What you need to know about household Employees
Living in Mexico has many advantages that you may not have had in your home country. The lower cost of living in most places in Mexico may allow you to hire employees or domestic workers like housekeepers/maids, cooks or gardeners. Yay, more time for you and your family!
There are several things you need to know as Mexico is an Employee friendly country and knowing your responsibilities ahead of time will help you and your employees have a better experience.
Domestic Employees are usually exempt form the IMSS Social Security requirement when hiring employees for your home. This does not mean they are exempted from other employee benefits/requirements. If you have a housekeeper, cook, gardener or pool person, the following are required to be paid by you. Many people have an accountant figure these amounts so that they are correct.
The annual Aguinaldo is the equivalent of 15 days of “Daily Rate” pay.
It is NOT a Christmas bonus. It is a mandatory wage payment that is due by the 20’th of December. The aguinaldo is equivalent to at least “15 days wages”, and may be pro-rated if the employee has been working for you for less than a full year. Many people give a full months salary as Aguinaldo.
** If a worker is hired to work by the week, the “Daily Rate” equals their weekly pay … divided by 7. If he / she is hired by the month, the “Daily Rate” is the monthly amount divided by 30.
**Daily Rate Simplest Example… If you have an employee who works two days a week ~ for the entire year ~ for $350 pesos each day = $700 pesos a week:
$700 pesos / 7 days = $100 pesos per day at their “Daily Rate”
$100 pesos “Daily Rate” x 15 days of Aguinaldo pay = $1500 pesos
Note that if they work only a part year:
An alternate way of calculating the aguinaldo is determined by multiplying the total days they worked in current year by 15, then divide by 365 days, and then multiply by the daily rate:
For a part-year worker coming in for 2 days a month for 9 months =>
18 days … x … 15 days of Aguinaldo = 270
270 / 365 = 0.7392 … 0.74 x $Daily Rate ($100 pesos?) = $ _____
Note. The “Daily Rate” is based on a full week. For example, if your maid only works two days per week, and gets paid $700 pesos per week ($350 pesos per day of work). You take the weeks salary of $700 divided by 7 = $100 pesos is the Daily Rate.
Vacation pay for current year worked. … Remember that this is the official Mexican Labor Law’s “Daily Rate” ** (see below) … and remember they should also receive this pay for all past years worked.
1st year – 6 days salary
2 years – 8 days
3 years – 10 days
4 years – 12 days
5 to 9 years – 14 days
10 to 14 years – 16 days
15 to 19 years – 18 days
20 to 24 years – 20 days
25 to 29 years – 22 days
30 to 34 years – 24 days
35 to 39 years – 26 days
If you terminate an employee you will be required to make several final payments. one for severance, years of service and FINIQUITO.
If the employee worked more than 28 days, it’s at least an automatic 90 days of salary. See the “Finiquito” section below for specifics.
Prima De Antiguedad
12 days pay per each year worked.
Vacation Pay for Current Year
See above for Vacation pay calculations.
Aguinaldo for Current Year
See above for Aguinaldo calculations
Calculators for final severance benefits being paid to domestic and household help (muchachas y mozos):