Mexico

8 Chapter Labor

    • Working Environment

      1.    Overview of working environment
      1.1.Working population
      According to the INEGI in the second quarter of 2016, the total population in Mexico was 122 117 027, from this amount 51 433 590 is employed.
       
      1.2.Working population in different industries
       
      Sector
      Total
      Men
      Women
      Primary
      6 615 476
      5 926 022
      689 454
      Secondary
      13 022 846
      9 709 801
      3 313 045
      Tertiary
      31 527 453
      15 962 589
      15 564 864
      Not specified
      267 815
      181 690
      86 125
      1.3.Unemployment rate
       
       
      Total
      Men
      Women
      Unemployment rate
      3.9
      3.9
      4.0
      Rates are calculated against the economically active population. The data presented here contains the expansion factors adjusted by population estimations which are shown by the demographic projections of the CONAPO 2010-2050, updated in April 2013.
       
      1.4.Wage level
      1.4.1 [Wage level in different cities]
      Basically all occupations are concentrated in the central region of the country except the Agricultural and Extractive, which are mainly concentrated in the South-Southeast region of the country.

      [1]INEGI. Encuesta Nacional de Ocupación y Empleo. Indicadores estratégicos. 

      http://www3.inegi.org.mx/sistemas/temas/default.aspx?s=est&c=25433&t=1

      [2] INEGI. Encuesta Nacional de Ocupación y Empleo. Indicadores estratégicos.
      http://www3.inegi.org.mx/sistemas/temas/default.aspx?s=est&c=25433&t=1 

      The average monthly income (net) in Mexico is $ 5.473 pesos. The sectors with the highest income are the Extractive, Government, Education and Health ($ 10.732, $ 8.617 and $ 8.610 respectively). The sectors with the lowest average income is Tourism with $ 4.548, Personal Services with $ 4.052 and Agriculture with $ 3.161.
       
      Average monthly Income (in pesos)

       

      1.4.3 [Minimum wage]
      The minimum wage in Mexico is $73.04 for the whole country, an approximate of 3 to 4 dollars.
       
      1.4.4 [Inflation rate and Wage increase rate]
      Inflation in 2015 was 2.22% from January to August of 2016 is 0.47%, There was a wage increase of 4.2% at the beginning of 2016, from 70.10 pesos to 73.04 pesos.
      Inflation indicators are based upon the national index of consumer prices and the national index of producer’s prices according to information from INEGI.
       
      January 2016[1]
      Inflation rated by:
      Monthly
      Accumulated in the year
      Annually
      INPC general index
      0.38
      0.38
      2.61
      Underlying INPC
      0.19
      0.19
      2.64
      Not underlying INPC
      0.96
      0.96
      2.52
       
      August 2016 (most recent measure)[2]
      Inflation rated by:
      Monthly
      Accumulated in the year
      Annually
      INPC general index
      0.28
      0.86
      2.73
      Underlying INPC
      0.19
      1.98
      2.96
      Not underlying INPC
      0.58
      -2.57
      1.99
        


      [1] http://www.banxico.org.mx/dyn/portal-inflacion/index.html

      [2] http://www.banxico.org.mx/dyn/portal-inflacion/index.html
      1.1.Points to take in consideration when employing local staff
         1.5.1 [Worker class]
      The minimum wage in Mexico is of 73.04 pesos an hour but depending on the profession the amount can change. For example, in construction it can be between 106.49 to 92.63 pesos an hour.
       
         1.5.2 [Staff class]  
      The second quarter of 2016, the average monthly income of employed professionals in the country is $ 11.002 pesos. In five of the ten areas of knowledge the average income is above the average income nationally. Architecture Urbanism and Design is the area that receives the highest income to $ 14.284, followed by the area of Physical Sciences and Mathematics with $ 13.990 third the area of Biological Sciences is $ 13.925.
       
      Careers with the highest monthly average income
      $
      Chemistry
      35,869
      Statistics
      23,880
      Finance, banking and insurance
      23,257
       
       
      The areas showing lower levels of monthly income are Arts, Humanities and Education ($ 9.996, $ 9.307 and $ 9.003 respectively).[1]
       
         1.5.3 [Manager class]
      A general manager in Mexico earns between $ 30,000 and $ 50,000 pesos. However, there are companies that may pay even twice that amount because of its market power and the existence of bonuses or bonuses for their employees terminated or achieve certain results projects.
       
