We are not a law firm. Do not consider our information as legal advice. This information has been summarized based on our legal inquiries. Information can become obsolete from one day to another due to changes in laws, regulations, or government procedures. Consult labor and tax attorneys for legal advice. (Note from HR Mexico staff)
Mexican Profit Sharing
PTU / PROFIT SHARING IN MEXICO
All employees who are employed in the year, in the case of temporary employees, those who have worked more than 60 days in the year, through the payment of wages or salaries and with current legal status in case of being foreign, have the right to participate in the profits of companies which provide their services according to article 127 of the Mexican Federal Labor Law.
Profit sharing is equally divided among all employees, taking into consideration the number of days worked and in proportion to the salary of each employee. The employer must pay the profit sharing every year within 60 days of filing the company's annual tax return for the previous (Limit March 31.). In case of foreign employees, it is important to mention that to be entitled of this right, the employee must have their Temporary resident card or Permanent card with lucrative activities.
On the other hand, the staff who are not entitled to receive PTU / Profit Sharing are general managers of companies, domestic workers and casual workers (who worked less than 60 days during the year under distribution), and technicians, artisans and other persons that provide services to a company.