How long is annual leave in Mexico?

Effective January 1, 2023, employees in Mexico with more than one year of service are entitled to annual leave based on their length of service. The details are as follows:

• 12 days of vacation after 1 year of service.
• 14 days of vacation after 2 years of service.
• 16 days of vacation after 3 years of service.
• 18 days of vacation after 4 years of service.
• As of the fifth year, employees are entitled to 20 workdays of vacation. For each additional group of 5 years, 2 more vacation days are added.

Additionally, employers must pay workers a vacation premium equivalent to 25% of the salary earned during the vacation days.

How is annual leave accrued in Mexico?

In Mexico, annual leave is accrued based on the completion of each year of service. Employees accrue 12 days of leave per year initially. As employee seniority increases, the entitlement also increases:

• After the first year, employees accrue an additional 2 days per year, reaching up to 20 days in the sixth year.
• For service beyond the sixth year, the mandatory vacation entitlement increases by 2 additional days for every 5 years of service.

What is the carry-over policy for annual leave in Mexico?

In Mexico, vacation days do not automatically carry over unless the employer has a specific policy that allows it. Supported employees must take their vacation days within 6 months of their employment anniversary date. If vacation days are not used within 18 months of the anniversary date, they will expire due to the statute of limitations. Additionally, vacation days cannot be exchanged for payment.

How is paid time off (PTO) calculated in Mexico?

In Mexico, paid time off (PTO) is calculated as follows:

• PTO is paid as a regular working day and appears on the employee's payslips without additional payments.
• Employees are entitled to a vacation premium equivalent to at least 25% of their base salaries for the vacation period.
• On the hiring anniversary each year, employees receive a vacation premium, which is a prorated amount. This premium is calculated by multiplying the percentage established in the employment agreement by the daily salary and the number of vacation days entitled for that anniversary.

For example, if an employee has a daily salary of 500 MXN, a vacation premium of 50%, and is entitled to 12 vacation days on their first anniversary, the vacation premium would be calculated as follows: 50% × 500 MXN × 12 = 3,000 MXN.

What is the process to request annual leave in Mexico?

Supported employees in Mexico must follow a specific process to request annual leave, which consists of the following steps:

• The first step is for the supported employee to send a message to support@hellopebl.com to inquire about their leave balance.
• Next, the supported employee needs to request the required paid time off (PTO) from their direct supervisor and ensure they obtain email approval, or approval through an internal PTO tool from the customer.
• The supported employee should then send a message to support@hellopebl.com to request registration of their time off, attaching the supervisor's email approval.

Is unlimited PTO an option in Mexico, and how can it be accommodated?

In Mexico, statutory leaves and additional Paid Time Off (PTO) must be explicitly detailed in the employment agreement. The statutory minimum vacation days are based on the length of service and are outlined as follows:

• 12 days of vacation after 1 year of service.
• 14 days of vacation after 2 years of service.
• 16 days of vacation after 3 years of service.
• 18 days of vacation after 4 years of service.
• Starting from the 5th year, employees are entitled to 20 workdays of vacation, with an additional 2 vacation days for every subsequent group of 5 years of service.

Employers are required to pay employees a vacation premium equivalent to 25% of the salary earned during the vacation days.

Although unlimited PTO is not a standard practice in Mexico, an employer can grant additional PTO. These additional days must be clearly specified and agreed upon in the employment agreement.