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.

  1. Seasonal Adjustment

    A statistical technique designed to even out periodic swings ...
  2. Performance-Based Compensation

    An incentive-based form of compensation that is reserved for ...
  3. Bonus

    1. Additional compensation given to an employee above his/her ...
  4. Year-End Bonus

    A reward paid to an employee at the end of the year. Many year-end ...
  5. Base Pay

    An employee's initial rate of compensation, excluding extra lump ...
  6. Employee Stock Option - ESO

    A stock option granted to specified employees of a company. ESOs ...
Related Articles
  1. Entrepreneurship

    10 Tax Benefits For The Self-Employed

    Running your own business has both personal and financial perks.
  2. Budgeting

    Earn A Holiday Bonus Through Energy Savings

    You can enjoy the festive season without a jolly increase in your energy costs. We'll show you how.
  3. Professionals

    6 Employment Perks And How To Get Them

    Find out how to get more than money from your employer.
  4. Budgeting

    It Is Better To Give AND Receive

    You give to benefit others, but there can be perks for you too.
  5. Investing Basics

    Learn How To Trade Crude Oil in 5 Steps

    Crude oil and energy markets are specialized venues. Here are five steps to take to build consistent profits.
  6. Retirement

    4 Reasons Why Americans Retire in Mexico

    Learn why Mexico's low cost of living, inexpensive health care, natural beauty and culture make it such a popular retirement destination for Americans.
  7. Entrepreneurship

    Top 5 Most Successful Mexican Entrepreneurs

    Understand why so many socially conscious entrepreneurs have come out of Mexico. Learn about the top most successful Mexican entrepreneurs.
  8. Forex Fundamentals

    3 Reasons The Mexican Peso Is So Liquid

    Mexico's vast petroleum reserves and close proximity to the United States add considerable liquidity to the Mexican peso.
  9. Personal Finance

    Salary Secrets: What Is Considered a Big Raise?

    A 4% or 5% annual jump in pay may not sound huge, but in today’s environment, it actually means you’re faring better than most.
  10. Personal Finance

    How to Job Search While You're Still Employed

    The best time to look for a new job is when you already have one.
  1. Is Mexico an emerging market economy?

    Mexico meets all the criteria of an emerging market economy. The country's gross domestic product, or GDP, per capita beats ... Read Full Answer >>
  2. Is the retail sector also affected by seasonal factors?

    Generally speaking, the retail sector is highly seasonal. Almost invariably, sales in the retail sector are highest in the ... Read Full Answer >>
  3. Does my employer's matching contribution count towards the maximum I can contribute ...

    Contributions to 401(k) plans come from employee salary deferral and employer match dollars. According to the IRS, employees ... Read Full Answer >>
  4. How is marginal propensity to save calculated?

    Marginal propensity to save is used in Keynesian macroeconomics to quantify the relationship between changes in income and ... Read Full Answer >>
  5. Why should investors research the C-suite executives of a company?

    C-suite executives are essential for creating and enacting overall firm strategy and are therefore an important aspect of ... Read Full Answer >>
  6. How does the always be closing (ABC) strategy benefit a salesperson's sales funnel?

    It is good practice in sales to always be closing, because it's common for a salesperson's sales funnel to be leaky. When ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  2. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  3. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  4. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
  5. Normal Profit

    An economic condition occurring when the difference between a firm’s total revenue and total cost is equal to zero.
  6. Operating Cost

    Expenses associated with the maintenance and administration of a business on a day-to-day basis.
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!