On the occasion of the publication on December 27, 2022 in the Official Gazette of the Federation of the Decree amending articles 76 and 78 of the Federal Labor Law, regarding vacations and its entry into force on December 1, January 2023, the minimum vacation period to which workers would be eligible was increased.

The foregoing implies that the determination of the corresponding vacation premium must be adjusted considering the new minimum vacation period. Consequently, the contribution base salary for purposes of determining worker-employer social security contributions must also be adjusted considering the new vacation bonus.

However, in accordance with the Social Security Law, employers are obliged, among others, to communicate the registrations and terminations, salary changes and other data of their workers within periods of no more than five business days.

Therefore, we consider it relevant to take into account that, given the adjustment in the vacation premium due to the new vacation period and, consequently, the contribution base salary, employers must submit within 5 days

working days before the Mexican Institute of Social Security the modifications to the base contribution salary of its workers.

We remain at your disposal for any doubt or clarification in relation to this publication.

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Mexico City, Mexico

January 2023