On May 1st, 2024, the DECREE GRANTING THE EMPLOYMENT SUBSIDY for 2024 was published in the Official Gazette of the Federation, as a result of a request from the employer and employee sectors throughout this year, given that minimum wages were increased by 20% as of January of this year, the figure obtained by employment subsidy was zero, since the new amount of the minimum wage was higher than that indicated in the Employment Subsidy Decree.
The main point of the Decree is that the subsidy is now subject to the following rules :
- The employees referred to in Article 94, first paragraph and section I, of the Income Tax Law (ISR), may enjoy the employment subsidy established in this Decree, that is, income from subordinate personal services.
- A monthly employment subsidy is granted to employees whose monthly income, which serves as the basis for calculating the ISR corresponding to the calendar month in question, does not exceed $9,081.00 (NINE THOUSAND EIGHTY-ONE PESOS 00/100 MN).
· Those received from seniority bonuses, retirement and compensation or other separation payments are not considered in the income base for the subsidy.
· The subsidy will be calculated up to the amount resulting from multiplying the monthly value of the Measurement and Update Unit (UMA) by 11.82%, that is, the employment subsidy for this year will be $390.12.
· Said subsidy will be applied against the ISR corresponding to the calendar month in question and which is deemed to the aforementioned employees, in terms of Article 96 of the same Law.
· Those who make salary payments corresponding to periods of less than one month, to calculate the employment subsidy corresponding to each payment, will divide the amount resulting from multiplying the monthly value of the UMA by 11.82% between 30.4. The result thus obtained will be multiplied by the number of days to which the payment period corresponds to determine the amount of the employment subsidy that corresponds to the employee for said payments.
· In cases where the tax payable by the employee is less than the monthly employment subsidy, the difference cannot be applied against the tax subsequently payable, nor will any amount be delivered for the employment subsidy established in this Article.
· The employment subsidy referred to in this Decree will not be considered as cumulative income, nor will it form part of the calculation of the tax base of any other contribution because it is not a remuneration for subordinate personal work.
General considerations :
· As of May 1st, 2024, in order to determine whether or not an employee is entitled to the employment subsidy, it is imperative to evaluate that the monthly taxable base of his or her income does not exceed the amount of $9,081.00.
· The revaluation of the employment subsidy will be carried out annually in February, once the value of the UMA has been updated.
UMA VALUE | DAYS | MONTHLY UMA | % ACCORDING | EMPLOYMENT SUBSIDY |
108.57 | 30.4 | $3,300.53 | 11.82% | 390.12 |
· The employment subsidy must be applied in accordance with the payment periods implemented in the company’s payroll.
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PAYROLL PERIOD | MONTHLY EMPLOYMENT SUBSIDY | DAILY EMPLOYMENT SUBSIDY | PERIOD DAYS | EMPLOYMENT SUBSIDY |
WEEKLY | 390.12 | 12.83 | 7.00 | 89.83 |
DECENNIAL | 390.12 | 12.83 | 10.00 | 128.33 |
FOURTEENNAL | 390.12 | 12.83 | 14.00 | 179.66 |
BIWEEKLY | 390.12 | 12.83 | 15.00 | 192.49 |
· In cases where the tax charged is less than the employment subsidy, the difference cannot be delivered in cash.
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The purpose of this bulletin is to inform about the most important publications on tax matters, without 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.
