What are statutory benefits in Mexico?

Mandatory employee benefits in Mexico include vacation pay, profit sharing, seniority premiums, and registration with Mexico’s social security system which entitles employees to free medical care and other social provisions.

What are considered statutory benefits?

These statutory benefits include Social Security, Unemployment Compensation, and Workers’ Compensation. … Statutory benefits may provide you and your family with financial assistance, in addition to the University-sponsored benefits, when you are injured on the job, become disabled, retire, or die.

Does Mexico have a 13th month pay?

The payroll cycle is bi-weekly, and employees are generally paid on the 15th and the last day of each month. A 13th-month salary payment is mandatory in Mexico; it is a bonus payment paid by December 20th (Aguinaldo). The Aguinaldo is calculated as 15 working days of salary, plus an allowance, based on a 365-day year.

What is severance pay in Mexico called?

A severance payment comprises: Constitutional indemnity: three months of total daily compensation, known as “integrated salary” (calculated with the daily portion of salary, vacation, bonus and any other extraordinary benefit paid on the last year of the relevant termination date).

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What is a bonus in Mexico?

The term aguinaldo refers to an annual Christmas bonus that businesses in Mexico are required by law to pay to their employees. The payment, sometimes called the thirteenth salary, must be made by Dec. … Companies that fail to make an aguinaldo payment may be fined as much as 5,000 times the legal daily minimum wage.

What are the 5 statutory benefits?

Medicare and social security, unemployment insurance, workers’ compensation, health insurance, and family and medical leave are all benefits that the federal government requires businesses to provide. State governments may have other requirements.

Which of the following is a non statutory benefit?

The most common Non-Statutory Employee Benefits include:

1. Health Insurance: provides reimbursement to employees for medical expenses incurred by them or their family members. … Group Long Term Disability Insurance provides reimbursement to an employee who becomes disabled.

How much is the Christmas bonus in Mexico?

Under Mexican law, all employees (including maids, gardeners, cooks) deserve a Christmas bonus. It also creates and keeps a good, healthy relationship with your employees. Employees are entitled by law to receive 15 days pay for their Christmas bonus.

How many sick days do you get in Mexico?

Sick leave is paid at 60% of an employee’s regular wage from the fourth day of the illness, up to 52 weeks (and may be extended for another 52 weeks). Healthcare coverage for employees in Mexico is managed by the Instituto Mexicano del Seguro Social (IMSS), or the Mexican Social Security Institute.

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How much is social security in Mexico?

Mandatory individual account and social insurance: 6.275% of daily covered earnings (old age) plus 2.375% of daily covered earnings (disability and survivors). The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.

Can you fire an employee in Mexico?

To dismiss an employee without just cause, you must pay the employee three months salary, their prorated Christmas / Vacation bonus, and vacation pay (plus 20 days pay per year of service for 15 years or more seniority).

How is Mexican severance calculated?

Termination without cause: employees are entitled to the following lump sum severance: (1) three months of the employee’s daily aggregate salary, plus: (2) twenty days of the employee’s daily aggregate salary for each year of service; (3) a seniority premium of twelve days’ salary for each year of service (but with a …

Can you fire someone in Mexico?

You do not need to point to a specific reason or event to fire an employee in Mexico, provided the employer and employee agree to part ways via mutual agreement. However, employers must tread carefully to avoid paying hefty fines or getting drawn into costly legal battles.

What is a Finiquito in Mexico?

Finiquito literally transaltes to settlement; to settle your account. Finiquito is paid to your employee such as a maid or personal assistant when you end the employment relationship with that person. It gets even a little more complicated than that though.

What is Christmas bonus?

The Christmas bonus is an amount granted to an employee in excess of what the law requires as a reward or incentive for achieving a goal and/or contributing to the success of the employer’s business.

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How much does Aguinaldo cost?

The aguinaldo is based on 15 days of wages for any worker that has one year or more of service, and if the employee has less than one year, the bonus will be calculated by proration.