Hard to find and important information on doing business in Mexico!
DOING BUSINESS IN MEXICO There are several different ways in which a foreign society, (corporation),or other individuals can do business in Mexico. Types of business organizations Mexican Law recognizes the following types of organizations: Sociedad Anónima, (S.A.) Corporation Sociedad Anónima de Capital Variable, (S.A. de C.V.)Variable Capital Corporation Sociedad de Responsabilidad Limitada, (S. De R.L.)Limited Liability Partnership Sociedad de Nombre Colectivo, (S. en N.C.)General Partnership Sociedad en Comandita Simple, (S. en C.S.) Limited Partnership, partnerships where some parties provide services while others furnish funding.The most common forms of organizations chosen by foreign investors are: Corporations, (Sociedad Anonima or SA)Variable Capital Corporations, (Sociedad Anonima de Capital Variable S.A. de C.V.)Under certain conditions, Limited Liability Partnerships, (Sociedad de Responsabilidad Limitada S de R.L) Some of the main characteristics of these corporations/partnerships. SOCIEDAD ANÓNIMA, (S.A.) CORPORATION This form of organization is one of the most common used by foreign investors. This corporation or legal entity is created under the authority of the lawand has certain rights and obligations. It has a capital stock divided into shares and the stockholders are liable only to the extent of their contributions. This corporation may exist under any kind of name, followed by the words, "Sociedad Anónima", or the abbreviation S.A. It is composed of stockholders, (shareholders), whose obligation is limited only and exclusively to the payment of their stocks, (shares). It must be formed by at least 2 partners, a minimum capital investment of $50,000.00 pesos, and at least one share of stock should be purchased by each partner. The corporations constitution will be a public document. The incorporation of the organization will be carried out by a notary public. The corporations' capital is represented by stocks. The stocks are divided and presented as titles, (registered bonds), which are used to credit and transmit rights, conditions, etc. of stockholders. The stocks will have equal value and will confer equal rights. Each stock gives the right to one vote in the decisions made by the assembly. The distribution of profits and capital will be made in proportion to the value of each stock. Corporate administration The highest authority of this corporation is the General Shareholders Assembly. The administration will be managed by one or several temporary and revocable executives, who may or may not be partners. If only one administrator is chosen, he or she will be designated as the General Manager, but if two or more administrators are appointed an Administrative Board will exist, which may include a President and Counselors if necessary. Managers will have inherent responsibilities and obligations that laws and by-laws impose. Supervision of the corporation The supervision of a corporation will be managed by one or several temporary and revocable delegates, who may or may not be associates. The rights and obligations of the delegates are; to demand from the administrators monthly information which includes at least a financial statement and balance sheet; to examine the documentation, operations, and records, and to prepare on an annual basis a report to the general shareholders assembly on the overall status of the information presented bythe Administration Board; to call special assemblies in the event of omissions by the managers. The delegates will be individually responsible for the fulfillment of obligations that laws and by-laws impose. The delegates will be responsible for the arrangements concerning the duration of their position, obligations of granting guarantees, the granting of powers, and responsibilities of the functions imposed by Administrators. Financial information The corporation, under the responsibility of their Administrators, will present at the shareholders annual assembly a report that includes: a) The current situation of the company, as well as the policies followed, and existing projects. b) The statement and explanation of the principal policies, information, and criteria followed in the making of financial decisions. c) A statement that shows the current financial situation of the organization and pertinent data from the last reporting period. d) A statement that explains and classifies the results of the corporation during the period. e) A statement showing the changes in the financial situation during the period. f) The necessary notes to complete or clarify the information that supports the statements. Shareholder assemblies The general shareholders assembly is the supreme authority of the organization. The assembly is responsible for the debate and ratification of all acts, operations, and resolutions. The chairperson, administrator ,or administration board will fulfill the wishes of the assembly. The assemblies will meet at least once a year, within four months following the end of the reporting period, and will address the following matters, among others: To approve or to modify the annual report of administrators and delegates. To elect an administrator or administration board and delegates, or to ratify the current selections. Extraordinary assemblies are those which deal with the following topics: Extension of the continuance of the organization. Anticipated dissolution of the organization. Increase or reduce the organizations capital. Merger with other companies.Any other modification of the organizations contract. The assemblies will be able to meet at any