Article 127 Political Constitution of the United Mexican States

The public officials of the Federation, of the states (federal entities), of the Municipalities and of the territorial demarcations of Mexico City, of their entities and dependencies, as well as of their parastatal and paramunicipal administrations, public trusts, autonomous institutions and organisms, and any other public entity, shall receive an adequate and non-waivable remuneration for the performance of their function, employment, position or commission, which must be proportional to their responsibilities.

Said remuneration shall be determined annually and equitably in the corresponding expenditure budgets, under the following bases:

I.Any receipt in cash or in kind is considered remuneration or retribution, including per diems, year-end bonuses (aguinaldo), gratuities, prizes, rewards, bonuses, incentives, commissions, compensations and any other, with the exception of support and expenses subject to verification that are inherent to the performance of the work, and travel expenses for official activities.

II.No public official may receive remuneration, under the terms of the preceding section, for the performance of their function, employment, position or commission, greater than that established for the holder of the Federal Executive in the corresponding budget.

III.No public official may have a remuneration equal to or greater than their hierarchical superior; unless the excess is a consequence of the performance of several public employments, that their remuneration is the product of the general working conditions, derived from qualified technical work or by specialization in their function, the sum of said retributions shall not exceed half of the remuneration established for the holder of the Federal Executive in the corresponding budget.

IV.No retirements, pensions or retirement pay shall be granted or covered, nor settlements for services rendered, nor loans or credits, unless these are assigned by law, legislative decree, collective employment contract or general working conditions. These concepts shall not form part of the remuneration. The security services that the public officials require by reason of the position performed are excluded.

In any case, the retirements or pensions of the employees in positions of trust in the charge of the decentralized organisms, the public enterprises of the State, the national credit societies, the enterprises of majority state participation and the public trusts constitutive of parastatal entities, all of the Federal Government, as well as the decentralized organisms, the enterprises of majority state or municipal participation, the public enterprises and the public trusts, of the states (federal entities) and of the municipalities, shall not exceed half of the remuneration established for the holder of the Federal Executive in the corresponding budget.

The provisions and legal instruments that regulate the employment relationship may not establish conditions that exceed the limit established in the preceding paragraph.

The following are excluded from what is provided in the second paragraph of this section:

a)The Armed Forces;

b)The retirements or pensions that are constituted from the voluntary contributions to the retirement savings systems based on individual accounts;

c)The retirements or pensions constituted from labor union contributions in the complementary savings systems, and

d)The non-contributory pension referred to in article 4o. of this Constitution.

V.The remunerations and their pay scales shall be public, and must specify and differentiate the totality of their fixed and variable elements both in cash and in kind.

VI.The Congress of the Union and the Legislatures of the states (federal entities), in the scope of their competences, shall issue the laws to make effective the content of this article and the related constitutional provisions, and to sanction criminally and administratively the conducts that imply the non-compliance or the evasion by simulation of what is established in this article.