What is the vacation premium in Mexico, according to the Federal Labor Law

What is the vacation premium in Mexico, according to the Federal Labor Law

Although much is said about rights and employment benefits, in reality there are few workers who are informed about the legal benefits contemplated by the Federal Labor Law (LFT). Although they do know the most basic ones, such as the rest day, the 6-day vacation, the Christmas bonus and the distribution of profits, there are other benefits that they are unaware of, one of them is the vacation bonus.

Once the year of seniority has been completed, you can access the compulsory vacation, which are currently at least 6 days (an amount that increases after each year of seniority). With access to vacations, comes the vacation premium, which is a labor benefit consisting of the delivery of extra money from the salary, which is intended for the worker to enjoy their vacations.

In other words, the vacation bonus is a kind of extra bonus that the company is obliged to provide to workers when they take their vacations. It is money apart from the salary, and corresponds to the payment of 25% of the salary that would correspond to the 6 days (or more) of vacation.

This employment benefit is found in articles 76 to 81 of the LFT. The minimum amount is 25% of salary, although, as with vacations, there are companies that offer a higher amount of vacation bonus.

When can the vacation premium be requested?

Due to the fact that the vacation premium is linked to the vacation benefit, it can be accessed at any of the following times: upon completion of the year of service, or when vacations are scheduled. This will depend on the internal policies of the company, but it must be borne in mind that it is a right that cannot be waived.

Likewise, as the vacation premium is paid in relation to vacations, the amount received increases year after year, since it is made up of 25% of the salary that would correspond to vacation days, if we consider that the first year is 6 days, the next 8 and so on, then the premium increases in the same way.

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Finally, in case of resignation or dismissal, the vacation bonus must be included in the settlement or liquidation.

Source: Debate

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