time, summoned by the administrators, administration board, or delegates. However, the associates that represent at least thirty-three percent of the organizations capital may request, in writing to the managers, to call a general shareholders assembly. If they refuse, the judicial authority will achieve the wishes of the associates. In order to consider an ordinary assembly legally gathered, there must be atleast half of the organizations capital represented by shareholders, and their resolutions will be valid when the majority of the participants approve them. Unless, in the by-laws there is a greater number of the shareholders required, the extraordinary assemblies should be represented by three-quarters of the capital of the organization, and the resolutions must be approved by vote of the stockholders who represent half of the corporate capital. SOCIEDAD ANONIMA DE CAPITAL VARIABLE, (S.A. de C.V.) - VARIABLE CAPITAL CORPORATION The S.A. and the S.A. de C.V. differ in a meaningful aspect. The maximum capital amount for a S.A. is fixed and specified in the articles of incorporation, (public document), and by the corporations laws. Any subsequent increase or capital decrease requires modification of the public document or by-laws. The public document and by-laws of a S.A. de C.V. show minimal capital and "variable" capital amounts that exceed the minimal capital. The variable capital can be unlimited, and with increases and decreases in capital it is not necessary to modify the public document or by-laws of the organization. For this reason foreign investors, particularly those who possess their own subsidiaries, use the S.A. de C.V. figure instead of the S.A.. SOCIEDAD DE RESPONSABILIDAD LIMITADA, (S. de R.L.) - LIMITED LIABILITY PARTNERSHIP The S. de R.L. creates a company of limited responsibility similar to an S.A. The responsibility is limited to the investment of the shareholders. However, there is a maximum limit of shareholders which should not be more than 50. This type of organization requires a smaller capital investment,(only $ 3,000.00 pesos), which is divided into 3participation units" instead of stocks. There are no restrictions in the changing of associates, as long as the associates that represent the majority of the capital agree. This organization is currently used by more foreign investors than by Mexican investors. The main reason for this is the flexibility in the managing of by-laws and the possibility of using the S. de R.L. for fiscal matters in the USA. This creates an organization that has limited responsibility and pays taxes as a Mexican corporation, but is considered a partnership in the USA. PROCEDURES FOR ESTABLISHING A BUSINESS Registration procedures Any mercantile corporation must be registered in the Public Registry of Commerce, (Registro Pùblico de Comercio). Failure to do so may have serious consequences for the associates. In the case of corporations, through public documents, using a notary public, the attorney will notify the associates of the requirements and accomplish the necessary procedures, offering absolute legal certainty to the associates. A testimony of the articles of incorporation and the corresponding rights will become available in the public registry. After a short time the corporation will be registered, creating a "record" in which all actions accomplished will be noted. Books and records Companies should keep the following accounting books and records: Daily Book Ledger Book of Assembly, Minutes of Shareholders, Shareholders Record of the Corporation, Book of Capital Increases and Decreases, (in the case of a Variable Capital) The corporation must produce a financial report that will be submitted in each period ended for the consideration of approval by the associates assembly. The annual financial report must contain the following: Financial Statement at the End of the Period. Balance Sheet. Statement of Income. Statement of Changes in Financial Position .Statement of Changes in Stockholders Equity. Notes of the Financial Statements. For legal and fiscal issues in Mexico all periods should end in the month of December, (according to the General Mercantile Corporations Law and the Fiscal Code of the Federation, the tax closing date is the 31st. of December).Administrative powers Administrators of a corporation have different powers, such as, carrying out judgments, initiating court judgements, paying creditors, buying or selling properties, participating in capital ventures of new corporations, etc. Such powers can also be delegated to other people, through power of attorney. These powers are granted through: General judicial powers for cases and collections These powers authorize the company to be represented before the courts to litigate for the company, and for the representation of the company in pretrial negotiations. General powers for acts of administration These powers permit the company to be represented in all kinds of non-contentious actions that may have a purpose of accomplishing company objectives and obligations. General powers for acts of ownership This allows the owner to act for the good of the company. This means that he or she can sell, buy, encumber, and impose ownership limitations on the assets that belong to the company. General powers to approve bonds and contracts of credit This allows for the unconditional payment of obligations in favor of third parties, allows for the signing of checks, allows for the signing of contracts which can encumber the company, and for the endorsement of third party payments of obligations. All powers indicated above can be limited by the shareholders assembly. Licenses