Aguinaldo: what it means in English and how it is paid
Aguinaldo is Spanish for a year-end or Christmas bonus, and in Mexico it is mandatory: employers must pay at least 15 days of salary before December 20 (Ley Federal del Trabajo, art. 87, checked October 2026). On a MXN 740,000 salary, about USD 40,000, that is MXN 30,411.
Aguinaldo is the Spanish term for a year-end bonus; in Mexico it is a legal right of at least 15 days' salary, paid before December 20.
On this page
Mexico's aguinaldo rules
- Amount: at least 15 days of salary. A contract or collective agreement can give more.
- Deadline: before December 20.
- Part-year workers: anyone who did not work the full year gets a proportional part.
- Social security: the aguinaldo is part of the integrated daily wage (SBC) used for IMSS and INFONAVIT contributions.
It sits next to two other mandatory payments: a vacation premium of at least 25% of vacation pay (art. 80) and PTU profit sharing of 10% of taxable profit (art. 117).
Example: MXN 740,000 a year
| Line | Amount |
|---|---|
| Daily salary (740,000 / 365) | MXN 2,027.40 |
| Minimum aguinaldo (15 days) | MXN 30,411 |
| Share of annual salary | 4.1% |
Source: Ley Federal del Trabajo (diputados.gob.mx); FX at 18.52 MXN per USD, ECB cross rate Oct 15, 2026.
With IMSS, INFONAVIT, the vacation premium and Mexico City's 4% payroll tax, the employer cost reaches 31.8% of base salary; every line is on our Mexico EOR page, with pay levels on Mexico salary data and the 2026 minimum wage.
Aguinaldo in other countries
Argentina: the aguinaldo (SAC) is 1/12 of annual pay, in two installments due June 30 and December 18, each 50% of the highest monthly pay in the half-year (LCT arts. 121 and 122); see Argentina. Costa Rica: secondary sources describe an aguinaldo of 1/12 of pay earned from December 1 to November 30, due by December 20 (Ley 2412); we have not confirmed it on an official page. Brazil calls it the décimo terceiro.
Aguinaldo in the United States: no U.S. law requires a Christmas bonus. If you pay one, it is supplemental wages, and the federal flat withholding rate is 22% (IRS Publication 15, 2026).
Budgeting for it through an EOR
Ask whether the EOR quote accrues the aguinaldo each month, so the December bill is not a surprise. Published EOR fees ran from $99 to $699 a month in October 2026; compare them in our EOR rankings and model the total with the international cost calculator.
Frequently asked questions
What is aguinaldo in English?
How is the aguinaldo calculated in Mexico?
When is the aguinaldo paid?
Is there an aguinaldo in the United States?
Sources (6)
- Camara de Diputados (Mexico): Ley Federal del Trabajo (checked Oct 16, 2026)
- Camara de Diputados (Mexico): Ley del Seguro Social (checked Oct 16, 2026)
- InfoLeg (Argentina): Ley de Contrato de Trabajo 20.744 (checked Oct 16, 2026)
- IRS: Publication 15 (2026), Employer's Tax Guide (checked Oct 16, 2026)
- European Central Bank: Euro foreign exchange reference rates (checked Oct 16, 2026)
- Native Teams: Pricing (checked Oct 18, 2026)
This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.