Mexico City, Mexico — A series of significant changes to Mexican labor laws is set to kick off in 2025, reshaping the landscape for employers and employees alike across the nation. These changes, highlighted by the implementation of the so-called Chair Law (Ley Silla), classification of certain app-based couriers as employees, a rise in the minimum wage, and revised units of measure for fiscal obligations, herald new compliance landscapes for businesses operating in Mexico.
Beginning January 1, 2025, workers across Mexico will see an increase in the minimum wage, which came after a 12 percent raise approved by the National Commission on Minimum Wages (Comisión Nacional de los Salarios Mínimos or CONASAMI) on December 4, 2024. The new rates are set at MXN $419.88 daily in the Free Zone of the Northern Border and MXN $278.80 in the rest of the country.
Additionally, an update in Mexico’s Unit of Measurement and Update (UMA), which is the basis for calculating fines and other governmental fiscal amounts, will take effect on February 1, 2025. The National Institute of Statistics and Geography published the updated values, setting the daily UMA at MXN $113.14, the monthly at MXN $3,439.46, and the annual at MXN $41,273.52.
The Chair Law, geared towards improving workplace ergonomics, was ratified on December 19, 2024, and stipulates that employers must provide adequate seating arrangements for employees. The law aims to mitigate health risks associated with prolonged standing and has a compliance deadline by June 17, 2025.
Moreover, the legislation redefining certain app-based couriers as employees, which was published on December 24, 2024, marks a significant shift in the gig economy sector. This recognition will phase in new employer responsibilities, effective by June 22, 2025, ensuring that app-based couriers receive similar employment benefits as other traditional employees.
Employers also need to be vigilant about the updates concerning their obligations towards Mexico’s Social Security Institute (Instituto Mexicano del Seguro Social or IMSS). Each February, companies are required to submit an annual report of work-related injuries and illnesses, which could adjust their risk premium rates. A digital mailbox system set up by IMSS, though currently not mandatory, is recommended for activation by February 1, 2025, to streamline communications and notifications.
Furthermore, businesses must address profit-sharing requirements with their workforce. By no later than March 31, 2025, companies are expected to have filed their annual tax returns, and workers are entitled to a prorated share of 10 percent of the company’s taxable income, payable by May 31.
Ensuring compliance will prove crucial, as overlooking the profit-sharing payouts and procedures could result in hefty fines for businesses.
As part of the broader national schedule, June 1, 2025, will also mark a critical date with federal elections set to take place, alongside local elections in the states of Durango and Veracruz. This day is designated as a mandatory holiday under the Federal Labor Law, providing employees a day off to participate in the electoral process.
With these imminent legal changes, businesses operating in Mexico are advised to prepare thoroughly to align with the new regulations and avoid potential penalties.
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