Life and Disability Benefits in Mexico

Details on statutory and supplemental offerings.

Updated on December 20th, 2022

What do statutory life and disability benefits cover?

Life insurance benefits are provided through the social system (Retirement Fund Administrator). Benefits are funded by employer and employee contributions. Employers are also required to furnish a service benefit when an employee dies while working.

The survivors’ pension is paid for by the total value of the account of the deceased individual. A funeral payment is also provided. 

Short-term sickness benefits are provided through the Mexican Institute of Social Security (IMSS). We highly encourage our clients to make up the difference between what social security pays during sick leave and the supported employee’s regular salary. This is a recommended practice as an employer. While neither social security nor the employer is required to pay for the first three days of sick leave, we do highly recommend that you pay your supported employee's salary for those first three days of sick leave, as this is common market practice. 

Long-term disability benefits are provided through the Retirement Fund Administrator (AFORE). The disability pension continues to be paid as long as a person continues to have the disability.

What life and disability benefits do most employers offer?

It is common to provide supplemental life insurance benefits in Mexico. A US$100,000 flat rate amount is common, covering both disability and life. Additional coverage is available through MSH International.