Informality Leaves Millions Without Holiday Bonus in Mexico

Nearly 14 million workers in Mexico will miss the mandatory aguinaldo (holiday bonus) this year as widespread labor informality continues to exclude millions of employees from legally required benefits, official figures show.

“The aguinaldo is not a prize or a gift; it is a right of every worker,” says Federico Rojas, Minister of Labor of Nuevo Leon.

The aguinaldo is a mandatory year-end payment that must be delivered by Dec. 20. Under Article 87 of the Federal Labor Law, employees are entitled to at least 15 days of salary after completing one year of service. Workers who have not completed a full year must receive a proportional payment based on time worked. The benefit applies broadly to workers covered by the law, including permanent, temporary, seasonal, probationary, and project-based employees, as well as those undergoing initial training.

Despite the clear legal framework, access to the benefit remains uneven. Mexico recorded 40.8 million subordinated and paid workers between July and September 2025, reports Data from the National Institute of Statistics and Geography (INEGI). Of that total, 33.6%, or 13.7 million people, lacked access not only to the aguinaldo but also to other core benefits such as paid vacation and profit sharing. This figure represents the highest level observed in the past year and accounts for 22.3% of the economically active population.

In population terms, the number of workers without access to the aguinaldo is comparable to the combined populations of Mexico City, Queretaro, and Morelos. Limited creation of formal jobs and weak labor conditions have pushed many workers to accept informal arrangements in exchange for income stability or higher immediate wages.

The absence of the aguinaldo has direct implications for household finances and consumption patterns, reports El Universal. Humberto Calzada, Chief Economist, Rankia, says households with lower labor income generally lack the capacity to save and tend to rely on the aguinaldo to cover year-end expenses. When the payment is missing, these households are more likely to turn to consumer credit, increasing financial pressure as the new year begins. The situation contributes to the seasonal slowdown in spending often observed during the so-called Cuesta de Enero (January slope), when debt payments weigh on household budgets.

Regional data reflects the uneven distribution of the issue. The State of Mexico concentrates the largest number of subordinated workers who will not receive the aguinaldo, with 2.2 million affected. Puebla and Veracruz follow, with about 1 million workers each, according to the National Survey of Occupation and Employment. Mexico City and Michoacan each report roughly 800,000 workers without access to the benefit.

Younger workers are disproportionately affected. Of the 13.7 million workers without aguinaldo access, 5.3 million are between 15 and 29 years old, placing them in Generation Z, while 5.2 million are between 30 and 49.

For companies that do comply, the aguinaldo marks a critical moment in the employer-employee relationship. Brian Klahr, Co-Founder, Bonda, says December functions as a “stress test” for workforce trust and retention. He notes that while the aguinaldo is a legal obligation, it often coincides with discretionary benefits such as holiday gift baskets, which can influence employee perceptions heading into the new year.

Klahr says many traditional benefits lack relevance for workers and fail to strengthen engagement at a time when voluntary turnover tends to rise. January is typically one of the peak months for resignations, as employees reassess their employment after receiving the aguinaldo. According to Klahr, generic, non-personalized benefits represent a missed opportunity in a labor market characterized by high mobility and fragile loyalty.

Citing regional studies, Klahr says flexibility and personalization rank among the most influential factors in employee retention, with close to 70% of workers reporting that customizable benefits affect their decision to stay. 

From a regulatory standpoint, labor authorities reiterate that the aguinaldo cannot be substituted with goods or vouchers. Employers that fail to comply by the Dec. 20 deadline may face fines and legal action. The Ministry of Labor offers guidance, conciliation, and legal representation to workers who do not receive the payment, as part of its enforcement framework.

At the legislative level, proposals to strengthen the benefit remain under discussion. One initiative in Congress would amend the Federal Labor Law to raise the minimum aguinaldo from 15 to 30 days of salary. While still under review, the proposal reflects broader debates around compensation, purchasing power and the role of benefits in supporting household income.

Beyond its legal function, the aguinaldo plays a central role in Mexico’s year-end economic cycle. The payment has become a key financial inflow that supports consumption and liquidity during the holiday season.

For businesses and policymakers, the data underscore persistent structural challenges. High informality, uneven enforcement, and limited investment continue to restrict access to legally mandated benefits. Without sustained efforts to expand formal employment and align incentives for compliance, millions of workers are likely to remain excluded from the aguinaldo, reinforcing income volatility and shaping labor market dynamics at the start of each year.