Prestaciones

Mexican workers in the formal economy are required by law to receive certain job benefits, prestaciones:

• Aguinaldo: Year-end bonus, equivalent to two weeks of salary.
• Días de descanso: Days off
• Vacaciones: 6+ days a year, minimum
• Prima vacacional: A cash benefit earmarked towards vacation expenses.In reality, you can spend this on whatever you want.
• IMSS (Seguro Social): Basic medical care, provided by IMSS, a national public health system. Employers are responsible for making premium payments for their workers.

Job postings often boast of offering prestaciones superiores a la ley, benefits above and beyond the mininum legally requirements. These could include:

• Afore: Retirement pension
• Infonavit: Home purchase assistance
• Vales de despensa: Cash card for purchasing groceries at approved establishments
• Fondo de ahorro: Savings plan
• Utilidades: Profit sharing
• Gastos médicos mayores: Major Medical, a private comprehensive health care benefits package above what IMSS provides.

When workers in the formal economy are laid off, they are entitled to:

• Liquidación: a payment corresponding to the amount of time the employee worked for the company. After several years, this amount can be sustantial.
• Finiquito: payment received by an employee voluntarily quitting. This includes vacation pay and bonuses already accrued.