In Mexico, employees are entitled to paid vacation leave under the Federal Labour Law (Ley Federal del Trabajo). Following the 2023 reform, the minimum entitlement starts at 12 days in the first year and increases annually. Employees also receive a vacation premium (prima vacacional) of at least 25% of their normal remuneration.

Statutory entitlement

12 days in the first year, 14 days in the second, 16 days in the third, 18 days in the fourth, and 20 days in the fifth year. Increases by 2 days per year up to 20 days, then by 2 days every 5 years. Vacation premium: minimum 25% of normal remuneration.

Eligibility

All employees are entitled to vacation leave after completing one year of service.

Employer obligations

  • Grant vacation leave as per the statutory minimum (12–20+ days based on service).
  • Pay the employee's normal remuneration plus the vacation premium (minimum 25%).
  • Allow the employee to take vacation leave within six months after completing the year of service.
  • Pay for unused vacation leave on termination of employment.

Employee rights

  • Right to 12–20+ days of vacation leave based on service.
  • Right to the vacation premium (minimum 25% of normal remuneration).
  • Right to paid leave payout on termination.

Common pitfalls

  • Not applying the 2023 reform — the minimum entitlement was significantly increased.
  • Not paying the vacation premium — this is a statutory requirement.

How vacation leave increases

Vacation leave starts at 12 days in the first year and increases by 2 days per year until reaching 20 days in the fifth year. After that, it increases by 2 days every 5 years.

Vacation premium

In addition to normal pay during vacation, employees receive a vacation premium of at least 25% of their normal remuneration. Many collective agreements provide higher premiums.

Frequently asked questions

What is the vacation premium?

The vacation premium is an additional payment of at least 25% of the employee's normal remuneration during vacation leave.

Sources

This page is provided for general guidance and does not constitute legal advice. Always check the cited primary source for current law before making employment decisions.