These are not two versions of the same payment, and that is the point most explanations miss. The finiquito is money you have already earned and not yet been paid. You get it however the job ends, including when you resign. The liquidación is compensation for being dismissed without justified cause, and it is owed only then. Someone dismissed without cause receives both.
The size of that distinction is easy to underestimate. On MX$30,000 a month with five and a half years of service, the finiquito is about MX$17,260. Add an unjustified dismissal and the liquidación brings the total to roughly MX$242,462, about fourteen times as much.
If you resign
MX$17,260
finiquito only
If dismissed without cause
MX$242,462
finiquito plus liquidación
Liquidación components
Three
they stack, not alternatives
Work out your own figure, by salary, years of service and how the job ended.
Open the finiquito calculatorWhat sits in each one
| Component | Finiquito | Liquidación |
|---|---|---|
| Salario devengado (unpaid days worked) | MX$9,863 | Not applicable |
| Aguinaldo proporcional | MX$7,397 | Not applicable |
| Vacaciones and prima vacacional pending | As accrued | Not applicable |
| Indemnización constitucional (3 months) | Not applicable | MX$88,767 |
| 20 days per year of service | Not applicable | MX$98,630 |
| Prima de antigüedad (12 days per year) | Not applicable | MX$37,805 |
PayMetric's own modelled figures for MX$30,000 a month, five completed years plus six months, and ten unpaid worked days. Holiday and prima vacacional depend on days actually outstanding, so they are shown as accrued rather than as a fixed amount.
The liquidación is three payments, not one
Three months of salary, the indemnización constitucional, which is fixed regardless of tenure. In this example, MX$88,767.
Twenty days of salary per year of service. This is the component that grows with tenure and, for a long-serving employee, becomes the largest of the three. Here it is MX$98,630.
The prima de antigüedad, twelve days per year of service, MX$37,805 in this example. It is capped by reference to twice the minimum wage for the calculation base, which matters most for higher earners.
Do not sign a finiquito that is really a liquidación
The most common dispute is an employer presenting a settlement document headed finiquito, covering only earned amounts, when the termination was in fact a dismissal without justified cause. Signing it can make recovering the liquidación harder. Ask which article of the Ley Federal del Trabajo the termination relies on, request the breakdown item by item, and check whether the indemnización, the 20 days per year and the prima de antigüedad appear at all. If the reason given is a justified cause, it must be stated in writing.
Check the figure you have been offered
Enter salary, completed years, months into the current year and the type of termination to see the finiquito and any liquidación separately, with the UMA-based tax exemptions applied.
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Frequently asked questions
What is the difference between finiquito and liquidación?
They are not two options for the same thing. The finiquito is what you have already earned and have not yet been paid: worked days, proportional aguinaldo, pending holiday and prima vacacional. It is owed however the job ends, including when you resign. The liquidación is compensation for being dismissed without justified cause, and it is owed only in that situation. A dismissed employee receives both.
How much is each worth in practice?
On MX$30,000 a month with five and a half years of service, the finiquito in this example is about MX$17,260 and is paid whether the employee resigns or is dismissed. Add an unjustified dismissal and the liquidación is a further MX$225,202, taking the total to roughly MX$242,462. That is about fourteen times the resignation outcome, which is why the reason for termination matters more than almost any other detail.
What makes up the liquidación?
Three separate components under the Ley Federal del Trabajo. The indemnización constitucional is three months of salary, MX$88,767 here. Then 20 days of salary for each year of service, MX$98,630 for five and a half years. Then the prima de antigüedad, 12 days per year of service, MX$37,805. They stack, they are not alternatives.
Do I get the prima de antigüedad if I resign?
Only in narrow circumstances. It is payable on resignation if you have completed at least 15 years of service, and it is always payable on dismissal, death or disability. For most voluntary resignations before 15 years it does not apply, which is why the finiquito in the example above contains no prima de antigüedad.
Is any of it tax free?
Partly. Severance-type payments carry an exemption measured in UMA per year of service, so a portion of the indemnización escapes income tax and the rest is taxable. In this example about MX$63,347 of the indemnización is exempt. Aguinaldo has its own separate 30-UMA exemption. The calculator applies both, which is why the net figure is materially higher than a simple marginal-rate estimate would suggest.
What counts as a justified dismissal?
Article 47 of the Ley Federal del Trabajo lists the causes, which include dishonesty, violence, repeated unjustified absence and serious breaches of duty. The employer must give written notice of the cause. If the dismissal is justified and properly documented, the liquidación is not owed, though the finiquito still is. Disputes about whether a cause was genuine are exactly what the labour courts spend their time on.
Does the employer have to pay it immediately?
The settlement is normally paid at the end of the employment relationship, and delays are a common source of claims. Employees have a limited window to bring an action, so both sides have an interest in settling promptly and documenting what was paid and why. Get the breakdown in writing, item by item, rather than a single lump figure.
Is this the same as severance in other countries?
The structure is unusually generous by international standards. Brazil pays a 40% FGTS penalty plus notice, the Philippines pays a month or half a month per year for authorised causes, and Estonia splits a redundancy payment between the employer and the state. Mexico's three stacked components mean an unjustified dismissal after several years can cost most of a year's salary.
Related reading & tools
General information only, not legal advice. Figures come from PayMetric's Mexico finiquito engine at 2026 rates and the 2026 UMA. Entitlements depend on the facts of the termination and on your contract. Take professional advice before signing a settlement or bringing a claim.