Companies in Mexico have to distribute profits from April 1 to May 30. While those who work for a natural person must receive this benefit no later than June 29.
All companies whose net profits -after paying taxes- were 300,000 pesos, or more, must make the distribution of profits, according to the 2022 tax declaration, as long as it does not have a year of creation.
The amount to be distributed is set at 10% of the business profits.
“Companies must distribute to their workers a copy of their tax declaration, so they can know what is the global amount that is going to be distributed. They must also publish in a visible place the list in which you can see how much each of their workers will receive, ”said the Secretary of Labor, Luisa María Alcalde, in a video broadcast on her social networks.
Workers who have worked at least 60 days are entitled to receive profits.
Does not apply
Profit sharing does not apply to domestic workers, directors, administrators, general managers; professionals, artisans and artisans, technicians and others who, through the payment of fees.
Likewise, newly created companies are exempted from said distribution during their first year of operation; to the Mexican Social Security Institute (IMSS) and decentralized public institutions for cultural, welfare or charitable purposes; to companies whose capital is less than that established by the Ministry of Labor and Social Welfare by branches of industry, and to private assistance institutions that carry out actions for humanitarian assistance purposes, without profit purposes and without individually designating the beneficiaries.
The companies that merge, transfer or change their name or company name, have the obligation to distribute profits to their workers, since they are not newly created companies, the federal government pointed out.
What happens if I don’t receive profits?
Workers who do not receive payment of profits have one year, counted from the deadline -May 30 or June 29- to claim payment of this right.
Complaints can be made to [email protected], or directly to the Federal Labor Defense Attorney’s Office (Profedet).
Profedet advises and supports and, where appropriate, represents workers in court before the Center for Conciliation and Labor Registration.
