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Profit sharing: Which companies will NOT pay this benefit?

Profit sharing: Which companies will NOT pay this benefit?

Profit-sharing is a fundamental right for workers in Mexico; however, it's important to know that not all companies are required to comply with this obligation.

Millions of workers are waiting for this additional income, but, like every year, Some companies will be exempt from granting it.

According to the Federal Labor Law (LFT) , businesses that are just starting operations are exempt during their first year of activity.

Furthermore, companies dedicated to developing innovative products are not required to distribute profits during their first two years, as part of a legal incentive aimed at encouraging investment in technology and innovation.

Decentralized public entities that operate for cultural or social assistance purposes, such as the Mexican Social Security Institute (IMSS), are also excluded from profit sharing.

In addition, the law provides an exception based on income level: companies with annual revenues of less than 300,000 pesos, according to their tax return with the SAT, are exempt from granting this benefit in 2025.

The Federal Attorney for Labor Defense (Profedet) indicates that May 31 is the deadline for workers to receive payment corresponding to the distribution of profits. It is the company or employer's responsibility to fulfill this obligation in a timely manner.

But if you don't receive payment by that date, you have two options:

  • Go to the Federal Labor Defense Attorney's Office to file a complaint. This agency is required to address these complaints and resolve them within a relatively short period of time.
  • The second is that you file a complaint with the Conciliation and Arbitration Board to file that claim and have the case resolved so that you can receive the corresponding payment, since all employers who have generated profits are obligated to make that distribution.

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Also read: What do I do if the company I work for doesn't pay profit sharing?

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