What Is an Aguinaldo?
The term aguinaldo alludes to an annual Christmas bonus that organizations in Mexico are required by law to pay to their employees. The payment, sometimes called the thirteenth salary, must be made by Dec. 20 of every year. Companies that fail to make an aguinaldo payment might be fined as much as 5,000 times the legal daily minimum wage. A few other Latin American nations, like Costa Rica, likewise expect employers to pay their employees an aguinaldo.
Mexican labor laws expect employers to pay their employees a bonus or an aguinaldo consistently. This is on top of their standard salaries and different benefits. The law, which was laid out by legislation passed in 1970, orders that workers are qualified for an annual bonus in December that is the equivalent of no less than 15 days' wages. An aguinaldo might be [prorated](/supportive of rata) for those employed short of what one year.
Employers must keep taxes from aguinaldos as they are subject to taxation. Employees are not required to pay income tax on their aguinaldo payment of an amount equivalent to 30 days of the legal daily the lowest pay permitted by law. For instance, assuming the base daily wage is $60 pesos, the tax-exempt amount of the aguinaldo is $1,800 pesos, or $60 pesos x 30 days.
Aguinaldos are likewise generally paid by employers for the Christmas season in other Latin American countries, like Guatemala and Costa Rica. Employers in Argentina and Uruguay give their employees an aguinaldo in two payments: one in June and the other in December.
Foreign workers with proper employment documentation are likewise qualified for receive bonuses.
Aguinaldos are mandatory. This means that all employers are legally required to pay them. Employees who don't receive their bonuses can report their employers to the Federal Office of the Defense of Labor. Failure to pay, paying late, or creating partial payments can bring about fines however much 50 to 5,000 times the lowest pay permitted by law, which is $141.70 pesos each day.
Regardless of the results, just a minority of Mexican workers really receive the payment, due to unfavorable working conditions, like casual contracting and temporary employment. For instance, a part-time grounds-keeper without a conventional contract may not receive an aguinaldo payment. Certain individuals might decide to tip their workers, including servants, mailmen, delivery individuals, before special times of year even on the off chance that they aren't required to do as such.
Thirteenth salaries like the aguinaldo are found around the world yet are subject to their own varieties. For example, it is mandatory for employers in Bolivia to pay a second aguinaldo on the off chance that the nation's gross domestic product increases by over 4.5%.
Benefits and Disadvantages of Aguinaldo
The aguinaldo gives a seasonal lift in demand for retail products like vehicles, machines, dress, and furniture. A large portion of this extra income gets spent in department stores. A few employers increase aguinaldo payments to help sales during El Buen Fin, which is Mexico's equivalent of Black Friday.
Employees who receive an aguinaldo payment are bound to show loyalty to a company that values them. Faithful employees are commonly more productive and less inclined to leave, which diminishes enlistment and training costs.
Pundits accept that these mandatory payments might put financial pressure on striving companies that could result in layoffs or potentially terminations. To combat this risk, companies are permitted to make aguinaldo payments to their employees by means of portions, given that they don't concede the whole payment.
Suppose somebody has been employed with similar company for quite a long time and their annual salary is $180,000 pesos. By law, their employer must pay them an aguinaldo or bonus of $7,500 pesos. This is the way it's calculated:
- $180,000 pesos \u00f7 12 months \u00f7 2
This is the equivalent pay of 15 days.
As referenced above, aguinaldos for workers employed under a year are customized. So somebody who just labors for six months gets the equivalent of 7.5 days by Dec. 20.
However, at times. large companies might pay employees 30 days of wages or 13 months of salary each year. This is the reason the aguinaldo is sometimes alluded to as the thirteenth salary. A few employees, incorporating the people who work in higher positions, might have the option to arrange higher bonuses with their employers.
- The amount of the payment is based on an employee's base salary.
- Just a small portion of Mexican workers really receive their aguinaldo in light of the fact that they are recruited casually.
- The bonus must be paid by Dec. 20 of every year.
- An aguinaldo is a legally commanded annual Christmas bonus paid by organizations in Mexico to their employees.
- Employers who don't pay, pay late, or create partial payments to their employees can be fined as much as 5,000 times the lowest pay permitted by law on the off chance that they're reported.
What Circumstances Qualify for Reduced Aguinaldo Payments?
The real payment is calculated based exclusively on income. This means lower-procuring workers will receive a proportionally lower aguinaldo.
Are People Who Work From Home Eligible for an Aguinaldo?
In the event that you work for an employer from home, you ought to be eligible for aguinaldo in Mexico. The principal exception is for consultants, who are self-employed and not part of the laid out payroll of a company. In this case. you don't meet all requirements for an aguinaldo bonus.
Who Receives the Aguinaldo If a Worker Dies?
Assuming an eligible employee passes on during the year, their aguinaldo payment is dispensed among that employee's named beneficiaries.