The labor reform that proposes doubling the number of paid vacation days (from 6 to 12), as well as extending the days due to seniority, would only benefit 44% of workers in Mexico, since these are the ones that are employed formally and they have access to benefits, pointed out the Mexican Institute for Competitiveness (IMCO).
“If approved, the reform has its limitations, since it would not permeate the entire labor market. The proposal implies a change to the benefits established in the LFT (Federal Labor Law) and would benefit those who are employed in the formal sector”, said the IMCO.
As of the second quarter of 2022, a total of 57.4 million workers were registered, so only a universe of 25.5 million would enjoy this reform, the rest work informally and the proposal would not imply any change in their working conditions, he explained.
In order not to discourage the generation of formal employment, the IMCO put on the table that the increase in paid vacation days must be accompanied by additional measures, such as reducing other formalities for companies and investment in skills development to strengthen talent.
“Even more, the quality of formal employment must be improved through the implementation of work-life policies, which include flexible hours and paternity leave,” said the thinktank.
Yesterday, the Senate Labor Commission approved the opinion that extends the period of paid vacations. In the next few days, the opinion will go to the Second Legislative Studies Commission in search of approval.
Read: Possible consequences of the proposed labor reform in terms of decent vacations
The labor reform proposes that there be 12 working days of paid vacations, an increase of 6 days from those currently awarded after one year of service.
Also, it seeks to increase the number of vacation days for seniority, 2 additional days for each subsequent year until reaching 20 days, compared to the 12 days that the LFT establishes.
And from the sixth year of work, two days will be increased for every five years worked.
“Despite the increase sought by the reform proposal, Mexico will continue to be far from the average 30 days of vacation offered by OECD countries, but it would be a good step forward in improving working conditions,” said the IMCO.
He stressed that Mexico is the OECD country where more hours are worked per year and that in turn is the least productive country, 2,128 hours are worked per year, 24% more time than the average of the member countries of the organization, which it is not reflected in the Gross Domestic Product (GDP), which is below the OECD average.
The IMCO recognized that the proposal to increase the vacation period could contribute to a better balance between work and personal life by giving Mexican workers more free time and rest, which could see improvements in their job performance.
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