Article 27 of the Mexican Social Security Law
The contribution base salary is made up of the payments made in cash for daily fees, bonuses, benefits, food, housing, bonuses, commissions, benefits in kind and any other amount or benefit paid to the employee for his work. The following items are excluded as part of the contribution base salary, due to their nature:
Amended paragraph DOF 16/01/2009.
Work instruments such as tools, clothing and other similar items;
Savings, when it is integrated by a weekly, biweekly or monthly deposit of the same amount of the worker and the company; if it is constituted in a different form or the worker can withdraw it more than twice a year, it will integrate salary; the amounts granted by the employer for social purposes of a union nature will not be taken into account either;
The additional contributions that the employer agrees to grant in favor of its workers for retirement, unemployment at advanced age and old age insurance contributions;
The contributions that in terms of this Law correspond to the employer, the contributions to the Instituto del Fondo Nacional de la Vivienda para los Trabajadores (National Workers’ Housing Fund Institute), and the participation in the company’s profits;
Food and housing when they are paid to the workers; it is understood that these benefits are onerous when the worker pays for each of them, at least twenty percent of the general daily minimum wage in force in the Federal District;
Allowances in kind or in cash, as long as their amount does not exceed forty percent of the general daily minimum wage in force in the Federal District;
Rewards for attendance and punctuality, provided that the amount of each of these concepts does not exceed ten percent of the base salary;
The amounts contributed for social purposes, being considered as such those delivered to constitute funds of any pension plan established by the employer or derived from collective bargaining. Pension plans will only be those that meet the requirements established by the National Commission of the Retirement Savings System, and
Overtime within the margins indicated in the Federal Labor Law.
In order for the items mentioned in this provision to be excluded as part of the contribution base salary, they must be duly recorded in the employer’s accounting records.
In the concepts foreseen in sections VI, VII and IX, when the amount of these benefits exceeds the established percentage, only the excess will be integrated to the contribution base salary.
Article amended DOF 12-20-2001