Mexican Senate Debates Progressive Increase to Aguinaldo

Mexico’s Senate has opened debate on a proposal to increase the mandatory holiday bonus, or aguinaldo, through a progressive scheme linked to worker seniority, a reform that would modify the Federal Labor Law and potentially raise the minimum benefit from 15 to 30 days of salary over time. The initiative, presented by senators from the Citizens’ Movement party, seeks to amend Art. 87 of the law to adjust the benefit in line with changes in labor conditions and household spending needs.

Lawmakers argue that while the aguinaldo remains one of the most anticipated year-end payments, its minimum level has remained largely unchanged for decades. “Strengthening these economic benefits and updating them to the country’s reality is essential to guarantee fair labor conditions,” states the proposal, noting the bonus has a direct impact on household finances and year-end consumption.

Under the proposal, workers would continue to receive a minimum of 15 days of salary during their first year of employment, with proportional payments for those who have not completed a full year. From the second to the third year of service, the benefit would rise to at least 20 days of salary, increase to 25 days in the fourth and fifth years, and reach a minimum of 30 days after six years of service. The Dec. 20 payment deadline would remain unchanged.

Supporters of the reform say the gradual increase recognizes tenure without creating abrupt cost pressures for employers, highlights El Economista. The Senate proposal mirrors a similar initiative introduced in the Chamber of Deputies in late November, also backed by Citizens’ Movement lawmakers. Other proposals presented in the lower house have sought to reduce or eliminate income tax on the aguinaldo, though those measures have not advanced.

The discussion takes place against a backdrop of persistent labor informality that continues to limit access to legally mandated benefits. According to data from the National Institute of Statistics and Geography, Mexico recorded 40.8 million subordinated and paid workers between July and September 2025. Of that total, 33.6%, or 13.7 million people, lacked access to the aguinaldo and other core benefits such as paid vacation and profit sharing. That figure represents the highest level recorded over the past year and more than one-fifth of the economically active population.

Labor authorities have reiterated that the aguinaldo is a legal obligation rather than a discretionary payment. “The aguinaldo is not a prize or a gift; it is a right of every worker,” said Federico Rojas, Labor Minister, Nuevo León, as cited by MBN.

The absence of the bonus has broader economic implications. Economists note that lower-income households often rely on the aguinaldo to manage year-end expenses and avoid short-term debt. When the payment is missing, households are more likely to turn to consumer credit, increasing financial pressure at the start of the year and contributing to the seasonal slowdown in spending known as the “January slope.”

Recent consumer data underscore the relevance of the aguinaldo in Mexico’s holiday economy. A 2025 Ipsos study based on surveys conducted in Mexico City, Guadalajara, and Monterrey found that 53% of consumers fund holiday purchases using their year-end bonus, while only 22% rely primarily on credit cards. Although 54% of respondents reported increasing their holiday budgets this year, financial stress remains widespread, with 53% citing excessive spending as a major concern.

Financial pressure is more pronounced among older consumers. Ipsos found that 58% of respondents aged 51 to 70 identified financial stress as a key issue during the holiday season, compared with 50% of those aged 36 to 50. Fernando Álvarez, Senior Business Director, Ipsos Mexico, said the findings indicate a shift toward planning and budget control rather than debt-driven consumption, reinforcing the importance of predictable income flows such as the aguinaldo.

Regional labor data show that the lack of access to the benefit is unevenly distributed. The State of Mexico concentrates the largest number of workers without aguinaldo access, with about 2.2 million affected, followed by Puebla and Veracruz with roughly 1 million each. Mexico City and Michoacan each report close to 800,000 workers in the same situation. Younger workers are disproportionately affected: of the 13.7 million workers without access, 5.3 million are between 15 and 29 years old, and 5.2 million are between 30 and 49.

For employers in the formal sector, the aguinaldo continues to play a central role in employee relations. Human capital specialists describe December as a key period for workforce retention, particularly as January is traditionally one of the months with the highest voluntary turnover. While the aguinaldo is mandatory, it often coincides with discretionary benefits that influence employee perceptions ahead of the new year. Studies cited by benefits providers indicate that flexibility and personalization are increasingly relevant factors in retention decisions.

The Senate initiative also places Mexico within a broader international discussion. In several countries, year-end bonuses are equivalent to a full month of salary or are distributed in multiple payments throughout the year. Lawmakers backing the reform argue that adjusting the aguinaldo could help align Mexico’s labor framework with international practices while supporting purchasing power during a period of heightened consumer activity. The proposal is currently under review by the Senate’s joint committees on Labor and Social Welfare and Legislative Studies. Lawmakers have indicated the discussion could extend into 2026.