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.