The daily wage is the salary or remuneration that a worker earns I divide by the days of the month or divided by the days you work. Secondly, the integrated daily salary is the one to which benefits are added and the extras to the worker's salary in order to calculate the employer fees of the IMSS or INFONAVIT.
Employers looking to create executive compensation packages in Mexico should consider a number of different issues, including the concept of 'integrated salary' (discussed in more detail at continuation). To understand the regulation of executive compensation, it is first necessary to point out that the Federal Labor Law (FLL) grants employees employees a series of mandatory minimum rights, which cannot be waived under any circumstances and which serve to protect the employee.
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Such minimum rights include, among other things:
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- A daily minimum wage (regardless of the number of hours of actual work).
- A vacation bonus not less than 25% of the salary that corresponds to your vacation period.
- A minimum period of paid annual leave of six days (increasing by two days in each subsequent year up to a maximum of 12 days). After the fourth year, the vacation period increases by two days for every five subsequent years of service.
- A Christmas bonus that must be paid before December 20 of each year, which is equivalent to a minimum wage of 15 days.
In addition to the rights granted by the FLL, the employment contracts and the employment relationship also oblige the parties to what they have agreed to. expressly between them, and the usual provisions that provide the concepts of goodwill and equity will also apply to the contract of work.
In this article you will find:
What is salary: daily and integrated daily?
The FLL defines salary as the amount paid to an employee as consideration in exchange for services rendered by the employee.
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Therefore, salary not only includes the actual salary received by an employee, but also includes the following (considered integrated into the employee's salary):
• Daily cash payments.
• Tips.
• Accommodation.
• Cousins.
• Commissions.
• Benefits in kind.
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In practice, any other amount or benefit that an employee receives in exchange for the work performed will be considered as part of the "integrated salary" of that employee.
Integrated salary is the basis used to determine any severance / severance amount owed to an employee, and It is calculated as equivalent to the integrated salary paid at the time the right to receive compensation arises / dismissal. For variable salaries, the integrated salary is calculated based on the average of all payments and benefits received by the employee during the previous 30 days of service.
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How are they calculated?
Calculating the daily salary and the integrated daily salary in Mexico is very easy. If you know what your net salary is (or also known as liquid) sYou will only have to divide that amount between the days per month that you work. For example, if you work 30 days a month and earn $ 2,500, this would be divided by 30 and as a result you get the daily salary.
To calculate the integrated daily salary (which is the daily salary, but the benefits that the law may or may not require are added to it) 365 days of the year + 15 days of Christmas bonus + the multiplication of vacation days by the percentage of the vacation premium must be added to it. Everything is divided by 365 days again resulting in the integrated daily salary.
For example: 365 + 15 + (12 * 25%) / 365 = 1.0493
Minimum wage in Mexico
Mexico's minimum wage was raised on January 1, 2021 to $ 141.70 pesos per workday, a 15% increase from the 2019 level of $ 123.22.
The 2020 rate throughout the Northern Border Zone was raised to $ 213.39 pesos per business day, a 15% increase over the 2020 rate of $ 185.56. In years past, the minimum wage had been raised more or less in line with inflation, to avoid a wave of wage demands that could cause a spiral of price and wage increases that would eventually have the greatest impact on the most poor.
The problem is that the minimum wage has been so low for years that it is not enough for a single person to live, much less for an entire family. Decoupling the minimum wage to official prices
Causes of the increase in salary
The decision to start raising the minimum wage more than other wages in a attempt to level earnings took several years to implement. Thousands of official prices had to be decoupled first - including things like excess penalties speed and mortgage loans - which for years were determined in multiples of salary minimum.
For example, a large increase in the minimum wage level would have made hundreds of thousands of mortgages from the government agency Infonavit unaffordable. The process of creating a new unit of value to replace the minimum wage with those prices took more than a year. Studies on the possible effects of the change on wages and employment also needed to be considered.
In 2016, Mexico introduced the Measurement and Update Unit (UMA) to allow minimum wages to increase without negatively affecting other costs and official positions. Prior to determining the annual increase, CONASAMI applied the independent recovery amount of MXN $ 10.46 to the 2020 minimum daily wage.
CONASAMI approved a 6 percent increase in the daily minimum wage in addition to the amount of independent recovery, leaving a final minimum wage for 2021 of MXN $ 141.70 (approximately USD $ 7.08). CONASAMI also increased the minimum daily rate for the ZLFN.
