As weird as it may seem, in Mexico we have the same deal, although if I remember correctly, by law we get a 25% extra pay on vacation days. Some places use thi

As weird as it may seem, in Mexico we have the same deal, although if I remember correctly, by law we get a 25% extra pay on vacation days. Some places use this as a benefit to lure employees. For example I worked at a place where I got 75% extra pay on vacation days. The downside is that getting more than the minimum mandated by law (6 DAYS a year) is not that common. For example, for that place that gave 75% extra, I had I believe 10 (or 12) days a year, and it was actually above industry standard. Edit: To answer one of the posters below, I believe someone once explained to me, that at least in Mexico, the extra pay is supposedly to make it easier for families to actually go out of town and spend money, so it becomes a factor that helps drive the economy. I.e. if you have vacations but no money, then you won't spend anything and ultimately won't take vacations. This way you get vacations and also have money to spend during those days. At least that's how it's supposed to go.