Mexico’s 2026 Profit-Sharing Rules: Which Companies Must Pay and Which Are Exempt

Mexico City — Mexico’s annual profit-sharing payment, known as PTU, generates significant confusion among workers about who qualifies and which companies must pay. The system requires companies to distribute 10% of their net profits to employees, but only under specific conditions.

The Federal Labor Law mandates that companies share 10% of their fiscal profits declared to Mexico’s tax authority (SAT) with workers. This requirement only applies when companies actually report taxable profits, meaning businesses showing zero profits on their tax returns have no legal obligation to distribute funds.

“Many workers believe this pie always gets divided among everyone, but in reality it only gets divided when the company makes profits and meets certain legal requirements,” the report explains. “If there are no fiscal profits or the company falls under a legal exception, the distribution simply doesn’t happen.”

For many workers, profit-sharing represents additional income equivalent to several days or even weeks of salary. To qualify, employees must have worked at least 60 days during the corresponding fiscal year. Directors, administrators, and general managers are excluded from this benefit, as legislation considers their income directly tied to company management.

Companies That Must Pay and Exemptions

Not all companies must distribute profits. The law clearly establishes which businesses must comply and which are exempt.

Companies required to pay include:

• Businesses incorporated as legal entities that generated fiscal profits
• Companies operating for more than one year
• Individual entrepreneurs with business activities who declare profits to SAT

In these cases, distribution is mandatory and must occur within legally established deadlines.

Companies legally exempt from profit-sharing include:

• Newly created companies during their first year of operation
• New companies dedicated to innovative products, which may be exempt for up to two years
• Private non-profit assistance institutions
• Decentralized public organizations dedicated to cultural or charitable activities
• Companies with capital below the limit established by the Labor and Social Welfare Department

Legal entities must pay profit-sharing between April 1 and May 30, while individual entrepreneurs have until June 29. These deadlines correspond to profits generated the previous fiscal year, not the current year.

Protecting Your Rights

Workers who worked more than 60 days during the year and whose companies obtained fiscal profits have the right to receive a portion of 10% of those profits.

Practical recommendations include:

• Ask whether the company declared profits to SAT
• Verify if the company has operated for more than one year
• Confirm payment will occur within legal deadlines

In case of doubt, workers can request guidance from the Federal Labor Defense Attorney’s Office (Profedet), which offers free orientation.

“Understanding how profit-sharing works helps avoid two common mistakes: expecting money you’re not legally entitled to, or accepting non-payment when you do have the right,” the report notes. “In both cases, the difference between losing or receiving that income can represent thousands of pesos per year.”