Profit sharing is a right that most workers in Mexico have and is established in the Mexican Constitution and the Federal Labor Law (LFT); As the date approaches for companies to start depositing this payment, here are some facts you should know.
DATES FOR THIS 2023
In 2023, the payment of utilities must be made from April 1 to May 30 in the case of companies, and for individuals from May 1 to June 29. The Federal Labor Defense Attorney’s Office calls on companies and employers to comply with Profit Sharing in a timely manner, since failure to do so can result in fines ranging from 50 to 5,000 current minimum wages.
WHAT IS IT AND WHO RECEIVES UTILITIES?
Profit sharing consists of receiving a part of the profits of the company or employer for which the worker works, and is determined, among other factors, according to the number of hours worked and income level.
The National Commission for the Participation of Workers in Company Profits determines the percentage that will be distributed, which is currently 10% of net profits. The distributable profit is divided into two equal parts: the first is divided equally among all workers, taking into account the number of days worked; the second is distributed in proportion to the amount of salaries earned during the year.
The Federal Labor Law establishes that this right is applicable to workers who have worked for at least 60 days in companies whose net profits were 300,000 pesos or more, and that have been in operation for more than one year. It does not apply to domestic workers, directors, administrators and general managers, professionals, artisans, technicians and others who provide their services by paying fees.
Companies exempt from paying utilities
Newly created companies during the first year of operation Newly created extractive industry companies Private assistance institutions that carry out humanitarian acts of assistance, without profit purposes and without individually designating the beneficiaries The Mexican Institute of Social Security ( IMSS) and decentralized public institutions for cultural, welfare or charitable purposes Small capital companies established by the Ministry of Labor and Social Welfare
Profit Sharing Service Notes
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