Annual bonus is a tradition for Mexicans

Workers encouraged to save, but many don't
By Anna Cearley
UNION-TRIBUNE STAFF WRITER
December 21, 2006

TIJUANA – For Mexican workers, the government-mandated yearly bonus – known as the aguinaldo –is as much a part of the season's traditions as Santa Claus, decorative lights and holiday tunes.

Mexican law requires that all full-time employees receive at least two weeks worth of pay per year as a bonus by Dec. 20. Part-time workers receive a an adjusted rate based on that formula.

Despite government efforts to encourage people to save the money, the extra cash often evaporates within weeks as workers splurge on gifts, pay off car debts, and take out family members to big meals. Retailers benefit from the extra money pumped into the economy this time of year.