April 8, 2020

April 08, 2020

Subscribe to Latest Legal News and Analysis

April 07, 2020

Subscribe to Latest Legal News and Analysis

April 06, 2020

Subscribe to Latest Legal News and Analysis

Mexico’s Unit of Measure and Update (UMA): New Values to Increase on February 1, 2020

On January 9, 2020, Mexico’s National Institute of Statistics and Geography published in the Official Gazette of the Federation the daily, monthly, and annual values of the Unit of Measure and Update (UMA). These are scheduled to take effect on February 1, 2020.

The Law to Determine the Value of the Unit of Measure and Update provides a method to update the UMA’s value every year in Mexico. Below are the new values:

Daily: $86.88 MXN

Daily: approximately $4.63 USD

Monthly: $2,641.15 MXN

Monthly: approximately $140.86 USD

Annual: $31,693.80 MXN

Annual: approximately $1,690.37 USD
(For reference only)

It is important to consider that the increase in the UMA has a direct impact on the following:

  • Collective/union wage and hour considerations: If you have stipulated benefits that are linked to the UMA, said benefits will need to increase in the same percentage as the UMA did.

  • Individual or collective: If an employer agreed to a benefit using the “minimum wage” rate, this rate will continue to be the standard.

  • Tax deduction considerations: Caps for deductions will be modified in the same percentage as the UMA did.

Fines, contributions, and any considerations designated as “minimum wage” must be referred to in UMAs.

© 2020, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved.

TRENDING LEGAL ANALYSIS


About this Author

Ana Paula Delsol Espada, Ogletree Deakins Law Firm, Labor and Employment Law Attorney
Associate

Ana Paula Delsol Espada joined Ogletree Deakins in September of 2014. Previously, she worked in private practice at a leading law firm in Mexico City with the Labor, Social Security and Immigration Practice Group. She has also previously worked at the Civil Board on Altamira, Tamaulipas as an Agreements Secretary’s assistant from 2008 to 2010. Ana speaks both Spanish and English.

5255-9172-3043
Pietro Straulino-Rodriguez , Labor, Employment, Attorney, Ogletree Deakins Law Firm
Managing Partner

Pietro Straulino-Rodríguez is the managing partner of the Mexico City office of Ogletree Deakins. Before starting at Ogletree Deakins, Pietro worked for a number of years as a partner in private practice at a leading law firm in Mexico City in the firm’s Labor, Social Security and Immigration practice group. Previously he worked for a major labor boutique in Mexico City, in which he participated as an advisor and litigator in several matters. In addition, Pietro worked in the legal and government relations department of Ford Motor Company in Mexico. He has successfully combined his professional practice with his teaching activity as a professor of Labor Law at the Escuela Libre de Derecho. He speaks Spanish, English and Italian. 

(+52)55-9171-1496