Aguinaldo (Mexico)

DEFINITION of 'Aguinaldo (Mexico)'

An annual Christmas bonus that businesses in Mexico are required by law to pay to their employees. It is required to be paid by December 20 of each year. The aguinaldo is equivalent to at least 15 days wages, and may be pro-rated if the employee has been with the company for less than a full year.

BREAKING DOWN 'Aguinaldo (Mexico)'

Apart from Mexico, a number of Latin American nations also require employers to pay aguinaldo to their employees. In these nations, the aguinaldo is credited with providing a seasonal boost to demand for retail products such as automobiles, appliances and furniture.

RELATED TERMS
  1. Performance Bonus

    A form of additional compensation paid to an employee or department ...
  2. Law of Diminishing Marginal Returns

    A law of economics stating that, as the number of new employees ...
  3. Exempt Employee

    The term “Exempt Employee” refers to a category of employees ...
  4. Cash Bonus

    A lump sum of money awarded to an employee, either occasionally ...
  5. Severance Pay

    The compensation that an employer provides to an employee who ...
  6. Taxable Wage Base

    Also known as the Social Security Wage Base, this base is the ...
Related Articles
  1. Economics

    New Mexico's Economy: The 6 Industries Driving GDP Growth

    Discover the four primary industries that are considered to be the most important drivers in the well-being of the economy of New Mexico.
  2. Fundamental Analysis

    Examining Mexico's Trillion-Dollar GDP

    Examining the gross domestic product growth and composition of Mexico, the second largest economy in Latin America
  3. Professionals

    3 Reasons Businesses Give Bonuses to Poor Performers

    Learn more how bonuses paid to poorly-performing employees affect a company and why many businesses are still paying out financial rewards to such workers.
  4. Personal Finance

    More Bonuses And Fewer Raises Affect Workers

    Companies are increasingly replacing salary increases with bonuses, much to the detriment of employees.
  5. Entrepreneurship

    Raises or Bonuses Better for Small Business Staff?

    Weigh the pros and cons of each and strike the right balance to retain a top-tier staff and a healthy bottom line for your business.
  6. Personal Finance

    Life Insurance Plans to Help Your Small Business Retain Employees

    How to use and design cash value life insurance plans as an incentive to help attract and retain key employees.
  7. Retirement

    This Is How You Could Live in Mexico on $1,000 a Month

    Learn more about what kind of lifestyle you can lead on a $1,000 monthly budget in Mexico, and find out whether the country is the right place for you.
  8. Professionals

    Other Employee Benefits

    Other Employee Benefits
  9. Professionals

    Employee Stock Options

    Employee Stock Options
  10. Entrepreneurship

    5 Ways to Create a Bonus Structure for Your Small Business

    Understand what goes into a good small business bonus structure. Learn about how a small business can create a bonus structure that attracts employees.
RELATED FAQS
  1. Can LLCs have employees?

    Discover how limited liability corporations (LLC) can have an unlimited number of employees and the legal steps required ... Read Answer >>
  2. Does technology follow the law of diminishing marginal returns?

    Learn how workers in the technology industry are affected by the law of diminishing marginal returns, and note the ways that ... Read Answer >>
  3. What are the benefits of prorating expenses?

    Understand what prorating expenses means for sole proprietors and entrepreneurs. Learn about the benefits of prorating expenses ... Read Answer >>
  4. Is an employee eligible for an SEP if the plan has already been set up for other ...

    It depends. The employee should meet not only the service requirements, but the age and compensation requirements as well. ... Read Answer >>
  5. What does a merger or acquisition mean for the target company's employees?

    Learn about the likely impacts of a mergers & acquisition deal on the target company's employees, their benefits and adjusting ... Read Answer >>
  6. Is Mexico an emerging market economy?

    Learn the difference between a developed economy and an emerging market economy, and understand why Mexico is an emerging ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center