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Practical guide on Christmas Bonus payment and expenditure

According to the preamble of the Federal Labor Law (LFT) the payment of the Christmas bonus responds to the workers' need to meet year end expenses; upon being included in this law, it becomes an obligation for employers and in terms of the Political Constitution  of the Mexican United States, an inalienable right for employees.

Base or Integrated Salary?

According to the Nation's Supreme Court of Justice's jurisprudence in effect, the salary that must be used to compute the payment of the Christmas Bonus is the one known as ordinary salary (otherwise known as base salary) received by the employee on a daily basis.  Now, in terms of the LFT, indemnities (such as the three months in case of dismissal without cause, or the twenty days per year) must be paid using the integrated salary, in other words, the amount of ordinary salary plus all other benefits received by the employee for its work; the Christmas Bonus must be considered among them.  In conclusion, the Christmas Bonus is indeed part of the salary, but it is the base salary the one to be considered for purposes of the computation thereof.

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