If an individual is seeking position or is contemplating a move from one firm to another, the salary offered in Mexico by the potential employer is always the initial thing that is considered. However, benefits for workers in Mexico are also of great importance to prospective job candidates. Although in that nation there are some benefits that are defined and mandated under the country’s labor laws, others are provided voluntarily. This post will examine both the mandatory and volunteer benefits commonly paid by companies that do business in Mexico.
Benefits for workers in Mexico that are mandatory by law include:
- Profit sharing bonus (Fifteen days pay per year, or a proportional part that correspond to employment of less than a full year);
- Social Security;
- Vacation premium (25% of the workers salary corresponding to the vacation period);
- National holidays off;
- Retirement Fund.
Among the nine top non-mandated benefits for workers in Mexico that are not legally prescribed are:
- Productivity bonus – This benefit is dependent upon reaching a business’ objectives and goals is and it is one of the voluntary perks for Mexican workers that is commonly granted to employees. The disbursement of this additional money is useful in that in addition to being advantageous for both the company and its workers, it instills a healthy environment of competition between the worker and his or her colleagues;
- Training –Another voluntary benefit for workers in Mexico that is common is training, which is of critical importance. Education promoted within the Mexican workplace not only has a positive effect on productivity, but also serves to provides an opportunity for growth within the company those individuals that it employs. Company paid training is one of the most effective ways that small and medium-sized businesses can hold on to their talent.
- Insurance for major medical expenses – In many instances, key employees in Mexico operations are offered an insurance policy that will pay for expenses that are over and above what the country’s Social Security Institute covers. Such policies enable those that have them go to private medical networks for service in cases of emergency;
- Dining area and cafeteria – Many companies offering benefits for workers in Mexico provide their people with a daily breakfast and lunch. Meals in the bigger businesses may be prepared by in-house cooking staff. Mid-sized companies often hire out their food service out to third-parties, whereas smaller firms may just have a microwave in a meal area with which employees are able to warm their meals.
- Prescription drugs and food coupons –another form of non-salary perks received by many workers in Mexico includes a monthly number of vouchers for food from local grocery stores and medicinal drugs from local drug stores. These benefits for workers in Mexico are well-received by those that enjoy them;
- Fund for savings – This benefit is very good for workers that are disciplined in their savings practices. Usually for each dollar saved by the employee the employing company makes a match of a percentage that is defined by its policies;
- Company vehicle – This voluntary benefit for Mexican workers is most often reserved for the managerial staff of a company. It is a proven means by which top company talent is retained.
- Scholarships – Some businesses award scholarship gifts to its employees, as well as to their employees’ family members, for study at local colleges and vocational and technical institutions. In addition to enabling employees in obtaining a secondary education, a growing number of companies provide assistance to workers that are working to complete bachelors, masters and doctoral programs.
Although providing the aforementioned optional benefits for Mexican workers represent additional costs for employers, they often pay for themselves in the form of better educated and more productive and committed workers that are more able to help bring about a company’s growth. Additionally, the payment of non-mandatory benefits can result in:
- Increased company appeal in the local job market that will make recruitment increasingly successful;
- Diminished turnover that will save the company budgetary resources in finding and training new personnel, as well as expenditures related to a loss of worker productivity;
- Better morale because of the offer of an attractive package of worker benefits in Mexico. Employees that are well-compensated stay put and forge lasting relationships with each other thereby forming more productive company teams;
- Better job performance is a result of employing workers in Mexico that care more for their employing company and remain loyal. As a result, individual workers work more diligently. This inevitably leads to the production of a service or good of greater quality.
Although Mexico mandates that employers provide certain benefits that a prescribed by law for its workers, many companies go above and beyond what is called for. They commonly provide of benefits that are voluntary to maintain competitiveness in active and competitive Mexican labor markets.
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