Salary Bonus Makes the Holiday Brighter: Aguinaldo
Tara A. Spears
While middle class families look forward to celebrating the winter holiday season, for the laborers that struggle to support their families, the thought of not being able to provide a special meal or presents is demoralizing. That’s why in 1970 when the Mexican government instigated the Federal Labor Article 87 law that all workers must receive a Christmas bonus, millions of workers rejoiced. Previously the practice of Christmas giving typically was food or candy.
It must be clarified that the Christmas bonus /aguinaldo is not a gift, but a salary that is earned month by month, and is paid in a single installment in the month of December of each year. In essence, the employer acts as the ‘Christmas savings plan’ for the workers to have money to purchase gifts and provide for other holiday season expenses. Federal Labor Law stipulates that all employed people must receive an Aguinaldo equivalent to at least 15 days of the employee’s regular wages, and it must be paid before December 20.
Employees who have not provided services for the entire 12 months in the current year are entitled, but will only receive an adjusted amount. This law also applies to all types of domestic help: pool maintenance, care-givers, gardeners, cleaning ladies, scheduled delivery workers-anyone that you use and pay on a regular basis, even if they work for you only once a month.
Let’s look at two common scenarios for foreigners: having year-round workers or having part-time workers for a few months of the year. There are summary graphics after the text explanation that you can copy and save. There are several formulas listed online; this is a simplified example.
Year-round worker: monthly salary of $2,400 x 12 = $28,800 annual. Divide by 12 =$2,400, Divide that by 2 = $1,200 for amount of Christmas salary. The worker’s total pay for December is $3,600 if he/she works normal hours. Or perhaps you have a new employee that just started. Then the bonus is calculated on the number of months he/she worked leading up to Christmas. $2,400 x 2 =4,800. Divide by 12 = $400, divide by 2 = 200. New worker December pay would be $2,600. Since we are paying such reasonable rate for quality work-not to mention friendship- providing a pro-rated Aguinaldo is a great step towards having a good labor relationship and reliable workers.
Perhaps you are a seasonal resident and have help only when you are here. For a worker that works a partial year: 1,000.00 x 5 (the number of months they work for you)= 5,000.00 amt of salary you paid them/divided by 12 = $416.67, which is the monthly average pay. Divide the monthly average by 2 to obtain the fortnight amount= 209.34 is the amount of Christmas salary required plus the regular pay. You will pay this part-time worker $1,209.34 in December.
Take it Seriously:
Failing to pay the Christmas bonus to Mexican workers can lead to significant penalties for employers. The employers who do not comply with the Aguinaldo payment can face fines ranging from 50 to 5,000 times the minimum wage. These penalties serve as a deterrent to ensure that all employees receive their legally mandated holiday pay. Employers can also be reported to the Federal Office of the Defense of Labor for non-compliance, which can result in further legal consequences. Be aware that the Federal Labor Department has a totally free to workers fleet of lawyers ready to act, simply by telephoning them!
I personally know two different people that thought, “ha ha, I’m not going to pay it” and were instantly hauled into court. The disgruntled employees, when denied their Aguinaldo, immediately called a labor lawyer who initiated a lawsuit. The foreigner was required to hire an attorney and had to pay a significant fine. The penalty for the foreigner was 200 times more than what the Aguinaldo would have been- why risk it? Not to mention the worry and stress of the legal proceedings involved ruined their holidays. I’m only sharing this information to stress the importance of paying the Christmas salary in a timely manner. There are severe consequences for not giving the bonus.
Let’s show our gratitude and recognition for their services by providing the Aguinaldo. Workers are expecting their Christmas bonus payment soon, counting on it to be not less than a fortnight’s pay and having it in hand by the December 20 deadline. It’s nice to think that this salary benefit helps these hard-working folks can enjoy a special dinner with family for the holidays.