to operate Other administrative requirements that should be fulfilled by the companies established in the State, are to transact and obtain licenses before different authorities, according to their activity, (municipal licenses, ecological, etc.). Environmental policies The principal obligations that companies must fulfill regarding ecologica land the environmental matters are: Federal Environmental license, (initial procedure) The Environmental License, (LAU), is a direct regulation instrument thatpermits the coordination of the process of the evaluation, judgment, and follow-up of the environmental obligations of industrial establishments. The National Ecology Institute, (INE), is responsible for environmental impact and risk procedures, emissions into the atmosphere, and dangerous residue treatments. Water quality and water services are the responsibility of the National Water Commission, (CNA). The LAU is issued only once and is definitive as to the activities of the industrial establishment. Federal jurisdiction covers the prevention and control of pollutants in the atmosphere. It also establishes the conditions for operations according to outstanding environmental legislation. The license must be renewed if industrial procedures change or change of location occurs. Annual operation certificate, ( annual report) Corresponding with the LAU, the Annual Operation Certificate, (Cédula de Operación Anual, COA), constitutes the annual emissions and pollutants report which occurred in the previous year of its presentation. State People that intend to accomplish activities of a public or private nature and may cause an ecological imbalance or exceed the limits and conditions established for ecological procedures, will have prior authorization by the State Ecology Commission concerning environmental impact matters. These activities may include: 1.Public works and construction of rural roads.2.Industrial parks.3.Development, extraction, and processing of minerals or substances that are natural deposits, and whose control is not reserved by the Federation.4. Tourist developments.5.Installation of water treatment plants, sanitary landfills, elimination of residual waters, or solid non-hazardous residues.6. Housing developments, residential units, and new centers of population. 7.Factories, industries, goods, or trading services whose activities could generate pollutant emissions into the atmosphere. Companies that may cause an environmental impact through the accomplishment of activities will have to present to the Commission a preventive action report. If the Commission agrees on the preventive actions, the company may proceed. MERGERS, CORPORATE SPLITS, AND CORPORATE REORGANIZATIONS Mergers Mergers are defined as the legal act of: Creating a new organization beginning with the merger of two or more organizations. This is known as merger by integration. Merger by incorporation is accomplished when one or several corporations are incorporated into another existing corporation. Merger process and agreements The merger process is regulated by the General Law of Mercantile Societies, (Ley General de Sociedades Mercantiles, LGSM), which begins with the corresponding agreement of each organization. The agreement will vary according to the type of the organization. Once the agreements are achieved and the merger contract is signed, the next step in the merger process is the registration of the agreements with the Public Register of Commerce, as well as the publication of the agreements in the official federal journal, and local newspapers. The merger always requires a public document for customers, creditors, and municipal authorities, both state and federal, for review. Effective dates of the merger In terms of the LGSM, the merger will be effective within the following three months after the registration in the Public Register of Commerce. This is to protect the company creditors involved in the merger process. However, the three month term can be avoided so that the merger can take effect at once. This is possible when the rights and responsibilities of the creditors remain without question and are duly guaranteed. This can happen when all creditors explicitly consent to the merger, or when a security deposit is made in a financial credit institution. Fiscal aspects From a fiscal point of view, there are some considerations and obligations that the merged companies must consider and fulfill in order to avoid sanctions by the fiscal authorities. Transfer of assets The first reference in the Fiscal Code of the Federation, (Código Fiscal de la Federación, CFF), establishes that assets that are transferred as a consequence of the merger will not be considered as part of the disposition of assets for fiscal effects, as long as the company that emerges accomplishes the following: Presentation of the proper tax period statements. Presentation of the informative statements according to the terms established by the fiscal laws of each organization or organizations merged to the period that ended with the merger. Fiscal legislation INCOME TAX LAW, (LISR), LAW OF TAXABLE ASSETS, (LIA), LAW OF THE VALUE-ADDED TAX, (LIVA), in general terms have the following regulations: Rights that are transferable As a consequence of the merger, the parties will be able to transfer the following rights: The balance of the account of net fiscal profits. The balance of the account of reinvested fiscal profits. The balance of the account of contribution capital. The right to credit the value-added tax, (IVA). Rights that are not transferable As consequence of the merger, the parties will not be able to transfer the following