Employers are worried about the negative impact the new fiscal reform will have on labor cost, workers’ income, employment and growth. The lawmakers considerably restricted the possibility for businesses to deduct bonuses and supplementary social benefits given to workers, which threatens their continuation. The auto and manufacturing industries are most disadvantaged by this measure. (Ref. 130685)
Social benefits in jeopardy. The fiscal reform approved on Thursday, October 31 by the Mexican lawmakers will have a direct impact on labor cost, employers say. Indeed, the text provides that only 53 percent of the social benefits businesses give their workers will be tax deductible starting in 2014, as opposed to 100 percent before. In Mexico, these benefits encompass several types of income and advantages negotiated by the social partners within the framework of collective agreements, most
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