Since January 1, 2023, Mexico's Federal Labor Law includes the reform known as "vacaciones dignas" (decent vacations). Under it, an employee who completes the first year of service is entitled to 12 vacation days, and that number grows by two days each year up to the fifth year. After that, it increases by two days for every five-year block.
Vacation days by years of service
| Years of service | Vacation days |
|---|---|
| 1 | 12 |
| 2 | 14 |
| 3 | 16 |
| 4 | 18 |
| 5 | 20 |
| 6 to 10 | 22 |
| 11 to 15 | 24 |
| 16 to 20 | 26 |
| 21 to 25 | 28 |
| 26 to 30 | 30 |
| 31 to 35 | 32 |
How they must be granted
- Vacations must be taken within six months after the employee completes each year of service.
- The employee may take at least 12 consecutive days and distribute the rest as they wish.
- Vacations cannot be exchanged for money, except when the employment relationship ends.
- Each year the employer must give the employee a statement showing their seniority and vacation period.
Vacation premium (prima vacacional)
On top of the salary for the vacation days, the employer pays a premium of at least 25 % of that salary. For ISR (Mexico's federal income tax), the premium is exempt up to 15 UMA per year, that is, $1,759.65 in 2026. The UMA is the official reference unit used to set tax and social security limits.
Effect on the contribution base salary
Vacation days and the premium are part of the integration factor used by IMSS (the Mexican Social Security Institute) to determine the contribution base salary (SBC). In the first year, with 15 days of aguinaldo (year-end bonus), 12 vacation days and a 25 % premium, the minimum factor is 1.0493. As seniority grows, the factor rises, so the SBC must be updated on each work anniversary.
Legal basis
- Federal Labor Law, Articles 76, 78, 79, 80 and 81.
- Reform decree published in the Official Gazette (DOF) on December 27, 2022.
- ISR Law, Article 93, section XIV (vacation premium exemption).
- Social Security Law, Article 27 (salary integration).
In Nomikhor, the integration factor is recalculated on each employee's anniversary, the vacation premium is split into taxable and exempt amounts, and ISR and IMSS contributions are calculated automatically with the current UMA.