3.1 Mandatory Employee Remuneration

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Commentary

Mexico

3.1�� Mandatory employee remuneration

The Mexican government has published a summary of key elements of labour law. This sets out some elements of remuneration which must be mandatorily provided by the employer to the employee:

Benefit	Detail
Profit sharing	Employees are entitled to a 10% share in their employer's pre-tax profits. This is subject to maximum limit detailed below. 50% of this amount is to be distributed in proportion to the number of days worked by each employee during the year, and the other 50% according to the wages of each employee. Payment must be made within 60 days of the employer being required to file its year-end income tax return. See below for further details.
Christmas bonus	Employers must give each employee the equivalent of 15 days' salary as a bonus by no later than 20 December of each year. (There is currently legislative reform in process looking to increase the Christmas bonus to 30 days.) This is sometime processed as a 13th month salary. See below for further details.
Paid holidays	Nine legal paid holidays must be