Doing Business

Doing Business in Mexico 2015

Issue link:

Contents of this Issue


Page 96 of 259

83 Doing Business in Mexico 2015 Chapter 10 Labor relations and social security Investor considerations • Labor is readily available in most regions of Mexico, with internationally competitive levels of efficiency. • Basic daily minimum wage is low; in 2014 it was increased 3.9% • Fringe benefits, including labor law benefits, are significant relative to total payroll costs. • Unionization and collective labor contracts are common in both capital- and labor-intensive industrial enterprises. • Turnover is moderate, especially in the highly competitive labor-intensive industries. • Profit sharing is mandatory for most business concerns with employees and amounts to 10% of adjusted taxable income. • Social security system is in effect for all industrial areas and many agricultural zones. • Social security premiums are payable by both the employer and the employee. Compliance with general provisions of Labor Law, as well as Social Security, Hygiene, Safety and Environmental care are monitored by the authority and default is subject to sanctions which may be material in some cases. Outsourcing of labor force and services are subject to specific compliance rules. • Employment of foreign nationals is generally limited to 10% of the total workforce; certain exceptions apply when a free-trade agreement is in effect. Work visas are required. 10

Articles in this issue

view archives of Doing Business - Doing Business in Mexico 2015