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Pensiones Ley 73 IMSS y Modalidad 40
[Pensions Law 73 IMSS and Modality 40]

Author

Listed:
  • Villalobos López, José Antonio

Abstract

The cap of twenty-five or ten times the minimum wage on pension pay is perhaps the issue that has caused the most controversy and discussion under the Social Security Act (LSS) of 1997. By 2020 the difference between the general minimum wage and the Unit of Measure and Update (UMA) was $36.34 pesos per day, so that there is 29.5% difference between these two indicators. The cap with 25 monthly minimum wages would be $93,647 pesos, while with 25 UMA it would reach $66,029 pesos per month. In modality 40 91,145 quotes were registered in 2013, passing to 199,860 people in September 2020, which tells us that in just under seven years the number of members of IMSS modality 40 doubled. With December 16 reforms to IMSS pensions in Mexico, the payment of modality 40 will now go from 10,075% to 18.71% of the base contribution salary by 2030.

Suggested Citation

  • Villalobos López, José Antonio, 2021. "Pensiones Ley 73 IMSS y Modalidad 40 [Pensions Law 73 IMSS and Modality 40]," MPRA Paper 108127, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:108127
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    File URL: https://mpra.ub.uni-muenchen.de/108127/1/MPRA_paper_108127.pdf
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    More about this item

    Keywords

    Modality 40; Voluntary continuation; Law 73 IMSS; Top Pensions;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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