rights: Fiscal losses pending amortization. The Asset Tax, (IA), paid in ten previous periods. The difference between ISR or Income Tax, (3 tax periods), and the Asset Tax . Finally, it is important to emphasize that the merger has fiscal effects, therefore the merged companies must consider the merger date as the last month of their reporting period. The merger will have a three-month term to present their annual statements. Corporate split The split is the legal act of a division of a company which decides to split all or part of its assets into two or more parts. These assets may be used by other companies to create new corporations. Division process Division agreement The division process is regulated by the LGSM which begins with the agreement of the divided company. The agreement must be adapted according to each type of organization based on the following: Once the agreement is accepted, the next step in the division process is to register the agreements in the Public Registry of Commerce, as well as the official federal journal, and in the local newspapers. Effective dates of the division In terms of the LGSM the division will become effective within a forty-five day term of the date of registration in the Public Registry of Commerce, and other respective publications. After the forty five day term, with the fulfillment of the requirements and the approval of the creditors, the division will become effective. Effects of the division The divided corporation will have a three year obligation to the new corporations with respect to the net assets that were transferred. Fiscal issues From a fiscal point of view, there are different considerations and obligations that a divided company must consider and fulfill in order to avoid fiscal sanctions. Transfer of assets The Fiscal Code of the Federation establishes that the assets which were transferred as a consequence of the division, will not be considered for fiscal effects, as long as the divided company complies with the following: Shareholders of the divided company with at least 51% of the stock, and with the right to vote will be the same shareholders for a two year period after the division. With the dissolution of the original company, the new company (ies) will assume the obligations of presenting tax statements and information for the period established by the corresponding fiscal laws. Fiscal legislation The LISR, LIA, and LIVA, in general terms, will use the following regulations: On the basis of the capital granted to each company as a consequence of the division, it will be able to grant the following rights: The balance of the account of net fiscal profits. The balance of the account of reinvested fiscal profits. The balance of the account of contribution capital. The right to credit IVA. Fiscal losses pending amortization. Payment of the IA, (previous 10 periods). The amounts of the ISR against the IA can be credited during the previous three periods. The LIA established that newly divided companies are not liable to pay the IA. Corporate reorganization The companies reorganization is the legal phenomenon of changing the way a mercantile society operates. This means that the company changes its structure and acquires regulated forms of the LGSM. Reorganization process Reorganization agreement The reorganization process is regulated by the LGSM, which begins with the company agreement. The agreement must be adapted according to the type of organization. Once the agreements are settled, the next step in the reorganization process is to formally register the agreement before a Notary Public, and register it in the Public Registry of Commerce and other publications. Effects of the reorganization In terms of the LGSM the reorganization will take effect immediately. Fiscal issues. The company reorganization does not have any significant fiscal impact, except that in the participating companies the tax assets exemption does not apply, as stated in article 6 of the Law. The companies must fulfill the mandatory notification of the reorganization before the proper fiscal authorities. EMPLOYMENT AND WORKING CONDITIONS Minimum wage is the minimum amount that must be paid to employees for their daily services. Based on the economic conditions in each area, a commission determines the minimum salary that the employers in each area of a country must pay. There are general and professional rates for minimum salaries. The general salaries will correspond to all employees of a geographical area of application. The professional rates depend on their economic activity. The Federal Labor Law recognizes 88 different minimum salary rates. Contractual salary is the salary agreed upon by a company and its union. A salary tabulator is created according to the positions or categories of employees. The salary rates of these tabulators tend to be superior to the general minimum wages. Geographical areas Area "B" includes the municipalities of Guadalajara, El Salto, Tlajomulco de Zúñiga, Tlaquepaque, Tonala, and Zapopan. Area "C" includes the rest of the municipalities in the state of Jalisco. Work days For every six days of work employees have the right to one day of rest, (the most common given day is Sunday). If Sunday is a working day, the employee will have the right to receive a bonus, (prima dominical), that cannot be less than 25% of their daily salary. The duration of a days work will be: Day Shift between 6:00 to 20:00 hours (8 hrs.)Night Shift between 20:00 to 6:00 hours (7 hrs.) Mixed a mixed working period includes at least three and a half hours of a night shift, (71Z2 hrs.)Continuous work sessions are possible with a minimum half-hour