If an individual from just about anywhere is looking for a job or is thinking about moving from one company to another, the salary offered by the potential employer is routinely the first thing that is taken into consideration. South of the Border, however, benefits for workers in Mexico are also very important to job candidates. Although in that country some benefits are defined and mandated under the nation’s labor laws, others are given on a voluntary basis. This article will look at both the mandatory and volunteer benefits commonly paid by employers in Mexico.
Legally mandated benefits for workers in Mexico
Benefits for workers in Mexico that are prescribed by the nation’s laws include:
- National holidays off;
- Profit sharing bonus (Fifteen days pay per year or a proportional part that corresponds to employment of less than a full year);
- Vacation premium (25% of the workers’ salary corresponding to the vacation period);
- Social Security
- Retirement Fund
Voluntary benefits for workers in Mexico
Among the nine top voluntary benefits for workers in Mexico that are not guaranteed by law are:
- Productivity bonus – This bonus is linked to the achievement of company goals and objectives and is one of the voluntary benefits for workers in Mexico that is commonly awarded to employees. The disbursement of this extra pay is useful in that in addition to being good for both the individual and the company, it promotes a healthy competition between the worker and his or her peers;
- Training – Among the voluntary benefits for workers in Mexico, training is of critical importance. Education promoted within the Mexican workplace not only promotes productivity but also provides an opportunity for growth within the company for employees. Providing training is one of the most effective ways that small and medium-sized businesses can retain their talent.
- Insurance for major medical expenses – Often key employees in Mexican operations are offered an insurance policy that covers expenses that go beyond what the nation’s Social Security Institute offers. Such policies enable those covered by them to access private medical networks in cases of emergency;
- Cafeteria and dining area – Some companies offering benefits for workers in Mexico provide their people with one or two meals per day. Meals in the bigger companies in Mexico may be prepared by an in-house staff. Mid-sized companies may contract their food service out to a third-party, whereas smaller businesses may just have a microwave in a designated meal area with which employees can heat up their food.
- Food vouchers and prescription drugs –another form of non-salary benefits enjoyed by many Mexican workers includes a monthly number of vouchers for food from local grocery stores and prescription drugs from local pharmacies. These benefits for workers in Mexico are greatly appreciated by those that receive them;
- Savings fund – This offering is very beneficial to workers that are disciplined in their savings habits. Usually for each employee dollar saved the employer makes a match of a percentage that is defined by company policy;
- Company car – This voluntary benefit for workers in Mexico is generally reserved for the upper management of an operation. It is an effective means by which to retain top company talent.
- Scholarships – Some businesses award scholarship money to employee’s, as well as to employee’s children, for study at local universities and technical schools. In addition to aiding workers in obtaining a basic education, a growing number of firms provide assistance to workers that are seeking to complete bachelors, masters and doctoral studies.
Although providing the aforementioned voluntary benefits for workers in Mexico represents an additional cost for employers, they often pay for themselves in the form of better educated and more productive and committed workers that are more able to contribute to a company’s growth. Additionally, the payment of voluntary benefits can result in:
- Increased appeal in the local labor market that will make recruitment efforts more successful;
- Minimized turnover that will save the company dollars in recruiting and training new personnel, as well as costs associated with a loss of worker productivity;
- Better morale because of an attractive package of worker benefits in Mexico. Workers that are well-compensated stick around and form bonds with each other thereby forming productive teams;
- Better job performance that comes because of employing Mexican workers that care more for their employer and remain loyal. As a result, individual workers work harder. This inevitably leads to the production of a more quality good or service.
Although Mexico mandates that employers provide certain legally prescribed benefits for its workers, many companies go above and beyond their provision. They commonly provide benefits that are voluntary so as to maintain competitiveness in active labor markets.