New law regarding domestic help

A new law has been passed that will affect all of you who has a maid or a  caregiver.
The rules are being honed before it takes affect so the final outcome is not yet  written.  Some of the requirements are the same as they are now but others are new.
The bottom line is that it will cost you more to have a home helper.  People have said policing the law will be difficult but Jalisco, particularly in this area, has a strong union and they will definitely see that the requirements will be followed.
The number 37% more in cost to the employer is one that was projected but again, the requirements are still being modified but the Mexican congress has approved the overall bill.

They cannot possibly have thought this through. If your domestic help isn't already on IMSS, just imagine the joy. Let's say the cleaning lady has 5 to 10 houses a week. Each "employer" is now going to be responsible, and she will have to sign up 10 different times? And the "employer" will have to deal with that paperwork on a regular basis? The problem here is we are not "employers". Any more than we employ a car wash guy or a plumber.

If my maid and gardener approach me on this I will be telling them to either set themselves up as "independent contractors" or good bye. I already pay them over 70 pesos per hour. I dont even really need a gardener and I'll hire Spring Clean or similar service to clean my rental casitas twice per week. The house we can do ourselves.

I disagree with both of you.

Yes they are employees, nothing mandatory yet and doubt it will take effect as it effectively will raise cost 30% of the domestic workers.

Then like I said I will hire services. I'm not paying 30% more.

They should all be signed up with SP anyhow.

Also how many of the maids and gardeners are filing and paying income tax every two months????

Personal exemption (so zero taxes) is only $7800 pesos per year. They all make more than that. Based on the 2019 tax scale they should be paying 10% to %15 percent.

They need to register with Hacienda and get their RFC #. Then go online and submit their income, etc, etc, etc....

Besides IMSS what are the additional costs besides christmas and vacation? Anyone know?

I guess I need to weigh the cost of terminating current employees versus new costs to see if it is worth keeping them.

I like to keep things simple, so I have used Spring Clean services since 2008. It isn't cheap, but for me, it's worth it. The jefa comes to your house and gives you a price depending on your needs. They provide all the cleaning supplies as well as all the "employer costs" . They are bonded and insured. I've had no problems.

I think the new law only is meant for in house employees not gardeners.

Social security is one of the new costs. 
Another will be a minimum wage.
The three national health insurances are being merged and ony IMSS will remain.  It has already started and is being done by a few states at a time.

I don’t care about the cost being 30% more, I don’t want to deal with government red tape and paperwork.

This happened a few years ago in Colombia, the end result is now many are completely unemployed or barely working. Is this what Mexico wants?
Bad Idea.

Do employers in Mexico usually withhold income tax and submit it to the government like in the US and Canada?

gingal, yusing a service saves you the paperwork and the hasle of reporting what ever but you are paying for it one way or the other.

Gringal, how much per hour does this service charge?

Our Spanish teacher today explained that the worker has to fill out a form identifying each emp!oyer...that way the guvmnt can track both sides. The employers then split the cost of IMSS. Hope it works this way!

The law may have been passed but it hasn't been implemented yet.

I doubt any of the maids or gardeners I know will bother registering with the gov and then have to pay taxes on their income and hassle with the gov. Mine has been with me for more than 10 years, I pay her well, and she already insurance.

CanuckBob wrote:Do employers in Mexico usually withhold income tax and submit it to the government like in the US and Canada?

Our Frac - Chula Vista does. Its done electronically.

SunFan

Right but I'll wager 90% of the maids and gardeners around here are working under the table so won't be wanting to fill out any paperwork. Case closed.

I think the government is trying to collect more taxes..if all the maids and gardener register with RFC and have to fill a form they will eventually been ask to pay taxes...Yjeu are trying to get more money for healthcare and also collect more taxes ..Same del with the facturas.. Many people do not want to issue facturas in Chiapas.. I am rght now fighting with a hospital in Chiapas for a factura.. Down there you have to fight to get facturas.. for obvious reasons.

CanuckBob wrote:Gringal, how much per hour does this service charge?

I just sent you a PM.

Agree with Brigitte, its an attempt to collect more income tax.

brigitte wrote:I think the government is trying to collect more taxes..if all the maids and gardener register with RFC and have to fill a form they will eventually been ask to pay taxes...Yjeu are trying to get more money for healthcare and also collect more taxes ..Same del with the facturas.. Many people do not want to issue facturas in Chiapas.. I am rght now fighting with  a hospital in Chiapas for a factura.. Down there you have to fight to get facturas.. for obvious reasons.

Totally agree with that theory which is why most of the hired help here won't be signing up for anything. The majority are not paying taxes.

Many women NOB, cleaning ladies, personal assistants for the elderly do the same. Many of them make dam good money doing too.

In France the cost of an employee is 50% , the cleaning ladies get 30 euros an hour minimum but they have to pay taxes.. the employer can also deduct some of the cost from their taxes..