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IMSS for domestic workers---will be mandatory

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Like some of you have noticed, the news (in English) is now mentioning the Mexico Supreme Court decision to make IMSS  coverage MANDATORY for all domestic workers.  Obviously there are some hurdles with this, like part-time workers who have multiple employers--who pays what, how much, and when?  Also, who is going to be the one to file all that paperwork? At one time I was considering paying IMSS for my housekeeper, but when I learned my contributions were going to be a whopping 37% of her weekly paycheck AND I was going to have to pay the services of a bookkeeper, I had to take a different path.  I did offer to reduce her hours and workload, so I could compensate for the 37%, but she declined.  

I know that many employers of non-domestic workers--Starbucks baristas in Guad, for example--pay low wages simply because they have to pay that onerous 37% contribution on top of salary. 

The committee to handle this integration program has a target time of 18 months to come up with a solution.  Should be interesting. 

 

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The 37% number is the thorn in the side of many MX manufacturer's ,  hence they work thro a 3rd party with specfic contracts to hire and fire, making dismissal more flexible and making life less challenging

 

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2 minutes ago, lakeside7 said:

The 37% number is the thorn in the side of many MX manufacturer's ,  hence they work thro a 3rd party with specfic contracts to hire and fire, making dismissal more flexible and making life less challenging

 

 ...and that's one of the reasons I use Spring Clean.  They take care of such matters.:)

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My cleaning lady already has IMSS because she is married to one with it. I would think many are in the same boat and that could make them more valuable to hire. 

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It's a good idea and it's not just health care; it includes Mexico's version of Social Security.  Read about it here:

https://mexiconewsdaily.com/news/domestic-workers-must-have-access-to-imss/

Likely the plan will be similar to what US households that employ domestic workers are required to pay/file now.  It is not rocket science.  

The Court has set out the following guidelines:

Quote

 

  • The program must take into account the particularities of domestic work, the court said, such as that some workers have more than one employer and that in many cases the relationship is not spelled out in a formal contract.
  • It must also be easy to implement for employers, who in most cases are private homeowners.
  • The final aim of the SCJN injunction is for IMSS to be in a position, after a period of no longer than 18 months, to propose to Congress the necessary legislative reforms to ensure that domestic workers’ right to access social security benefits is enshrined in law.
  • Within a period of no longer than three years, the intention is for all domestic workers in Mexico to be enrolled in a robust and effective social security scheme.

 

Domestic employees to be covered for IMSS, Social Security, Disability, etc.

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Isn't IMSS Mexico's social security.

Mexican Social Security Institute
The Mexican Social Security Institute is a government organization that assists public health, pensions and social security in Mexico operating under the Ministry of Health.
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All of our staff are managed and paid thru Chapala Realty, sponsor of this board. 

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23 minutes ago, Bisbee Gal said:

It's a good idea and it's not just health care; it includes Mexico's version of Social Security.  Read about it here:

Likely the plan will be similar to what US households that employ domestic workers are required to pay/file now.  It is not rocket science.  

 

Yes, in theory it is a great idea.  The reality is that the market will pay what the market will bear, and I think that this will put a large number of domestic workers at risk for having their hours cut, because many employers will simply reduce the workers' hours by 1/3, or they will understate the hours worked by the employee to make only a minimum contribution.  If this program continues as-is, I think there will be many more Spring Clean type agencies popping up.  I know, having interviewed Spring Clean (and been impressed by them) that the workers are paid LESS than what I pay my self-employed cleaner, and with none of the bookkeeping nor cleaning supply headaches.  This puts the independent workers at a distinct disadvantage.  

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I think the most obvious result is that a LOT of folks are going to be looking for work. I know the minute this comes into play, we'll pay off our gardener and maid and just do it ourselves to avoid the hassle. It may be a great idea, fair, etc, etc, but great ideas and reality are two very different things.

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1 hour ago, Tingting said:

I think the most obvious result is that a LOT of folks are going to be looking for work. I know the minute this comes into play, we'll pay off our gardener and maid and just do it ourselves to avoid the hassle. It may be a great idea, fair, etc, etc, but great ideas and reality are two very different things.

OMG so you think "Paradise" is coming to a end...No No this to will pass and we will adjust and as you indicate and work around the issue...what is good for Mexico is good for us..or move out!!!

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I am going to adopt a wait and see attitude. Nothing has been mentioned about the fact that if an employee has Seguro Popular then they are not eligible for the medical portion of IMSS.

There are a lot of things that have to be worked out regarding this concept... and no point jumping to any incorrect assumptions.

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My maid and gardener have received these benefits since the day they started working for me. I have a property manager and she signed them up the day they started working for me, the gardener some 20 years ago. My property manager signed them up at the beginning of their employment without ever checking with me whether I wanted this or not.  I would have said yes. But thank God I have a property manager. Without one, I would not have know what was or wasn't included. Because like was posted above, there is a lot we don't understand about Seguro Popular, IMSS, vacation pay or any of this.

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17 hours ago, lakeside7 said:

OMG so you think "Paradise" is coming to a end...No No this to will pass and we will adjust and as you indicate and work around the issue...what is good for Mexico is good for us..or move out!!!

No, I said that I believe a lot of folks will be out of work because the employers won't want to get involved in all of the paperwork. This is Mexico and Mexicans are entitled to make and follow their own laws; I just don't want to have to hire a bookkeeper, etc. I believe in following the laws of the country I live in, so I'll adjust just fine. As Ferret said, we'll let this play out to see what happens before reacting. It's not a drama and I sincerely doubt that we're going to be seeing the moving trucks anytime soon. Kimanjome had it right.

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On 12/8/2018 at 3:55 PM, AngusMactavish said:

Isn't IMSS Mexico's social security.

Mexican Social Security Institute
The Mexican Social Security Institute is a government organization that assists public health, pensions and social security in Mexico operating under the Ministry of Health.

Yes.  

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