título de la presentación fecha ramifications on minimum wage increase worker’s compensation...
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Ramifications on Minimum Wage Increase
Worker’s Compensation
January 18, 2012
Effects of 2012 MW increase…
• Increase for 2012 at 4.2% for all three of the country's geographic zones, slightly above the rate of inflation expected for 2012.
• The increase brings to 62.33 pesos($4.60) a day in zone A, which includes Mexico City and several cities on the U.S. border including Tijuana, Mexicali, Tecate and Ensenada.
• The labor ministry said the increase in the MW, which is frequently used as a benchmark for other wage negotiations, is above the expected rate of inflation for 2012.
• The wage commission considered that wage negotiations should consider the specific conditions of each company, rather than be based on the minimum wage review, the Labor Ministry added.
Effects of 2012 MW increase…
Labor indicators
• There are several calculations in Federal Labor Law in function of mw, i.e.
• Base of Seniority Premium, (should be adjusted up to two minimum wages 124.66 pesos.
• Penalties for employees and employers stated in Labor Law are fixed in MW.
Tax exemptions
• In addition of a labor indicator, the MW is a tax indicator…Get your payroll system updated for tax purposes.
• Maximum Top of 25 mw increased to $1,558.25 pesos daily.
• Discounts on cafeteria should be 12.47 pesos a day (20% of MW)
• Tax exemption for food coupons is 40% of MW = 24.93 daily, 174.51 weekly.
Tax exemptions
Examples or effects in Income Tax limits:
• Savings Fund Limit on 1.3 MW a year
• Overtime 50% up to 5 minimum wages
• Christmas bonus 30 MW• Vacation premium 30 MW• Profit sharing 15 MW
Worker’s compensation
Workers compensation in Mexico is measured by
• Classification of activity• Work accidents Recommendations• Activity classification should be
updated• Every time there is an accident the
company fills out a form.• Keep track of every work accident
ContactsElisa [email protected]
Lorena [email protected]
Guillermo [email protected]
Victor [email protected]
Mauricio [email protected]
www.mauriciomonroy.com+52 (664) 972 9072
Blvd. Agua Caliente 10611Suite 805, Col. Aviacion Tijuana, B.C. CP 22420
