How is payroll managed in Mexico?

In Mexico, employers must provide a 13th month payment, known as the ‘Aguinaldo’, by the 20th of December each year. This payment must be equivalent to at least 15 days’ salary, although many employers choose to pay a full month’s salary.

Additionally, Mexican employers are required to distribute a portion of their profits to employees. This profit sharing, known as ‘PTU’, is typically executed within 60 days of finalizing the annual tax declaration.

What are the standard employment regulations?

Employees in Mexico are entitled to a minimum of 6 days of paid vacation after their first year of service. This entitlement increases progressively, reaching a minimum of 16 days after 10 years of service, with an additional 2 days added every subsequent 5 years. During vacation, employees receive a salary plus a legally mandated premium.

What should be considered when dismissing an employee?

In Mexico, there are stringent protocols to follow for legally terminating an employment contract. It’s advisable to consult with our employment law experts before proceeding with a dismissal. If an employee successfully contests a dismissal, they may be entitled to a significant settlement amount.