      1.6 Labor Union
         1.6.1 [Workers protection]
      The Union is an association of workers or employers set up for the study, improvement and defense of their interests. Workers and employers have the right to form trade unions without prior authorization. Nobody can be forced to join a syndicate or not to be part of it.
      Unions obligations by law:
      I. Provide reports requested of them by the labor authorities.
      II. Inform the authority with which they are registered within a period of ten days,
      changes in its policies and amendments in the statutes.
      III. Inform the same authority every three months, of the number of their members.
       
         1.6.2 [Typical labor union]
      ·         MULTIPLE TRADES: formed by workers of various professions. These unions may be established only when in the municipality concerned, the number of workers in the same occupation, is less than twenty.
       
      ·         GREMIAL: formed by workers in the same occupation, trade or specialty. This form is obsolete and was used at the beginning of the formation of unions in Mexico, (remember the railroad unions, which later merged in the current national union)
       
      ·         COMPANY: integrated by workers who provide services in the same company. The largest number of unions in the country are of this type and this is due in significant measure the dispersion and weakness of the Mexican labor movement because it does not favor the design of common strategies employed or branch chain.
       
      ·         INDUSTRIAL: integrated by workers who provide services in two or more companies in the same industry in particular federative entity (state or Federal District). This form is more evolved somewhat and offers possibilities for coordination of the workers of the branch at least at the level of their state.
       
      ·         NATIONAL INDUSTRY: formed by workers who provide services in one or more companies in the same industry, in two or more states.
       
         1.6.3 [Conclusion of labor agreement]
      Collective labor agreement is an agreement between one or more trade unions and one or more employers, or one or more unions of employers, in order to establish the conditions under which the work must be paid in one or more companies or establishments. The collective labor agreement shall be in writing under penalty of nullity. It will be done in triplicate, giving a copy to each of the parties and deposit the same in the Board of Conciliation and Arbitration or Federal or Local Conciliation Board, after noting the date and time of presentation of the document it has to be sent to the Federal Board or Local Conciliation and Arbitration office. The contract shall take effect from the date and time of presentation of the document, unless the parties have agreed on a different date. The collective labor agreement can regulate all aspects of employment (wages, hours, breaks, vacation, leave, working conditions, vocational training, regime of dismissals, definition of occupational categories) and determine rules for the relationship between unions and employers (representatives in workplaces, information and consultation, union, licenses and permits for union leaders, etc.).
      The collective labor agreement ends:
      ·         By mutual consent;
      ·         On completion of the work;
      ·         By closure of the company or establishment, provided that in the latter case, the collective agreement applies exclusively in the establishment.
      The Collective Labor Agreement since it is held by the employer and the union does not remain the same, since they can be subject to revisions and modifications, which are not made arbitrarily or capriciously, but it is necessary that the rules are met at effect establishes the Federal Labor Law. Both figures, revision and modification, have their own particularities, because even if your goal is the same, the difference is that the review is broader than the amendment, as this only concrete conditions work. The Working Rules is to establish mandatory to be carried Employer and Workers in performance or services in their labor relations conditions.[2]
       
         1.6.4 [White Union]
      In common parlance there is a classification of white, yellow and red unions, a name that has to do with doctrinal or political leanings of the group of workers.
      White or protection or charros unions are groups created or driven by employers to take them secure support in the management of labor relations. Thus, union leaders are subject to the whims of employers. If workers form another union at the company, it will always remain as majority white union. If a legitimate trade union organization calls for the signing of a collective contract, the company will argue that they already have a signed contract. Unions and collective protection contracts are a practical way to closing the democratic unions, companies have no real representation, workers suffer low wages and do not exercise the right to strike.
       
      1.7 Labor Dispute
         1.7.1 [Details of strike]
      Strike is the temporary suspension of work carried out by a coalition of workers. The strike must be limited to mere act of suspension of work.
      - A strike is illegal:
      I. When most of the strikers in acts of violence against persons or property.
      II. In case of war, when the workers belong to establishments or services that depend on the government.
      - A justified Strike is one whose motives are attributable to the employer.
       
