As we have discussed in recent months, during 2023, the changes in the labor law have increased the cost of payroll.
And this has impacted many SMEs.
Just to recap, the changes that are already official and being implemented are:
- Minimum wage increase
- Increase in Income Tax (ISR)
- Increase in Contributions for Old Age Unemployment and Old Age Security (CEAV)
- Changes Payroll Tax (ISN)
- Stamping CFDI 4.0 mandatory
- Increase in IMSS and INFONAVIT quotas
- Increase in vacation days (vacation bonus)
But that is not all, as there are currently 5 new labor initiatives being discussed in the Congress of the Union:
- Increase of Christmas bonus, from 15 to 30 days
- Additional rest days, from 6 to 5 working days
- Increase in seniority premiums
- Right to digital disconnection
- And reduction of working hours, from 48 to 40 hours per week.
While we have talked about the benefits and the positive impact it has for employees, for companies it could be a fatal blow.
It is predicted that, if the initiatives are approved, the cost of payroll will increase exponentially.
Payroll costs could increase between 20 and 25%.
Representatives of the Mexican Institute of Public Accountants (IMCP) estimate that, as mentioned above, if the initiatives are approved, the cost of payroll will increase between 20% and 25%.
They explained that companies are still assimilating the costs generated by past changes in labor matters; specifically, those related to vacation days, minimum wage and severance and old age pensions.
The latter, although gradual, will increase from 3.5% (in 2022) to 11.87% in 2030.
Will the new proposals be approved?
The same IMCP representatives indicated that these proposals, as a whole, still have a 34% probability of being approved.
The initiative that has the highest probability of passing in Congress, with 67%, is the one related to working hours, with an estimated cost over payroll of 14.25%.
Otherwise, the digital disconnection will not represent any labor cost for companies and has a 50% probability of being approved by Congress.
We want to know your opinion
What do you think about these new proposals on labor matters, have you had problems adapting to the reforms already approved?
Let us know in the comments.
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