In this bulletin we will address the changes that are coming in 2023 regarding severance and old age pensions, as well as a possible modification to the vacation days to which employees are entitled according to their seniority in their job.
INCREASE IN SEVERANCE AND OLD-AGE PENSION FEES
As of January 1, 2023 employers will increase their severance and old age pension fees, as a result of an amendment to the Social Security Law and the Retirement Savings Systems Law. These amendments were published in the Federal Official Gazette on December 16, 2020, and can be accessed below https://dof.gob.mx/nota_detalle.php?codigo=5607729&fecha=16/12/2020#gsc.tab=0
A significant change also contemplated in these changes in the law is that the number of weeks of service to be eligible for a pension is reduced from 1250 weeks to 1000 weeks of service, the additional requirement of being at least 65 years of age remaining in force.
These amendments, as previously mentioned, will represent an increase in severance and old age fees, since employers currently pay an amount of 3.150% of the salary, thus with these changes, the fees will be increased according to the following table: (download the pdf version to see the content)
As it can be seen, the increase in fees can be very relevant depending on the salary range. In view of this situation, transitory provisions establish a gradual increase to be as follows; (download the pdf version to see the content)
*Minimum Wage (SM in Spanish)
** Unit of Measurement and Updating (UMA in Spanish)
Although the increase will be progressive year by year until 2030, in most cases employers will have to consider that as of 2023 their employer fees will increase.
INCREASE IN VACATION DAYS
On the other hand, a possible reform to the Federal Labor Law has recently been under discussion, which has been advancing in the legislative process, so it is highly likely that before the end of the year these changes will be enacted into law.
Employees are currently entitled to the following vacation days according to the years worked, as shown below: (download the pdf version to see the content)
The reform to this topic in the federal labor law, would now have the following vacation days; (download the pdf version to see the content)
As it can be seen, the increase in vacation days to which employees would be entitled is relevant, among the arguments that have been raised to propose this increase in vacation days are the following, to name a few
- Job stress, which according to the World Health Organization (WHO) is one of the main health problems for employees.
- Burnout syndrome has been detected as one of the main mental health issues for employees, as conditions in their jobs are increasingly stressful.
- The vacations to which employees are currently entitled, positions our country as one of the countries with the lowest level in the world in the allocation of vacations.
- It is also sought that our country improves in the global competitiveness report, it is considered that increasing vacation days could raise productivity levels.
- In addition to the benefits for employees, the increase in vacation days would have a direct impact on the promotion of tourism.
Considering the above, these changes represent and could represent to employers a challenge both economically and in terms of personnel planning and administration. In view of this situation, Núñez Rosas, aware of these changes, offers our services in order to comply with these changes as of 2023 and the possible modifications in terms of increases in working days.
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