Lawmakers pass bill making social security mandatory for domestic workers

Hmmmm......I wonder how this is going to go over around here. It's looks OK until I read the part that employers must not only register their workers and pay but must also retain a portion of the workers wage and submit it too, effectively lowering the workers immediate take home pay.

Thoughts?


https://mexiconewsdaily.com/news/bill-social-security-mandatory-domestic-workers/?utm_source=MND%20mail&utm_medium=email&utm_campaign=MNT&pnespid=ruRsDCQdMPoHwPPD9mvqFM2dvBCrSIEnKrCg3_Jxvh5m03Zm71f2n4ArbwIBqlL2WZSt9zjFGw

Here is the link to the site in English that explains how to register your employee(s) and make payments etc.

https://www.infobae.com/en/2022/04/08/what-are-the-requirements-for-a-domestic-worker-to-have-imss/

I imagine once an employee is "registered" it will also open them up to be liable for income taxes which most of them don't currently pay. It almost looks like a "set-up".......

like everything around here, it depends upon enforcement. If the government finds a way to enforce the provisions, it will either send the expats toward using cleaning services or create a whole new group of "fixers" who make all the arrangements. If the government leave enforcement to voluntary compliance, not much will change.

I agree. What looks like a benefit for these "under the table" employees could cause more immediate harm than good. The second article I posted eluded that it is up to the employee to request to be enrolled although the first article says it is mandatory. Given the choice I imagine most would pass on being enrolled.

Oh, good grief. I can’t imagine dealing with this government bureaucracy. I don’t mind paying it but not with all this confusion.

Isn’t this also just a way for the government to also tax the workers on their wages? Right now they have no idea who works at my house.

When my house was being built years ago, I just had a crew of local guys and was my own contractor. While supposedly I was supposed to be paying "socio"- registering them with IMSS or whatever, and paying for coverage for them, I asked them if they wanted that and it was a resounding NO. They said they would never see any benefit from that, and would prefer I just paid for any medical bills myself directly. And they didn't abuse that- I think I paid out a total of maybe $50-$100 for doctor visits and medication.

Of course, I was taking a risk in that someone could get seriously injured on the job, with high medical bills, but luckily nothing like that happened. The most dire thing that happened was one of the workers getting stung by a scorpion on the job, had an immediate bad reaction, his throat starting to close, and having to drive him to the local seguro popular hospital, and wait there for a few hours while he was administered antivenom. That was 15 years ago and the hospital charge was 500 pesos.

They obviously did not want the govt. to know they were working and making money, and didn't even trust them to pay out if they did get sick or hurt.

My cleaning lady already has insurance through her husband. My gardener works one hour a week. I suspect most of the household workers would prefer to keep it under the table.

I do too but may require them to sign off on the refusal because if this is mandatory they could easily come back on you if your relationship sours.

Yeah, unfortunately. Wonder if there will be a minimum number of hours worked in a week week before this becomes mandatory.

Looks like a field day for local attorneys

When renting in SMA and contemplated buying there, was told by local expats that they covered their household help in IMSS and pension plan on a pro-rata basis. Never needed the details, so that's all I know.

I have no problem doing this if the employee wants it. Have a part-time gardener who works fulltime at a condo complex. Not sure how that might play out.

It would probably be more efficient and sustainable if they just upped the IVA by another percent or 2 and let all the tax payors pay for everyone in a universal medical plan. Forget having two or three different medical plans. Then they can just focus on getting these "under the table" workers (which is probably 20%??) to pay income taxes. This way everyone gets the same coverage like many of the socialized medical countries.

Another article on this topic.

https://mexiconewsdaily.com/expat-resources/new-social-security-law-domestic-workers/?utm_source=jeeng&utm_medium=webpush

It still doesn’t answer the question of a worker such as my gardener who works 1 hour a week. Is there a minimum number of hours needed to be eligible? In the case of my housekeeper she has insurance through her husband.

There is no "minimum" amount of hours. If the worker has 5 different employers, then they all have to pay their percentage.

The only exemptions are: "those who perform such activities occasionally or sporadically and who provide cleaning, assistance, customer service and other analog services in hotels, nursing homes, restaurants, inns, bars, hospitals, sanatoriums, or similar establishments, won’t be considered domestic workers"