Overview of PTU and its Payment Deadline
The Mexican Federal Labor Law (LFT) mandates that companies distribute a 10% share of their profits, known as Participación de los Trabajadores en las Utilidades (PTU), to employees if they report profits in their annual tax declaration. Companies have until 31 May to fulfill this obligation, given that the last day for tax compliance is 31 March.
PTU Calculation and Distribution
The LFT outlines three criteria for PTU distribution: days worked, salary received, and a cap of three months or the average of the last three PTU payments. The profits to be distributed are split into two equal portions.
- The first portion is divided equally among workers based on the number of days worked.
- The second portion is distributed proportionally according to the salary received.
If an individual’s PTU payment exceeds the three-month cap, or if the average of the last three years’ PTU is higher, that amount is distributed instead.
Exclusions from PTU Distribution
Certain roles, such as directors, administrators, and general managers, are excluded from PTU distribution. However, all other employees—including those on maternity leave or temporary work restrictions due to job hazards—are eligible to receive PTU, with absentee days counting as active work time for the calculation.
Penalties for Non-Compliance
The LFT imposes penalties for failing to meet PTU distribution requirements. These fines range from 28,285 to 565,700 pesos for non-compliance with PTU-related provisions.
Key Questions and Answers
- What is PTU? PTU stands for Participación de los Trabajadores en las Utilidades, which is a 10% share of a company’s profits distributed to eligible employees.
- When is the PTU payment deadline? Companies have until 31 May to distribute PTU after submitting their annual tax declaration, which is due by 31 March.
- How is PTU calculated? PTU is calculated based on days worked, salary received, and a cap of three months or the average of the last three PTU payments. Profits are split into two equal portions, with one distributed equally among workers and the other based on salary.
- Who is eligible for PTU? All employees are eligible, including those on maternity leave or temporary work restrictions. Excluded roles include directors, administrators, and general managers.
- What are the penalties for non-compliance with PTU distribution? Companies face fines ranging from 28,285 to 565,700 pesos for failing to meet PTU distribution requirements.
