Mexico Finiquito Calculator: Free Severance Estimate

What is Mexico Finiquito Calculator?

A Mexico Finiquito Calculator is a specialized financial tool designed to compute the exact amount an employee is legally entitled to receive upon termination of employment in Mexico. The finiquito is not a severance payment in the traditional sense; rather, it represents the settlement of all accrued but unpaid wages, proportional benefits, and statutory entitlements under the Mexican Federal Labor Law (Ley Federal del Trabajo). This calculation is critical because Mexican labor law is highly protective of employees, and even minor miscalculations can lead to costly labor board claims, fines, or legal disputes.

Human resources professionals, payroll managers, small business owners, and employees themselves use this calculator to ensure compliance with Articles 48, 50, 52, 53, 84, 87, and 162 of the LFT. For employers, an accurate finiquito prevents legal exposure and maintains trust during a difficult separation. For employees, it provides transparency and peace of mind that they are receiving every peso they have earned—from accrued vacation premiums to the Christmas bonus proportion (Aguinaldo).

This free online Mexico Finiquito Calculator eliminates the guesswork by applying the exact statutory formulas, daily wage calculations, and proportional factors required by Mexican law. No signup is required, and the tool delivers instant results with a full step-by-step breakdown so you can verify every line item.

How to Use This Mexico Finiquito Calculator

Using this calculator is straightforward, but accuracy depends on entering the correct inputs. Follow these five steps to generate a precise finiquito calculation for any termination scenario in Mexico.

1. Enter the Employee’s Daily Wage (Salario Diario): Start by inputting the employee's daily base salary in Mexican Pesos (MXN). This is the gross daily wage before any deductions, as defined in Article 84 of the LFT. If the employee is paid monthly, divide the monthly salary by 30 to obtain the daily wage. Do not include overtime or other variable compensation at this stage—those are handled separately. For example, if an employee earns 15,000 MXN per month, the daily wage is 500 MXN.
2. Input the Start and End Dates of Employment: Select the exact date the employee began working (start date) and the exact date employment ended (end date). The calculator uses these dates to compute the total years, months, and days of service. This is essential for calculating proportional benefits like Aguinaldo and vacation premium. Note that Mexican law counts from the start date to the termination date, inclusive, for certain benefits.
3. Select the Reason for Termination (Causa de Baja): Choose the correct termination reason from the dropdown menu. Options include voluntary resignation (renuncia voluntaria), termination without cause (despido injustificado), termination with cause (despido justificado), mutual agreement, or end of fixed-term contract. The reason determines whether the employee is entitled to additional indemnities under Article 50 (3 months of salary plus 20 days per year) or only the basic finiquito. For voluntary resignation, only accrued benefits are paid; no indemnity applies.
4. Enter the Number of Vacation Days Taken (Días de Vacaciones Tomados): Input how many vacation days the employee actually used during the current employment year. Mexican law grants employees at least 6 vacation days after the first year, increasing by 2 days each subsequent year up to year four, then by 2 days every 5 years (Article 76). The calculator uses this to determine the proportional vacation premium (prima vacacional) owed at 25% of the salary for unused days.
5. Click “Calculate Finiquito” and Review the Breakdown: After entering all inputs, click the calculate button. The tool instantly generates a detailed breakdown showing: proportional Aguinaldo (15 days of daily wage per year, prorated), proportional vacation premium, accrued but unpaid wages, any unpaid overtime, and applicable indemnities. Each line item is explained in plain language. You can also adjust inputs and recalculate as needed to explore different scenarios.

For best results, ensure you have the employee’s exact start date, termination date, and daily salary ready. If the employee received salary increases during their tenure, use the salary in effect at the time of termination. The calculator does not store any data—your inputs remain private.

Formula and Calculation Method

The Mexico Finiquito calculation is governed by specific formulas defined in the Mexican Federal Labor Law. The calculator applies these formulas exactly as a labor court would, ensuring compliance and accuracy. The core logic combines proportional benefits, accrued wages, and legal indemnities based on the termination reason.

Each component is calculated independently using the employee’s daily wage (SDI – Salario Diario Integrado) and the number of days worked in the current year and total tenure. The SDI includes base salary plus any fixed benefits like meal vouchers or commissions (Article 84). For simplicity, most finiquito calculations use the base daily wage unless the employee received integrated salary.

