Calculating the distribution is only half the job. Since Mexico's 2021 labor reform, the PTU (employee profit sharing) each employee receives is capped, and once the cap is applied you must split the exempt and taxable portions to withhold ISR (federal income tax).
How much can each employee receive?
An employee's PTU cannot exceed whichever of these two amounts is more favorable to the employee:
- The equivalent of three months of their current salary.
- The average PTU they received over the last three years.
The tax-free portion
PTU is exempt up to 15 UMA per year, which in 2026 equals $1,759.65. The UMA is the official reference unit used to set tax and social security limits. Anything above that amount is taxable income.
Two ways to calculate withholding
| Method | How it works |
|---|---|
| Article 96 of the ISR Law | The taxable PTU is added to the month's salary and the monthly tax table is applied |
| Article 174 of the ISR Regulations | A rate is calculated from the pro-rated PTU and applied to the taxable portion; it usually results in less tax |
Things to watch
- Keep a history of the PTU paid to each employee; without it you cannot apply the three-year average.
- When stamping the CFDI (Mexico's electronic payroll receipt), use earning code 003 and separate the taxable and exempt amounts.
If you do not yet have each employee's amount, start with the guide to calculating PTU.
Legal basis
- Federal Labor Law, Article 127, section VIII (reform published in the Official Gazette, DOF, on April 23, 2021).
- ISR Law, Article 93, section XIV.
- ISR Law, Article 96, and Article 174 of its Regulations.
In Nomikhor, PTU runs as an extraordinary payroll: the system splits taxable and exempt income, calculates ISR with up-to-date tax tables and UMA values, and stamps every receipt with unlimited stamping.