Understanding Absences in Mexico

This topic supplements the absence documentation provided in the core Global Payroll documentation. Before you begin reading about Mexican absence functionality, PeopleSoft HCM recommends that you read the absence topics of the PeopleSoft Global Payroll documentation to develop a basic understanding of the concepts behind absence processing in Global Payroll.

Note: In Global Payroll for Mexico, before you can update absences, you must define absence parameters on the Absences page. The Absences page is discussed in another topic. See Absences Page.

An absence is any event for which an employee fails to comply with scheduled work time. Absences must be recorded in the system so that appropriate discounts are deducted from an employee's salary. Absences are also recorded to keep track of an employee's absence history. In Mexico, absences are also tracked for specific calculations such as profit sharing and social security contributions.

In Global Payroll, there are two types of absence elements:

Absence entitlements.
Absence takes.

An absence entitlement is the amount of paid time off that a payee is entitled to take for each category of absence. For example, payees may be entitled to receive 20 vacation days per year.

An absence take is the amount of time off that a payee takes.

Global Payroll for Mexico delivers predefined rules for processing absences due to vacation, illness, maternity, work accidents, and other reasons. PeopleSoft designed these rules in accordance with Mexican statutory requirements. You can modify many of these rules to reflect absence policies that are specific to your organization.

In Global Payroll for Mexico, there are three categories for absence takes:

Disabilities
Vacations
Other

Disabilities

Disabilities are treated differently from other absences because IMSS pays and administers them. Disabilities include:

Maternity leave.
General illness.
Work related illness leave.
Work risk leave.
In transit work risk leave.

Vacations

Vacations include vacation takes.

Other

Other absences include:

General absences
Tardiness - hours
Paid permitted absences
Unpaid permitted absences
Missing employee leave
Care leave for child with Cancer
Paternity leave

Global Payroll for Mexico delivers these absence types, each having their own absence reasons:

Absence Type	Description	Absence Take Associated
ABS	Unpaid Absence	General absence
ENF	Sickness	General sickness
MAT	Maternity	Maternity leave
OPA	Other paid absences	Paid permitted absence
RET	Tardiness	Tardiness - hours
RSG	Work accident	Work risk leave
ENT	Work related illness	Work related illness leave
RST	Accident on the way to work	In transit work risk leave
VAC	Vacations	Vacation takes
APD	Missing employee leave	Missing employee leave
LEN	Care leave for child with Cancer	Care leave for child with Cancer
PAT	Paternity leave	Paternity leave

These sections describe each delivered absence take in detail.

Maternity Leave

This absence take generates a deduction called INCAP MATERN. This element contains the number of days in the Unit component. All the absence take days are considered units of the deduction. The Day Formula adds only 1 to the deduction units for each day of this disability.

This absence take also generates an earning called SUB MATERN. It is generated in the same way that the deduction is generated in terms of the units. The only condition here is that this element is generated when the daily rate of the employee is greater than the SDI (capped up to 25 times minimum wages) and the rate will be only the difference between these two rates. If your company has an agreement with the social security agency (defined on the General Parameters page), this earning is paid with the daily rate.

If the employee's absence is for eight days or more, the employer is exempt from paying quotas for that pay period frequency (monthly, semimonthly, and so on.)

General Illness

This absence take generates a deduction called INCAP ENFERM. This element contains the number of days in the Unit component. All the absence take days are considered units of the deduction. The Day Formula adds only 1 to the deduction units for each day of this disability.

This absence take can generate three earnings: SUB ENF 100%, SUB ENF 40%, and SUB ENF CONV. Select only one earning when defining General Illness.

The system generates SUB ENF 100% for the first absence event but only for the first three days. If there's another absence event in the following seven days after the end date of the original take, then the system considers this absence take as linked and won't pay the first three days again with the earning SUB ENF 100%.

The system generates SUB ENF 40% beginning on the fourth day until the end of the absence take. Once again, if the system links two absence events and has already paid the first three days at 100 percent, then it will pay all the days at 40 percent.

