Learn about the different benefits regulated by Mexican Labor Law...
Employees who have completed one year of service are entitled to six days of paid vacation. Paid vacation days increase by two days per year to a maximum of 12 days; after the fourth year of service paid vacation increases by two days for every five years of service.
Employees are entitled to a 25 percent top-up of their normal daily salary as vacation premium per each day of vacations.
Employees are entitled to receive an annual bonus of at least 15 days of salary. This must be paid before 20 December each year.
Employees are entitled to the following paid holidays:
- 1 January
- first Monday of February on celebration of 5 February
- first Monday of March in celebration of 21 March
- 1 May
- 16 September
- third Monday of November in celebration of 20 November
- 25 December
- 1 December is an obligatory holiday every six years for the inauguration of new Federal Administration
Employees are entitled to six weeks paid leave before and after childbirth, as are those who adopt a child. The Mexican Social Security Institute (IMSS) will cover 100 percent of the employee’s salary if the pregnancy is certified by the IMSS and the filing takes full account of the expected due date. Maternity leave may be extended (at a reduced salary) to women if they are unable to work for medical reasons during pregnancy or childbirth with supporting documentation. Male parents are also entitled to paid leave in the case of birth or adoption. An employee’s position will be held for up to one year from the date of birth. Pregnant employees cannot be required to perform duties represent a danger to their physical, psychological, or emotional health.
Accommodations for Persons with Disabilities
Workplaces with more than fifty employees must be accessible to persons with disabilities before December 1, 2015.
Profit Sharing (PTU)
10 percent of the annual net pre-tax earnings of the employer are shared among employees (excluding high level managers or directors) once a year. The PTU payment is due at the latest on 30 May of every year. Branch offices in Mexico that do not generate income (ie., those established for the purpose of promotion of foreign companies) are exempt from this provision.
Outsourcing of work is strictly regulated to ensure that the rights of employees cannot be circumvented by outsourcing their duties to a contractor. Outsourcing is allowed but must meet certain criteria and must comply with labor laws.
Payroll Contributions to Social Security
Employers must make contributions on behalf of employees to the Mexican Social Security Institute (IMSS), the Institute of the National Housing Fund (INFONAVIT) and the Retirement Saving System (AFORES). Payroll fees and taxes are deductible for income tax purposes.
Employers who pay wages (in cash or in kind) to employees must pay payroll taxes (Impuesto sobre Nóminas), and be registered under a state registry to pay the local payroll tax at the rate determined in each state.