Mexico

Document Sample
Mexico Powered By Docstoc
					Bunge                                                              05219d42-bb71-4374-9dc0-f677471495c5.xls

                                                                       Market Conditions Summary - MEXICO
                                LAW                                                    MARKET                                  MARKET Example 1

                                                                                       general information

        Recruitment and Contract
                                no probationary period but technically a contract
                                becomes permanent after 28 days. Companies who
                                lease employees to other firms often employ them on
    Probationary Period         a series of 28 day contracts.
    Probationary Period
    Extension

                                no notice period provided by law but the termination
    Notice Period               rules imply a 2- 3 month separation period.
    Fixed Term Contract
    Indefinite Contract
    Retirement Age              60 women 65 men                                        60 women 65 men                         60 women 65 men


    Employment Conditions
                                8 hours max from 6 am to 8 pm 7 hours max for
    Working Hours               night work.                                      40 hour week common with hour for lunch
                                9 hours per week normal maximum at 2X wage rate.
    Overtime                    Overtime above this rate is 3x time              as law                                        as law
    Vacation
               seniority
    1 yr                        6 days                                                                                     9                      10
    2 yr                        8 days                                                                                                            12
    3 yr                        10 days                                                                                                           14
                                                                                                                               after 4 yrs
    4 yr                        12 days                                                after 5 yrs 15 days                     16
    5 yr to 10 yr               14 days                                                after 10 yrs 17 days                    after 5 yrs
                                                                                                                               after 6 yrs
    11 yr to 15 yr              16 days                                                                                        20
                                                                                                                               7 yrs +
    16 to 20 yr                 18 days                                                after 20 yrs 21 days                    22
    21 to 25 yr                 20 days

                                governed by collective agreements often attached to
    Special Leave               a friendly union to negotiate annually
    Birth of Child                                                                 3
    Death of Spouse or child                                                       3
    Death of Father or Mother                                                      3
    Marriage                                                                       3
    Marriage of a child
    others




1                                                            05219d42-bb71-4374-9dc0-f677471495c5.xls         10/2/2011
Bunge                                                            05219d42-bb71-4374-9dc0-f677471495c5.xls

                                                                     Market Conditions Summary - MEXICO
                               LAW                                                    MARKET                                                      MARKET Example 1

                                                                                      general information
                                                                                      in addition Holy Thursday, Good Friday, September 15th
                                                                                      (day before Independence Day), Nov 2 (day of the dead)-
    Public Holidays            7 days                                                 11 days                                                 11 days
                               January 1 , Feb 2 (constitution day),March 21
                               (Benito Juarez) May 1 (Labor Day) September 16th
                               (Independence Day) November 20th(Revolution of
                               1910) 25th December

                               paid leave 6 weeks before confinement and 6 weeks
                               after confinement. Can be stretched to 60 days at
                               1/2 pay. Social security normally pays not employer.
                               Payment if there are 30 weeks of work in previous
    Maternity Leave            12 months is 1005 of insured salary.
    Paternity and Parental
    Leave                                                                             not widely practised


    Remuneration
    Bonus
                               Federal District minimum wage is MXN 1210
    Minimum Wage               MXN/month
    Vacation bonus             25% of daily salary for each day taken
                                                                                      13 including a full month Christmas bonus whereas the
                                                                                      law requires only half a month average is in fact 32 days
    Months of salary payment   12.5                                                   pay for Christmas bonus                                                               13
                               5% employer contribution (employer only) of 20 x
    Housing Allowance          minimum wage.                                          as law                                                      as law


    Training reimbursement


    Social Coverage
                               Social security pays for 52 weeks- extendable in       employers usually pay by collective agreement the
    Payment of salary after    certain circumstances tofor further 26 weeks - 60%     difference between social security sick pay and employee
    accident or sickness       of wage prior to sickness.                             wage, even for the three day waiting period.
                                                                                                                                                  Various providers.
                                                                                                                                                  Life insurance covering 30
                                                                                                                                                  months of salary costs approx
                                                                                                                                                  US$279 per employee. Final
                                                                                                                                                  Price best negotiated through
    Life insurance                                                                                                                                a broker.
                               employees 60 to 64 and made redundant can claim
    Early retirement           75% to 95% of the full pension



2                                                          05219d42-bb71-4374-9dc0-f677471495c5.xls          10/2/2011
Bunge                                                             05219d42-bb71-4374-9dc0-f677471495c5.xls

