Summary
Mexico’s social security system was introduced in 1942 and has since evolved in terms of scope and coverage. The Mexican Social Security Institute (IMSS) and the Institute for Security and Social Services for Government Workers (ISSSTE) are the governing bodies of social security system. The existing social security system was introduced on July 1, 1997 and is based on defined contributions instead of the earlier pay-as-you-go system. The system provides coverage for disability, death and retirement benefits. Individual accounts are created for employees and contributions made by employee, employer and government are credited therein.
The report provides in-depth industry analysis, information and insights of the employee benefits in Mexico, including: overview of the state and compulsory benefits in Mexico, detailed information about the private benefits in Mexico, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in Mexico.
Key Highlights
- Everyone in state and private employment is covered by the social security system.
- Old-age and survivor's pensions, unemployment, insurance for accidents at work and occupational diseases, family benefits, compulsory insurance for medical care and benefits, and annual vacation comprise the state and compulsory benefits in force.
- The IMSS regulates pension and other employee benefits in the private sector, whereas the pensions of those employed by the state are governed by the ISSSTE.
- Private benefits are employee benefits that are not mandated by law but are provided by employers to motivate employees.
Scope
- This report provides a detailed analysis of employee benefits in Mexico.
- It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits
- It covers an exhaustive list of employee benefits, including retirement benefits, death in service, long-term disability benefits, medical benefits, workmen's compensation insurance, maternity and paternity benefits, family benefits, unemployment, leave and private benefits
- It highlights the economic and regulatory situations relating to employee benefits in Mexico.
Reasons to buy
- Make strategic decisions using in-depth information related to employee benefits in Mexico.
- Assess Mexican employee benefits market, including state and compulsory benefits and private benefits.
- Gain insights into the key employee benefit schemes offered by private employers in Mexico.
- Gain insights into key organizations governing Mexican employee benefits, and their impact on companies.
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Table of Contents
1 EXECUTIVE SUMMARY
2 INTRODUCTION
2.1 What is this Report About?
2.2 Definitions
3 COUNTRY STATISTICS
4 OVERVIEW OF EMPLOYEE BENEFITS IN MEXICO
5 REGULATIONS
6 STATE AND COMPULSORY BENEFITS
6.1.1 Introduction
6.1.2 Types of Retirement Plan
6.1.3 Eligibility
6.1.4 Age
6.1.5 Pensionable salary
6.1.6 Benefits
6.1.7 Payment Options
6.1.8 Typical employer practice
6.1.9 Employee and employer contributions
6.1.10 Taxation
6.2 Death in Service
6.2.1 Introduction
6.2.2 Eligibility
6.2.3 Benefits
6.2.4 Payment Options
6.2.5 Typical employer practice
6.2.6 Employee and employer contributions
6.2.7 Taxation
6.3 Long-Term Disability Benefits
6.3.1 Introduction
6.3.2 Eligibility
6.3.3 Benefits
6.3.4 Payment Options
6.3.5 Employee and employer contributions
6.3.6 Taxation
6.4 Short-Term Sickness Benefits
6.4.1 Introduction
6.4.2 Eligibility
6.4.3 Benefits
6.4.4 Payment Options
6.4.5 Typical employer contribution
6.4.6 Employee and employer contributions
6.4.7 Taxation
6.5 Medical Benefits
6.5.1 Introduction
6.5.2 Eligibility
6.5.3 Benefits
6.5.4 Payment Options
6.5.5 Typical employer practice
6.5.6 Employee and employer contributions
6.5.7 Taxation
6.6 Workmen’s Compensation Insurance
6.6.1 Introduction
6.6.2 Eligibility
6.6.3 Benefits
6.6.4 Payment Options
6.6.5 Employee and employer contributions
6.6.6 Taxation
6.7 Maternity and Paternity Benefits
6.7.1 Introduction
6.7.2 Eligibility
6.7.3 Benefits
6.7.4 Payment Options
6.7.5 Employee and employer contributions
6.7.6 Taxation
6.8 Family Benefits
6.8.1 Introduction
6.8.2 Eligibility
6.8.3 Benefits
6.8.4 Payment Options
6.8.5 Employee and employer contributions
6.8.6 Taxation
6.9 Annual Vacations
6.9.1 Introduction
6.9.2 Compulsory leaves
6.9.3 Paid vacation
6.1 Minimum Resources
6.10.1 General system
6.10.2 Programa de Pensión para Adultos Mayores or Old-age assurance
6.10.3 Programa de Abasto Rural or Rural Supply Program
6.10.4 Programa d e Abasto Social de Leche or Social Milk Supply Program
6.10.5 Instituto Nacional de las Personas Adultas Mayores or National Institute of Older Persons
6.11 Unemployment Benefits
6.11.1 Introduction
6.11.2 Eligibility
6.11.3 Benefits
6.11.4 Payment Options
6.11.5 Employee and employer contributions
6.11.6 Taxation
7 PRIVATE BENEFITS
7.1 Retirement Benefits
7.2 Disability Benefits
7.3 Death Benefits
7.4 Medical and Health Benefits
7.5 Other Benefits
8 APPENDIX
8.1 Methodology
8.2 Contact GlobalData
8.3 About GlobalData
8.4 GlobalData’s Services
8.5 Disclaimer
List of Tables
Table 1: Insurance Industry Definitions
Table 2: Mexico - Country Statistics
Table 3: Minimum Wage in 2015
Table 4: Early Retirement Age for Government Workers With 30 Years of Contributions
Table 5: Early Retirement Age for Government Workers with 15 Years of Contributions
Table 6: Percentage of Wages for Basic Amount and Annual Increase
Table 7: Early Retirement Pension Percentage for Government Workers
Table 8: Unemployment Old-Age Pension
Table 9: Dependent’s Supplement Pension
Table 10: Financial Aid to Children Pursuing Education
Table 11: Mandatory Holidays of Mexico
Table 12: Number of Paid Vacation Days
Table 13: Old-age Unemployment Benefits, 2010-2018
List of Figures
Figure 1: Mexico - Main Institutions of Social Security System