Understanding the Variables

The key inputs and their meanings are as follows: Daily Wage (Salario Diario) is the gross daily pay in MXN. Total Days Worked in Current Year is the number of calendar days from January 1 (or the employee’s anniversary date) to the termination date, depending on how the company tracks the benefit year. Years of Service is the total tenure from start to end date, expressed in years and days. Vacation Days Taken refers to days actually used in the current benefit year. Termination Reason determines whether Article 50 indemnities apply (3 months of salary + 20 days per year of service for unjustified dismissal). Aguinaldo factor is fixed at 15 days of salary per year of service (Article 87). Vacation premium factor is 25% of the salary for the vacation days owed (Article 80).

Step-by-Step Calculation

The calculation proceeds in five distinct steps. First, compute the Proportional Aguinaldo: multiply the daily wage by 15, divide by 365, then multiply by the number of days worked in the current calendar year. Second, compute Proportional Vacation Premium: determine the vacation days owed based on years of service (6 days for year 1, 8 for year 2, 10 for year 3, 12 for year 4, and 14 for years 5–9, etc.), subtract days taken, then multiply the unused days by the daily wage and then by 0.25 (25%). Third, calculate Accrued but Unpaid Wages: multiply the daily wage by the number of days worked since the last pay period. Fourth, if the termination was unjustified, calculate Indemnity: 90 days of salary (3 months) plus 20 days of salary for each full year of service. Fifth, sum all components and subtract any legal deductions (taxes, IMSS, INFONAVIT, loans). The final result is the net finiquito payable to the employee.

Example Calculation

To illustrate how the Mexico Finiquito Calculator works in practice, consider a realistic scenario involving a mid-level employee at a manufacturing company in Monterrey. The example uses actual figures that comply with the LFT.

Step 1 – Proportional Aguinaldo: Ana worked 305 days in 2025 (January 1 to October 31). Aguinaldo = (600 MXN × 15 days) / 365 days × 305 days = 9,000 / 365 × 305 = 24.6575 × 305 = 7,520.54 MXN.

Step 2 – Vacation Premium: Ana has 4 years and 7 months of service. According to Article 76, after 4 years she is entitled to 12 vacation days per year. She took 4 days, so 8 days are unused. Vacation premium = 8 days × 600 MXN × 0.25 = 4,800 × 0.25 = 1,200 MXN.

Step 3 – Accrued Wages: 16 days × 600 MXN = 9,600 MXN.

Step 4 – Indemnity for Unjustified Dismissal (Article 50): 90 days (3 months) = 90 × 600 = 54,000 MXN. Plus 20 days per year of service: 4 full years × 20 days × 600 MXN = 48,000 MXN. Total indemnity = 54,000 + 48,000 = 102,000 MXN.

Step 5 – Total Finiquito: 7,520.54 + 1,200 + 9,600 + 102,000 = 120,320.54 MXN. After standard deductions (ISR on indemnity portion, IMSS, etc., estimated at 12% = 14,438.46), the net payable is approximately 105,882.08 MXN.

This means Ana is legally entitled to receive about 105,882 MXN upon termination, which includes her proportional Christmas bonus, unused vacation premium, last paycheck, and the statutory indemnity for being fired without cause. The calculator provides this exact figure instantly.

Another Example

Consider a voluntary resignation. Carlos García resigns from his job at a Mexico City restaurant on June 30, 2025, after working for 2 years and 3 months. His daily wage is 400 MXN. He took 6 vacation days this year. He has no accrued unpaid wages. Aguinaldo: 400 × 15 / 365 × 181 days (Jan 1 to Jun 30) = 6,000 / 365 × 181 = 16.438 × 181 = 2,975.28 MXN. Vacation premium: After 2 years, he gets 8 vacation days. He used 6, so 2 unused. Premium = 2 × 400 × 0.25 = 200 MXN. No indemnity since he resigned. Total = 2,975.28 + 200 = 3,175.28 MXN. After deductions (~10%), net is about 2,857.75 MXN. This shows that voluntary resignation yields only proportional benefits, not a large payout.

Benefits of Using Mexico Finiquito Calculator

Using a dedicated Mexico Finiquito Calculator offers substantial advantages over manual calculations or generic payroll software. The tool is purpose-built for Mexican labor law, ensuring every variable is correctly applied. Below are the key benefits that make this calculator indispensable for employers and employees alike.

