Profit Sharing Payments Are Around the Corner: Key Considerations for Employers in Mexico

Quick Hits

• May 30, 2025, is the last day for paying profit sharing (PTU).
• As of May 31, 2025, the Labor Ministry is expected to start labor inspections to verify compliance with PTU payment requirements, and employees and former employees will become entitled to claim PTU payments and/or get the specifics on why no payment was made to them.

Key Considerations for Employers in Mexico

Although May 30, 2025, is the last day for paying PTU on time, a process must have been met before the requirements for payments take effect, as considered by the Federal Labor Law (FLL).

Every employer needs to comply, regardless of whether PTU was generated, with the whole PTU process considered in the FLL, which entails:

• filing an annual tax return (no later than March 31 of every year);
• sharing with the employees, no later than ten days after filing was made, the annual tax return to inform them whether PTU was generated or not;
• integrating a joint commission (PTU commission) with an equal number of employer and employee representatives who will determine the liquid amount of profits for each employee;
• analyzing and determining a route for those employees who worked during the applicable tax period (2024) and those whose employment was terminated before the payment date, if there is PTU to be paid; and
• paying PTU, if it was generated, by May 30.

Employers that cannot prove full compliance with the process may be subject to a fine of 250 to 5,000 times the measure and update unit value (UMA $113.14 pesos) (approximately USD $1,450–USD $29,010) upon an inspection by the Labor Authority.

The statute of limitations for employees and former employees to file any claim regarding PTU is one year. The yearlong term commences on May 31 annually, the date on which the benefit is enforceable.

Ogletree Deakins’ Mexico City office will continue to monitor developments and will provide updates on the Cross-Border and Wage and Hour blogs as additional information becomes available.

Pietro Straulino-Rodríguez is the managing partner of the Mexico City office of Ogletree Deakins.

Natalia Merino Moreno is an associate in the Mexico City office of Ogletree Deakins.

María José Bladinieres is a law clerk in the Mexico City office of Ogletree Deakins.