Employer-Employee Fees Reach All-Time High
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Employer-Employee Fees Reach All-Time High

Photo by:   Image by mike_ramirez_mx from Pixabay
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Emilio Aristegui By Emilio Aristegui | Junior Journalist and Industry Analyst - Mon, 12/27/2021 - 18:06

IMSS has implemented several strategies to guarantee an adequate financial management of the institution, while also reaching an all-time high employer-employee fees collection.

The institute announced that employer-employee fees reached an all-time high of MX$348 billion (US$16 billion) as of November 2021. The collection represents the highest figure since registration began. The November collection helped to reached a surplus of more than MX$7.5 billion (US$362 million), which represents growth of 8.8 percent nominal and 3.1 percent real. The collection figure is also MX$28 billion (US$1.3 billion) higher than the one registered in 2020.

“From 2018 to 2021, the percentage of annual collection of employer-employee fees as a proportion of GDP went from 1.38 percent to 1.54 percent, an increase of 0.16 percent. To put this data into perspective, between 2006 and 2018, the percentage of annual collection of employer-employee quotas as a proportion of GDP increased 0.13 percent. Currently, collection with respect to the GDP is in its historical maximum,” reads an IMSS report.

Worker-employee fees are vital for IMSS’ operations, as 93 percent of the Institute’s income comes from the collection of fees to cover benefits associated with the beneficiaries’ social security. IMSS declared that taking care of the institute’s financial health is a ‘fundamental task’ to protect beneficiaries.

IMSS implemented different strategies to strengthen inspection and collection alongside close accompaniment with the employer sector to adequately interpret the necessary frameworks. The correct interpretation of the Labor Subcontracting Reform has been of vital importance to correctly register collection, as highlighted by IMSS’s report.

The policy to expand the insured base helped the collection strategy, as well, with pilot programs for domestic and independent workers benefiting more than 50,000 people and their family nuclei guaranteeing a monthly collection of MX$60 million (US$2.9 million). Estimates for 2021 show an expected collection of MX$381.5 billion (US$18.41 billion) from employer-employee quotas, a figure MX$31.7 billion (US$1.53 billion) greater than the one in 2020. 

“The increase in income is a direct result of the strategies and improvements in authority acts, as well as the favorable evolution of the employment and salary indicators registered in the Mexican Social Security Institute,” reads IMSS’ press release.  

Photo by:   Image by mike_ramirez_mx from Pixabay

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