Mexico's Aguinaldo: Calculation, Deadline and Income Tax Withholding
Mexican law requires an annual bonus called the aguinaldo of at least 15 days of pay, due before December 20 and exempt from income tax up to 30 UMA. This guide shows the formula, the pro rata rule and the withholding logic, with examples built on labeled assumptions.
A company that hires people in Mexico, whether through its own entity or through a local provider, hits the same surprise in the fourth quarter. A statutory year-end bonus appears on the payroll calendar, it has its own deadline and its own tax treatment, and the foreign finance team has never budgeted for it.
At Soulbit Academy, we explain how the Mexican aguinaldo is calculated, when it falls due and which part is taxed, so a finance lead can close the year without surprises. This article covers the calculation and the tax. The cash-reserve angle is in provisioning prima and aguinaldo for year end.
What the aguinaldo is and who receives it
The aguinaldo is a mandatory annual payment equal to at least fifteen days of salary. It is set by article 87 of the Federal Labor Law and applies to every employee, whatever the type of contract or the length of the workday.
The law says "at least". Fifteen days is a floor, not a ceiling, and many employers grant 20, 30 or more in the contract or the handbook. Check the employment agreements before you calculate. Foreign employers often discover that the offer letter promised a figure that is higher than the legal minimum.
What about someone who did not work the full year?
The same article gives employees who have not completed a year of service a pro rata share, however short the time worked, whether or not they are still employed on the payment date. A person hired in November receives a share like any other employee.
Independent contractors who bill fees do not receive an aguinaldo. If the relationship is subordinate in practice, it can be treated as employment, as explained in the guide to remote workers in Mexico and the CFDI.
The deadline: before December 20
Article 87 requires payment before December 20. The text says "before", not "by". A prudent reading treats December 19 as the last safe day, and the 2026 calendar tightens it further.
In 2026 December 20 is a Sunday and December 19 is a Saturday. If your treasury does not send payments on weekends, the last business day is Friday, December 18. A transfer sent on Friday afternoon can post on Monday, so a sensible control date is Wednesday, December 16 or Thursday, December 17.
As of October 2026, roughly seven weeks remain. Close hires, exits, raises and agreed bonus days by the end of November. A change in schedule, such as the one described in the 40-hour workweek in Mexico, can also move the daily wage that serves as the base.
We do not state a specific penalty for late payment, because the text of article 87 does not set one. The practical risk is a claim by the employee before the labor authority. Confirm the exposure with a Mexican labor lawyer.
How to calculate the aguinaldo: formula, days and pro rata
The aguinaldo for a full year is the daily wage multiplied by the days of aguinaldo, at least fifteen. For a partial year, you also multiply by days worked and divide by 365.
The formula has three inputs:
- Daily wage. The daily rate on which the person is paid. For a monthly salary, divide by 30.
- Days of aguinaldo. Fifteen, or whatever the contract grants.
- Proportion. Days worked in the year divided by 365, which equals 1 for a full year.
Result: daily wage × days of aguinaldo × (days worked ÷ 365).
If pay includes variable components such as commissions, the company must decide with its adviser how the daily base is set and apply it consistently. It depends on the contract, and we do not give a single rule here.
The examples below assume pay above the 2026 general minimum wage of 315.04 pesos a day; they are illustrative, not real cases or Soulbit figures. Amounts are in Mexican pesos, and the exempt cap uses the 2026 UMA explained in the next section.
Case 1: monthly salary of 30,000, full year. Daily wage: 1,000. Aguinaldo: 1,000 × 15 = 15,000.
Case 2: monthly salary of 12,000, full year. Daily wage: 400. Aguinaldo: 400 × 15 = 6,000.
Case 3: monthly salary of 24,000, hired August 1. Daily wage: 800. Days worked to December 31: 153. Aguinaldo: 800 × 15 × 153 ÷ 365 = 5,030.14.
Case 4: monthly salary of 18,000, left June 30. Daily wage: 600. Days worked: 181. Aguinaldo: 600 × 15 × 181 ÷ 365 = 4,463.01, paid with the final settlement. The settlement itself is explained in severance and finiquito in Mexico.
| Case (assumptions) | Gross aguinaldo | Exempt up to 30 UMA | Taxable excess |
|---|---|---|---|
| 1: 1,000 daily, 15 days, full year | 15,000.00 | 3,519.30 | 11,480.70 |
| 2: 400 daily, 15 days, full year | 6,000.00 | 3,519.30 | 2,480.70 |
| 3: 800 daily, hired August 1 | 5,030.14 | 3,519.30 | 1,510.84 |
| 4: 600 daily, left June 30 | 4,463.01 | 3,519.30 | 943.71 |
Income tax on the aguinaldo: the 30 UMA exemption and withholding
For employees earning above the minimum wage, the aguinaldo is generally exempt from income tax up to 30 times the UMA, and the excess is added to taxable income. Article 93(I) provides a separate exemption for statutory benefits of minimum-wage employees; review those cases individually. The rule sits in article 93, fraction XIV, of the Income Tax Law, which exempts general year-end bonuses in a calendar year up to that limit.
The 2026 daily UMA is 117.31 pesos, published by INEGI in the Official Gazette on January 9, 2026 and in force from February 1. Thirty times that figure is 3,519.30 pesos. Until January 2026 the earlier value of 113.14 pesos still applied. The current text of section XIV still says "general minimum wage" multiplied by 30 days; the UMA-based calculation comes from the 2016 constitutional reform that de-indexed the minimum wage and requires such references to be read as UMA. Confirm the approach with your tax adviser before you close payroll.
