In accordance with Article 123, Section A, Fraction IX of the Political Constitution of the United Mexican States (CPEUM), “Workers shall have the right to a participation in the profits of the enterprises…”.
The distribution must be executed within 60 calendar days following the filing of the annual tax return. All individuals or legal entities that have workers in their service are obliged to carry out this distribution, provided that they have generated profits.
- During May, for legal entities.
- During June, for individuals with business activities.
Determination of the profit sharing base
The base for calculating the profit sharing is the taxable income, in accordance with the Income Tax Law (LISR). The percentage to be distributed is 10% of said taxable income.
It is important to consider that the unclaimed amount from the previous year shall be added to the distributable profit of the following fiscal year.
Since the year 2021, a limitation on the maximum amount to be distributed to workers was established through the Federal Labor Law, which shall be the amount that is most favorable to each worker in accordance with the following:
- Three months of the worker’s salary.
- The average of the PTU (Profit Sharing) received by the worker in the last three years.
Calculations to be Performed by the Employer
Taking the above into consideration, employers will have to perform the following three calculations:
- Considering a total amount of profits to be distributed of 10% of the taxable profit according to the Income Tax Law.
- Considering 3 months of salary, taking into account the last salary considered in the 2025 fiscal year.
- The average of the PTU paid to each worker in the last three years.
Calculation base
Taxable Income Base (as per Income Tax Law)
PTU distribution calculation mechanics:
Taxable profit
(minus) Non-deductible exempt provisions (Art. 28, Section XXX, Income tax law)
(equals) = Base for PTU calculation
(x) 10%
(equals) = PTU for fiscal year 2025
(+) Unclaimed PTU from 2024
(equals) = PTU to be paid in 2026 corresponding to fiscal year 2025
Article 9 of the LISR states that, for the calculation of the taxable income, the PTU paid during the fiscal year shall not be deducted; this clarification is made in order to ensure that the PTU paid is not subtracted from the base used to determine the payment for said concept. Furthermore, outstanding tax losses from previous fiscal years shall not be deducted.
Three Month Salary Base
For the calculation of the three-month salary base, the worker’s daily salary must be used, in strict compliance with the guidelines established by Articles 89 and 124 of the Federal Labor Law.
Average PTU base of the last three years
The PTU paid to each worker in the last three fiscal years must be taken into consideration. The PTU paid for the last three years shall be added together, and the result shall be divided by three.
It is imperative to perform these calculations on a personalized basis for each member of the payroll. The final amount to be paid will be the one resulting from comparing the general taxable base against the aforementioned caps, always applying the base or the limit that is most favorable to the worker.
Amount of PTU to be paid in a fiscal year
The determination of the limits of three months of salary and the historical average over the last three years is a procedure that is only activated if the company generates a taxable profit, in accordance with the Political Constitution of the United Mexican States and the Income Tax Law.
- When the amount of the PTU taxable base is less than the three months of salary or the average of the PTU paid in the last three years, then it shall be paid based on the calculation of the taxable base.
- If the amount of the three months of salary is less than the PTU—considering the taxable base—and is greater than the average of the PTU paid in the last three years, then the PTU shall be paid based on the three months of salary.
- If the amount of the average PTU of the last three years is less than the PTU considering the taxable base, and is greater than the three-month salary base, then the average of the PTU of the last three years shall be paid.
Example table:
PTU by Tax 3-Month 3-Year PTU to
Base Salary PTU Avg Be Paid
$ $ $ $
Worker 1 31,900 21,200 14,200 21,200
Worker 2 32,000 29,250 34,100 32,000
Worker 3 52,200 39,250 44,100 44,100
Worker 4 13,950 17,600 15,000 13,950
Who is entitled to PTU
In accordance with current regulations, the collaborators eligible to receive PTU are:
- Permanent Staff: Those hired for an indefinite period, regardless of the period worked during the fiscal year.
- Temporary Staff: Collaborators hired for a specific time or task who have worked a minimum of 60 days during the year.
- Trusted Employees (Personal de confianza): They have the right to participate up to a cap of 20% over the highest salary of a unionized or permanent employee.
Who is not entitled to PTU
The following individuals do not have the right to participate in the workers’ profits:
- General directors, administrators, and managers.
- Domestic workers.
- Professionals providing independent services to a company (as well as those under the salary-similar tax regime
Right to object to the annual tax return
Pursuant to the powers granted by Article 121 of the Federal Labor Law, collaborators have a formal mechanism in case of disagreement with the data presented in the company’s annual tax return. The procedure is governed by the following stages:
- The employer is obligated to provide the workers’ representatives with a copy of the annual tax return within 10 calendar days following its filing before the authority.
- Within the following thirty days, the union holding the collective bargaining agreement or the majority of the company’s workers may submit to the SHCP (Ministry of Finance and Public Credit) any observations they deem appropriate.
- The final resolution issued by the SHCP itself may not be appealed by the workers.
PTU joint commission
As per Article 125 of the Federal Labor Law:
- A commission shall be integrated with an equal number of representatives of the employer and the workers.
- This commission shall determine the individual distribution of the PTU.
- Any objection shall be resolved by this commission within a term of 15 days.
Calculation of income tax withholding on PTU
Article 93, fraction XIV of the LISR indicates that no tax shall be paid on the PTU up to the equivalent of the Unit of Measure and Update (UMA) raised to 15 days, that is, $1,759.65 pesos; on the difference, the withholding must be made in accordance with the provisions of Article 96, fourth paragraph of the Income Tax, and Article 174 of the of its Regulations.
Additional considerations for PTU calculation
a) Days counted as worked:
- Maternity or work-related injury leave
- Holidays, rest days, vacation days, contractual leave
- Union duties
b) Days not counted as worked:
- General illness inability
- Paid or unpaid leave
- Unjustified absences
c) Salary base for calculation (Art. 124 Federal Labor Law):
- Fixed salary: daily wage only, excluding overtime, bonuses, and other benefits.
- Variable salary: average earnings during the fiscal year, excluding extra benefits as per Article 84 (Federal Labor Law).
- Mixed salary: daily wage plus average of variable pay, excluding benefits under Article 84.
PTU distribution must be individualized considering two variables:
a) 50% of the PTU to be distributed is shared among all workers, considering the proportion of the days that each one actually worked.
b) is distributed considering the proportion of the salary that each worker earned, with respect to the total salaries earned.
Limitation of PTU for certain workers
For workers whose income comes exclusively from service fees (e.g., in a civil partnership or non-profitable society), or those managing rental-generating assets or collections, PTU cannot exceed one month’s salary.
At Núñez Rosas y Asociados, we recognize that the determination of the PTU can become a technical process that requires a meticulous analysis of the current legal and tax variables. We place our experience and specialized services at your disposal to ensure an accurate preparation of the distribution, guaranteeing strict compliance with all regulatory obligations.
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