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. Exempt Employee

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

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

    The compensation that an employer provides to an employee who ...
  5. Bonus

    1. Additional compensation given to an employee above his/her ...
  6. Taxable Wage Base

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

    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. Markets

    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. Markets

    The Economics of Mexico's Middle Class

    Lean about Mexico’s expanding middle class society and the causes for its change from electronics to the manufacturing industry.
  5. 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.
  6. Investing

    More Bonuses And Fewer Raises Affect Workers

    Companies are increasingly replacing salary increases with bonuses, much to the detriment of employees.
  7. Entrepreneurship & Small Business

    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.
  8. Retirement

    4 Reasons Why Americans Retire in Mexico

    Learn why Mexico's low cost of living, inexpensive healthcare, natural beauty and culture make it such a popular retirement destination for Americans.
  9. Financial Advisor

    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.
  10. ETFs & Mutual Funds

    The Top 3 ETFs For Investing in Mexico (EWW, AMX)

    Discover some of the most popular exchange-traded funds available that offer investors exposure to the economy and stocks of Mexico.
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. 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 >>
  3. 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 >>
  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. 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 >>
  6. 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 >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center