Mexico severance calculator: finiquito and liquidación 2026

Finiquito and liquidación

Whenever a job ends in Mexico you are owed a finiquito: unpaid salary, the proportional aguinaldo, vacation days not taken and their 25% vacation premium. If you are dismissed without justification, you are also owed a liquidación: an indemnity of 90 days of integrated salary (LFT art. 50), and in some cases 20 days per year worked.

The seniority premium (LFT art. 162) is 12 days per year, with the salary capped at twice the minimum wage. It is paid on any dismissal, and on resignation only after 15 years of service.

Worked example

Salary of $20,000 a month, from 1 March 2022 to 15 October 2026, unjustified dismissal, 15 days unpaid:

• Unpaid salary $10,000, aguinaldo $7,890.41
• Vacation $8,365.30 plus premium $2,091.33
• Seniority premium $35,008.28, indemnity $63,287.67
• ISR $9,406.75, net $117,236.24

Separation payments are exempt up to 90 UMA per year of service; the rest is taxed at your salary's effective rate (LISR art. 95). Ordinary items are taxed like salary.

Daily salary = monthly ÷ 30; integrated salary adds the minimum aguinaldo and vacation premium. Vacation days follow LFT art. 76 (12 days in year one, +2 a year to 20, then +2 every five years). Seniority premium = 12 days × years at up to 2× the minimum wage. Indemnity = 90 days of integrated salary; optional 20 days per year. ISR: ordinary items by the art. 96 difference method; separation pay exempt up to 90 UMA × years, the rest at the effective rate of the last monthly salary (art. 95).