--- title: "What a final settlement (finiquito) is · Sicheca" description: "What a finiquito (final settlement) includes and how it differs from a liquidation (severance)." url: https://sicheca.com/en/blog/que-es-un-finiquito lang: en alternate_es: https://sicheca.com/blog/que-es-un-finiquito.md --- Glossary · 3 min read # What is a finiquito (final settlement) Short answer The final settlement (finiquito) is the payment of what the company owes a person when the employment relationship ends, regardless of the cause. ## What it includes - Pending wages. - Proportional aguinaldo (year-end bonus). - Unused vacation and its premium. - Unpaid overtime. ## How to do the math by hand With $400 per day and the full year: 400 × 15 = $6,000. If the person worked 200 days: 6,000 × 200 ÷ 365 = $3,287.67. ## The role of the record If there was unpaid overtime, it will come up in the final settlement or in a later claim. ## Why everything starts with the working-time record Almost every labor calculation starts from the same data point: how many hours and which days each person worked. If that data is uncertain, so is everything else. - **Overtime:** it is paid according to the hours of each week. - **Sunday premium and rest days worked:** they depend on which days were worked. - **Aguinaldo and profit sharing:** they use the days worked in the year. - **Labor lawsuits:** the company must prove the working time. Since 2026, the Federal Labor Law requires that record to be electronic, per person, with start and end time. ## Common mistakes - Using the UMA or minimum wage value from a previous year. - Confusing daily salary, integrated salary and contribution base salary. - Calculating benefits without knowing the days actually worked. - Taking the legal minimums as if they were the maximum. - Not keeping the backup of the calculation. ## What to do now 1. Confirm the current value for the year. 2. Have each person's daily salary at hand. 3. Check the days and hours worked in your record. 4. Do the math and keep it. 5. Validate it with your accountant. ## Related terms **[Day shift: schedule and maximum length](https://sicheca.com/en/blog/jornada-diurna).** The day shift is the one worked between 6:00 a.m. and 8:00 p.m. **[What is NOM-035](https://sicheca.com/en/blog/nom-035).** NOM-035 is the STPS standard that requires identifying and preventing psychosocial risk factors at work, such as excessive workloads and long workdays. **[What is the contribution base salary (SBC)](https://sicheca.com/en/blog/salario-base-de-cotizacion-sbc).** The contribution base salary is the salary used to calculate IMSS contributions and INFONAVIT contributions. ## Frequently asked questions ### Is it the same as severance pay (liquidación)? No. The severance package adds the compensation for wrongful dismissal. ### Can I use this for my payroll? It works as a reference. Your accountant should do or validate the payroll calculation. ### Where does the data come from? From the Federal Labor Law and from the official values published by INEGI and the National Minimum Wage Commission. ### Do these values change every year? Yes. The UMA is updated every February 1 and the minimum wage every January 1. Always confirm the current value. ### Are the amounts gross or net? Gross. They do not account for taxes or social security contributions. ## Legal basis and sources - Benefits: articles 76 to 80, 87 and 117 to 131 of the LFT. - [Decree amending the Federal Labor Law on the reduction of the working week](https://sidof.segob.gob.mx/notas/docFuente/5786537). Official Gazette of the Federation, May 1, 2026. - [Federal Labor Law, current text](https://www.diputados.gob.mx/LeyesBiblio/pdf/LFT.pdf). Chamber of Deputies. **How we write this content.** The Sicheca team writes it from the official text of the law. When something is not yet defined by the authority, we say so. It is general information and does not replace the advice of a lawyer or an accountant. ## Keep reading [ Glossary **What is a labor severance payment (liquidación)**](https://sicheca.com/en/blog/que-es-una-liquidacion) [ Glossary **What is PTU, or profit sharing**](https://sicheca.com/en/blog/que-es-la-ptu) [ Glossary **What the internal work regulations are**](https://sicheca.com/en/blog/reglamento-interior-de-trabajo) [ Law and fines **Fine for not keeping the electronic working-time record**](https://sicheca.com/en/blog/multa-por-no-llevar-registro-de-jornada) [See all articles](https://sicheca.com/en/blog/) Who publishes this blog Sicheca is a digital time clock for recording working time from your phone. We write these guides from the official text of the law, so any business can understand what applies to it. If you want to try it, there is a waitlist. [Join the waitlist](https://sicheca.com/en/lista-de-espera?utm_source=blog&utm_medium=articulo&utm_campaign=que-es-un-finiquito&utm_content=final)