Three practical consequences follow:
- The cap is annual and per person. It counts every general bonus paid in the calendar year, not just the December payment.
- Only the excess is withheld. In Case 1 of Table 1, only 11,480.70 of the 15,000 enters the withholding base.
- An aguinaldo below the cap triggers no withholding. For a small payment there may be no tax to withhold.
Withholding on the excess is not a flat rate. The company applies the procedure that the tax rules set for withholding on benefit payments, through its payroll software or its accountant. We do not give a per-person withholding figure here, because it depends on the tax table and the rest of the month's income.
Does the payroll CFDI have to show the aguinaldo?
Yes. The payment must be documented in the payroll receipt, with the exempt and taxable parts separated. The technical detail follows the current SAT rule and is executed by the company's payroll provider. For a foreign parent, this is a good reason to keep a local payroll provider.
Do not mix this with other outbound payments. A payment to a non-resident supplier follows a different regime, covered in Mexican withholding tax on payments to foreign residents.
The vacation premium: 25% and its 15 UMA exemption
The vacation premium is a separate benefit: an extra payment of at least 25% of the salary for the vacation days. Article 80 of the Federal Labor Law sets it, and it is paid when the employee takes vacation.
Minimum vacation is an input. After the "dignified vacations" reform published in December 2022, an employee with one year of service has twelve working days, with two more days for each following year up to twenty. Article 76 of the Federal Labor Law applies.
For income tax, the general vacation premium is exempt up to 15 times the UMA per calendar year, under the same fraction XIV of article 93. With a UMA of 117.31 pesos, the cap is 1,759.65 pesos.
Hypothetical example: a daily wage of 1,000 pesos and twelve vacation days. Premium: 1,000 × 12 × 25% = 3,000. Exempt: 1,759.65. Taxable excess: 1,240.35 pesos.
| Item | Legal basis | Legal minimum | Income tax exempt cap (2026 UMA) |
|---|---|---|---|
| Aguinaldo | Art. 87 LFT | 15 days of salary | 30 UMA: 3,519.30 pesos |
| Vacation premium | Art. 80 LFT | 25% of vacation-day salary | 15 UMA: 1,759.65 pesos |
| Vacation (first year) | Art. 76 LFT | 12 working days | Not applicable |
Employer social security contributions interact with these benefits, as described in IMSS employer contributions in Mexico.
Common mistakes when settling the aguinaldo
The errors cluster around the base, the proportion and the calendar. Few are arithmetic. Most are inputs that were not updated during the year.
- Using the January daily wage. If raises occurred, document which wage you use and apply it to everyone.
- Forgetting leavers. They keep a pro rata share, which belongs in the settlement.
- Applying the legal minimum to a team with contractual days. Review agreements and policies first.
- Not splitting exempt and taxable. The payroll receipt requires both.
- Using last year's UMA. The 2025 value of 113.14 pesos understates the cap.
- Treating a contractor as an employee or the reverse. The status decides whether an aguinaldo is owed.
What Soulbit covers when paying the aguinaldo, and what it does not
Soulbit does not calculate the aguinaldo, does not withhold income tax and does not issue or stamp the payroll CFDI. Calculation, withholding and the receipt stay with the company, its payroll software and its accountant.
The intended scope of Soulbit Salaries begins after the calculation: disbursing payments that are already calculated and approved, on a recurring basis or in batches, on institutional custody with MPC, with AML/KYT controls and human support. The platform balance is in USDC and USDT, and conversions are by OTC quote.
There are limits to state plainly. Soulbit has no local bank rail in Mexico: the V1 local bank rail is Colombian only. Soulbit is a custodial platform, not a financial institution, and does not offer bank accounts. It is not validated that a statutory benefit like the aguinaldo can be paid to an employee in stablecoin, so any use must first be reviewed with your labor adviser. Soulbit mobile apps should not be considered available until they are published in the stores. This article promises no fees or pricing advantage.
Frequently asked questions
What is the aguinaldo and is it mandatory in Mexico?
The aguinaldo is a mandatory annual bonus set by article 87 of the Federal Labor Law. It equals at least fifteen days of salary. A contract or company policy may grant more days, and then the higher figure is owed. It applies to employees, not to independent contractors who bill fees.
When must a company pay the aguinaldo in 2026?
The law says it must be paid before December 20. In 2026 December 20 falls on a Sunday and December 19 on a Saturday, so the practical deadline is Friday, December 18. Because a transfer sent late on Friday may post the following Monday, treat December 16 or 17 as your control date.
How much of the aguinaldo is exempt from income tax in 2026?
For pay above the minimum wage, the general exemption is 30 daily UMA, or 3,519.30 pesos from February 1, 2026. Only the excess is taxable, and the cap covers general bonuses for the year. Article 93(I) has a separate rule for statutory benefits of minimum-wage employees.
Does an employee who leaves before December still receive an aguinaldo?
Yes. The employee keeps the right to a pro rata share, however short the time worked, even if no longer employed on the payment date. The amount is part of the final settlement. It is days worked in the year divided by 365 and multiplied by the minimum fifteen days of salary.
Does Soulbit calculate the aguinaldo or withhold income tax?
No. Soulbit does not calculate the aguinaldo, withhold or file income tax, or issue the payroll CFDI. Soulbit Salaries is designed to disburse payments that the company has already calculated and approved. Soulbit has no local bank rail in Mexico, and paying a statutory benefit in stablecoin must be validated with your labor adviser.
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