         1.7.2 [Process of going on strike]
      The strike must be intended for:
      Striking a balance between the various factors of production. Get the employer or employers the conclusion of collective labor contract and require revision at the end of the period of its validity. Enforce the collective labor contract or contract-law companies or establishments in which it had been violated. Enforce the laws on profit-sharing. Demand the revision of contractual wages.
      To suspend work requires that the suspension is carried by most workers in the company or establishment. The strike is legally nonexistent if the suspension of the work is done by a smaller number of workers.
       
         1.7.3 [Requirements to prevent a strike]
      The company can prevent workers see the need to give notice to strike, through good practices and favorable working conditions for all. Thus, a mismatch will have on the finances of the company. The company can negotiate and access to the claims of workers in a smaller percentage so that is not detrimental to the finances of the company and that the conflict will not last long.
      By accepting the claims of workers either in whole or in part, without reaching a conflict, there will be satisfaction of these with the company and be more productive.
       
         1.7.4 [Process after strike is not satisfied].
      When the company receives a petition sheet with strike notice from workers, the company can choose to accept the claims or not. It is necessary for the company to reply to the list of demands when the conciliation board requires it.
      The conciliation board will summon the company to a conciliation hearing in which there may be two situations:
      An agreement with the workers is reached and the procedure completed.
      No agreement is reached and the strike will break out and the activities in the company suspended.
      The bursting of the strike suspends the effects of labor relations and the processing of applications and conflicts of economic nature, during the work stoppage. Within the seventy-two hours following the start of the strike, may seek a declaration of their absence for not meeting the requirements of origin and intended objectives in the law, so that the pattern would be free of liability and workers within twenty-four hours would be set to return to work, failing to respect the above the work relationships shall be terminated.
      In this case the company has the following options:
      -Apply The absence
      -Apply Wrongfulness
      -Not make any request.
      The strike will continue until there is an agreement., because the requests are accepted for nonexistent or declared illegal strike, arbitration ruling or the ruling of the Board.

      [1]http://www.observatoriolaboral.gob.mx/swb/es/ola/tendencias_del_empleo_profesional?page=5

      [2]http://www.monografias.com/trabajos100/contrato-colectivo-trabajo/contrato-colectivo-trabajo.shtml#conclusioa

       
       

    • Labor Law

       In Mexico, the laws that regulate labor are:

       

      ·         The Constitution of the United Mexican States of February 5, 1917, sections A and B.
       
      ·         The Federal Labor Law, regulation of section A of Article 123 of the Constitution of the United Mexican States.
       
      ·         The Federal Law of Workers in the State Service, Regulatory from paragraph B of Article 123 of the Constitution of the United Mexican States.
       
      ·         In paragraph A of Article 123 of the Mexican Constitution, work is regulated. Workers lend to the private sector, i.e. private companies.
       
      ·         In paragraph B of Article 123 of the Mexican Constitution labor relations of the state and its workers are regulated.
       
      ■Individual Regulations
       ■[Working hours]
      The maximum duration of the day will be: eight hours the day, seven at night and seven hours and a half the mixed schedule.
      When the employee cannot leave the place during the hours of rest or meals, the corresponding time will be computed as the effective time of the workday.
       
         2.1.2 [Resting days]
      From every six days of work employees will have one day off, at least, with full pay. Employees who work on Sunday shall be entitled to an additional premium of twenty-five percent, at least, on the wages of ordinary working days.
       
      ■ [Recess]
      By law during a continuous workday the worker is granted with half-hour break, at least.
      When the worker is not able to leave the place of work during the hours of recess or meals, the corresponding time will be computed as effective time in the working day.
       
      ■[Augmented wage]
      Hours of work can be extended by extraordinary circumstances, never exceed three hours a day or three times a week. The working hours shall be remunerated with an equal amount which corresponds to each of the hours of the day. The hours of overtime work will be paid with one hundred percent of the salary corresponding to the hours of the day.
       
      ■[Annual paid holiday]
      Workers that have worked 1 year in the company shall enjoy of six continuous days of vacation. Workers are entitled to no less than twenty-five percent premium over wages allocated to them during the holiday period. If the employment relationship ends before the compliance of the year of service, the employee is entitled to remuneration proportionate to the length of service.
      Workers with more than one year of service will enjoy an annual period of paid leave, in no case it can be less than six working days and will increase in two working days, until twelve, for each subsequent year of service. After the fourth year, the holiday period will increase by two days for every five of services.
       
