Leave Policy in Mexico

Mexico's Federal Labor Law (LFT) sets clear, mandatory minimums for employee leave. A 2023 reform doubled the minimum annual vacation entitlement from 6 to 12 days, raising the compliance baseline for every employer operating in the country.

Key entitlements under current law:

• 12 days minimum paid annual leave after one year of service, under LFT Art. 76 (post-2023 reform)
• 7 mandatory public holidays under LFT Art. 74
• 12 weeks paid maternity leave, funded by IMSS at full pay
• 5 days paid paternity leave, mandatory for all employers
• Sick leave paid at 60% of salary from day 4 onward, covered by IMSS

Foreign employers hiring in Mexico must comply with LFT requirements regardless of where the company is incorporated. Misclassification or incomplete leave administration creates direct legal exposure. Gloroots provides Compliance and Employment Governance support to help companies run entity-free employment in Mexico with accurate leave tracking and local execution.

Leave Policy at a Glance

Overview and Legal Basis for Leave in Mexico

Mexico's leave framework is governed primarily by the Ley Federal del Trabajo (LFT), the Federal Labor Law. Key articles include Art. 74 (public holidays), Art. 76 (annual leave entitlements), Art. 78 (vacation scheduling rights), Art. 170 (maternity and nursing protections), and Art. 132 (employer obligations).

The Ley del Seguro Social (LSS) governs benefit payments administered through IMSS, Mexico's social security institute. IMSS funds sick leave and maternity cash benefits directly, separate from employer payroll obligations.

The LFT sets statutory minimums. Employers may offer contractual improvements above those floors, but cannot fall below them. A significant reform took effect January 1, 2023, following the DOF Decree of December 27, 2022, which doubled the minimum first-year vacation entitlement.

Mexico's LFT covers the following leave categories:

• Annual Leave (Vacation)
• Public Holidays
• Sick Leave (IMSS-funded)
• Maternity Leave
• Paternity Leave
• Adoption Leave
• Childcare Leave (cancer diagnosis)
• Bereavement Leave (discretionary)
• Military Leave
• Nursing Breaks

Employers hiring in Mexico, including those operating through an how does EOR work model, must comply with all LFT minimums as the legal baseline for employment contracts.

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Annual Leave (Earned / Privilege Leave)

Employees in Mexico earn paid annual leave under LFT Art. 76. Entitlement begins after completing one full year of service and increases with each additional year worked.

The 2023 LFT reform, enacted by DOF Decree on December 27, 2022 and effective January 1, 2023, doubled the minimum first-year entitlement from 6 days to 12 days. The full post-reform accrual schedule is:

• 1 year: 12 days
• 2 years: 14 days
• 3 years: 16 days
• 4 years: 18 days
• 5 years: 20 days
• 6 to 10 years: 22 days
• 11 to 15 years: 24 days
• 16 to 20 years: 26 days
• 21 to 25 years: 28 days
• 26 to 30 years: 30 days

Beyond 30 years of service, entitlement continues to increase in two-day increments for every additional five-year period.

Under LFT Art. 78, employees have the right to take at least 12 consecutive vacation days per period. Scheduling requires mutual agreement between employer and employee. Employers cannot set dates unilaterally, and employees cannot demand dates that conflict with documented operational requirements.

Vacation days are inalienable. Employees cannot exchange unused days for cash while still employed. On termination or discharge, employers must pay a prorated vacation amount covering any accrued but untaken days.

An 18-month framework governs the use and enforcement of annual leave. Employees have a 6-month window to take earned leave after it accrues. If leave is not taken within that window, employees retain a further 12-month period to claim it through labor courts before the entitlement lapses entirely.

Public Holidays

Mexico's Federal Labor Law (LFT) Article 74 mandates seven official public holidays. Employees required to work on any of these days receive double wages on top of their regular pay, totalling triple pay under LFT Article 75.

Constitution Day and Benito Juárez Birthday both follow the Monday observance rule, shifting to the nearest Monday rather than a fixed calendar date. Inauguration Day is mandatory only in presidential transition years; the next occurrence is December 1, 2030.

Sick Leave

Sick leave in Mexico operates through the Instituto Mexicano del Seguro Social (IMSS) and differs significantly depending on whether the illness is general or work-related.

For general illness, IMSS applies a three-day unpaid waiting period. Benefit payments at 60% of the employee's registered salary begin only from day four. To qualify, an employee must have at least 4 weeks (28 days) of prior IMSS contributions. Temporary workers require a minimum of 6 weeks of contributions.

Work-related injuries and occupational illnesses follow different rules under the Riesgo de Trabajo classification. No minimum contribution period applies. Temporary disability pays 100% of the employee's salary for up to 52 weeks. Permanent disability results in a monthly pension or a lump-sum payment, calculated based on the severity of the injury.

Documentation requirements differ by case type. General illness requires an IMSS-approved medical certificate before benefits are paid. For work-related injuries, the employer must report the incident to IMSS directly. IMSS then issues the relevant disability certificate to authorize payments.

