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Christmas Bonus Calculator

What Is the Christmas Bonus (Aguinaldo)?

The Christmas bonus, known as 'aguinaldo' in Mexico and much of Latin America, is a legally mandated annual payment that employers must give to their workers. In Mexico, Article 87 of the Federal Labor Law requires employers to pay at least 15 days of salary as a year-end bonus, delivered no later than December 20th. This benefit was established in 1970 and applies to all workers with a formal employment relationship, including domestic workers, part-time employees, and seasonal staff. The aguinaldo serves as financial support during the holiday season and is one of the most important worker benefits in the region. Many companies voluntarily offer more than the legal minimum — 20, 30, or even 40 days — as part of their compensation package to attract and retain talent. Recent legislative proposals have sought to increase the minimum to 30 days, though as of 2026 the legal minimum remains at 15 days.

How Is the Bonus Calculated? (Including ISR Methods)

The calculation starts with your daily salary (monthly ÷ 30, biweekly ÷ 15, weekly ÷ 7). This daily rate is multiplied by your bonus days. If you didn't work the full year, the bonus is proportional: (Daily Salary × Bonus Days × Days Worked) ÷ 365. For ISR in Mexico, the first 30 UMA ($3,519.30 MXN in 2026) is always exempt. For the taxable remainder, there are TWO official methods. The Art. 96 method adds the taxable bonus directly to your monthly salary and applies the ISR table — this can push you into a higher bracket, resulting in more tax. The Art. 174 method (Reglamento) divides the taxable bonus by 365, multiplies by 30.4 to get a monthly equivalent, calculates the ISR difference (with vs without bonus), and derives an effective rate — this method typically results in 15-30% less ISR withholding. Your employer chooses which method to use, but both are legal. If you think too much ISR was withheld, you can recover the excess in your annual tax return.

Frequently Asked Questions

What is the legal minimum Christmas bonus in Mexico?

The Federal Labor Law (Art. 87) requires at least 15 days of base salary. Many companies offer 20-40 days as a superior benefit. As of 2026, the legal minimum is still 15 days despite proposals to increase it to 30.

When must the Christmas bonus be paid?

By December 20th at the latest. Late payment can result in fines of 50 to 5,000× the daily minimum wage. File complaints with PROFEDET (800-911-7877) or STPS if your employer misses the deadline.

What is the difference between Art. 96 and Art. 174 for ISR?

Art. 96 (direct) adds the taxable bonus to your monthly salary and applies the tax table — this can push you into a higher bracket. Art. 174 (annualized) divides the taxable bonus by 365, multiplies by 30.4, and calculates an effective rate — usually resulting in 15-30% lower ISR. Your employer chooses the method.

Do I get a bonus if I worked less than a year?

Yes. You receive a proportional bonus: (Daily Salary × Bonus Days × Days Worked) ÷ 365. This applies even after resignation or termination — it must be included in your finiquito.

How much of my aguinaldo is tax-exempt?

The first 30 UMA ($3,519.30 MXN in 2026, based on daily UMA of $117.31) is exempt from ISR. This exemption is NEVER prorated — even if you only worked 1 month. Workers earning minimum wage typically receive their entire bonus tax-free.

Should I use monthly, biweekly, or daily salary?

Use whichever matches your pay stub. Monthly ÷ 30 = daily salary. Biweekly (quincenal) ÷ 15 = daily. Weekly ÷ 7 = daily. For variable income, use the average of your gross earnings from the last 30 working days.

Are domestic workers entitled to the Christmas bonus?

Yes. All workers with a subordinate employment relationship are entitled, including domestic workers, gardeners, caregivers, and drivers. The bonus is proportional to days worked and based on agreed wage.

What if my employer doesn't pay the bonus?

File a complaint with PROFEDET (800-911-7877 or gob.mx/profedet). You have up to 1 year to claim. Employers face fines and must pay the bonus plus potential interest and penalties.