, section V of the labor regulations, establishes that the payment of the Christmas bonus must be made before December 20 at the latest. This consists of a minimum of 15 days of salary, in such a way that when it is delivered to the worker it corresponds to what is established by Law.
4. What is the amount you should receive?
In the case of those workers who have been working for the company for less than a year, the payment is made proportionally, regardless of whether they are no longer with the company or are currently working for a different company.
As regards workers who have a fixed salary, the calculation must be made per day worked. If the amount of the salary is variable, the average daily income obtained in the last 30 days worked will be taken as the basis.
For workers hired as vendors, commercial or insurance agents, propagandists and others who are under the protection of the LFT, the daily salary for the payment of the Christmas bonus is calculated taking into account the average income received in the last year. or work time, in case you have not completed the twelve months.
In the case of working mothers, the pre- and postnatal periods (before and after birth) must count as days worked for the calculation of this benefit.
5. Can it be paid in kind?
Like any other right, receiving the Christmas bonus payment cannot be waived and cannot be paid in kind either and must be paid in legal tender. This is an independent right from the other benefits, so the employer can in no case argue economic difficulties of the company or lack of profits for not paying it or reducing its amount.
From the Mexican Institute of Public Accountants we recommend that, before spending your bonus, you carefully plan the destination that you will have to give it, since it represents your effort of a year of work.
Editor’s Note: This text belongs to our Opinion section and reflects only the author’s vision, not necessarily the High Level point of view.
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Laura Grajeda Trejo Laura Grajeda is president of the Mexican Institute of Public Accountants (IMCP). She has a master’s degree in Taxation and a doctorate in Fiscal Sciences.
