Wednesday, December 21, 2005

Christmas Bonuses Not Optional In Mexico

The Los Angeles Times had a fascinating article this morning on legally mandated Christmas bonuses in Mexico and other Latin American countries.

Teachers in Mexico, for instance, receive the equivalent of 3 months' salary. Private employers are also required to pay the bonus, under threat of fines or prison; a typical Christmas bonus is a month's pay.

As much as Mexican citizens love their bonuses, it did cross my mind to wonder whether such government interference in the economy contributes to the overall poor economic situation in Mexico...perhaps businesses would hire more workers or pay their employees better wages in the first place if they didn't have to budget an extra month's salary for each employee at the end of the year.

(Registration may be required by The Los Angeles Times.)


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