The system generates SUB ENF CONV if the IMSS Agreement parameter is selected on the Absences page. Selecting this parameter ensures that the other two earnings (SUB ENF 40% and SUB ENF 100%) won't appear in the pay process. In other words, the SUB ENF CONV earning substitutes for the other two.

Work Related Disabilities

There are three types of work related leaves:

Work related illness leave.
Work risk leave.
In transit work risk leave.

Work related illness can occur if an employee becomes ill as a result of work conditions, such as inhaling toxins in the workplace. Work risk can occur if an employee works in a risky work environment, for example, if he cuts a finger on a machine. In transit work risk can occur if an employee gets hurt on the way to and from work, for example, if he gets in an automobile accident on the way to work.

Note: For all work related disability types, you can create a report that lists all the workers who were on disability due to work related illnesses or accidents during the year that considers only these three absence takes. The Risk Factor report contains information such as disability type (accident or illness), disability begin and end dates, percentage of permanent illness, and subsidized days for each employee who is on disability due to work related accidents or illnesses.

Work Related Illness Leave

The work related illness leave is very similar to the General Illness absence type, except that it generates a different deduction. The deduction for the work related illness leave is INCAP ENF TR.

Global Payroll for Mexico delivers an earning for Work Illness Leave called INCAP_ENF_TR and an absence take called INC_ENF_TR.

Work Risk Leave

This absence take generates a deduction called INCAP RIESGO. This element contains the number of days in the Unit component. All the absence take days are considered to be units of the deduction. The Day Formula adds only 1 to the deduction units for each day of this disability.

This absence take also generates an earning called SUB RIESGO. It is generated in the same way that the deduction is generated, in terms of the generated units. The only condition here is that this element is generated when the daily rate of the employee is greater than the SDI (capped up to 25 times minimum wages) and the rate will be only the difference between these two rates. If your company has an agreement with the social security agency (defined on the General Parameters page), this earning is paid with the daily rate.

In Transit Work Risk Leave

This absence take is almost the same as the absence take in Work Risk Leave. The only difference is that this disability is caused by an accident or event on the way to work. It generates a deduction called INCAP TRAYEC. This element contains the number of days in the Unit component. All the days of the absence take are considered to be units of the deduction. In other words, the Day Formula adds only 1 to the deduction units for each day of this disability.

This absence take also generates an earning called SUB RIESGO. It is generated in the same way that the deduction is generated, in terms of the generated units. The only condition here is that this element will be generated when the daily rate of the employee is greater than the SDI (capped up to 25 times minimum wages) and the rate will be only the difference between these two rates. If your company has an agreement with the social security agency (defined on the General Parameters page), this earnings is paid with the daily rate.

Vacation Takes

This absence take generates an earning called VAC DISFRUT. This element contains the number of days in the Unit component. The system won't consider the Day Off and Holidays as Vacation Days. This means that if the Absence Take duration contains Non Worked or Holidays, the system will reduce them from the duration of the take.

It also generates an earning called PMA VAC PROP when the Proportional parameter is selected on the Absences page. This parameter means that for each day of vacation take, the employee will receive a day of vacation premium.

This absence take also generates an absence entitlement. This is only generated on the employee's anniversary with the company. This entitlement serves as the limit to accept or not accept a vacation take. For example, if you have a new hire who requests a vacation in the month following his hire, it will be rejected because he does not have any vacation entitlements accrued. On the other hand, if you have an employee with two years of seniority, his request will be accepted because he already has two entitlement occurrences of vacation: one for the first year and the other for the second year. The vacation entitlement is called VAC ANIV. The negative balance for this absence take could be accepted if the Negative Balance Option parameter is selected on the Absences page.

General Absences

This absence take generates a deduction called FALTAS. This element contains the number of days in the Unit component. All the absence take days are considered to be units of the deduction. The Day Formula adds only 1 to the deduction units for each day of this leave.

The generated deduction is calculated using the percentage from the Factor parameter (defined on the Absences page). This means that the units will be multiplied by this factor.

Tardiness − Hours

This absence take generates a deduction called RETARDO. This element contains the number of hours in the Unit component. All the absence take hours are considered to be units of the deduction. The Day Formula adds only 1 to the deduction units for each hour of this disability.

