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A. - Mandatory minimum benefits offered to Mexico full time based employees (regulated by
Mexican Labor Law):
INFONAVIT (Financial institution for government subsidized housing purchase for Mexican
employees). An amount is deducted from each paycheck and goes to an account administered
by a Bank of the employees choice as a form of savings to acquire a house through this
institutions housing program.
IMSS (Instituto Mexicano del Seguro Social, a social security government entity). An amount is
deducted from each paycheck and goes to an account administered by a Bank of the
employees choice as a form of saving for retirement, disability insurance and to receive minor
and major health care benefits subsidized by the Government.
AGUINALDO (Christmas Bonus) is a lump sum that is equal to 15 days salary that every
employer must provide to the employee on a yearly basis and paid during the first 20 days of
the month of December.
PAID VACATION DAYS. After the first year of employment, the employee receives a minimum
6 days paid vacation, the second year 8 days, third year 10 days, fourth year 12 days
VACATION PREMIUM. In addition to the paid vacation days, the employer must pay a premium
of 25% on top of the paid vacation days.
PAID HOLIDAYS, a total of 8 observed Mexican paid holidays.
PROFIT SHARING. If the company or entity reports a profit during the fiscal year, the employer
must share a percentage of these profits with all employees, except Directors. This according to
a complex formula regulated by the Government.
SENIORITY BONUS. A bonus must be paid to the employee after 15 years of seniority and for
every year employed. The employee has the right to receive 12 days of bonus.
SEVERANCE PAYMENT. This is a lump sum that every employer must provide to the severed
employee without cause. Law mandates a 3 months salary and an additional 20 days per
every year employed (Pro-rated) to every employee that has been let go.
B. Supplemental or Additional benefits (optional) offered in Mexico as a common practice for
Management and Professional level positions:
MAJOR MEDICAL INSURANCE is paid for by the employer and provided to the employee
through a group policy. Sometimes the employee is asked for a small contribution. Many
companies offer this to insure their direct family members (spouse and children), as well. At
times, the family coverage has a partial cost to the employee.
LIFE INSURANCE. This is a very common practice and only covers employee. Typically the
benefit is one years salary for management and professionals and up to three times salary for
senior management.
EDUCATION REIMBURSEMENT. Employers increasingly provide support for postgraduate
studies that are directly related to current responsibilities and nature of company activities.
Common practice ranges from a capped fixed amount up to a 100% reimbursement with
above average school grades.
SAVINGS FUND. This is an amount deducted from the employees paycheck that is matched by
the employer at 100% and returned to the employee at the end of the year (sometimes every 6
months) with additional annual interest which varies by company. This amount is capped by the
Federal Labor Law for tax exempt status and it cant be above $2,400.00 pesos/month.
2531 Windward Way Chula Vista, CA 91914 Tel: (619) 427-2310 Fax: (619) 427-2312 Email: barbachano@bipsearch.com
Web site: http://www.bipsearch.com OFFICE LOCATIONS: SAN DIEGO TIJUANA MEXICO CITY
2531 Windward Way Chula Vista, CA 91914 Tel: (619) 427-2310 Fax: (619) 427-2312 Email: barbachano@bipsearch.com
Web site: http://www.bipsearch.com OFFICE LOCATIONS: SAN DIEGO TIJUANA MEXICO CITY