Defining Vacation Premiums

Employees in Mexico receive a vacation premium, which is at least 25 percent of their salary. Vacation premiums are paid in one of three ways:

• Anniversary: Employees receive their entire vacation premium on their employment anniversaries, regardless of whether they already took the vacation.

• Annual: Employees receive their entire vacation premium for the year on a date the company specifies.

• Proportional (spread all along the vacation takes): Employees receive their vacation premiums as they take vacation throughout the year.

  This way, employees do not receive vacation premium pay in advance, but receive it as they use it.

Note:

You can override the payment date at the payee level. If an employee is terminated before the vacation premium date, you can calculate the proportional days and pay the employee at the time of termination.

You'll define the payment option for vacation premiums on the Absences page.