| Mexican federal government establishes the daily minimum wage as
well as certain employer-paid fringe benefits and adjusts it annually. |
| The legal working week is 48 hours. Workers will receive the seventh
day off with pay at the same rate as a working day. |
| Seven working days paid vacation are allowed for the first year
of service, and two days are added every additional year for the next
three years allowing a total of 12 days' paid vacation. |
| Two additional
days with pay are added every five years; the worker is given his
daily wage plus 25 percent vacation bonus. |
| There are seven legal holidays per year. |
| After one year of employment, an annual Christmas bonus equal to
15 days' salary must be paid on before December 20th. Employees with
less than one year of service will be paid a bonus proportional to
the worked time. |
| Social Security in Mexico covers medical care, hospitalization,
surgery, as well as old age and unemployment compensation. The rates
depend on the labor or work classification. |
| The employer is required to pay two percent of the payroll as a
tax to support education. |
| Mexico has a profit-sharing program whereby all employees participate
in the profits of companies that have been in operation for more than
one year. Profit sharing depends on the proportional amount of capital
investment and the size of payroll. |
| The day shift is 48 hours per week, and the second shift is 45 hours
per week. Overtime pay is at a rate of two times the regular rate
and a worker cannot be required to work overtime for more than nine
hours per week. |
| Any work performed on Sundays or holidays are at least 25 percent
above usual salary. |
| The revised 1970 Labor Law states that, instead of providing housing
for workers, a tax of five percent of payroll will be assessed so
that the required housing will be built and made available by the
government. |
| Mexican labor laws do not require forming a union. Either individual
or collective contracts may be made with the workers. Certain standard
stipulations are required in an individual contract. Collective contracts
are much the same as they are in the United States. They are bargained
between labor and management and follow provisions set out by the
labor laws. |
| Semi-skilled employees such as welders, machine operators, etc., are
paid between 30 percent and 60 percent above minimum wage; however,
the benefit percentages are the same. |
