One of the most important procedures when ending an employment relationship in Mexico is calculating severance pay in Mexico. This payment is an obligation of the employer and corresponds to the rights that correspond to the worker for unpaid salary, vacations, bonuses and other pending benefits.
If you are about to end your employment relationship and you don’t know how to calculate your severance pay, here we explain everything you need to know to do it in a simple way.
The settlement is the payment that the employer must make to the worker when their employment relationship ends, whether due to dismissal, resignation, termination of contract or any other cause. This payment includes:
- Earned wages: Days worked and not paid.
- Vacation: The proportional part of the vacation days not taken.
- Bonus: The proportional part of the bonus corresponding to the time worked.
- Vacation bonus: If applicable, the proportional vacation bonus must be included.
It is important to highlight that calculating severance pay in Mexico is a right protected by the Federal Labor Law, so it is essential to know how to do it correctly to avoid errors and guarantee that you receive what is due to you.
To calculate settlement in Mexico, it is necessary to take into account several key elements. Here are the steps to do it:
1. Calculate the salary earned
The first step is to calculate the salary that you have worked and that has not yet been paid. If you have worked additional days that have not been paid, these must be added to the total settlement.
2. Proportion of vacations not taken
In Mexico, each worker has the right to at least six days of vacation after the first year of work. If you have not enjoyed your vacation days, you must receive a proportional part of these days. The calculation is as follows:
- If you have not completed a full year of work, the proportional part of your vacation is calculated based on the time worked.
3. Bonus ratio
The bonus is another mandatory payment for workers in Mexico. The minimum amount is equivalent to 15 days of salary for each year worked. If you have not completed one year, it is calculated proportionally to the days worked.
4. Vacation bonus
In addition to vacation, workers are entitled to a vacation bonus. This bonus is an additional percentage to the salary, generally 25%. If you have not taken your vacation, it must also be calculated proportionally.
There are digital tools like Stori, which offer an online settlement calculator so you can do this calculation quickly and easily. By simply entering some data such as your salary and time worked, this tool will give you the approximate amount of the settlement that corresponds to you.
You can access this Stori tool in its settlement calculator, which will help you obtain an accurate and fast estimate.
Review your contract: Make sure you know the conditions of your employment contract well to avoid misunderstandings about what applies to you.
Consult with an expert: If you have doubts about any aspect of the settlement, it is recommended that you consult with a lawyer specialized in labor law.
Review all concepts: Make sure that all corresponding concepts, such as salary, bonus, vacation and vacation bonus, are correctly calculated.
Calculating settlement in Mexico does not have to be complicated. By following the right steps and with the help of tools like Stori’s severance calculator, you can ensure that you receive everything you are entitled to at the end of your employment relationship.
Remember that being clear about this process is essential to avoid future problems and guarantee that your labor rights are respected.