      ■[National holiday]　
       
      Mandatory Holidays
       
       
      1st of January
       
      This day is granted due to New Year’s Eve
      the first Monday of February commemorating the 5th of February,
       
      Promulgation of the constitution
      the 3rd Monday of March in commemoration of the 21st of march,
       
      Benito Juarez Birthday
      1st of May
      Labor Day
      16th of September
       
      Independence Day
      The 3rd Monday of November in commemoration of the 20th of November
      Mexican Revolution day
      1st of December
       
      This is granted every 6 years according to the transition of the Federal Executive Power.
      The 25th of December.
      Christmas
       
      ■[Protection of the youth]
      According to Laws in Mexico children over 15 can freely provide their services with permission from their parents or guardians and in their absence, the union to which they belong, of the Conciliation and Arbitration Board, the Labor Inspector or the Authority Policy. Child workers must receive payment of their salaries and exercise, if any, actions that correspond to them.
      child labor is prohibited fifteen years; work over this age and under eighteen years who have not completed their compulsory basic education, except in cases approved by the relevant labor authority which it considers ensure compatibility between studies and work cannot be used. When the labor authorities detected working less than fifteen years outside the family circle, will order immediately cease its work. The employer incurred in this conduct will be punished.
       
      ■ [Protection of female workers]
      By Law women enjoy equal rights and have the same duties as men.
      When endanger the health of the woman or the baby, either during pregnancy or the breastfeeding period and without suffering prejudice in salary, benefits and entitlements, women cannot work in unhealthy or dangerous places, perform industrial night work, trade or services after 10 p.m. and overtime.
      During the period of pregnancy, they will not perform work requiring considerable effort and constituting a danger to their health in relation to the pregnancy, such as lifting, pulling or pushing heavy weights. Women will enjoy a break period, six weeks previous and six weeks after birth.
      If the children are born with any type of disability or require hospital care, rest may be up to eight weeks after delivery, after presentation of a medical certificate. In the event that this authorization of private physicians, it must contain the name and number of the professional who issued identity card, date and medical condition of the worker.
      In case of adoption of an infant will enjoy a six-week break with pay, after the day they receive it.
       
      ■ [Regulations about resignation]
      ・Unjustified dismissal
      If it is an unjustified dismissal the employer must pay the proportional part due to the vacation that corresponds to the worker according to the time worked. Also must be paid to the employee for vacation no less than twenty-five percent on wages allocated to them during the holiday period. The worker must be paid what is due to him under the annual Christmas bonus, equivalent to fifteen days' wages at least in proportion to the days worked. If the worker is hired directly through the company and not by an outsourcer, it must be paid a seniority bonus consisting in the proportion to the amount of twelve days of salary for each year of service. The employee must be compensated with the amount of three months' salary. In cases where the worker demands his reinstatement and the employer in accordance with Article 49 of the Federal Labor Law, is denying it, shall be indemnified:
      If the working relationship is for a fixed period, less than one year, it must be compensated with the amount of wages than half the length of service.
      If the working relationship is for a fixed period exceeding one year, it must be compensated with an amount equal to the amount of wages for six months for the first year and the proportional payment of twenty days for each of the years following that the employee served.
      If the working relationship is for an indefinite period, the compensation shall consist of   a proportional payment of twenty days of salary for each year of service.
      The salary calculated on the compensation is an integrated salary, same consisting of payments made in cash for daily fee, gratuity, perceptions, room, bonus, commissions, benefits in kind and any other amount or benefits provided to the worker for his work.[1]
       
      ・Case of resignation for personal reasons.
      If the employee resigns voluntarily the employer is responsible for paying severance a payment you receive at the end of the work relationship if it’s a voluntary resignation.
      It must include unpaid work days in the month. If the employee has signed a collective labor contract the severance should include proportional benefit payments included therein as bonds, certificates, commissions, cash or savings fund and utilities.
      Seniority premiums (12 days per year worked) shall be paid to workers who voluntarily separated from employment, completed 15 years of service.[2]
       
      ■ [Allowance]
      Known as Aguinaldo in Spanish is a bonus every worker receives at the end of the year, is an inalienable right of workers. Must be paid before December 20 and its minimum amount is 15 days' salary or, where applicable, the proportional part. The employer, in any case, can argue economic difficulties of the company or lack of earnings as justification for omitting payment or reduce its amount. Based on the provisions of Section 1002 of the Federal Labor Law, breach of this obligation entails a fine for the offending company.[3]
       
      ■[Welfare]
      Some of the additional benefits a company can offer are private medical insurance, additional vacation days, food stamps, saving fund, life insurance, a car, discounts and preferred prices in certain businesses, parking space, loans, productivity bonus, etc.
      All this benefits are extra; this are not required by law.
       
