Client Alert

Reform to increase vacation days in Mexico

On December 14th, 2022, the Mexican Senate approved the decree that amends articles 76 and 78 of the Federal Labor Law with the purpose of increasing the vacation periods of all employees in Mexico and was sent to the Federal Government for publication in the Federal Official Gazette.

This decree will become effective on January 1st, 2023. Among the various changes contemplated in this reform, we can find the increase in the employees’ vacational periods, which will go from 6 to 12 days at the end of the first year of services, and 2 days will be added for each year of work until reaching 20 days of vacation. As of the sixth year, 2 days will be increased for each period of 5 years of seniority.

Worked Years

Days of Vacation

1 year

12 days

2 years

14 days

years

16 days

years

18 days

years

20 days

From 6 to 10 years

22 days

From 11 to 15 years

24 days

2 days for every 5 years thereafter.

Likewise, the reform establishes that the employee may enjoy the vacation days that he/she has in his/her favor in the form and time required, that is to say, he/she may agree on how to distribute his/her vacation period in a partial or continuous manner.

Finally, it is important to mentioned that this reform not only has a significant labor impact, but also implies, given the increase in the payment of the vacation bonus, an increase in the employees’ base salary for the payment of social security contributions. We remain at your disposal for any questions or concerns that may arise in connection with the content of this summary.


Contact

Gerardo Valencia García de Quevedo
gvalencia@cuestacampos.com

Sandra Chávez
schavez@cuestacampos.com

José Antonio Gallástegui
jgallastegui@cuestacampos.com

The above is provided as general information prepared by professionals with regard to the subject matter. This document only refers to the applicable law in Mexico. While every effort has been made to ensure accuracy, no responsibility can be accepted for errors or omissions. The information contained herein should not be relied on as legal, accounting or professional advice being rendered.