                                                                      Market Conditions Summary - MEXICO
                                LAW                                                    MARKET                                                  MARKET Example 1

                                                                                       general information

                                Old Plan 500 weeks of contribution minimum, at age
                                65 employee get basic pension and incremental
                                pension.For employees of medium salary total
                                benefit would be 13% increasing by 2.45 % to 38.7%
                                of average salary after 20 years contriution-,63.2%
    Pension                     after 30 years and 87.7% after 40 years.
                                New Plan: Contributions put into an AFORE
                                (Administradora de Fondos de Retiro) Employee
                                needs 1250 weeks of contribution to get old age
                                pension at age 65.Money can be transferred to an
    Principle of the pension    insurance co and benefit is min 1 minimum wage
    arrangements                and max 6 x minimum wage.

                                If employee has contriibuted 150 weeks widow
    Widows and orphan           entitled to 90% of the pension and each child under
    pensions                    16 = 20 % up to a max of the 100% pension.
                                mandatory plan requiring employer contribution of up
    S.A.R. Retirement Savings   to 25 x minimum wage. Proceeds distributed as a
    Scheme                      lump sum at retirement
    Contributions

    Accident Insurance          70% of insured earnings payable



                                                                                                                                               6.8% of base salary employer,
                                                                                                                                               and 1.5% of base salary
                                                                                                                                               employee.This provides basic
                                                                                                                                               state healthcare optical and
                                                                                                                                               dental care. Private medical
                                                                                                                                               including hospitalisation costs
                                                                                                                                               between US$216- for
                                                                                                                                               employees under 30 to $365
                                                                                                                                               per year for employees
                                                                                                                                               between 35 and 40. Spouse
                                                                                                                                               (female) costs on average
                                                                                                                                               $70 more and children under
                                                                                                                                               18 cost $ 150-160 per annum.
                                6.8% of base salary employer, and 1.5% of base         6.8% of base salary employer, and 1.5% of base salary
    Health Insurance            salary employee.                                       employee.
    Childcare                   1% employer                                            1% employer                                                                     0.30%
    Long Term Care Insurance




3                                                           05219d42-bb71-4374-9dc0-f677471495c5.xls         10/2/2011
Bunge                                                        05219d42-bb71-4374-9dc0-f677471495c5.xls

                                                                 Market Conditions Summary - MEXICO
                           LAW                                                  MARKET                            MARKET Example 1

                                                                                general information
                           70% of insured earnings payable. Spouse gets 405
                           of disability and each child 20% of the disability
    Disability Insurance   pension
    Child Allowance




4                                                      05219d42-bb71-4374-9dc0-f677471495c5.xls       10/2/2011
Bunge                                                               05219d42-bb71-4374-9dc0-f677471495c5.xls

                                                                        Market Conditions Summary - MEXICO
                                 LAW                                                  MARKET                                                    MARKET Example 1

                                                                                      general information

        Social Insurances
                                 Employer 4.9% plus 2% into retirement fund.
    Pension and disability       Employee 1.75% of 20x the minimum wage.              Employer 5.2% plus 2% into retirement fund                Employer 3%
    Retirement Savings Sceme
    (SAR)                        2% Employer of 25 x the minimum wage                 Employer 2%                                               Employer 2%
    Unemployment insurance       Employer 0.2%                                        Employer 0.2%                                             Employer 0.1%
    Unemployment insurance
    Professional and non-
    professional accident
    insurance
    Loss of earnings insurance
    for sickness
    Health Insurance             16.5 % of minimum wage. Employer only
                                 0.7% of 3x minimum wage employer and 0.255 of 3x
    Health Insurance             minimum wage - employee

                                 4.04% of 3 x minimum wage (employer) and 1.36%
    Health Insurance             employee rising to 25x minimum wage in 2007
    Total
                                1.05% (employer) and 0.375% employee of 25 x
    Retirement Medical Benefits minimum wage.
    Day Care                    1% (employer) of 25x minimum wage.


