Changes To The Mexican Minimum Salary And UMA Will Impact Benefits And Tax Calculations - Employment and HR - Mondaq Mexico - Mondaq Business Briefing - Books and Journals - VLEX 808601989

Changes To The Mexican Minimum Salary And UMA Will Impact Benefits And Tax Calculations

Author:Ms M. Rosario Lombera-Gonzalez and Héctor Reyes-Freaner
Profession:Baker & McKenzie Abogados, S.C.
 
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Effective 1 January 2019, the minimum salary for the Northern Border Free Zone — a new stimulus zone covering 43 municipalities in six states — is MXN 176.72 per day, while for the rest of Mexico, it is MXN 102.68 per day. Mexico also revalued the inflation indexing benchmark, known as the Measurement and Revaluation Unit (UMA), effective 1 February 2019 (daily UMA - MXN 84.49; monthly UMA - MXN 2,568.50; and annual UMA - MXN 30,822.00).

These changes will impact the following items relating to benefits and tax calculations:

the amounts paid as benefits derived from the increase in the minimum salary (i.e., pension plans, collective bargaining agreement) the minimum and maximum base contribution for purposes of the employer-employee contributions to social security (IMSS) and the housing fund (INFONAVIT) the exemption limits for certain benefits included in wages and the associated costs to employers the exemption limits applicable to employee benefits (i.e., grocery allowances, savings fund, pension plans, statutory annual bonus, employee profit sharing, seniority premium, vacation premium) for purposes of calculating...

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