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ARTICLE · 12 FEBRUARY 2025

Employee Incentives

Chevez
Chevez
Contributor
Chevez

Chevez

CHEVEZ, founded in 1981, is a leading tax consulting and legal firm based in Mexico, with presence...

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The Federal Labour Law ("FLL") provides all employees with minimum mandatory benefits (Christmas bonus, vacation premium, vacations, profit sharing).

MexicoEmployment and HR
Miguel Ángel Cantú
Miguel Ángel Cantú
Rodrigo Troncoso
Rodrigo Troncoso
Gabriela Farias
Gabriela Farias
Karla Sandoval
Karla Sandoval
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1. What kinds of incentive plan are most commonly offered and to whom?

The Federal Labour Law ("FLL") provides all employees with minimum mandatory benefits (Christmas bonus, vacation premium, vacations, profit sharing). In addition to the minimum rights provided by FLL, and based on the principle of contractual freedom, it is common practice that companies offer to certain executives or key employees members of the management, different fringe benefits or incentives. These incentives could be designed for short, medium or long-term purposes, hence they can comprehend different types of awards, entitlements or instruments.

The most common incentive plans offered by Companies in Mexico to their executives are:

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