      ■[Training obligation]
      Initial training is one in which a worker is obliged to provide his subordinates services, under the direction and control of the employer, in order to acquire the knowledge and skills required for the activity for which will be hired.
      The validity of the employment relationship will have a maximum duration of three months or, if applicable, up to six months only in the case of workers for management positions, managerial and other persons exercising functions of management or administration in the company or establishment general or to perform work requiring professional expertise. During that time the worker will enjoy the salary, guaranteed social security and benefits of the category or present post. After the initial training, not credit the worker competition, according to the pattern, it will terminate the employment relationship without liability for the employer.
      The working relationship with test period or initial training, shall be recorded in writing guaranteeing social worker safety; otherwise it will be understood that it is indefinitely, and social security rights of workers be guaranteed.
      Testing periods and initial training cannot be extended.
       
      ■ Labor standard
      The maximum duration of the working time will be: eight hours the day, seven at night and seven hours for the mixed shift.
       
      Shifts
       
      Day Shift
      It is between 6hrs and 20 hrs.
      Night Shift
      It is between 20hrs and 6hrs
      Mixed Shift
      comprises periods of the day and night shift.
       
      ■ Contract of employment and Rules of employment
      ■ [Contract of employment]
      Contracts can be for projects or certain period of time, seasonal or indefinitely.
      ・Case of a contract for a certain period of time.
      The contract is fixed-term employment contract whose main characteristic is that it remains in a limited period of time. This agreement may be held full or part time.
      It should always be agreed in writing and must specify precisely and clearly the type of contract and sufficiently identify the service or work which is its object, its duration and work to develop.
      ・Listed items of the contract of employment
      The responsibilities, rights and obligations of the worker in the organization are set out in the employment contract. The letter should contain the following in accordance with Article 25 of the Federal Labor Law:
       
      o    The name, nationality, age, sex, marital status and worker and employer address.
       
      o    If the employment relationship is for work or time or indefinitely.
       
      o    The service or services to be provided, which will determine as accurately as possible.
       
      o    The place or places where the work is to be provided.
       
      o    The duration of the day.
       
      o    The form and amount of wages.
       
      o    The day and place of payment of wages.
       
      o    The indication that the worker be trained or trained in terms of plans and programs established or to be established in the company, as provided by law.
       
      o    Other working conditions, such as a rest day, holidays and others that suit the worker and the employer.
       
      ■ [Rules of employment]
      ・Difference between contract of employment and rules of employment
      A Contract has to include the information requested by law to hire an employee and the rules of employment is a set of internal rules in the company.
       
      ・Listed items of the rules of employment            
      The regulations include the following:
      • Check in and out hours of employees.
      • Time allocated for meals and resting periods during the day.
      • Place and time for the start and end of the working day.
      • Days and hours set for cleaning machinery, equipment and working tools.
      • Days and places for payment. Norms for the use of the seats or chairs for the provision of work.
      • Rules to prevent occupational hazards and instructions for administering first aid.
      • Time and manner in which workers must undergo medical, prior or periodic examinations and prophylactic measures dictated by the authorities.
      •Permissions and Licenses.
      • Other necessary and appropriate standards in accordance with the nature of each company or establishment to ensure maximum safety and regularity in the development work.
       
