Last updated on: July 3rd, 2023
Mexican labor requirements are mainly governed by the Ley Federal de Trabajo or Federal Labor Law, the Mexican Constitution and the Social Security Law.
Hours & Pay Regulations
Employees who have more than 1 year of service with the same employer will be entitled to an annual paid vacation period, which may not be less than 12 working days. The vacation period will increase by 2 days for each subsequent year of service, up to 20 days of vacation by the 5th year of service.
Starting in the 6th year, the vacation period will increase by 2 days for every 5 years of service. Employees shall accrue annual leave in the following manner –
- Year 1: 12 days of vacation.
- Year 2: 14 days of vacation.
- Year 3: 16 days of vacation.
- Year 4: 18 days of vacation.
- Year 5: 20 days of vacation
- Year 6 – 10: 22 days of vacation.
- Year 11-15: 24 days of vacation.
- Year 16 – 20: 26 days of vacation.
- Year 21 – 25: 28 days of vacation.
- Year 26 – 30: 30 days of vacation.
- Year 31 – 35: 32 days of vacation.
Furthermore, the employees shall enjoy at least 12 continuous days of leave for each year of entitlement.
Vacation must be granted to employees within 6 months following the completion of the service year. Employees who provide discontinuous and seasonal services will have the right to an annual vacation period, in proportion to the number of days worked.
Employees shall receive a premium of 25% for vacation days. Article 76-79 of the Federal Labor Law.
Effective January 1, 2023, the current minimum wage rate is MXN 207.44 pesos per day.
Bonus Pay: Employees will be entitled to an annual bonus to be paid in December, equivalent to a specific percentage of a worker’s salary. This end-of-year bonus, or “aguinaldo,” is also known as “13th-month pay” and is disbursed before Christmas on December 20th. The bonus is equivalent to fifteen days of salary, at least.
Maternity leave will be 12 weeks (6 weeks before the child is born and 6 weeks after birth). Working mothers may request the employer transfer up to 4 weeks of pregnancy leave in order to enjoy them after childbirth via agreement.
In case the children were born with any type of disability or require care in a hospital, the rest may be up to 8 weeks after delivery, prior presentation of the corresponding medical certificate. When an employee returns from maternity leave, the employee is entitled to her employment, provided that no more than 1 year has passed since the date of delivery.
Pay – During maternity leave, the Mexican Social Security Institute will pay the working mother 100 % of her daily salary as a social security contribution. If the maternity leave period is extended, she is entitled to 50% of the daily salary of social security contribution for a period of up to 60 days. Article 164-172 of the Federal Labor Law.
The new mother is entitled to 2 additional 30 minutes rest periods per day to feed the child in an adequate and hygienic place set aside by the employer. If this is not possible, the parties may agree to reduce her work shift by an hour. Articles 63 &170 of the Federal Labor Law.
Following the adoption of a minor child, working mothers have the right to paid maternity leave for 6 weeks after receiving the child. Article 170 of the Federal Labor Law.
Male employees are entitled to enjoy a paid paternity leave of 5 days when the child is born or in case of adoption, as of the placement of the child. Article 164-172 of the Federal Labor Law.
Employees unable to work because of a non-work-related injury or illness and who have made payments into the social security system for the 4 weeks before the condition developed are eligible for paid sick leave through the Social Security Institute. The benefit, which is 60 percent of an employee’s regular wage, is paid from the fourth day of the illness for up to 52 weeks and may be extended for another 52 weeks. Social Security Law, 1995, arts. 58, 91-92, 98.
Employees shall be granted necessary time off to exercise their vote in popular elections, the processes of “revocation of mandate” and to carry out the jury, electoral, and census services, when these activities must be done within the employee’s working hours. Article 132 of the Federal Labor Law.
On June 4, 2019, in the Official Gazette of the Federation, the Mexican Department of Labor and Social Welfare (STPS) published a decree amending the Social Security Law, the Law of the Institute of State Workers ‘ Security and Social Services, and the Federal Labor Law.
The Decree enters into force on June 5, 2019, and reviews each of these laws to allow parents to take time off the job to care for kids under the age of 16 diagnosed with cancer.
The care leave certificate awarded by the IMSS is applicable for up to 28 days to the insured dad or wife. IMSS may issue as many certificates as necessary within three years, but the employee’s leave cannot exceed a total of 364 days. Care leaves granted to the working parent shall cease in the following situations:
- When the minor no longer requires hospitalization or medical rest during the critical periods of treatment;
- Due to the death of the minor;
- When the child turns 16 years old; or
- When the parent who receives the leave is hired by a new employer.
Article 37 Bis was also added to the Law of the Institute of Security and Social Services of State Workers to effectuate this leave.
Federal Labor Law
Furthermore, a fresh Section IX has been introduced to Article 42 of the Federal Labor Law in order to recognize care leave as a cause of temporary suspension of the employment relationship and payment of salaries without accountability for the employee and employer.
Finally, the Federal Labor Law requires employers to grant workers care leaves as provided for in Article 140 Bis of the Law on Social Security. Federal law now specifically acknowledges the right of minors ‘ parents diagnosed with any sort of cancer to enjoy the appropriate care leave.
Occupational Injuries: defined as an accident or disease to which the employees are exposed in the course of their employment, or any consequences thereof;
Industrial Accident: defined as any organic injury, functional disturbance (whether immediate or subsequent) or death, occurring suddenly in the course of the employment or as a result thereof (i.e., the place where or the time when the accident occurs is related to the employment); or
Occupational Diseases: defined as any pathological condition arising out of the continued action of a cause that has its origin or motive in the employment or in the environment in which the employee is obliged to render his services. The consequences of any of the injuries described above, and the term they may last, according to the SSL, are as follows:
- Temporary disability – 52 weeks (which may be extended to an additional period of 52 weeks).
- Permanent partial disability – Permanent leave. Payment is through the IMSS according to the amounts established in FLL.
- Permanent total disability- Permanent leave. Payment is through the IMSS according to the amounts established in FLL.
The economic benefits paid by the IMSS due to illness are based on 60% of the employee’s registered salary, and they are paid as of the fourth day of absence.