Paid Permitted Absence

This absence take generates a deduction called PERMI C/GOCE. This element contains the number of days in the Unit component. All the absence take days are considered to be units of the deduction. The Day Formula adds only 1 to the deduction units for each day of this leave. This deduction is informational only, because this is a paid permission so, it won't deduct from the net pay.

Unpaid Permitted Absence

This absence take generates a deduction called PERMI S/GOCE. This element contains the number of days in the Unit component. All the absence take days are considered to be units of the deduction. The Day Formula adds only 1 to the deduction units for each day of this leave. The only difference between this deduction and the PERMI C/GOCE deduction is that this one is reduced from the net pay of the employee.

Note: The General Parameters page and the Absences page are documented in other topics. See Setting Up Country Data and Setting Up Absences.

Care Leave for Child with Cancer Absence

This absence take generates a deduction called LIC ENF CANC. This element contains the number of days in the Unit component. All the absence take days are considered to be units of the deduction. The Day Formula adds only 1 to the deduction units for each hour of this disability. This absence validate that the employee has a dependent under 16 years old, this information is taken from the Dependents page. The relationship valid of the beneficiary are: Child, Foster Child, Other Child, Recognized Child or Stepchild.

Missing Employee Leave Absence

This absence take generates a deduction called PER PERS DES. This element contains the number of days in the Unit component. All the absence take days are considered to be units of the deduction. The Day Formula adds only 1 to the deduction units for each hour of this disability.

Paternity Leave Absence

This absence take generates a deduction called PERMI PATERN. This element contains the number of days in the Unit component. All the absence take days are considered to be units of the deduction. The Day Formula adds only 1 to the deduction units for each hour of this disability. The system generates the deduction PERMI S/GOCE. It is generated in the same way that the deduction is generated in terms of the units. Here, the only condition is that this element is generated when the days taken by the employee is greater than 5 days (the maximum days defined by the Law) and the units will be only the difference between these two units.

To prepare Global Payroll for Mexico for absence processing:

Define absence parameters for a pay group on the Absences page.
Define absence details for an employee in the Absence Entry component.
This includes entering the absence event and running the forecast process for an absence. Additionally, you can view the Absence Forecast results and Accumulator results.
Define mass absence event entries, such as holidays, on the Mass Absence Event Entry page.
Modify the delivered absence take and absence entitlement elements, and create new absence elements.

A list of the absence take and absence entitlement elements delivered with Global Payroll for Mexico appears in another topic. PeopleSoft delivers sample values for many of these elements. You might want to replace some of the values with data that is specific to your company.
Assign absence elements to payees and process lists.
As with all primary elements, you must assign absence entitlement and absence take elements to payees and include the elements in the process lists that you use when you run the absence process. PeopleSoft delivers predefined sections and process lists for absence processing. You can use these, modify them, or create your own.
Generate an absence report for selected employees.
At the end of the year, generate the Risk Factor report.

Note: The Absences page is documented in another topic. See Absences Page

While it's ideal that employees record their vacation takes before taking their vacations, this is not often the case. Usually, vacation takes are recorded after the events occur or after payroll has been processed or finalized.

If an employee records a vacation take after the payroll for that pay period has been finalized, there must be a retroactive (retro) calculation for that employee to reflect those days of vacation on the payslip. In this case, a retro trigger should be recorded.

If a vacation take occurs partially in a processed payroll period and partially in the future, the part of it that belongs to the processed period should be calculated with a retro event. The part of the vacation take that occurs in a current open or future payroll period is handled as follows:

For each pay period, the system will apply the number of days of that vacation take that belongs to the pay period begin and end date.

Processing Vacation Premiums Using the Annual Method

If you select the Annual method for calculating vacation premiums, the following processing rules apply:

The vacation premium will be paid when the vacation premium payment date is between the period begin date and the period end date.

When the processing year is the same as the service date and payment date, the vacation is calculated as follows:

Worked Days = Duration between the service date and the vacation premium payment date.
Vacation Premium Days = Worked days/365 * Vacation days.
Vacation Premium = Vacation premium days * Vacation premium percentage.