Mexico

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Employment

The employment contracts are open-ended however they have 30 days probation period. There are fixed term contract available for maximum 180 days, which are usually done for a specific project.

Payroll

The salaries are paid on weekly, bi-weekly and monthly basis. The paydays are decided between the employee and employer.
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Monthly salaries are typically paid at the end of every month.

HR & Labor

Working Hours: Full time employee works 50 hours a week or 11 hours a day. Overtime hours recieve 150% of salary, and work on Sundays or bank holidays receives 200% of salary. Workers are required to receive one hour of lunch break each day. Each employee is entitled to 24 hours of rest each week.
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Minimum age of employment is 14 to 15 years old.

Immigration

To be employed legally in Mexico, the employee must have a permanent residency. To apply for it, they must be hired first in Mexico and apply for the visa in their home town’s Mexican consulate.

Benefits

Christmas bonus: Employees receive a bonus, which is equal to 15 days’ salary. Many employees provide bonus of 4 weeks pay.

Minimum Wage

There are two minimum wages – one for Mexico city and surrounding areas, which Is MXN 64.76 and one for rest of the country which is MXN 61.38.

Public Holidays

There are 8 public holidays. Employees working on these days are entitled to:

- Three times their normal rate of pay.
- An agreement with employer regarding the number of hours that they will work.

September 16: Independence Day
October 12: Day of the Races
November 02: Day of the Dead
November 20: Revolution Day
December 12: Day of the Virgin of Guadalupe
December 25: Christmas Day

January 01: New Years Day
February 05: Constitution Day
March 19: Benito Juarezs Birthday
March 29: Maundy Thursday
March 30: Good Friday
May 01: Labor Day
May 05: Cinco de Mayo (Puebla only)
September 16: Independence Day
October 12: Day of the Races
November 02: Day of the Dead
November 19: Revolution Day
December 12: Day of the Virgin of Guadalupe Christmas Day

Pension Fund

The employer contributes 3.15%.

The employee contributes 1.125%, with a contribution limit of 25 times the minimum wage.

Severance Payments

The severance pay is three months’ salary, 20 days for each year in the company and seniority bonus of 12 days pay per year of service capped at twice minimum wage rate. The employee will also receive a back salary which is the amount from the date of the dismissal until the employer complies with the Labor Board’s decision.

Advance Notice

Not obligated to give a notice.

Termination Procedure

Employer must notify the employee in writing the reason of termination. Not obligated to give any days of notice, can terminate on the spot.

Under termination regulations, all terminated employees must receive all outstanding wages, accrued vacation, vacation bonus, and any other payment under the employment contract (such as gratuity, provident fund etc.)

Sick Days

Permission may be granted (either with or without pay)if the absence is justified. Approval is given upon the discretion of either the Intimidate Manager, or the General Manager.

For leave due to illness, a leave certificate issued by IMSS or a private doctors medical prescription is needed. For occupational sickness absences, the only accepted official justification is the leave certificate issued by IMSS.

Vacation Days

If the employee has been in the company for 1 year, they get 6 days paid vacation. For 2 years, 8 days. For 3 years they get 10 days. For 4 years they get 12 days. From 5 to 9 years, they get 14 days and from there on, the vacation time grows 2 days per year. Employees are paid 125% of their regular wages during their vacation days.

Additional Employee Withholdings

AFORES (the administer of retirement funds) is available to both government and independent employees. The account consists of:

- RCV ( Retirement and unemployment)
*Federal Government contributes 0.255% if salary, in addition to $1.45 Mexican Pesos daily.
- Housing
- Voluntary Contributions

1) Retirement: 2%
2)Unemployment due to old age: 3.15%
3) Housing: 5%

1) Unemployment due to old age: 1.125%
2) Voluntary contributions to retirement fund.

VAT

VAT is 16% standard rate.