Mexico IT Industry News: Increased Required Vacation Days for Employees
Given the interconnected nature of markets and supply chains, labor laws in other countries can impact businesses that have satellite offices or remote workers in their ranks. For companies nearshoring to Mexico or building remote teams, the latest labor reform may be pertinent.
In the course of the last year, the Mexican Upper House worked to expand vacation days for employees. These reforms were Article 76 and 78.
Effective on Jan 1st, 2023 Mexican employees that have more than one year of service will receive no less than 12 working days of yearly paid vacation. The number was currently six days. The number increases by two working days after every year of service, capping at 20 days. Once the employee reaches 6 years, vacation days continue to increase by two every five years.
Senator Patricia Mercado headed the initiative as a proponent of work/life balance. Conversations about better work/life balance saw a dramatic increase after the covid pandemic. This ruling affects workers that are on-site and remote.
The vacation scheme would look a little like this:
26 years = 30 days vacation
31 years = 32 days vacation
Once the regulation is in place, employees that have accumulated the given time in their company will be eligible for the added six days.
As a talent solutions partner with a network of 25,000+ developers and engineers, we realize that this impacts a lot of the talent and partner companies as they plan out their benefits packages.
Supporters argue that it was about time that Mexico joined with several other countries in providing workers with longer vacation opportunities. In the United States, for example, private companies are not under any guidelines to provide any set number of vacation days. This falls under the company’s discretion and policy. And yet, over 90% of companies provide paid vacation days for their employees.
As a quick comparison, the United Kingdom allows for 28 days paid vacation, France 30, and Spain 22. These numbers do not include public holidays.
Get more insights into the Mexico IT industry through our Tech Salaries report.
