Mexican workers will have the exclusive right to decide if they want to take 12 days of vacation continuously, or if they prefer to divide their holiday period throughout the year, in accordance with the reform to the Federal Labor Law (LFT) that was approved in the Chamber of Deputies, which increases the vacation from 6 to 12 days employees in our country.
After receiving various criticisms for the modification that they introduced to this reform in Commissions, with which it was intended to establish that only six days, of the total of 12, could be taken consecutively, the deputies backed down and resumed the Senate project, emphasizing that the worker will have the right to decide if he wants to take the 12 days of vacation completely and without interruptions.
“The important thing is that the benefit of Mexican workers was sought. (…) The objective was clear, to modify article 78 (of the LFT) and to resume the Senate’s proposal to make it 12 mandatory days continuously, ”explained Ignacio Mier, coordinator of the Morena group in the lower house.
How are your vacations?
The changes to two articles of the Federal Labor Law were generated in the Senate last November, based on a proposal by Movimiento Ciudadano, because Mexico is listed in the world as one of the countries with the fewest vacation days for their workers.
In this way, after the employee completes one year in his job, he will have the right to enjoy 12 days of vacation, being able to take them in a single complete period, if it suits their interests, or opting for partial periods that the worker himself may decide.
Starting with the second year worked, two vacation days will be increased until reaching 20, and after the sixth year of employment, the vacation period will increase two days for every five years of service, as shown below.
When does the reform come into force?
Legislators anticipate that this reform enters into force on January 1, 2023, Therefore, from next year the seniority of the worker will begin to count so that he can enjoy 12 days of vacation or more, instead of the six days that are granted under the current legislation.
It is important to mention that the reform is not retroactive, Thus -for example- if a worker turns three years old in 2023, he will be able to enjoy 16 days of vacation as stipulated in the reform to the LFT, which does not mean that the employer must give him more vacation days for the two previous years, since those are governed by the law without modification.
Called “Dignified Vacations” for Mexican workers, the changes to the Federal Labor Law only extend vacation days, while the vacation premium remains in the same proportion of 25%, as an additional payment to the salary for each day of vacation that the employer must pay.
Impact on companies
On the other hand, this reform will have economic consequences for companies, increasing labor costs by around 2% for established consortia, according to the consulting firm ManpowerGroup.
Although the proportion of 25% of salary that by law must be given as a vacation bonus is not increased, as there are more vacation days, employers will have to consider more resources to pay for those days off, plus the respective bonus.
Similarly, the vacation bonus is integrated into the salary when a settlement or compensation to the worker must be calculated, in case he decides to stop working in the company or is fired. This will also cost more to employers.
Likewise, the vacation bonus is part of the so-called Contribution Base Salary (SBC), which is the global amount with which companies calculate the quotas that must be paid to the Mexican Institute of Social Security (IMSS).
Ergo, as vacations double from 6 to 12 days, the total vacation premium will increase as part of the SBC. The latter implies that the worker-employer contributions paid to the IMSS will rise for the employer, without exception, since it is an obligation that they cannot evade.
High level Alto Nivel is the Mexican medium with more than 30 years of stories, content and news on the economy, finance, business and leaders.
