Article 120 Federal Labor Law
TITLE THREE. Working Conditions · CHAPTER VIII. Participation of employees in the profits of the enterprises
Current text · last reform published in the Official Gazette of the Federation (DOF) on 14 May 2026
The Percentage fixed by the Commission constitutes the participation that shall correspond to the employees in the profits of each company.
For the purposes of this Law, the taxable income is considered profit in each company, in accordance with the norms of the Income Tax Law (Ley del Impuesto sobre la Renta).