Mexico: Pension reform proposals

Mexico: Pension reform proposals

The Chamber of Deputies on 9 December 2020 passed a pension reform initiative that would revise provisions of the social security law and retirement savings system.

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The legislation includes measures that would increase employer and government contributions to provide a guaranteed minimum pension. For instance, there is a provision that would reduce the contribution weeks. Another measure would revise the percentage of the employer contributions. The employee’s contribution of 1.125% would remain unchanged.

Another measure concerns a guaranteed pension.

The legislation is subject to consideration in the Senate. If enacted, it is proposed to be effective 1 January 2021.

Read a December 2020 report (Spanish) prepared by the KPMG member firm in Mexico

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