By Alexis Alcalá, director of Wealth Mercer Mexico*
The reforms have been one of the most active issues during the current government, giving companies a lot of work to adapt, comply and recognize new labor costs that they did not estimate before. Although the increase in vacation days is excellent news for Mexicans with a work contract in a formal company, there are some considerations that organizations must analyze.
First, a change that stands out is that employees must enjoy at least 12 days of vacation continuously, of the total period that corresponds to them, in accordance with the provisions of article 78 of the Federal Labor Law. Said period, at the discretion of the worker, may be distributed in the manner and time required.
In the same way, as of January 1, 2023, the new vacation table took effect for the next anniversary of the worker, avoiding retroactivity or vacation collection for the difference between the current and proposed tables.
Antiquity | Previous Law | Reform | Current market |
1 | 6 | 12 | 8 |
2 | 8 | 14 | 10 |
3 | 10 | 16 | 12 |
4 | 12 | 18 | 14 |
5 | 14 | twenty | 16 |
6-9 | 14 | 22 | 16 |
10 | 16 | 22 | 18 |
11-14 | 16 | 24 | 18 |
fifteen | 18 | 24 | twenty |
16-19 | 18 | 26 | twenty |
twenty | twenty | 26 | 22 |
21-24 | twenty | 28 | 22 |
25 | 22 | 28 | 24 |
26-29 | 22 | 30 | 24 |
30 | 24 | 30 | 26 |
31-34 | 24 | 32 | 26 |
The foregoing will have an impact reflected in:
- The opportunity for a greater rest of the collaborator to promote greater productivity.
- The increase in a similar proportion to the days added to the vacation premium currently paid.
It should be noted that, similar to the pension reform and as in this one on vacation, the cost is not totally direct, since there is a 100% deductibility for the employer in these expenses associated with the increase in rest days and the premium associated vacation.
Let’s not forget that from the explanatory statement to the STPS statements, they detail that Mexico is the country that grants the least vacations in Latin America. For example, Paraguay gives 12; Costa Rica, 14; Chile, 15; Uruguay, 20 and Brazil 30
Additionally, it is reported that Our country is ranked as the nation in which workers suffer the greatest work stress compared to the rest of the world, given that around 60% (according to the study “Work Stress in Mexico”) of the people here suffer from it. The national territory is also where the most hours are worked in the world, since, on average, Mexicans work 2,124 hours a year, when among OECD countries, the average is 1,687 hours.
From the above, and based on our quick survey, it is important to mention that 91% of the signatures will adjust to the new table approved and only 9% have shared that they will offer more days than those established in the law (the average is two days).
Therefore, there are different ways to analyze the issue, since, by increasing the days off, all the efforts that the organization is making, concerned about the well-being of its people, will have an ideal complement so that they can revitalize and increase productivity, which has suffered so much due to the complex health scenario that we are going through worldwide.
Corporations can guide their staff on how to best use the additional resources they will receive, how to make the additional seniority premium more flexible with other benefits that help reduce stress, how to save in the medium or long term, through savings banks. savings or vehicles that allow deductibility, such as pension plans. The purchase of additional coverage or insurance is also an excellent investment to reduce concerns about uncontrollable variables, such as serious illnesses or not leaving the beneficiaries enough resources to replace the loss of the breadwinner.
This change also provides an opportunity to review how the benefit package can be optimally analyzed and delivered considering additional taxes it may generate.
In conclusion, this is an excellent time to connect the vacation reform with the mental health campaigns caused by the actions required in NOM-035 on psychosocial risk, promote rest and planned disconnection, think about ways to refocus employees to the return to the offices and find the optimal dynamics of the company-employee relationship, where they are motivated to really enjoy their time outside and inside work. So I invite you to reflect on it, in order to continue offering our human capital greater well-being in an integral way.
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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