Employers in Mexico are required by law, to give employees a Christmas bonus.
The “aguinaldo” is a mandatory annual payment given in the month of December, prior to the 20th, to each worker in Mexico. This includes all employees in private industry, and all government employees.
The aguinaldo is equivalent to 15 days wages, or more. For employees with less than a years service, a pro-rated payment is provided.
This puts added strain on cash flow and accounts payables for Mexican organizations during the month of December. At the same time it creates a huge burst of economic activity throughout the country.