The distribution of profits is a right that is contemplated in the Federal Labor Law. If you have doubts about whether or not you receive it, this information is for you. According to Profedet, profit sharing is a constitutional right for workers to receive a part of the profits that a company or employer obtains for the productive activity or services it offers in the market.

Profits must be delivered to workers no later than May 30 in the case of workers who work for a legal entity (company), while people who work for a natural person (employer), must receive payment no later than June 29.

Who is entitled to this benefit?

It is applicable to workers who have worked for at least 60 days in companies whose net profits were $ 300 thousand pesos or more, according to their 2017 tax declaration, and who have been operating for more than a year. Under these conditions, they will be entitled to Profit Sharing, regardless of whether they no longer work in the company in question or had a contract for a specific work.

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Who does not have the right to participate in the Profit Sharing?

Does not apply to domestic workers; directors and directors, administrators and administrators, general managers; Professionals, artisans and craftsmen, technicians and others who, by paying fees, provide their services without existing a subordinate working relationship with the employer.

Likewise, new companies are exempt from said distribution during their first year of operation; to the Mexican Institute of Social Security (IMSS) and decentralized public institutions for cultural, welfare or charitable purposes; to companies whose capital is less than that set by the Ministry of Labor and Social Security by branches of industry, and to private assistance institutions that carry out actions with humanitarian assistance, non-profit and without individually designating the beneficiaries.

But how is the profit corresponding to each worker calculated individually?

The law establishes the mechanisms to determine this calculation:

The workers will participate in the profits of the employer in accordance with the percentage determined by the National Commission for the Participation of Workers in the Profits of Companies (which to date amounts to 10% of net profits).
 The distributable profit will be divided into two equal parts. The first part will be divided equally between all and all workers, taking into account the number of days worked by each one in the year, regardless of the amount of wages. The second will be distributed in proportion to the amount of wages earned for work performed during the year.
 The amount received by workers in cash per daily quota is considered as salary. When the remuneration is variable, the average of the perceptions obtained in the year will be taken as salary.

What salary is taken as the basis of the Profit Sharing?

Exclusively the daily salary, not including other income such as overtime, bonuses, bonuses or any other derived from your work. When the salary is variable, the average corresponding to the total received during the year will be taken as the daily quota.

In the case of trusted workers, the maximum salary, the basis for the distribution of profits, will be taken as the result of adding 20% ​​to the salary of the unionized worker or the highest-paid base worker, raised per year.

Until when can you claim the payment of the utilities?

If workers do not receive this benefit or are paid incompletely, you have a period of one year, counted from the day following the established deadline, to claim the payment of profits.

What days are considered as worked for the Distribution of Profits?

In addition to working days, all those in which, by provision of the law, individual or collective work contract and the internal work regulations, workers receive their wages even when they do not work, are effective, such as:

Temporary disabilities due to work risk.
 Prenatal and postnatal periods.
 Weekly rest, vacations and holidays.
 Permits.
 Paid leave.

The amounts that workers must receive by way of Distribution of Profits, are contemplated in these articles of the Federal Labor Law:

Article 130 of the Federal Labor Law establishes: “The amounts that correspond to workers for profit, are protected by the norms contained in articles 98 and following”, which refer to the following normative assumptions:
 Workers will freely dispose of the amounts that correspond to them by way of profits. Any provision or measure that violates this right will be void (article 98);
 The right to receive profits is inalienable (article 99);
 The profits will be paid directly to the worker. Only in the cases in which he is unable to personally carry out the collection, the payment will be made to the person designated as proxy by means of a power of attorney signed by two witnesses. Payment made in contravention of the provisions does not release the employer from liability (article 100);
 The profits must be paid precisely in legal tender, not being allowed to do so in merchandise, vouchers, tokens or any other representative sign with which it is intended to replace the currency (article 101);
 The transfer of profits in favor of the employer or third parties, whatever the denomination or form that is given, is void (article 104);
 The workers’ profits will not be compensated (article 105);
 The employer’s obligation to pay the profits is not suspended, except in the cases and with the requirements established by law (article 106);
 Payment of profits will be made at the place where the workers provide their services (article 108).

Is any tax deducted from the profit sharing?

Only when the amount of the profits exceeds the equivalent of 15 days of minimum wage.

If a company or employer does not comply with this workers’ right, will it receive a fine?

Yes, the Federal Attorney for Labor Defense calls on companies and employers to comply with the Distribution of Profits in a timely manner, as failure to do so leads to fines ranging from 50 to 5,000 current minimum wages, as indicated the LFT.

If you need guidance or more information on this subject, you can contact Profedet, where they will assist you for free, at the telephone numbers: 800 71 72 942 and 800 911 78 77 or send an email to: orientacionprofedet@stps.gob.mx . You can also go, after the contingency, to one of the 48 offices throughout the country.

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