Prima vacacional, meaning "vacation premium" or "vacation bonus," is a mandatory extra payment in Mexico that supplements an employee's regular vacation pay. Mexican law requires employers to pay at least 25% of the daily salary for each vacation day as a premium, on top of the regular salary the employee receives during vacation.
Calculation
The minimum prima vacacional is 25% of the wages earned during the vacation period. For example, if an employee earns $1,000 MXN per day and takes 12 days of vacation, they receive their regular $12,000 MXN salary plus a vacation premium of $3,000 MXN (25% of $12,000). Many collective bargaining agreements and company policies provide higher vacation premiums.
2023 Vacation Reform Impact
Mexico's 2023 vacation reform significantly increased minimum vacation days from 6 to 12 days in the first year of employment, scaling up with seniority. This change also increased the total prima vacacional cost for employers, as the 25% premium now applies to more vacation days. The reform made Mexico's vacation entitlement more aligned with other Latin American countries.
EOR Relevance
An EOR in Mexico calculates the prima vacacional based on current vacation entitlements, ensures it is included in the Salario Base de Cotización for IMSS purposes, and pays it when employees take vacation or upon termination as part of the proportional vacation settlement.