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Download NowMexico has two pension regimes, and they are determined according to the date on which the employee started into IMSS or ISSSTE contributions. (Boundless employees would be affiliated with IMSS insurance since ISSSTE insurance is for employees of a government agency only):
Employees with more than one year of service shall enjoy an annual period of paid vacation, which in no case may be less than 6 working days and which shall increase by 2 working days until reaching 12, for each subsequent year of service.
This is an economic benefit (an amount of money) that must be granted to all employees so that they can enjoy their vacations.
This payment must be at least 25% of the employee’s monthly salary and is calculated on the salary plus the amount corresponding to the vacations.
All company employees, without exception, must receive this extra amount of money in proportion to the days worked. The Christmas bonus must be granted no later than December 20 of each year and should be for a minimum of 15 days of salary. If employees have been with the company for less than one year, they are granted a proportional part of the time they have been working.
This benefit may be granted in cash only and not in kind or in food vouchers.
The monthly salary, the date the employee started working, and the days missed by the employee (if any) must be considered in order to calculate the amount to be paid for this labour benefit.
IMSS will provide employees with the necessary medical care as protection through the payment of a pension while they are temporarily or permanently incapacitated for work or their beneficiaries in the event of the employee’s death.
Any harmful event that occurs during a commute between the employee’s home and the place of work is also considered to be an accident at work.
Percentage of payment: 100% of the salary registered before IMSS at the beginning of the disability.
Employees who suffer an occupational accident are entitled to the following cash benefits:
Occupational risk insurance protects workers against potential accidents and illnesses to which they are exposed in the course of their work.
The percentage of payment is at 100% of the base contribution salary at the time the risk occurs, as long as the employee is not declared able to work or the partial or total permanent disability is declared, which must be done within 52 weeks.
Sickness and maternity insurance provides affiliated workers with the necessary medical care during treatment or pregnancy, as well as the economic and in-kind benefits that correspond to them.
Sickness pay is 60% of the salary registered before IMSS at the beginning of the incapacity.
Percentage of payment for maternity: The sick pay rate is 100% of the salary registered before IMSS at the beginning of the 34th week of gestation for the total number of days covered by the certificate of maternity disability.
During the nursing period of six months, the new mother is entitled to two additional 32-minute rest periods per day to feed the child in an adequate and hygienic place set aside by the employer.
Old-age severance insurance is granted to insured individuals who are 60 years of age and have been left without paid work.
To qualify, the individual must also have the minimum contribution period required by the Social Security Law, which corresponds to 500 weeks of work for the 1973 Regime and 1,250 weeks of work for the 1997 Regime.
Age | Percentage |
---|---|
60 | 75% |
61 | 80% |
62 | 85% |
63 | 90% |
64 | 95% |
65 | 100% |
Old-age insurance is for insured individuals who have reached the age of 65 and have a period of 1,250 weeks recognized by the Institute.
To qualify, the individual must also have the minimum contribution period required by the Social Security Law, which corresponds to 500 weeks of work for the 1973 Regime and 1,250 weeks of work for the 1997 Regime.
Age | Percentage |
---|---|
60 | 75% |
61 | 80% |
62 | 85% |
63 | 90% |
64 | 95% |
65 | 100% |
IMSS provides daycare insurance to care for the children of those who meet the requirements established by law during their early childhood. The daycare services include cleaning, feeding, health care, education, and recreation.
The employer has the obligation to register its workers at IMSS. Companies that do not register at IMSS or do so after the established term and that do not register their workers at IMSS or do it late are sanctioned with a fine equivalent to the amount of Mex$20–Mex$350 times the UMA value.
All employees who perform subordinate personnel work for an individual or a company and get paid a salary are entitled to participate in the profits of their employers.
Employees not entitled to receive profit-sharing payments are listed below:
Profit sharing (i.e., distribution of profits) must take place within 60 days after the date on which the annual tax return is due before the Tax Administration Service (March 31 for companies; April 30 for individuals).
Profit sharing is 10% of the taxable income generated in the immediately preceding year, based on the information reported by the company in its annual tax return.
Some companies offer working-from-home flexibility. This could come in a hybrid model that may require people to come to the office a few days a week or give them the option for full-time WFH if they desire to come to the office some of the days.
Some companies pay for employees’ relocation costs when they accept the job offer.
Life insurance covers the employee and is a policy for a determined amount of money given to the employee’s relatives in case of the employee’s death.
Some companies offer major medical insurance to cover employees’ treatment in hospitals or private clinics. This type of insurance covers employees in case of accidents or serious illnesses. The insurance coverage depends on the insurance company and the agreement it has with the employer. The deductible amount is chosen when the major medical insurance policy is taken out.
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