Increase in the minimum wage limits employment subsidy benefits

Alternative to employment subsidy: a minimum wage ISR

The proposal he shares consists of granting an employment subsidy, the Income Tax (ISR) corresponding to a minimum wage is executed, against the ISR resulting from the monthly calculation and the annual calculation.

Ríos Hernández provided Expansión with an example of what its application would be like, which includes additional benefits such as Workers’ Profit Sharing (PTU), bonuses or transportation aid that are exempt under article 93 of the Tax Law. the Income (LISR).

“It would be more appropriate to credit the tax that would correspond to the minimum wage instead of applying this subsidy scheme,” he said. In such a way that, unlike the subsidy, it can cover a greater amount and benefit workers who have to file Annual Declaration on their own, and reduce fiscal stress.

“Workers with two jobs are required to submit an annual declaration, and this can result in a very high tax liability, difficult to pay for people with low incomes,” added the specialist.

Tax education needed

The CCPM member emphasized the need for education and training for workers about their tax obligations.

“Yes, it would be important for the application mechanism to be changed and instead of the employment subsidy, the income tax that would correspond to a minimum wage could be credited. Also that more tax training be given to workers, but from school. So that they have a more or less idea of ​​what their obligations are, because most of the jobs that earn little do not know the type of obligations that they may have and that the authority may demand of them,” he commented.