Labor – January 27th 2017
Today, the position that the authorities of the Mexican Social Security Institute (“IMSS”) will adopt regarding the Unit of Measure and Update (“UMA”) in connection with the fulfillment of social security obligations has been made public.
Today, the authorities of the Mexican Social Security Institute (“IMSS”) have issued their opinion regarding the treatment of the Value of the Unit for Measurement and Adjustments (“UMA”) on the fulfillment of social security obligations.
It has been informed that the inferior limit of the base salary for computing social security contributions will be the minimum wage, since it is prohibited to enroll employees below such minimum wage.
Now, the authorities have stated that the cap for social security contributions will calculated using UMA, which means that contributions will be capped to up to 25 UMAs.
Currently, a resolution on such regard is pending to be issued by the IMSS Technical Committee.
Mexico City, January 27, 2017.