They seek to change the formula for employer contributions

An initiative was presented in the Chamber of Senators to modify the formula for the Contribution Base Salary contributions that employers will make as part of the reform of the Social Security Law (LSS) carried out in December 2020.

What is sought is that the calculation is different so that it is clearer and in a more transparent way for the employer contribution. The proposal that we make is that to a minimum salary (SM) you will add the result of dividing the salary by the value of the Update Measurement Unit (UMA) and that difference is what will be the lower limit of the contribution ”, said in an interview Ovidio Peralta Suárez, senator from Morena and who presented the initiative.

what the law says

In the 2020 pension reform, it was established that employer contributions will be found in both SM and UMA; for example, the 3.15% contributions will only be for those who earn one SM, while the 3.28% contributions will be for workers who earn from 1.01 SM to 1.50 UMA.

In the second case, “there is a problem because the lower limit that would be the SM is 174 pesos and the upper limit that is 1.50 UMA would be 144 pesos. So your lower limit is higher than the upper limit,” he explained.

The interviewee commented that the above happens because when the reform to the LSS was proposed, the UMA and the SM were similar. He even mentioned the proposal to raise the SM by 2023.

Senator Ovidio Peralta’s initiative is still being analyzed in Senate committees to later be discussed in full in the Upper House.

Increase to the minimum wage

In this sense, President Andrés Manuel López Obrador celebrated last week the consensus reached between the government, the labor and business sectors to increase the minimum wage by 20% in 2023.

As of January 1, 2023, the general minimum wage will go from 172 to 207 pesos per day; that is, an increase of 1,052 pesos per month. In addition, there will be a 20% increase in the free zone of the border, where it will go from 260 to 312 pesos per day.

santiago.renteria@eleconomista.mx