He calculation of gross and net salary is an important issue for both employees and employers, as it is a central issue within the employment relationship; since, on the one hand, it allows workers to know if they are receiving the salary remuneration that corresponds to them, and on the other, it allows the employer to determine if he is complying with the salary obligation established in the contract labor.
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Although the salary calculation is the responsibility of the human resources department, it is possible that errors may be generated that may go unnoticed, generally due to a lack of payroll automation, making room for possible human errors that lead to disagreements on the part of the workers, and even leading to fines and sanctions for companies.
Although there are many payroll software that calculate the gross and net salary automatically, one of the most recommended is Buk, since, in addition offers training plans to its employees to improve efficiency and optimization in resource management humans.
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However, for learn to calculate thegross and net salary in MexicoThe first thing we have to learn is to differentiate these two salary terms; Let's see what they are and how they are calculated according to Mexican labor legislation.
But first let's know what the Federal labor law about salary.
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In this article you will find:
What is the Salary?
Art. 82 “Salary It is the compensation that the employer must pay the worker for his work. Similarly, it establishes in Art. 83 what "The salary can be set per unit of time, per unit of work, by commission, at a fixed price or in any other way."
Later in art. 85 tells us that Art. 85. "Salary It must be remunerative and never less than the minimum established in accordance with the provisions of this Law. To set the amount of salary, the quantity and quality of work will be taken into account.
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Thus, salary is the remuneration that It is generated as consideration for the work done, as agreed between the employee and the employer, but under no circumstances should the remuneration be less than the current minimum wage.
What is Gross Salary?
He gross salary It refers to the total remuneration that the employer must pay the worker as consideration for labor services rendered; this being the total amount of money without making deductions and withholdings.
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What deductions and withholdings apply to Gross salary in Mexico?
In Mexico, some of the deductions and withholdings that are applied to a worker's payroll are:
- mandatory withholdings, such as contributions to the Mexican Social Security Institute (IMSS), payments to institutions such as Infonavit and Fonacot, ISR withholdings, among others.
- Deductions requested by the worker, such as salary advances, loans or provident funds.
- Deductions by collective agreement, such as, discounts to the worker's salary for concepts of payment of union dues, contribution to savings accounts, among others.
How is gross salary calculated?
The gross salary is the total amount that the employer must pay the worker, and the determination or calculation of it will depend on the conditions of the work to be carried out, which must be established in the employment contract by mutual agreement between the parties, in compliance with current labor legislation.
What is Net Salary?
He net salaryis the remuneration received by the worker after making the corresponding deductions and withholdings; that is, the final amount that the worker actually receives.
How is net salary calculated?
As we mentioned previously, net pay is equal to gross pay, less deductions and withholdings.
Therefore, assuming that a worker receives a gross salary of $8,500.00 pesos per month and $607.70 is retained for ISR and $211.83 for IMSS, his gross salary would be $7,680.47.
