Understanding how it is integrated and calculated allows workers to verify that the payment is correct and to act in case of inconsistencies. What is a final settlement payment and when does it apply under the law? According to the Federal Labor Law, the final settlement is the payment that must be given when the employment relationship ends, either by voluntary resignation, expiration of the contract, or agreement between the parties. It is important to differentiate it from liquidation. The final settlement, on the other hand, only covers the benefits generated and not paid until the last day worked. Legally, no worker can waive already acquired rights. Informing oneself, reviewing each item, and using reliable calculation tools allow for a labor transition with greater certainty and legal backing. This article was first published on RedPolitica.mx. That is why the correct calculation is fundamental. What items must the final settlement include? The final settlement integrates several elements that must be calculated proportionally to the time worked during the current year. It generally includes: salary corresponding to days worked but not paid; a proportional part of the Christmas bonus (minimum 15 days per year, according to the FLL); proportional vacation days; a vacation premium (minimum 25% on vacation days); and other benefits established in the contract, such as pending bonuses or commissions. After the labor reform that increased vacation days starting in 2023, this point takes on greater importance, as it increases the proportional amount that must be included in the calculation. How to calculate the final settlement in Mexico step by step? The procedure begins with determining the daily salary. If the worker did not complete the full year, the number of days worked is divided by 365 and multiplied by 15 days of Christmas bonus, and then by the daily salary. As for vacations, the worker's seniority is taken as the base. To avoid arithmetic errors or confusion in proportional application, there are digital tools that allow for a clear estimate in just a few minutes. Practical example in a work context Let's imagine a worker with a monthly salary of $18,000 pesos who worked for 10 months. The daily salary would be approximately $600 pesos. Understanding how to calculate the final settlement in Mexico is key when an employment relationship ends, especially in a context where labor rights and reforms to the Federal Labor Law (FLL) have gained greater relevance in public debate. In Mexico, thousands of workers change jobs every year, and they do not always receive clear information on what they are legally entitled to. The final settlement is not a favor from the employer nor an optional negotiation: it is a right backed by law. The Federal Prosecutor's Office for the Defense of Labor (PROFEDET) offers free advice to clarify doubts or initiate conciliations. Not signing in agreement until reviewing the calculation is a prudent measure, as once the document is signed, any subsequent claim can be complicated. Understanding how the final settlement is integrated is part of exercising labor rights in Mexico. From this base, the proportional Christmas bonus, proportional vacations, and vacation premium are calculated. Although each case may vary due to additional benefits or contractual conditions, the exercise allows for comparing the amount presented by the company with a personal estimate. What to do if there is a disagreement in the calculation? If the worker considers that the amount does not correspond to what is established by law, they can request a detailed breakdown. In the case of a variable salary, an average must be calculated. Subsequently, the proportional Christmas bonus is calculated. If the worker receives a fixed monthly salary, it is divided by 30 days. Liquidation applies when there is unjustified dismissal and includes additional compensations. With the current reform, the first year corresponds to a minimum of 12 days, increasing according to years of service. If the full year was not completed, it is also calculated proportionally. Finally, the 25% vacation premium on the amount corresponding to vacation days is added. The sum of all these items results in the estimated amount of the final settlement.