Casual Leave

Mexico's Federal Labor Law (LFT) does not establish a separate casual leave category distinct from annual leave. Short-notice absences are handled through an employee's existing annual leave entitlement.

Employers retain discretion to grant additional personal days beyond the statutory minimum. Collective bargaining agreements (CCTs) in certain industries may include provisions for short-notice leave days, but these are negotiated terms, not statutory rights.

Any absence not covered by an LFT-defined leave category defaults to employer discretion. To avoid disputes, employers should define personal day policies explicitly in employment contracts or internal HR documentation before hiring begins.

Maternity Leave

Female employees in Mexico are entitled to 12 weeks of paid maternity leave under the LFT: six weeks before the expected delivery date and six weeks after. Benefits are paid at full salary, capped at 25 times the daily UMA, and funded by IMSS.

With a doctor's approval, an employee may transfer up to four weeks of pre-birth leave to the post-birth period, resulting in a four-week pre-birth and eight-week post-birth split. This flexibility requires written medical authorization.

If health complications arise before or after delivery, an employee may receive up to 60 additional days of leave. Compensation during this extension period is paid at 50% of salary, subject to an IMSS-approved medical certificate.

Under LFT Article 170, nursing employees are entitled to two 30-minute breaks per day during the first six months after birth. Alternatively, the employer and employee may agree to a one-hour reduction in the daily working schedule.

Employers must ensure employees are enrolled in IMSS before leave begins. Dismissing a pregnant employee or an employee on maternity leave is prohibited. The employee has the right to return to the same position and pay upon leave completion.

Employees must provide 30 days' written notice before leave starts, including the expected delivery date and anticipated leave duration, along with a medical certificate from an IMSS-approved or private medical institution. For adoption, the mother receives six weeks of paid leave after taking custody; the father receives five days.

Employers comparing North American leave standards can also review the leave policy in Canada for context on how maternity entitlements differ across the region.

Paternity Leave

Mexico's Federal Labor Law (LFT) grants fathers 5 days of fully paid paternity leave, funded at 100% of salary. This applies to both biological and adoptive fathers.

Under current IMSS practice, the parent designated as "father" in a same-sex couple receives the same 5-day entitlement. The leave runs from the date of birth or the date of legal custody for adoption.

Mexico's 5-day statutory floor is among the shorter paternity provisions in Latin America. Some collective bargaining agreements (CCTs) and progressive employers offer extended paternity leave above this minimum. Employers should review applicable CCTs when setting internal policy.

Adoption and Surrogacy Leave

Adoptive mothers in Mexico are entitled to 12 weeks of paid adoption leave following the 2023 LFT reform, bringing their entitlement in line with biological maternity leave. Adoptive fathers receive 5 days of paid leave, the same as biological paternity.

Adoption leave applies upon taking legal custody of a minor. Employees must provide legal custody documentation and written notice to the employer to qualify.

In same-sex couples, the parent designated as "mother" receives the applicable adoption leave entitlement. The parent designated as "father" receives 5 days under current IMSS practice.

Surrogacy leave is not explicitly addressed in the LFT. It remains employer-discretionary, and no statutory entitlement exists. Legislative reform in this area is ongoing, with a trend toward more inclusive provisions for same-sex and non-traditional families.

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Bereavement Leave

Mexico's Federal Labor Law (LFT), including Article 74, does not mandate bereavement leave. Employers grant it at their discretion under current law.

Common practice among employers is to offer 3 to 5 days of paid leave for the death of an immediate family member. This is typically defined in employment contracts or internal HR policy rather than statute.

A 2025 proposed reform bill would guarantee at least 5 days for the death of a spouse, child, parent, or sibling, and 3 days for grandparents or parents-in-law. Until that reform passes, absences for bereavement are generally covered by annual leave or unpaid leave by mutual agreement.

Employers should define bereavement leave terms in employment contracts or HR policy now, rather than waiting for the reform to be enacted.

Other Leave Types

Several leave categories in Mexico fall outside the LFT's mandatory framework. Employers and employees typically address these through contracts, collective bargaining agreements (CCTs), or internal policy.

• Military leave: Unpaid and job-protected for mandatory military service. Employees have the right to return to the same or an equivalent position at the same pay upon completion, as provided under the LFT.
• Leave without pay (Permiso sin Goce de Sueldo): Not mandated by the LFT. Employers may grant it by agreement, with terms set in the employment contract or HR policy.
• Marriage leave: Not required by the LFT. Some CCTs provide 3 to 5 days of paid marriage leave. In the private sector, it remains at employer discretion.
• Study or educational leave: Not mandated by the LFT. Some CCTs and public sector agreements include provisions. Private sector employers grant it at their discretion.

One interaction worth noting: if an employee becomes ill during maternity leave, maternity leave takes priority and IMSS maternity benefits continue. Sick leave may begin only after maternity or paternity leave ends, provided the employee submits proper IMSS documentation.