        Termination Indemnities
                                 3 Elements: 1) Notice Period: 2 "Seniority" and 3)
        Severance Pay            Compensation for the layoff itself                   as law


                                                                                                                                                If the input of new technology
                                 3 months of "Integrated Salary" being the salary plus                                                          or new manufacturing
                                 value of the usual benefits plus bonus, plus                                                                   processes is the cause of the
                                 Christmas bonus calculated over the previous 12                                                                redundancy then the notice
        Notice Period            months.                                               as law                                                   period is raised to 4 months.
                                                                                                                                                In better companies the end
                                 payable even when dismissed for cause and when       Frequently there is a compromise which is in front of a   of service indemnity is
                                 resigning after 15 years service. It amounts to 12   judge whereby the employee agrees to take 40% of          uncapped and is paid as half
                                 days pay per year of service, capped at twice the    entitlement straight away rather than let a case drag     a months salary per year of
    Antiguedad/Seniority         minimum wage.                                        through the courts                                        service.
                                 20 days of Integrated Salary per year of
    Cesantia/Termination         service.uncapped                                     as law unless waived by agreement                         as law


        Legal Services in Mexico
                                 Recommended legal companies available from Compandben SA
5                                                             05219d42-bb71-4374-9dc0-f677471495c5.xls      10/2/2011
Bunge                                                   05219d42-bb71-4374-9dc0-f677471495c5.xls

                                                            Market Conditions Summary - MEXICO
                                 LAW                                      MARKET                                                         MARKET Example 1

                                                                          general information



        Payroll Services in Mexico
    Price through Compandben SA recommended payroll specialists           Services Performed
                                                                            Elaboration of the tax declaration of payroll (day 15th of
    Finanzas Empresariales       Mexico@compandben.com                                            each month)
                                                                          - Determination of charges to be paid to the IMSS and
    Cortina Tagle Isoard y Cia   Mexicocity@compandben.com                Infonavit (Social
                                                                          security on a Monthly or bimonthly basis (15th of each
                                                                          month)
                                                                          - Elaboration of the accounting entry of the payroll (24 hrs
                                                                          later)
                                                                          - Calculation of amounts to be paid to an employee in
                                                                          case of termination
                                                                          - Presentation at the social security of
                                                                          increases/decreases, and salary
                                                                          modifications (this must be done every time salary
                                                                          changes)
                                                                          - Calculation of other annual bonues such as vacation
                                                                          bonus, seniority
                                                                          - statistical calculation per employee , sorted by employee,
                                                                          type of
                                                                          payment, time period, department (Second day of each
                                                                          month)
                                                                          - Annual declaration of the 'credito al salario' (Credit on
                                                                          Salary
                                                                          declaration)
                                                                          - Annual declaration of the 'prima seguros de riesgos de
                                                                          trabajo' on the
                                                                          social security




6                                                  05219d42-bb71-4374-9dc0-f677471495c5.xls     10/2/2011
        Bunge                        05219d42-bb71-4374-9dc0-f677471495c5.xls

t Conditions Summary - MEXICO
                                             MARKET Example 2




                                             60 women 65 men




                                             as law




                                             after 5 yrs 15 days
                                             after 10 yrs 17 days




                                             after 20 yrs 21 days




        7                       05219d42-bb71-4374-9dc0-f677471495c5.xls   10/2/2011
        Bunge                        05219d42-bb71-4374-9dc0-f677471495c5.xls

t Conditions Summary - MEXICO
                                             MARKET Example 2




                                             11 days




                                             35% of a months salary


                                                                     13

                                             as law
                                             typically 70% of costs to
                                             90% for an English
                                             course




                                             24 months of salary




        8                       05219d42-bb71-4374-9dc0-f677471495c5.xls   10/2/2011
        Bunge                        05219d42-bb71-4374-9dc0-f677471495c5.xls

t Conditions Summary - MEXICO
                                             MARKET Example 2




                                             a further 12 months of
                                             salary granted




        9                       05219d42-bb71-4374-9dc0-f677471495c5.xls   10/2/2011
        Bunge                        05219d42-bb71-4374-9dc0-f677471495c5.xls

t Conditions Summary - MEXICO
                                             MARKET Example 2




        10                      05219d42-bb71-4374-9dc0-f677471495c5.xls   10/2/2011
        Bunge                        05219d42-bb71-4374-9dc0-f677471495c5.xls

t Conditions Summary - MEXICO
                                             MARKET Example 2




                                             6% employer contribution




                                             as law




        11                      05219d42-bb71-4374-9dc0-f677471495c5.xls   10/2/2011
        Bunge                        05219d42-bb71-4374-9dc0-f677471495c5.xls

t Conditions Summary - MEXICO
                                             MARKET Example 2




        12                      05219d42-bb71-4374-9dc0-f677471495c5.xls   10/2/2011

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:4
posted:10/2/2011
language:English
pages:12