Poor working conditions and concerns about social security partly spurred the 1910 Mexican Revolution. Following the revolution, in 1917, Mexico adopted a new Constitution.
Article 123 of the Constitution forms the foundation for labor and social security regulations. The section titled "Work & Social Welfare" contains these regulations. However, a single article cannot oversee the complexities of labor and social security for an entire nation. As a result, Mexico’s Social Security and Labor Laws draw their origins from this constitutional provision.
Article 5 of Mexico’s Social Security Law outlines the agency responsible for overseeing the country’s social security system. Read on to learn more about the Social Security Institute (IMSS - Instituto Mexicano del Seguro Social)
The IMSS is the main organization in Mexico that takes care of social security. Its primary aim is to offer medical services and social security benefits to the nation’s workforce.
By law, IMSS operates as a decentralized public entity with its own legal status. It follows its own rules, but these rules must align with the Federal Social Security Law and the Mexican Constitution.
IMSS needs money from the government, employers, and employees to work well.
These contributions ensure that social security and pensions are available to Mexicans.
Each employee donates a part of their wage towards retirement, medical coverage, and other services.
Concurrently, employers must also contribute towards these benefits for their staff.
People refer to the cumulative contributions made to IMSS as Worker-Employer Fees (or Cuotas Obrero-Patronales in Spanish).
It is the employer’s duty to calculate these fees, deduct them, and remit them to IMSS.
Mexico’s Social Security Law requires insurance coverage for various workplace hazards and health issues.
This includes illness, maternity, disability, and life insurance. Additionally, the law mandates coverage for retirement, old age, childcare, and social benefits. Article 11 of the law outlines this requirement.
Both employers and employees contribute to these benefits, with the amount based on a percentage of the worker’s earnings.
The IMSS further groups these benefits into two types: "In Money" and "In-Kind." All payments are in cash. "In Money" means tangible financial benefits like pensions. "In-Kind" means services like medical care and childcare.
The IMSS, rooted in Mexico’s historic push for labor and social security reforms, remains pivotal in safeguarding workers’ rights.
The IMSS simplifies medical, retirement, and welfare benefits, showing a commitment to the nation’s workforce and aligning with constitutional ideals.