When it comes to blending work with rest, the vacation bonus is a key benefit for Mexican workers. Why? Because it provides financial support during your time off, letting you experience activities that rejuvenate both body and mind—whether you’re exploring new destinations or simply devoting time to things that fulfill you.

Curious about when the vacation bonus is paid or how to compute it? Or maybe you just want to understand this labor right in more depth?

Keep reading and learn how to calculate both your vacation days and your vacation bonus.

How the Vacation Bonus Is Calculated in Mexico

What Is the Vacation Bonus in Mexico?

It’s a labor right that grants employees extra pay on top of their regular wages during their vacation period. This extra compensation is designed to cover expenses related to the enjoyment of your time off, ensuring you have a decent rest.

Mexican Federal Labor Law (LFT) explicitly mentions that the minimum amount must be 25% of your daily wage. However, some companies can give higher percentages in line with their internal policies.

Importance of the Vacation Bonus

Vacations reinforce both the emotional and physical well-being of the beneficiary, providing that necessary downtime to recharge so you can return to work with full energy.

What’s more, it lets you fund your time off—trips and activities—without having to dip into your regular paycheck. This protects your labor rights and can also help maintain your financial stability.

The vacation bonus likewise reflects a company’s commitment to employees’ welfare. It’s a required benefit, and failing to provide it can lead to legal consequences.

Who Is Entitled to the Vacation Bonus?

All workers in Mexico are entitled to this benefit—whether they work full-time or part-time, under temporary or permanent contracts. The Federal Labor Law stipulates the following guidelines:

1. Progressive Increase

• You get a minimum of 12 days of vacation once you complete one year of service.

• After the second year, it goes up by two extra days each year until you reach 20 days.

• Starting from the sixth year, you gain an additional two days for every five years of service.

2. Seasonal Employees

• They receive a prorated vacation bonus based on the number of days worked throughout the year.

3. At the End of Employment

• If the worker quits or is dismissed, they can claim the proportional share of this benefit according to the time worked.

Knowing how the vacation bonus is calculated is key to avoiding any misunderstanding and to keeping the employer-employee relationship fair and transparent.

How to Calculate the Vacation Bonus [With an Example]

So, how do you calculate vacation days and the vacation bonus?
Follow these steps:

1. Determine the worker’s daily wage. Start by dividing the monthly salary by 30 days.

2. Identify the corresponding vacation days. That depends on how long they’ve been with the company.

Vacation Bonus Table:

3. Apply the formula. Multiply the daily wage by the number of vacation days, and then multiply that result by 25% (the minimum vacation bonus percentage).

Formula: Daily wage × number of vacation days × 25%

Example

Suppose you’ve completed your first year at a company and earn 20,000 MXN a month.

How is the vacation bonus calculated?

According to the table, you’re entitled to 12 vacation days. Following the steps above:

1. Divide your monthly salary by 30 days to see what you earn per day:

• 20,000 ÷ 30 = 666.67 MXN

2. Multiply that result (666.67) by the number of vacation days:

• 666.67 × 12 = 8,000.04 MXN

3. Finally, calculate 25% of that sum to get your vacation bonus:

• Vacation bonus = 8,000.04 × 25% = 2,000.01 MXN

Therefore, the company owes you 2,000 MXN as your vacation bonus.

When and How Is the Vacation Bonus Paid?

Vacation Bonus 2025—When is it paid?

Ideally, it should be paid once a year, before the start of your vacation leave, and is included along with the regular pay for those days off.

There’s no universal date for this, though. The exact timing depends on each company’s internal policies and existing labor agreements—some employees prefer to take their vacation immediately upon completing their first year, while others postpone it.

Either way, the employer has a duty to notify the worker when the vacation bonus will be paid.

Regarding how the money is delivered, it depends on the methods the company regularly uses—could be bank deposits, electronic transfers, or cash.

Differences Between Vacation Bonus and Seniority Premium

Both the vacation bonus and the seniority premium are labor benefits, but each one addresses different aspects of the employment relationship.

Key differences:

While both aim to protect worker rights, each covers a different context.

The Vacation Bonus and Income Tax

Because the vacation bonus counts as income, it’s subject to Income Tax (ISR). However, Mexico’s ISR Law specifies how this benefit is taxed:

• Partial Exemption. The bonus is tax-exempt up to an amount equivalent to 15 times the UMA’s daily value for each year of service.

• Tax Calculation. If the bonus goes over that exempt ceiling, the employer must withhold ISR on the surplus. To do so, they use progressive ISR brackets, factoring in the worker’s total cumulative earnings.

As of 2025, the daily UMA value is 113.14 MXN, so the maximum limit for a partial tax exemption is 1,697.1 MXN.

What If a Company Fails to Pay the Vacation Bonus?

Should an employer not pay the bonus, they violate the Federal Labor Law—risking legal and administrative penalties, such as:

• Fines from the Secretariat of Labor and Social Welfare (STPS).

• Potential complaints or lawsuits by employees before the Conciliation and Arbitration Board.

• Retroactive liability for unpaid amounts from previous periods.

In short, failing to comply can mean significant financial and reputational harm to the company.

Conclusion

The vacation bonus is a legal obligation employers owe their personnel—and also a form of investment in workers’ quality of life and productivity. Meanwhile, for employees, it’s a benefit enabling them to disconnect from the daily grind without facing added expenses.

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