Grocery vouchers (vales de despensa) and other social welfare benefits (previsión social) are usually free of ISR, Mexico's federal income tax. However, that exemption has a limit that kicks in for higher earners. If you apply it incorrectly, you may under-tax or over-tax your employees.
When the exemption is limited
The limit applies when an employee's salary plus exempt social welfare benefits exceed 7 annual UMA, that is, $299,562.48 in 2026. The UMA is the official reference unit used to set tax and social security limits. In that case, social welfare benefits are exempt only up to one annual UMA ($42,794.64) or up to the 7 UMA limit, whichever is greater.
The annual formula
| Element | Meaning |
|---|---|
| S | Annual salary income, excluding social welfare benefits |
| P | Annual social welfare benefits subject to the limit |
| U | Annual UMA |
| Allowed exemption | MIN(P; MAX(U; 7U − S)) |
The mistake of capping each receipt
The cap is measured over the year, not per pay period. If the company delivers a month's vouchers in a single biweekly payroll and you apply a cap pro-rated to 15 days, you will create a taxable excess that does not actually exist. The right approach is to accumulate over the year and, until you have complete information, make only a provisional check.
What is not subject to the limit
This rule does not apply to reimbursements of medical expenses, medical and life insurance, savings funds that meet the legal requirements, retirement pensions and severance payments.
Legal basis
- ISR Law, Article 93, sections VIII and IX and the second-to-last paragraph.
- ISR Law, Article 7, fifth paragraph (definition of social welfare benefits).
- ISR Law, Article 27, section XI (deduction of grocery vouchers on electronic cards).
In Nomikhor every earning is classified as taxable or exempt, ISR is calculated with up-to-date tax tables and UMA values, and the monthly and annual adjustment helps you correct any over- or under-withholding during the year.