The Baja California Sur Secretary of Labor, Welfare and Social Development (STByDS) is providing free guidance to workers who have not received their legally required profit-sharing payment, known in Mexico as utilidades. The May 30 deadline for employers to distribute the payment is just days away.
Secretary Omar Antonio Zavala Agúndez announced the advisory service and reminded employers across the state that companies must complete their profit-sharing distributions by May 30 for the previous fiscal year. Sole proprietors (personas físicas) have until June 29.
Who Qualifies for Profit Sharing
Under Mexican federal labor law, all employees who worked at least 60 days during the fiscal year are entitled to a share of their employer’s profits. This includes former employees who met the 60-day threshold. The payout is capped at three months’ salary or the average of the worker’s last three years of profit-sharing distributions, whichever amount is more favorable to the worker.
The requirement applies to most businesses operating in Mexico. Companies that are in their first year of operations, newly registered institutions, and certain other categories defined by law are exempt.
How to File a Complaint or Get Help
Workers who believe they were underpaid, or who did not receive utilidades at all, can contact the STByDS Labor Inspection Directorate. The office is located at Calle Normal Urbana y Chiapas, Colonia Los Olivos, in La Paz. Staff can be reached by phone at 612-124-2962 or by email at stpsinspeccionlaboral@hotmail.com.
The service is free and available to any worker in the state, regardless of nationality. Foreign nationals employed formally in Baja California Sur hold the same profit-sharing rights as Mexican citizens under federal labor law.
What Workers Should Bring
Workers seeking help should gather documentation before visiting the office. Pay stubs, employment contracts, and any written communication from their employer about utilidades will help labor inspectors evaluate the case. Those who were terminated during the fiscal year but completed at least 60 days of work still qualify.
Profit sharing is separate from bonuses and aguinaldo (the annual Christmas bonus). It is calculated based on a company’s taxable income as reported to Mexico’s tax authority, the SAT (Servicio de Administración Tributaria). Employers who fail to distribute utilidades by the deadline can face fines and labor sanctions.
The announcement was first published by the Baja California Sur state government at bcs.gob.mx.