Did you know that as an employee, you are entitled to a proportional part of the company’s profits?
But let’s start with the basics, what are the Company’s Profits? (PTU, Employee profit sharing, for the experts). The PTU is considered a remuneration and recognition by the companies to their employees for the work done during the year, and has its legal basis in article 123 of the Mexican Constitution and in the Mexican Federal Labor Law. Yes, all those nights burning the midnight oil and leaving the office late to deliver your boss’s project have a payoff, since eventually, you help the company in generating profits. And even if your bosses and/or your company turn a blind eye, it is a right you are entitled to, so demand it!
And what’s in it for me? These articles establish that every year all active and former employees have the right to receive 10% of the profits generated during the previous year in the company.
Who does not get to receive profits? (Oh, what’s the point!)
- Employees of newly created companies. If you work in a startup, forget about receiving profits! 🙁
- Employees of private non-profit institutions.
- Employees of the Mexican Social Security Institute (IMSS, for its acronym in Spanish), public cultural, welfare, or charitable institutions.
- The Company directors, managers, CEOs (their salaries should be enough, right?)
- Domestic and temporary employees who worked less than 60 days during the sharing fiscal year.
- Technicians, craftsmen, and other persons who, through the payment of fees, provide their services without a subordinate working relationship with an employer.
- Employees of mining companies during the exploration period.
- Employees of companies that generated an annual income reported for the income tax (ISR, for its acronym in Spanish) less than $300 thousand pesos (I have no money, nothing to give)
Who gets to receive the company’s profits? (Ehhhh!)
- The staff employees and former employees.
- The employees for specific project who had worked at least 60 days in the sharing fiscal year (corresponding year), regardless of whether it was continuous or discontinuous form.
- The person of trust, as long as they are not managers, directors, and CEOs of the company.
- The foreign employees, as long as they be part of the previous assumptions, because they are not exempt with regards to their nationality.
How is profit (PTU) allocated?
- The amount to be distributed equally will be divided
- First part – It will be distributed equally among all employees, considering the number of days worked by each one in the previous year, regardless of their salaries.
- Second part – It will be distributed proportional to the amount of salaries reported for accounting purposes by the company and according to the work provided during the year.
When are the profits delivered?
The profit sharing will have to be made no later than May 30, 2019 for legal entities (companies) and June 29 of the same year for individuals.
IMPORTANT!: The profits (or PTU) “expire”, if you do not receive this amount or you receive a partial payment, you only have one year to claim for it! So it is time for you to see that Human Resources sour faced lady again who ended up hating you (but for your benefit).