• 100% Legal Compliance with LFT: The calculator is programmed to apply the exact formulas from Articles 48, 50, 76, 80, 84, 87, and 162 of the Mexican Federal Labor Law. This eliminates the risk of underpaying or overpaying benefits, which can trigger audits by the Mexican Labor Board (Junta de Conciliación y Arbitraje). Compliance is especially critical because Mexican law presumes any ambiguity in favor of the employee (principio pro persona).
• Instant, Accurate Results Without Manual Errors: Manual finiquito calculations are prone to arithmetic mistakes, incorrect proration of days, and misinterpretation of seniority rules. This calculator processes inputs in milliseconds, delivering precise amounts for Aguinaldo, vacation premium, accrued wages, and indemnities. The step-by-step breakdown allows you to verify each component, building confidence in the final figure.
• Transparency for Both Parties: The tool generates a clear, itemized report that can be shared with the employee during the termination meeting. This transparency reduces conflict and potential legal claims because the employee can see exactly how each amount was derived. In many cases, showing the calculation from a trusted online tool de-escalates tension and facilitates a smoother separation.
• No Signup, No Data Storage, Free Forever: Unlike many payroll platforms that require subscriptions or account creation, this calculator is completely free and anonymous. You can use it as many times as needed without sharing personal information. This is particularly valuable for small businesses and independent contractors who cannot afford expensive HR software but still need to comply with Mexican labor law.
• Scenario Testing for Negotiations: Employers can use the calculator to model different termination scenarios—voluntary resignation, mutual agreement, or unjustified dismissal—to understand the financial impact before making a decision. For example, offering a mutual separation with a negotiated settlement can sometimes be cheaper than a formal unjustified dismissal. The calculator helps quantify those trade-offs in real time.

Tips and Tricks for Best Results

To get the most accurate finiquito calculation from this tool, follow these expert tips and avoid common pitfalls. Mexican labor law has many nuances that can significantly affect the final amount.

Pro Tips

• Always use the Salario Diario Integrado (SDI) if the employee receives fixed, recurring benefits such as food vouchers (vales de despensa), commissions, or productivity bonuses. The SDI is the daily wage plus the daily value of these benefits, as defined by Article 84. Including these increases the finiquito and ensures full compliance.
• Double-check the termination date and the last pay period end date. The calculator assumes the employee has worked up to the termination date. If the employee was suspended or on unpaid leave, adjust the accrued wages accordingly. For sick leave or maternity leave, the employee may be entitled to full pay under IMSS regulations, which the calculator does not automatically apply—consult a labor lawyer for those cases.
• For employees with more than 15 years of service, note that Article 162 provides for seniority premium (prima de antigüedad) equal to 12 days of salary per year of service, capped at twice the minimum wage. This calculator includes seniority premium only for voluntary resignations or mutual agreements if the employee has 15+ years. For unjustified dismissals, the premium is included in the indemnity calculation. Always verify the cap amount based on the current minimum wage in Mexico (UMA or SMG).
• Use the calculator before issuing the final payment to reconcile with your payroll system. If your payroll software gives a different result, the calculator’s transparent breakdown helps you identify which component was miscalculated. This is especially useful for companies that use international payroll systems not configured for Mexican law.

Common Mistakes to Avoid

• Using Monthly Salary Instead of Daily Wage: The most frequent error is entering the monthly salary directly into the daily wage field. Always divide the monthly salary by 30 to get the daily wage. For example, 15,000 MXN monthly = 500 MXN daily. Entering 15,000 would inflate the finiquito by 30x, producing a wildly incorrect result.
• Ignoring the Vacation Premium Percentage: Some users calculate vacation premium as 25% of the daily wage for all vacation days, but the law specifies it is 25% of the salary corresponding to the number of vacation days owed. This means you must first determine the number of vacation days the employee is entitled to based on years of service, subtract days taken, and then apply 25% to the resulting days. Missing this step overpays the premium.
• Forgetting to Prorate Aguinaldo for Partial Years: The Aguinaldo is not a flat 15 days regardless of when the employee leaves. If an employee resigns in March, they are entitled to only the proportional amount for the days worked in that year. Using the full 15 days without proration overpays the benefit. The calculator automatically prorates by days worked in the current calendar year.
• Applying Indemnity for Voluntary Resignations: A common misconception is that any termination includes a 3-month indemnity. In Mexican law, the Article 50 indemnity (90 days + 20 days per year) applies only to unjustified dismissals. Voluntary resignations, mutual agreements, and justified dismissals (e.g., for gross misconduct) do not include this indemnity. Selecting the wrong termination reason will drastically overstate the finiquito.

Conclusion

The Mexico Finiquito Calculator is an essential tool for anyone navigating employment term