Economic impacts of the UMA on labor issues

Article

Economic impacts of the UMA on labor issues

February 7, 2022
Francisco Trejo Gutiérrez

As of February 1, 2022, the penalties for a breach of labor regulations were increased, due to the fact that, as every year, the increase in the Measurement and Updating Unit (UMA) came into force. The foregoing, since when there is an impact on the value of the UMA, the fines or penalties derived from a breach of labor regulations are impacted in that same percentage.

It should be noted that the increase in the UMA in 2022 was 7.3%, which is the percentage of inflation increased. This percentage is much lower than the impact on the Minimum Wage, which for 2022 was 22%.

As a result of the increase of the UMA, in 2022 the penalties for non-compliance with issues related to the Federal Labor Law will have an increase that goes from $330 pesos in the lowest amount, up to $330,000 pesos in its highest amount.

It is worth mentioning that the creation of the UMA, in some cases could be a benefit and in others a disadvantage. For example, if we talk about the payment of employee-employer fees or penalties for labor breaches, the use of the UMA represents a benefit. The above is just an example, it will be necessary to analyze each specific case to determine if the use of the UMA represents a benefit or a detriment.

At Trejo Gutiérrez Abogados, we have a group of experts in labor matters with more than 20 years in the market. Please do not hesitate to contact us, we will be glad to provide the personalized legal advice that you require.