Mexico has a fairly straightforward system for social security. Contributions for several insurances are calculated at varying rates but collected and processed under one heading of IMSS (see 2.2.1). Employers and employees are expected to contribute to IMSS.
Retirement savings are split broadly into two funds: a basic retirement fund and an additional old age fund. These funds are allocated to individual savings account held and managed on behalf of the individual. The bulk of the contributions comes from employers, but the government also provides towards the funds. Employees make a small mandatory contribution. Voluntary and supplementary contributions are permitted (see 2.2.2).
INFONAVIT is a mandatory fund to which employers must contribute. Its purpose is to provide low cost housing. Employees access the funds via low cost loans
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Web page updated on 28 Aug 2024 11:37