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Employee profit sharing (PTU) in Mexico: 10 percent of taxable income, how it is split, the three month cap, deadlines and exemptions

Last verified: 2026-10-26 · Status: Stable

Employers in Mexico must share 10 percent of their taxable income for the year with their workers (participación de los trabajadores en las utilidades, PTU), computed under income tax rules but without deducting PTU paid or prior year losses. Half is split equally by days worked and half by salaries earned; directors and general managers are excluded, and since the 2021 outsourcing reform each worker's share is capped at three months of salary or the average received in the last three years, whichever is higher. Companies pay within 60 days after their annual tax return is due (by 30 May for a calendar year company), new companies are exempt in their first year, and failures are fined 250 to 5,000 UMA and can trigger a strike.

USD conversions use MXN 18.5026 per US dollar, the US Federal Reserve H.10 noon buying rate in New York for 16 October 2026 (FRED series DEXMXUS), the latest observation available when this page was verified. Conversions are for orientation only.

Key facts

Employee profit sharing rate	10 % of taxable incomeSixth PTU Commission resolution, DOF 18 September 2020, as of 2026-10-26 · in force
Cap on each worker's PTU (or three year average, if higher)	3 months of salaryLFT art. 127, section VIII, as of 2026-10-26 · in force
PTU payment deadline after the annual tax return is due	60 daysLFT art. 122, as of 2026-10-26 · in force
Exemption for employers with annual declared income not above	300000 MXNSTPS resolution, DOF 19 December 1996, as of 2026-10-26 · in force
Minimum days worked for temporary workers to participate	60 daysLFT art. 127, section VII, as of 2026-10-26 · in force

The rule

1. Rate and base. Workers share in the employer's profits at the percentage set by the national commission, currently 10 percent. The base is the taxable income (renta gravable) determined under the Income Tax Law: for companies, accumulable income less authorized deductions and less the non deductible part of exempt employee benefits (LISR art. 28, section XXX), without subtracting PTU paid in the year or tax losses from prior years.
Cost to do it: 10 percent of taxable income for the year.
Example: Taxable income for PTU of MXN 10,000,000 gives a PTU pool of MXN 1,000,000. / About USD 540,465 of taxable income and USD 54,046 of PTU at 18.5026.Resolution of the Council of Representatives of the Sixth National Commission for Workers' Profit Sharing, DOF 18 September 2020; Ley Federal del Trabajo (LFT), DOF 1 April 1970 (Chamber of Deputies consolidated text, last reform DOF 14 May 2026); Ley del Impuesto sobre la Renta (LISR), DOF 11 December 2013 (Chamber of Deputies consolidated text, last reform DOF 1 April 2024), Resolution, first point; LFT arts. 117 and 120; LISR art. 9, second paragraph, section I, penultimate and last paragraphs, 2020-09-18 official text · verified 2026-10-26

2. Split and limits. The pool is divided in two equal halves: one is shared equally among all workers in proportion to the days each worked in the year, regardless of salary; the other in proportion to the salaries earned in the year. Directors, administrators and general managers do not participate. Other confidence staff participate, but their salary is capped at that of the highest paid unionized (or permanent) worker plus 20 percent. Temporary workers participate if they worked at least 60 days in the year; workers on maternity leave or temporarily disabled by a work risk count as active; domestic workers do not participate; platform workers participate if their effective working time exceeds 288 hours a year. Each worker's share is capped at three months of salary or the average PTU received in the last three years, whichever is more favorable to the worker.
Example: A worker earning MXN 15,000 a month whose computed share is MXN 60,000 and whose average PTU in the last three years was MXN 40,000 receives MXN 45,000, the higher of three months of salary (MXN 45,000) and the average. / About USD 2,432 at 18.5026.Ley Federal del Trabajo (LFT), DOF 1 April 1970 (Chamber of Deputies consolidated text, last reform DOF 14 May 2026), Arts. 123 and 127, 2024-12-24 official text · verified 2026-10-26 · changed: The cap of three months or the three year average was added by the outsourcing decree of DOF 23 April 2021 and reworded by decree DOF 24 December 2024, which also added the platform worker threshold.

