Wednesday, February 16, 2011

To give and to save...it's required

Some interesting things I am learning in my classes...

-- All Mexican companies are required to give back 10% of profits generated to employees at the end of each accounting period. It's called PTU-Paticipacion en las Utilidades para los Trabajadores (Employee Participation in Profits). As a worker, I like it! I would think it would encourage employees to be smarter and more productive, generate more revenue.

-- Mexican companies are also required to put away 5% of net profits each year into a Reserva Legal (Legal Reserve) until they reach one-fifth of all company equity.  This would ideally save them in case of an economic decline, crazy event in their industry, natural disaster, etc.

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