Overview of Mexican Social Security Benefits

Mexican Social Security Law mandates a comprehensive insurance regime under Article 11. This system covers various benefits including:

1. Occupational Risks

2. Sickness and Maternity

3. Disability and Life Insurance

4. Retirement, Advanced Age Severance, and Old Age

5. Childcare and Social Benefits

These benefits are calculated as a percentage of employees' salaries, with both employers and workers contributing to the total. The IMSS (Mexican Social Security Institute) categorizes these benefits into "In Money" and "In-Kind," but all payments are made in money. “In Money” benefits are received as cash payments, such as pensions, while “In-Kind” benefits include services like medical care and childcare.

1. Occupational Risk Insurance

Occupational Risk Insurance varies based on the level of risk associated with different job environments. The IMSS categorizes risks into five levels:

- Level I: Minimal risk (e.g., office work)

- Level V: High risk (e.g., mining)

Each risk level has an associated premium percentage that companies use to calculate insurance payments. The following table outlines these risk categories and premiums:

2. Sickness and Maternity Insurance

The IMSS provides benefits for employees who are ill or on maternity leave. Maternity leave lasts 12 weeks, with a full salary subsidy provided. Coverage includes medical care, surgery, medicines, and hospitalization. Maternity benefits include 100% salary coverage for 42 days before and 42 days after childbirth.

Benefits in-Kind include medical services, surgery, and hospitalization. Employers contribute 20.40% of the UMA value for these benefits, and employees pay a 0.4% fee if their salary exceeds three times the UMA value.

Medical Expenses for Pensioners are covered for retirees and their families. The company contributes 1.05% of the BLS, and workers contribute 0.375% of the BLS.

Benefits in Money cover salary during maternity leave or sickness. The company contributes 0.7% of the BLS, and workers contribute 0.25% of the BLS.

3. Disablement and Life Insurance

This insurance covers workers who become disabled or die due to work-related accidents. The company contributes 1.75% of the BLS, while workers contribute 0.625% of the BLS.

4. Retirement, Advanced Age Severance, and Old Age

Advanced Age Severance: For workers over 60 with at least 25 years of IMSS contributions.

Old Age Pension: For workers over 65 with at least 25 years of IMSS contributions.

Employer contributions for **Old Age** are 2% of the BLS. For **Advanced Age Severance**, the contribution varies according to Article 168 of the Mexican Social Security Law. Workers contribute 1.125% of the BLS for Advanced Age Severance, but no contribution is required for Old Age.

5. Nursery and Social Benefits

These benefits cover childcare services for employees' children while they work. Employers contribute 1% of the BLS, and employees do not contribute.

6. INFONAVIT

The INFONAVIT (National Workers' Housing Fund Institute) contribution is 5% of the BLS, with no employee contribution required.

Summary Table

This guide provides an overview of Mexican Social Security benefits, their categories, and the associated contributions from both employers and employees.

Unlock Mexico's Social Security Benefits for Your Team

Mexico's social security system provides healthcare, disability, retirement, and other benefits through IMSS. Remoly ensures your Mexican employees receive all statutory benefits they're entitled to.

Disclaimer: This article is for informational purposes only and does not constitute legal or professional advice. Employment laws and regulations may change. Please consult a qualified professional for advice specific to your situation.