Mexico Severance Pay Calculator (Calculadora de Finiquito y Liquidación)
Calculate Mexico's severance settlement (finiquito) and dismissal indemnity (liquidación) from annual salary, length of service, and reason for separation. Compare unjustified dismissal, justified dismissal, and voluntary resignation, including the prima de antigüedad cap.
How the payout differs by reason for separation
In Mexico, whether liquidación (dismissal indemnity) and prima de antigüedad (seniority premium) apply depends on the reason for separation.
| Reason for separation | Liquidación | Prima de Antigüedad |
|---|---|---|
| Unjustified dismissal (despido injustificado) | 3 months' salary + 20 days per year of service | Owed regardless of years of service (12 days/year) |
| Justified dismissal (despido justificado) | Not owed | Owed regardless of years of service (12 days/year) |
| Voluntary resignation (renuncia voluntaria) | Not owed | Only owed with 15+ years of service (12 days/year) |
Regardless of the reason for separation, the finiquito (prorated aguinaldo, unused vacation, and prima vacacional) is always owed separately.
What Are Mexico's Finiquito and Liquidación?
In Mexico, regardless of why employment ends, employers must pay departing employees a "finiquito" (final settlement). The finiquito includes a prorated share of the aguinaldo (year-end bonus, with a statutory minimum of 15 days' salary), payment for any unused annual vacation days, and a "prima vacacional" (vacation premium) equal to at least 25% of that vacation payout. On top of this, if a dismissal is classified as "despido injustificado" (unjustified dismissal), a "liquidación" (dismissal indemnity) also applies, adding a constitutional indemnity of three months' salary plus 20 days' salary for every year of service.
There is a third component tied to length of service: the "prima de antigüedad" (seniority premium). This applies regardless of years of service in any dismissal (justified or not), while for a voluntary resignation it only applies with 15 or more years of service. The daily salary used to calculate it is capped at twice the general minimum wage under Article 486 of the Federal Labor Law, so higher earners are more likely to be affected by this cap. This tool estimates the total payout, including all of these components, from just your annual salary, contract period, and reason for separation.
Sources used in this calculation
Statutory figures such as tax and insurance rates come from the public bodies listed below. They change when the law is revised, so please also check the primary source before relying on the result for an important decision.
- Mexican severance settlement (finiquito) and dismissal indemnity (liquidación) calculation rules — National Minimum Wage Commission of Mexico (CONASAMI) Effective 2026-01 to 2026-12 ／ Last checked 2026-09-10
How to Use This Finiquito and Liquidación Calculator
- Enter your annual gross salary Enter your annual base salary before tax and social security deductions, excluding aguinaldo and prima vacacional.
- Enter your contract start and separation dates The separation date is the day the dismissal or resignation actually takes effect.
- Enter your unused vacation days Enter the number of annual paid vacation days you had not yet taken at the time of separation.
- Choose the reason for separation and check the results Select unjustified dismissal, justified dismissal, or voluntary resignation to see the breakdown of finiquito, liquidación, and prima de antigüedad, along with the estimated total payout.
Tips for getting more out of it
- This tool shows the minimum amounts required by the Federal Labor Law. If a collective bargaining agreement or individual contract provides more generous terms, those terms take priority.
- The base salary cap for prima de antigüedad (twice the minimum wage) is revised every January 1st, so check the current general minimum wage if calculating for a later year.
- Whether a dismissal actually qualifies as "justified" can be challenged and overturned by a labor court (Tribunal Laboral) or labor authorities, even if the employer claims it was justified.
- Finiquito and liquidación payouts may be partly tax-exempt and partly subject to income tax (ISR). Check with a tax professional for the precise treatment.
- The Northern Border Free Trade Zone (Zona Libre de la Frontera Norte) has a higher minimum wage than the general zone, which also changes the prima de antigüedad cap for workers in that region.
When to Use This Tool
Checking a severance offer from your employer
Estimate the legal minimum with this tool and compare it against what your employer has offered, to see whether the offer meets or falls short of the statutory minimum.
Comparing unjustified vs. justified dismissal amounts
With the same salary and years of service, whether liquidación applies changes based on the reason for separation. Switch between separation types to see the difference.
Estimating the seniority premium for long-tenured employees
The prima de antigüedad grows with years of service, but the base salary used to calculate it is capped at twice the minimum wage. Check whether that cap applies to higher salaries.
Estimating the aguinaldo and vacation payout before leaving
Use this tool to check just the finiquito portion (aguinaldo, vacation, and prima vacacional) that applies no matter why you are leaving.
Glossary
- Finiquito
- The final settlement an employer must pay when employment ends, regardless of the reason. It consists of the prorated aguinaldo, payment for unused vacation days, and the prima vacacional.
- Liquidación
- The dismissal indemnity owed only in cases of unjustified dismissal (despido injustificado). It consists of a constitutional indemnity (3 months' salary) plus 20 days' salary for each year of service.
- Prima de Antigüedad
- A seniority premium of 12 days' salary per year of service (with the base salary capped at twice the minimum wage). It applies regardless of years of service in any dismissal, but only with 15+ years of service in a voluntary resignation.
- Aguinaldo
- A year-end bonus required by Mexican law, with a statutory minimum of 15 days' salary. Upon separation, it is prorated based on days worked in the current calendar year.
- Prima Vacacional
- An additional vacation premium paid on top of vacation pay, with a statutory minimum of 25% of the unused vacation payout.
Frequently Asked Questions
Side Note — Why Mexican Severance Pay Has Three Layers
When you first encounter Mexico's severance system, the three distinct components — finiquito, liquidación, and prima de antigüedad — can seem confusing. This structure traces back to Article 123 of the 1917 Mexican Constitution, which enshrined workers' rights as a foundational part of national law. The post-revolutionary labor movement of that era went beyond simple notice periods or retirement pay, instead building up several distinct layers of protection around the end of an employment relationship.
The finiquito embodies the most basic principle: work already performed must always be paid for. Whether someone is dismissed or resigns voluntarily, rights that have already accrued — unused vacation, a prorated bonus — cannot simply disappear at the employer's discretion. The liquidación, by contrast, reflects Article 123(A)(XXII) of the Constitution, which requires compensation for dismissal without just cause, protecting the stability of employment itself. The prima de antigüedad, meanwhile, recognizes the value of tenure itself — a concept not unlike Japan's traditional retirement allowance system.
What's particularly interesting is that the prima de antigüedad is uniquely designed to apply "even for a voluntary resignation, as long as you've worked 15 years or more." This is generally understood as a legislative choice to distinguish workers who frequently change jobs from those who have devoted a long career to a single employer, rewarding the latter's tenure. The cap of twice the minimum wage on the base salary is thought to be a deliberate adjustment — preventing the premium from ballooning without limit for high earners, and keeping it closer to its intended character as a reward for long service.