break. The employees and the employer can schedule working hours in order to have Saturday afternoon off. Overtime Working hours can be extended within a working session. In no case may they exceed three hours daily, or three times in the same week. Workers will be paid at the rate of one hundred percent more than the corresponding salary of their regular working hours. The following are the official public holidays of México: January 1st - New Years February 5th - Constitution Day March 21st - Benito Juárez Day May 1st - Labor Day September 16th - Independence Day November 20th - Revolution Day December 1st - Every sixth year December 25th - Christmas Vacation Employees that have one or more years of service will have an annual paid vacation period according to their seniority: DAYS OF VACATION SENIORITY 6 days 1 year 8 days 2 years 10 days 3 years 12 days 4 years 14 days 5 to 9 years 16 days 10 to 14 years 18 days 15 to 19 years 20 days 20 to 24 years 22 days 25 to 29 years If the working relationship ends before the end of the year the employee will have the right to remuneration for the vacation time accrued. Employees will have the right to a vacation bonus. The bonus should not be less than twenty-five percent of their salary. Vacation will be granted to employees within the six months following the fulfillment of the working year. Christmas bonus Employees have the right to receive a Christmas Bonus which will be paid before December 20th of each year. This bonus will be the equivalent of at least fifteen days of salary. Employees that have not fulfilled one year of service will be paid a proportional bonus according to the days worked. Some companies pay a superior bonus according to their individual or collective working contracts. Seniority bonus In order to keep permanent employees, a retirement account and seniority bonus was formalized with the New Federal Labor Law effective July 1st. 1970, and includes the following: Twelve days of salary paid for each working year. If the salary the employee receives is twice the minimum salary in their geographical area, this amount will be considered as a maximum salary. Employees who voluntarily resign will be paid as long as they have fulfilled fifteen years of service. Employees who resign for justified causes or are laid off from their employment, for justified or unjustified reasons, will be paid even though they have not completed fifteen years of service. In the event of death the beneficiary will receive the seniority bonus. Severance pay Severance pay must be paid to employees for unjustified dismissal in the following terms: Twenty days of salary for each working year. Three months of salary. Seniority Bonus. Wages for the days worked prior
to dismissal. Maternity benefits According to the Social Security Law, article 101, the insured will have the right to maternity benefits which include a period of 42 days prior to delivery and 42 days after delivery, and 100% of their daily salary. Women in the work place Regarding the equal rights of women in the work place, legislation was created with a function of protecting the home and family. Protection for maternity document includes the following: Pregnant and lactating women will not be able to work in dangerous or unhealthy situations, night shift work, or overtime. During the pregnancy period, they will not be assigned heavy duty. They will have six weeks prior and six weeks subsequent time off after the delivery. They will receive 100% of their salary according to the Mexican Social Security Institute. They will have two breaks of one half hour each per day to feed their children. Maternal leave will not be counted against their retirement benefits. Employee housing The Constitution of Mexico, article 123, paragraph A, fraction XII, establishes that companies are obligated to provide employees comfortable and hygienic housing. This obligation is fulfilled through the contributions made to the National Workers Housing Fund, INFONAVIT. INFONAVIT resources should be used to grant employees credits in order to finance low cost housing. The Institutes funds may also be used to finance the construction for housing developments to be acquired by the employees through INFONAVIT credits. The contributions and discounts of credits granted to employees should be paid bi-monthly. INFONAVIT law indicates that the contributions of employers are levied at a rate of 5% of normal salaries paid. Profit sharing, (PTU) The Constitution of Mexico, article 123, establishes that all corporations are obligated to share with their employees their yearly profits. Distribution Percentage The percentage of distribution will be 10% of the yearly profits. Distribution base Profits will be determined according to the Income Tax Law, (ISR). Procedure to distribute PTU Profits will be split into two equal parts: The first part will be distributed considering the number of days worked in the year. The second part will be distributed in proportion to the amount of salary during the year. PTU distribution exemptions 1 New companies during the first year of operation. 2 New companies creating a new product. 3 New companies of the mining industry during the period of exploration. 