Mexico to Expand Social Security with Universal Pension Plan and Unemployement Benefits Angeles Cruz Martinez - La Jornada
go to original September 14, 2013

President Enrique Peña Nieto is driving a project to create a universal pension plan and unemployment insurance that includes modifications to the Social Security Law, with the goal to incentivize the creation of low-wage jobs (defined as less than two times the minimum wage). To that end, it reduces by 10% the size of fees that employers pay to the Mexico Institute of Social Security (IMSS) for those job positions.

At the same time, the structure of payments from businesses is changing in order to increase their participation in the payment of monetary benefits for sickness and maternity insurance (SEM) and the medical bills of pensioners.

The initiative details that these modifications do not impact the earnings of workers; it would, however, influence the funding of insurances that have operated with a deficit for years, in accordance with official information about the financial situation of the IMSS.

The document that the president submitted last Sunday to the Congress of the Union relative to the universal pension and unemployment insurance includes changes to different laws.

Read the rest at Mexico Voices

Translated by Julie Kawamura

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