Mexico's Profit Sharing Law: What's New and How to Score Your Slice

Hey there, hardworking folks! Have you noticed any tweaks in your profit-sharing payouts lately? If you've been scratching your head about it, let me enlighten you. Back in 2021, a little reform to the Federal Labor Law (LFT) waltzed in and shook things up in the profit-sharing department. Don't fret, though—I'm here to break down the nitty-gritty details of the changes for you.

First things first, profit sharing is a mandatory benefit in Mexico that finds its roots in both the Political Constitution of the United Mexican States and the Federal Labor Law (LFT). On April 23, 2021, the Official Gazette of the Federation (DOF) serenaded us with a reform regarding Outsourcing.

Now, what does this reform entail? It laid down fresh guidelines for the good ol' Employee Profit Sharing (PTU). And guess what? These new rules came into play in 2022, meaning companies are bound by law to pay out profits to their employees by the new regulations.