December 3, 2018
As of December 1, 2018 Mexico has a new
President.
President Andres Manuel López Obrador
will be President of Mexico for the next
6 years. There are still many questions
about the programs he will develop and
promote, but he stated in his inaugural
address that starting January 1, 2019
the minimum wage will double, the IVA
(Value Added Tax) in the border zone
will be lowered to 8% from 16%, and
income tax will be lowered to 20%.
A major reform to the Federal Labor Law
is currently being discussed in Congress
and we have 4 new Health and Safety
Standards that will be published soon.
The
NOM-035-STPS-2018, Occupational
psychosocial risk factors –
Identification, analysis and prevention
was published October 23, 2018
(available in English) and the new
ergonomic standard for manual loading
and unloading, “NOM-036-1-STPS-2018,
was published November 23, 2018.


UPDATE YOUR RISK ASSESSMENTS WITH THE
NEW REQUIREMENTS
The new Ergonomic Standard “NOM-036-1-STPS-2018,
Occupational ergonomic risk factors
-Identification, analysis, prevention
and control. Part 1: Manual load
handling” was published
in the DOF on November 23, 2018 and will
take effect January 4, 2020
This new standard will be available in
translation this week and available to
the Deluxe Package subscribers and the
Health and Safety Package subscribers.
This standard is designed for analyzing
the risk from manual loading and
provides a process and guide for risk
assessment. The standard takes effect
January 4, 2020 so that companies will
have time to develop training for manual
loading and to update risk studies for
each job position with the ergonomic
risk from manual loading and unloading.
By January, 2020 Companies should
develop and provide the following:
• Training
• Updated risk assessments
• Monitoring of workers’ health
• Units of Verification
The standard contains a formula for
choosing a random selection of employees
to review and the procedure for risk
assessment from manual loading and
unloading. Companies can do their own
training based on the standard or hire
3rd parties. If you hire 3rd party
trainers, you must make sure they have
certification from the STPS as
instructors or the training will not be
considered as valid.
We are developing training for this
standard; you can request a quotation to
provide this training. We can prepare
your
RISK ASSESSMENTS or train and
assist you to update them.
TAKE ADVANTAGE OF THESE GOVERNMENT
PROGRAMS
Many of you have been asking me for
information on Government programs that
you might be able to take advantage. I
have spent some time researching the
following programs that can mean big
savings if you can take advantage.
SAVINGS FUND – FONDO DE AHORRO
One way that companies can increase
compensation without increasing the
income tax or Social Security is through
a Savings Fund (Fondo de Ahorro). The
Savings Fund is a very important savings
mechanism. Basically, it consists of a
savings program of a determined amount
of money retained from the worker’s pay
and matched equally by the employer. The
worker can only withdraw this amount
once a year.
The matching payments made by the
Employer are deductible expenses for the
company and exempt from income tax or
Social Security. The following
requirements apply:
The amounts cannot be greater than 13%
of the worker’s wages (when they are
larger they are subject to income tax.
The Employer must match the amount
retained from the worker’s wages.
Here is an example:

Objectives of the Savings Fund
These are some of the objectives of
the Savings Fund:
Estas son algunas de las
características y objetivos de los
fondos de ahorro:
• Promote the habit of saving by the
workers and improve their living
standard
• The Fund is exempt from Social
Security and is not integrated into
the Salary for Social Security
purposes.
• As long as the amounts contributed
do no pass the limit of 10 times the
minimum wage with the 13% payment,
it will be exempt from income tax,
if it exceeds the amount it is 100%
taxable.
According to the Income Tax Law (Ley
de Impuesto sobre la Renta) –
Article 29, section VII and Article
31 section XII of the law state that
the Savings Fund is a social welfare
expense for the company and becomes
a deductible expense, provided it
complies with the law.
• It must be available to all the
workers of the company – the same
for Administrative personnel as well
as general laborers.
• A written plan is required.
Remember the fund can be withdrawn
only:
• At the end of the labor relation
• One time per year
PROGRAM FOR A FISCAL INCENTIVE –
REDUCTION OF THE STATE PAYROLL TAX
The following program is a Baja
California state program and allows
companies that are expanding to apply
for a discount or exemption for from up
to 5 years of the State payroll tax. The
program is applicable to companies that
are expanding and adding new jobs.
There is an application form that awards
points for:
• the number of employees (direct and
indirect),
• the salary levels,
• the amount of the investment,
• investment in technology,
• employee benefits (food service,
public or private transport, childcare
• clean technology
• renewable energy sources
Based on the number of points obtained,
a company will be given a certificate
from SEDECO that will discount the
payroll tax for the amount and time
period in the certificate.
CITATION: “Law for the
Promotion of competitiveness and
economic development for the State of
Baja California” (Ley de Fomento a la
Competitividad y Desarrollo Económico
para el Estado de Baja California) and
its Regulation of the Law for the
Promotion of competitiveness and
economic development for the State of
Baja California (Reglamento de la Ley de
Fomento a la Competitividad y Desarrollo
Económico para el Estado de Baja
California)
APPLICABLE TO:
• Start up Companies
• Companies with an expansion project
• Companies with water treatment and
reuse system
BENEFITS:
• 1 – 5 years of 25 to 100 percent
discount of the State Payroll tax
• 20 to 50% for water connections and
sewer fees
• 30% discount on monthly water bill
REQUIREMENTS FOR AN EXPANSION PROJECT:
• Application letter
• Payroll tax exemption request
• Business plan
• Acta Constitutiva of the company
(Incorporation document)
• Letter with identification of the
legal representative
• Las payroll tax payment
STATE
GOVERNMENT DEPT. THAT IS RESPONSIBLE
**•
SEDECO – Secretary of Economic
Development
FEDERAL HEALTH AND SAFETY CERTIFICATION
PROGRAM – (AUTO GESTIÓN)
CITATION: Federal Labor Law,
Regulation for Occupational Health and
Safety, Social Security Law
APPLICABLE TO: All companies
BENEFITS: Companies with
certification will be granted a discount
on the Risk Rate (Prima de Riesgo) for
Social Security. Social Security sets a
risk rate factor for a company based on
accidents and their industrial
classification. The rate for most new
companies is around 7%, that means 7%
cost on top of your payroll. With low
accidents a company can lower this rate
by 1% per year to the lowest rate of
.005. Many companies see a reduction by
up to 4% off the monthly cost of Social
Security.
A company that has certified their
Health and Safety program through the
Federal Auto-Gestión program have their
risk rate calculated on a lower base
rate and it can mean a substantial
reduction in Social Security payments
for all workers. Certification is
achieved by verifying compliance to all
applicable health and safety standards
by means of a series of audits from
Federal inspectors. Companies that
enroll in the program will be inspected
but will be exempt from fines. Once they
are certified, they will not be
inspected for 3 years and will not be
subject to fines.
REQUIREMENTS: Requires the
company to have a compliant health and
safety program.
FEDERAL GOVERNMENT DEPT. THAT IS
RESPONSIBLE: STPS – Secretary
of Labor and Social Welfare.
If you would like more information
or would like help in taking
advantage of these programs, please
contact me.
Lic. Glenn Louis McBride
Mexican Attorney
Mexican cell. (011-521) 664-204-1257
US cell 1-619-513-0556
Office tel. (011-52) 664-681-9524
www.mexicanlaws.com