3. Deadlines and procedure. Within 10 days after filing its annual tax return the employer gives workers a copy, and the annexes stay available for 30 days; within the following 30 days the union or the majority of workers may file objections with the tax authority (SHCP), whose final ruling workers cannot appeal. A joint committee of worker and employer representatives prepares the distribution, which is posted for 15 days of worker comments. PTU must be paid within 60 days after the date the annual tax is due, even while objections are pending: by 30 May for companies (annual return due 31 March) and, for individuals filing by 30 April, within 60 days after that. If the tax authority increases taxable income, the additional PTU is due within 60 days of notification, unless the employer challenges it. Unclaimed amounts are added to the next year's pool. PTU is not part of salary for severance purposes and gives workers no right to intervene in management.Ley Federal del Trabajo (LFT), DOF 1 April 1970 (Chamber of Deputies consolidated text, last reform DOF 14 May 2026), Arts. 121, 122, 125, 129 and 131, 2019-05-01 official text · verified 2026-10-26

4. Exempt employers. New companies in their first year of operation; new companies making a new product in their first two years; new extractive companies during exploration; recognized private charities; IMSS and decentralized public bodies with cultural, social assistance or charitable purposes; and companies with capital below the amount set by the Ministry of Labor. Under the STPS resolution of DOF 19 December 1996, employers whose annual income declared for income tax does not exceed MXN 300,000 are exempt.Ley Federal del Trabajo (LFT), DOF 1 April 1970 (Chamber of Deputies consolidated text, last reform DOF 14 May 2026); STPS resolution under LFT art. 126, section VI, DOF 19 December 1996, LFT art. 126, 2012-04-09 official text · verified 2026-10-26

5. Tax effects. PTU paid in the year is subtracted from the company's taxable income for corporate income tax, together with authorized deductions. For workers, PTU is exempt income up to a limit set in the Income Tax Law, and the employer's deduction of exempt payments is limited to 47 or 53 percent (LISR art. 28, section XXX).Ley del Impuesto sobre la Renta (LISR), DOF 11 December 2013 (Chamber of Deputies consolidated text, last reform DOF 1 April 2024), Arts. 9, section I, 28, section XXX, and 93, section XIV, 2013-12-11 official text · verified 2026-10-26

6. Sanctions. An employer that fails to meet its PTU obligations is fined 250 to 5,000 UMA, per affected worker under LFT art. 992, and demanding compliance with profit sharing rules is a lawful object of a strike.
Cost to do it: MXN 29,327.50 to MXN 586,550.00 per infringement at the 2026 UMA of MXN 117.31.
Example: MXN 29,327.50 to MXN 586,550.00. / About USD 1,585 to USD 31,701.Ley Federal del Trabajo (LFT), DOF 1 April 1970 (Chamber of Deputies consolidated text, last reform DOF 14 May 2026), Arts. 450, section V, 992 and 994, section II, 2019-05-01 official text · verified 2026-10-26

Stage	Deadline	Source
Annual tax return filed	31 March 2026	LISR art. 76, section V
Copy of return to workers	Within 10 days of filing	LFT art. 121, section I
Annexes available to workers	30 days	LFT art. 121, section I
Worker objections to SHCP	Within the following 30 days	LFT art. 121, section II
Payment of PTU	By 30 May 2026	LFT art. 122

PTU calendar for a calendar year company that files its annual return on 31 March 2026 (SAT, Reparto de utilidades 2026 manual; LFT arts. 121 and 122).

Worked example

A manufacturing subsidiary has taxable income for PTU of MXN 10,000,000 for 2025 (about USD 540,465), after adding back nothing for losses carried forward and before deducting PTU paid.
The PTU pool is MXN 1,000,000 (USD 54,046): MXN 500,000 is shared by days worked and MXN 500,000 by salaries, excluding the general manager.
Each worker's share is capped at three months of salary or the average of the last three years; for a worker on MXN 15,000 a month with a computed share of MXN 60,000 and a three year average of MXN 40,000, the cap is MXN 45,000.
The company pays by 30 May 2026 and subtracts the PTU paid from its 2026 taxable income for corporate income tax (LISR art. 9).

Step by step

1. After closing the year, compute taxable income for PTU (without subtracting PTU paid or prior losses) alongside the corporate income tax return.
2. Deliver a copy of the annual return to workers within 10 days of filing and keep annexes available for 30 days.
3. Set up the joint worker and employer committee, prepare the distribution by days and salaries, apply the exclusions and the per worker cap, and post it for 15 days.
4. Pay by 30 May (companies) and keep signed receipts; carry unclaimed amounts into next year's pool.
5. Recompute and pay additional PTU within 60 days if an audit raises taxable income, unless you challenge it.

Common traps

Netting losses. Prior year tax losses and PTU paid are not subtracted from the PTU base, so a company with losses carried forward can owe PTU while paying no income tax.
Assuming new groups are exempt. Only genuinely new companies in their first year are exempt; a restructuring or new entity in an existing business may be challenged.
Overpaying confidence staff. Their salary for PTU is capped at the top unionized or permanent worker salary plus 20 percent, and directors and general managers are excluded.
Misreading the cap. The cap is per worker and the higher of three months of salary or the three year average, not the lower.

Sources

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