Salary and tax
How Are Aguinaldo, Finiquito and Severance Calculated in Mexico?
In Mexico, the finiquito is final pay owed when a job ends for any reason: prorated aguinaldo and vacation, the vacation premium, and unpaid wages. The liquidación is the finiquito plus severance for dismissal. On a daily wage of MX$500 with 5.67 years of service, resigning on October 31, 2026 gives a finiquito of about $15,476.03; an unjustified dismissal with 3 months of pay and the seniority premium raises it to about $94,519.86.
Last updated: October 20, 2026
1. Aguinaldo (year-end bonus)
Article 87 of the Federal Labor Law (LFT) requires at least 15 days of wages, paid before December 20, prorated for a partial year.
Aguinaldo = daily wage × aguinaldo days × days worked in the year ÷ 365
Full year at $500 a day: 500 × 15 = $7,500.00. Leaving on October 31 (304 days): 500 × 15 × 304 ÷ 365 = $6,246.58.
2. Vacation pay and vacation premium
Since 2023, employees get 12 vacation days in year one, 2 more each year up to 20 in year five, then 2 more every 5 years (22 days in years 6 to 10). On leaving, unused prorated days are paid, plus a vacation premium (prima vacacional) of at least 25% (article 80).
At 5.67 years the current year is the sixth (22 days). From March 1 to October 31 that is 14.77 days: 14.77 × $500 = $7,383.56, plus a 25% premium of $1,845.89.
3. Seniority premium (prima de antigüedad)
12 days per year of service (article 162), using a daily wage capped at twice the minimum wage ($630.08 in the general zone in 2026). It is paid on any dismissal, justified or not, but on resignation only after 15 or more years.
4. Severance for unjustified dismissal
- 3 months of wages (90 days): $45,000 in the example.
- 20 days per year of service: owed when the employer refuses reinstatement, or when the employee ends the job for the employer's fault (articles 50 and 52). About $56,740 in the example.
- Back pay (salarios vencidos) of up to 12 months plus interest can be added in a lawsuit; the calculator does not include it.
Severance is legally based on the integrated daily wage (salario diario integrado), which includes the prorated aguinaldo, vacation premium, and other benefits. Use it instead of the base wage if you know it.
The example at a glance
| Situation | Gross total | ISR-exempt part |
|---|---|---|
| Aguinaldo (full year) | $7,500.00 | $3,519.30 |
| Resignation (finiquito) | $15,476.03 | $5,278.95 |
| Dismissal (3 months + seniority) | $94,519.86 | $68,626.35 |
| Dismissal + 20 days per year | $151,259.59 | $68,626.35 |
Income tax (ISR)
With the 2026 UMA of $117.31, the aguinaldo is exempt up to 30 UMA ($3,519.30), the vacation premium up to 15 UMA ($1,759.65), and severance plus the seniority premium up to 90 UMA per year of service (a fraction over six months counts as a full year). Vacation pay and unpaid wages are fully taxable. The employer withholds ISR on the taxable part.
Key takeaways
- Aguinaldo: at least 15 days of wages by December 20, prorated for a partial year.
- Finiquito: prorated aguinaldo and vacation, vacation premium (25% minimum), and unpaid wages.
- Liquidación: finiquito + 3 months of wages + 12 days per year seniority premium, and in some cases 20 days per year.
- The seniority premium is paid on any dismissal, but on resignation only after 15 years.
- 2026 ISR exemptions: aguinaldo up to 30 UMA, vacation premium up to 15 UMA, severance up to 90 UMA per year.
Frequently asked questions
What is the difference between finiquito and liquidación?
The finiquito is paid on any separation and covers benefits already earned. The liquidación adds the severance owed when an employee is dismissed without justified cause.
Do I get the aguinaldo if I quit before December?
Yes. You are owed the prorated aguinaldo for the days worked that year, whether you resign or are dismissed.
How much is the aguinaldo on minimum wage in 2026?
At the 2026 general minimum wage of $315.04 a day, 15 days is $4,725.60 for a full year, all of it exempt from ISR.
Sources: Federal Labor Law (LFT), Income Tax Law (LISR), PROFEDET