News, Insights and Best Practices for Manufacturing in Mexico

Overview of Employee Benefits and Paid Time-Off in Mexico

   
20 Mar 2017

Category: Labor & Economics, Manufacturing in Mexico

Mexico, like many countries, has baseline legal benefits that are imbedded in the national labor law. Employees in Mexican manufacturing typically follow strong saftey procedures and work within a clean and organized environment. The Mexican Labor Law is strict on enforcing employees' rights and privileges, and usually upholds a non-toxic work environment. 

Employment Benefits in Mexico

  • Vacation time – Employees can request off an annual vacation of at least 6 working days and add 2 working days every following year. After 4 years, the 2 days will be added every 5 years.

  • Vacation premium – Employees get a minimum of 25% salary as a vacation premium, and are paid for the vacation time accrued. Labor unions sometimes try to negotiate the premium percentage up from the legal 25%. 

  • Christmas Bonus – Companies in Mexico are required to pay 15 days salary during the Christmas holidays under Mexico’s Labor Law.  Many companies also shut down their facilities between Christmas and the New Year Holiday.

  • Sunday (7th- day) Rest Day – Mexican workers have a legally prescribed six- day work week of 48 - 42 hours (depending on their shift), and recieve payment for seven days.

  • Rest Day (7th-day) Premium – If an employee works on Sunday, or a seventh day, he or she will receive and added 25% percent more of the regular daily wage.

Mexican employee benefitsLegal Holidays 

During the course of a calendar year, the following days are regular paid time off holidays in the Mexican workplace:

  • January 1st – New Year’s Day
  • February 5th – Constitution Day
  • March 21st – Benito Juárez’s Birthday
  • May 1st – Labor Day
  • September 16th – Mexican Independence Day
  • December 1st – Change of Federal Power Day (This holiday occurs every six years with the swearing in of a new Mexican President)
  • December 25th – Christmas

In addition to legally mandated benefits in Mexico, some industries provide extra benefits to ensure employee well-being, health, and overall production.  For instance, the manufacturing sector, the border regions in particular, have historical issues regarding employee availability, absenteeism, and turnover rates. Because of this, other benefits have been introduced to become the employer of choice.

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Border Facilities

On the Mexican border it is not unusual that some maquiladoras pay workers a bonus for returning to work after the Christmas holiday.  Because many border maquiladora employees are originally from southern areas, they typically return to their home towns and cities during the holiday season. Many opt not to return inciting Mexico border factories to offer a cash incentive to bring them back. This situation does not typically affect maquiladoras in the interior of the country because employees are usually native to the areas.

Employees of border manufacturing facilities are typically provided one hot meal a day, and it is not uncommon that two meals are offered. Additionally some companies may offer coupons for groceries, as well as for prescription medications.  Another common benefit provided to border maquildadora employees is a stipend for transportation to and from work.

When researching employee benefits in Mexico, companies must take Mexican labor laws into account, as well as the added benefits driven by conditions specific to various labor markets.
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