The objective of this is to inform you of some of the most relevant changes for 2023 in the administration of payroll for companies in labor matters, social security and the determination of the withholding of the ISR to workers, which we mention below:
1) Holidays
The approved opinion establishes the modification to article 76 of the Federal Labor Law, which establishes that workers who have more than one year of service will enjoy an annual vacation period of 12 days and this will increase by 2 days each year, until reaching the 5th anniversary, according to the following table:
| Years labored | Days of Vacations |
| 1 | 12 days |
| 2 | 14 days |
| 3 | 16 days |
| 4 | 18 days |
| 5 | 20 days |
| from 6 to 10 | 22 days |
| from 11 to 15 | 24 days |
| from 16 to 20 | 26 days |
| from 21 to 25 | 28 days |
| from 26 to 30 | 30 days |
| from 31 to 35 | 32 days |
With this reform to article 76, a modification is also made to article 78 of the LFT by indicating that workers must continuously enjoy at least 12 days of vacation.
2) Social Security Contributions
Derived from the decree published in the Official Gazette of the Federation dated December 16th, 2020, by which various provisions of the Social Security Law and the Retirement Savings Systems Law are reformed, added, and repealed, in 2023 It will be the first year of increases in the percentages of employer contributions with respect to Unemployment insurance in Advanced Age and Old Age (CEAV), they will be applicable as of January 1st, 2023 and will gradually increase until the year 2030.
The employers will cover the corresponding quota on the contribution base salary, calculated according to the following table:
| CONTRIBUTION BASE SALARY | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
| 1.00 SM * | 3,150% | 3,150% | 3,150% | 3,150% | 3,150% | 3,150% | 3,150% | 3,150% |
| 1.01 SM to 1.50 UMA ** | 3,281% | 3,413% | 3,544% | 3,676% | 3,807% | 3,939% | 4,070% | 4,202% |
| 1.51 to 2.00 UMA | 3.575% | 4,000% | 4,426% | 4,851% | 5.276% | 5,701% | 6.126% | 6,552% |
| 2.01 to 2.50 UMA | 3,751% | 4,353% | 4,954% | 5,556% | 6.157% | 6,759% | 7,360% | 7,962% |
| 2.51 to 3.00 UMA | 3,869% | 4,588% | 5,307% | 6,026% | 6,745% | 7,464% | 8.183% | 8.902% |
| 3.01 to 3.50 UMA | 3,953% | 4,756% | 5,559% | 6.361% | 7.164% | 7.967% | 8,770% | 9.573% |
| 3.51 to 4.00 UMA | 4,016% | 4,882% | 5,747% | 6,613% | 7,479% | 8.345% | 9.211% | 10.077% |
| 4.01 UMA onwards | 4.241% | 5.331% | 6.422% | 7.513% | 8.603% | 9.694% | 10.784% | 11.875% |
3) Updating of Income Tax Rates for Individuals
Article 152 of the Income Tax Law (LISR) establishes that the rates applied in the calculation of income tax for individuals are updated in accordance with the inflationary increase , when it exceeds 10% from the last time these rates were updated.
In this sense, the last update was made in December 2020 and entered into force on January 1st, 2021, so that since then accumulated inflation has reached 15.08%, which is why the level of 10% has already been exceeded. which indicates the last paragraph of article 152 of the LISR, which would lead to the updating of the rate.
However, since the INPC is published no later than the 10th day of the immediately following month, it can be considered that the new ISR rates applicable from 2023 would be published in the Official Gazette of the Federation in the first days of the month. month of January 2023, which is when they have normally been released.
Lastly, although these changes in labor matters , as well as the increases in employer contributions regarding Unemployment insurance in Advanced Age and Old Age, bring benefits to workers, they will also have an impact on social security costs that are already they are covering, as well as in the financial and fiscal field that must be contemplated in the budgets of the companies from 2023.
As always, we are at your disposal for any clarification, doubt or support that you may require in order to correctly comply with these obligations.
The purpose of this circular is to inform about the most important publications, without it intending to present the opinion of our Firm on the aspects discussed; each case must be carefully analyzed to conclude on the correct interpretation of the provisions discussed here.