Carry-Forward and Leave Encashment Rules

Mexico's Federal Labor Law (LFT) sets an 18-month statute of limitations (SOL) framework for vacation entitlements. Employees have a 6-month window to take earned vacation after it accrues. If unused, they have an additional 12 months to claim it through a labor court before the entitlement lapses entirely.

Vacation days are inalienable under the LFT. Employers cannot pay out unused vacation in lieu of time off while the employment relationship continues. Encashment is not permitted as a substitute for actual leave.

Upon termination or discharge, employers must pay a prorated vacation amount. The calculation uses the employee's daily wage multiplied by unused vacation days, plus the 25% prima vacacional premium.

Employers must maintain accurate vacation records to defend against labor court claims within the 18-month SOL window. STPS inspections may review these records, and non-compliance can result in fines. For comparison, see how encashment rules differ under the leave policy in the USA.

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Best Practices for Managing Leave Compliantly in Mexico

Compliance with Mexico's leave rules requires consistent documentation, awareness of sector-specific obligations, and policies that meet or exceed statutory minimums. The following practices reduce legal exposure and support effective workforce management.

• Review collective bargaining agreements (CCTs): Industries such as manufacturing, banking, and the public sector frequently set vacation, paternity, and marriage leave entitlements above LFT minimums. Confirm which CCT applies to your workforce before setting policy.
• Provide written leave documentation in Spanish at onboarding: Include the full post-2023 vacation accrual table and a clear explanation of the prima vacacional calculation so employees understand their entitlements from day one.
• Maintain signed records for every leave request and approval: Keep IMSS medical certificates for sick and maternity leave. These records are required for STPS inspections and are essential for defending labor court claims within the 18-month SOL window.
• Offer benefits above the statutory floor: Enhanced paternity leave beyond the mandatory 5 days and bereavement leave provisions can improve retention in a competitive Mexican labor market. Using employer of record software helps track these enhanced entitlements accurately alongside statutory obligations.

Managing Leave Policy in Mexico with Gloroots

Mexico's Federal Labor Law imposes non-waivable minimums, strict IMSS enrollment duties, and documentation requirements that expose foreign employers to labor court liability if mismanaged.

Gloroots handles the operational layer through its EOR services: accurate post-2023 vacation accrual tracking, prima vacacional calculation at the statutory 25% rate, IMSS enrollment and benefit coordination, and maternity and sick leave documentation. Leave balance reporting is included as standard.

Payroll integration ensures prima vacacional and prorated termination payouts are calculated correctly on every cycle. Gloroots also monitors LFT legislative changes, including the 2023 vacation reform and pending 2025 bereavement reform, and updates client configurations accordingly. Review pricing to understand the cost structure for employing workers in Mexico.

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Frequently Asked Questions About Leave Policy in Mexico

How many annual leave days are employees entitled to after the 2023 reform?

Following the 2023 LFT reform, employees are entitled to a minimum of 12 days of paid vacation after completing one year of service.

Before the reform, the minimum was 6 days. The 2023 change doubled the starting entitlement and preserved the incremental accrual schedule that adds 2 days for every additional year of service up to year four, then 2 days per every 5 years thereafter.

How many annual leave days are employees entitled to in Mexico?

Following the 2023 LFT reform, employees receive a minimum of 12 paid annual leave days after one year of service. Entitlement grows with seniority: 14 days at year two, rising to 30 days for employees with 26 to 30 years of service.

How many mandatory public holidays does Mexico observe?

Mexico's Federal Labor Law (LFT) Article 74 mandates 7 public holidays. These include New Year's Day, Labor Day, Independence Day, and Christmas Day. Days such as Holy Thursday, Good Friday, and May 5 are widely observed but are not legally mandatory under the LFT.

How long is maternity leave in Mexico and who pays for it?

Maternity leave in Mexico is 12 weeks of paid leave under LFT Article 170, split into 6 weeks before and 6 weeks after childbirth. IMSS funds the benefit at full salary, capped at 25 times the daily UMA value. With a doctor's approval, up to 4 pre-birth weeks may be transferred to the post-birth period.

What is the paternity leave entitlement in Mexico?

Fathers in Mexico are entitled to 5 days of mandatory paid paternity leave under the Federal Labor Law. This applies to both biological and adoptive fathers. Some collective bargaining agreements and progressive employers offer extended leave beyond the statutory 5-day minimum.

Can unused vacation days be paid out or encashed in Mexico?

No. Under the Ley Federal del Trabajo (LFT), vacation days cannot be monetized or encashed while employment is active. Upon termination, employers must pay out accrued unused vacation days on a prorated basis, including the 25% prima vacacional premium.

What is the sick leave waiting period in Mexico?

For general illness, the first three days of sick leave are unpaid under the Ley del Seguro Social. IMSS begins paying 60% of the employee's registered salary from the fourth day of absence. Employees must have at least four weeks of prior IMSS contributions to qualify for these benefits.

How long do employees have to take or claim unused vacation in Mexico?

Employees have 6 months after earning vacation to take it. If unused, they have an additional 12 months to claim it through a labor court. After this 18-month total window, the entitlement lapses.