      ■Labor Law Article 7 (Ratio of foreign employees)
      “In every company or establishment, the employer must employ ninety percent of Mexican workers, at least. In the categories of technical and professional workers must be Mexican unless none exist in a particular specialty, in which case the employer may temporarily employ foreign workers in an amount not exceeding ten percent of the specialty. The employer and the foreign workers will have a joint obligation to train Mexican workers in the specialty concerned. Doctors serving companies must be Mexican”.[4]

      [1] https://cijma.wordpress.com/2012/12/05/el-despido-injustificado-y-sus-consecuencias-para-el-patron/

      [2]http://www.elfinanciero.com.mx/mis-finanzas/finiquito-o-liquidacion-que-me-corresponde.html
      [3] http://www.profedet.gob.mx/profedet/prensa/2013/agunaldo-derecho.html
      [4] LEY FEDERAL DEL TRABAJO Nueva Ley publicada en el Diario Oficial de la Federación el 1º de abril de 1970

    • Social Security System

      ■IMSS (Instituto Mexicano del Seguro Social)
       
      　It is the institution with the largest presence in health care and social protection of Mexicans since its founding in 1943.
      Social security is intended to guarantee the right to health, medical care, protection of livelihoods and social services necessary for individual and collective well-being, as well as the granting of a pension, where appropriate and prior compliance with legal requirements, will be guaranteed by the state, it combines research and medical practice, management of resources for the retirement of its policyholders, to provide tranquility and stability to workers and their families, before any of the risks specified in the Social Security Act.
      The employer’s contribution is the total amount of money contributed to the Mexican Social Security Institute for workers, employers and social contribution provided by the Mexican government.
      The contributions made by the worker and the employer are to save money for retirement, unemployment and old age, and ensuring social security.
       
      Type
      Benefit
      Calculation Base
      % that the employee pays
      % that the employer pays
      Sickness and Maternity
      In money
      SBQ*
      0.25%
      0.70%
      In Kind
      Of all workers up to 3 times the minimum wage
       
      20.40%
      In money
      The difference BSQ minus the 3 general minimum wages per worker
      0.40%
      1.10%
      In kind for retired and their beneficiaries
      BSQ
      0.38%
      1.05%
      Disability and Life
       
      BSQ
      0.63%
      1.75%
      Retirement
       
      BSQ
       
      2%
      Severance in old age
       
      BSQ
      1.13%
      3.15
      Daycares and Social Benefits
       
      BSQ
       
      1%
      Occupational Hazzard
      Kind and Money
      BSQ
       
      Depending of the company*
      Contribution to INFONAVIT
      Credit for housing
      SBA
       
      5%
      *. It refers to the Base Salary Quote
      **. The minimum is 0.50000 but may vary depending on each company´s management risk.[1]
       
      ■Regulated items from the Social Security Law
      The organization and administration of Social Security, under the terms set forth in this Act, are in charge of decentralized public body with legal personality and assets, tripartite operational integration, on the grounds that the same presenting the public, social and private sectors called Mexican Social Security Institute, which also has the character of independent fiscal agency.[2]
       
      ■Payment various insurance
         ● [Industrial injury insurance]
      The employer must compensate the employee. Under no circumstances this may be less than the minimum wage.
      If workers are properly registered with the IMSS, the employer takes no fault for compensation. However, each work accident occurred increase the payment of contributions to the Social Security.
      If the employer does not insure their workers against occupational risks being established by the Act and an accident occurs, the Institute shall pay capitals of the constituent benefits in cash and in kind.
      When a work accident occur employees are entitled to receive benefits in cash and in kind.
       
      Benefits in kind are:
      ·         Medical, surgical and pharmaceutical industries.
      ·         Service hospitalization.
      ·         Prosthetics and orthopedics.
      ·         Rehabilitation.
      Cash benefits are:
      If employee is unable to work will receive for the duration of the disability, 100% of salary he/she had at the time of the accident. This benefit is paid directly to the worker until he/she is declared able to work or declared with partial or total permanent disability (which must be made within 52 weeks after the occurrence of the accident).
      In pleading permanent total disability of the insured, he/she will receive a definitive monthly pension equivalent to 70% of the salary quoted when the accident occur. In the case of occupational diseases, it shall be calculated with the average base salary of the last 52 weeks.
      If the employee is declared with permanent partial disability he/she will receive more than 50%, the insured will receive a pension that will be granted by the insurance institution he/she choose. The amount of the pension is calculated according to the disease based on the amount of pension that would correspond to the total permanent disability. The percentage of disability shall be fixed between the maximum and the minimum of the disease taking into account:
      ·         The age of the worker.
      ·         The importance of disability[3]
       
      ● [Pension insurance]
      According to the IMSS law, workers have to be 60 years old at least to be able to retire. And depending of the workers age they receive a different percentage of pension.
       
