What are the statutory pension benefits? What do they cover?
Retirement benefits are provided through a Retirement Fund Administrator (AFORE) that the supported employee chooses. Both you and the supported employee contribute to the statutory pension. The amount of the benefits is the value of the entire accumulated account.
The retirement age is 65 years for both women and men, contingent that a minimum of 1,250 weeks of pension payments have been made to the Mexican Institute of Social Security (IMSS).
Pension payments required to be paid to the IMSS are as follows:
- The employer pays a percentage of the employee’s base salary as pension payments for retirement (2% of the Quotation Base Salary [SBC])
- The employer pays a percentage of the employee’s base salary as pension payments for premature retirement (1.125% of salary [CEAV]). The employee pays a percentage of their own base salary as pension payments for early retirement
What pension benefits do most employers offer?
Some employers choose to provide supplemental retirement benefits, but this is not very common. If you want to provide supplemental pension benefits, we can only facilitate this through an allowance, as we do not have a company pension plan for Mexico.
Can an employer make direct contributions to an employee’s private pension?
No, we are not able to facilitate this.