To marketers of retail, service and entertainment industries...
What is Aguinaldo and Why You Should Care
What is 'Aguinaldo (Mexico)'
Aguinaldo refers to an annual Christmas bonus that businesses in Mexico are required by law to pay to their employees. The payment must be made by December 20 of each year. Companies that fail to make an Aguinaldo payment may get fined between three and 315 times the legal daily minimum wage.
BREAKING DOWN 'Aguinaldo (Mexico)'
Large companies may pay employees the equivalent of 30 day’s wages, which is effectively 13 months of salary per year. Employees are not required to pay income tax on their Aguinaldo payment of an amount equivalent to 30 days of the legal daily minimum wage.
Benefits of Aguinaldo Payments
The Aguinaldo provides a seasonal boost in demand for retail products such as automobiles, appliances, clothes, toys and furniture. It is estimated that 70% of Aguinaldo income gets spent in department stores during the holiday season.
An Aguinaldo payment are more likely to show loyalty to a company that values them. Loyal employees are typically more productive and less likely to leave, which reduces recruitment and training costs.
The Aguinaldo is coming, and the Holiday Shopping Season lasts until January 6th! Two great reasons to tweak your plans just a bit, to ensure your reach crosses the border to Mexico.
An average of 498,098 people enter the US through our land ports with Mexico every day. Then, they go back. During their time in the States, the majority go shopping!
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