      Age
      % to be paid
      60
      75% of IMSS Pension
      61
      80% of IMSS Pension
      62
      85% of IMSS Pension
      63
      90% of IMSS Pension
      64
      95% of IMSS Pension
      65
      100% or more of IMSS Pension
       
      ● [Medical insurance]
      ・Identification of benefits: Workers insured by the IMSS are entitled to medical, surgical, pharmaceutical and hospital care. Orthopedic service, rehabilitation and prosthetic devices due to work accidents.
      Pension in case of permanent partial disability or workers' compensation, disability, retirement or severance at old age or old age.
      Subsidies for occupational accidents, general illness and maternity.
      Day care service for worker’s children.[4]

      [1] https://contadorcontado.com/2014/07/22/cuotas-obrero-patronales-que-son-y-como-se-calculan/

      [2] LEY DEL SEGURO SOCIAL Nueva Ley publicada en el Diario Oficial de la Federación el 21 de diciembre de 1995
      [3]http://mexico.smetoolkit.org/mexico/es/content/es/54260/-Accidentes-de-trabajo-y-enfermedades-generales-

    • Important points for residence

      ■Correspondence that a foreigner is residence in Mexico

      Foreigners in the country require special authorization from the National Migration Institute (INM) for employment in the country. It is necessary that it is authorized to perform remunerated activities.

      Companies that hire foreigners must give truthful information about their existence as legal entities, meet tax obligations in charge, filing tax returns and cover the payments due apprising the Federation.
      When hiring a foreigner, you should consider:
       
      o    If he/she has an immigration document or not.
       
      o    Check the activities he/she has authorized to perform.
       
      o    Authorization process before the National Immigration Institute.
       
      o    Report hiring a foreigner in the INM.
       
      o    Have control of the validity of the immigration document.
       
      ■Acquisition of residence permit
      ● [Types of corresponded residence permits]
      ・FMM (Forma Migratoria Multiple)
      This is known as a tourist visa, is for persons that are going to stay in Mexico for less than 180 days.
      The FMM applicant shall hold a valid and current passport with a minimum validity of 6 months.
      ・Temporary resident card
      Visa for Temporary residence, is when is requested by job or family unit. In the case of the family unit, the family entitling them to the visa has to be in national territory.
      ・Permanent resident card
      Permanent residence visa, is when is requested by jobs in the points system, per family unit or by being recognized as a refugee. In the case of the family unit, the family entitling them the visa has to be in national territory.
       
      ●[Entry visa]
      1. Visitor Visa without permission to engage in gainful activity when requested for humanitarian reasons, provided that the individual or institution that invites is in national territory.
      2. Visitor Visa permission to engage in gainful, when requested by job activities.
       
      ●[Employer’s registration]
      Companies interested in hiring the services of foreign employees, must apply for a certificate of employer with the National Migration Institute. Without it they cannot hire foreign personnel. Companies must register the legal address of their company. In case of having several branches or offices, companies must inform the National Migration Institute the addresses where those foreign employees are working at, and the information of the representative of each of those offices or branches.
       
      ● [Other case’s various procedures]
      To request a temporary resident card this are the required documents for applying:
      ·         Original and copy of passport
      ·         FMM valid and in force
      ·         basic format
      ·         Proof of payment of fees (for one year)
      ·         Three photographs (size 2.5x3 cm.) Two front and right side profile, white background, with forehead and ears uncovered, without earrings and without glasses. snapshots are not accepted.
      This process takes approximately ten days to be approved by the INM.
       
      ■ Preparation for an overseas position
      ●[Vaccination]
      To travel to Mexico foreigners are not required to have any international vaccination certificate for the trip, however, being a country with areas of extensive vegetation there are a number of recommended as vaccine against dengue vaccines, vaccine against hepatitis a and hepatitis B, only applicable if we have not had before these diseases and vaccine against typhoid fever, ideal for destinations with tropical territories where there may be low hygienic conditions and poor food handling generating an infectious focus .
      Another vaccine is recommended tetanus-diphtheria.
       
      ● [Joining Overseas travel insurance]
      Travel insurance is not mandatory when traveling to Mexico.
      This is something extra that a company can offer to the employee sent overseas but not mandatory.