4 Private assistance institutions recognized by humanitarian assistance organizations 5 Companies that have less capitalization than established by the Secretary of Labor. Employees participation in the PTU distribution All permanent employees no matter how many days they worked in the year. Temporary employees who have worked at least 60 days during the year. Nonparticipants in the PTU distribution Directors, Administrators, and General Managers. Payment dates of the PTU Sixty days following the date in which the annual income tax, (ISR), is due. It is generally paid in the month May. Training programs, hygiene, and industrial safety. The Federal Workers Law indicates the employers obligation to: Provide training for their employees. Install safety and hygiene programs in the factories, offices, workshops, and other areas of work, with the purpose of preventing work risks to employees. Adopt the necessary measures to avoid pollution that exceeds the maximum levels allowed. Install first aid stations and report all accidents to competent authorities. Unions When operating a businesses in the State of Jalisco consideration should be taken for the Federal Workers Laws: 1. Unions are groups of workers or employee associations, constituted for the improvement of their interests. They have a primary purpose to serve as an instrument for employees interests that include worker-employer relationships, and improving social and economic conditions for employees. 2. New unions can be created according to the Workers Confederation of Mexico, (CTM). 3. There are several types of unions, including trade unions, industrial unions, national unions, etc. These unions are created on a regional and national basis. 4. Unions have their legal origination in article 123, fraction XVI, of the Constitution of Mexico. The article establishes that workers as well as entrepreneurs have the right to join their respective unions. Pension plans The Social Security Law considers insurance for the following: Work risks. Disability and life. Retirement, and unemployment. Pensions derived from a work risk Work risk insurance is paid for workers who have a total or partial disability as a consequence of a work accident. In the case of a partial disability, a life pension will be granted if an appraisal of 26% or more disability is determined, or if preferred a compensation equivalent to 5 years of pension will be paid when the appraisal does not exceed a 49%. Pension plans The Social Security Law considers insurance for the following: Work risks. Disability and life. Retirement, and unemployment. Pensions derived from a work risk Work risk insurance is paid for workers who have a total or partial disability as a consequence of a work accident. In the case of a partial disability, a life pension will be granted if an appraisal of 26% or more disability is determined, or if preferred a compensation equivelent to 5 years of pension will be paid when the appraisal does not exceed a 49%. When the disability is 100%, the insured will receive an equivalent pension of 70% of their salary quotation of the I.M.S.S., or the proportional part of their salary if smaller than 100%. Disability benefits Disability pension is granted when the employee is unable to work in another job. The payment will be more than 50% of their customary salary received during the last year of work. This includes sickness or non-work related accidents. The declaration of disability must be made by the I.M.S.S. In order to grant a pension of less than a 75% disability, the law requires a minimum of 150 - 250 weeks in the work place. Life insurance When the insured or pensioned worker dies the I.M.S.S. consider the following beneficiaries: Widow pension Orphan pension Ascendents pension Assistance to the widow in cases where it is required. Medical Assistance To have the rights to these benefits it is required, to have a minimum of 150 weeks in the work place. Unemployment pension, advanced age The Social Security Law states that an unemployment for advanced age pension can be paid if the worker is more than 60 years of age and has been laid off and has worked a minimum of 1250 weeks. Old age pension Old age benefits will be paid when the insured reaches 65 years of age and has worked a minimum of 1250 weeks, and registered with the I.M.S.S. Note: The amount of the pension depends on the salary, the number of weeks they worked, and their age. Mexican Institute of Social Security, (I.M.S.S.) The Social Security Law, considers insurance for the following: 1.- Work risk 2. - Diseases and maternity 3. - Disability and life 4. - Retirement and unemployment for the aged 5. - Child care, (nursery), and social benefits 1. WORK RISK INSURANCE: The employer must pay 100% of the insurance premium. These premiums vary depending on the class of risk that the company has assigned according to its activity. The premium is modified each year based on the company risks, and this varies from a minimum of 0.25% to a maximum of 15%. These rates are applied based on the salary limit of 25 times the minimum salary set by the Federal District (D.F.). Note: These payments are made monthly to the I.M.S.S. 2. DISEASES AND MATERNITY: The payment of this insurance is divided into 3 parts. A. Insurance benefits for diseases and maternity. B. Cash benefits for diseases and maternity. C. Insurance benefits for pensioners and their beneficiaries. This insurance is paid for by the employer, the insured, and the State. 3. DISABILITY, LIFE, AND UNEMPLOYMENT INSURANCE FOR THE AGED: These insurance programs are paid for by the employer bi-monthly, the insured, and the State, with a minimum limit of 17 times the minimum wage, determined by the Federal District, (D.F.). 4. RETIREMENT: The employer must pay 2.0% of the base salary with a minimum limit of 25 times the minimum wage, determined by the Federal District, (D.F.). 5. CHILD CARE AND SOCIAL BENEFITS: The employer pays 100% of this insurance premium. The payment of these premiums to the IMSS for these insurance programs must be made by the 17th day of each month. |