MEXICAN SOCIAL SECURITY LAW IN ENGLISH

Article 11 . The compulsory regime includes the insurance of:

1. Occupational hazards;
2. Illness and maternity;
3. Disability and life;
4. Retirement, severance at an advanced age and old age, and
5. Childcare and social benefits.

Article 12. The following are subject to insurance under the mandatory regime:

1. Persons who, in accordance with Articles 20 and 21 of the Federal Labor Law, render, on a permanent or temporary basis, to other individuals or legal entities or economic units without legal personality, a paid, personal and subordinate service, regardless of the act that gives rise to it and regardless of the legal personality or economic nature of the employer, even when the latter, by virtue of a special law, is exempt from the payment of taxes;

   Reformed fraction DOF 20-12-2001

2. Members of cooperative societies;

   Reformed fraction DOF 20-12-2001, 02-07-2019

3. Persons determined by the Federal Executive through the respective Decree, under the terms and conditions set forth in this Law and the corresponding regulations, and

   Reformed fraction DOF 20-12-2001, 02-07-2019

4. Domestic workers.

   Fraction added DOF 02-07-2019

Article 13 . They may voluntarily be subject to the mandatory insurance system:

1. Independent or self-employed workers;

   Reformed fraction DOF 01-12-2023

2. Repealed.

   Section repealed DOF 02-07-2019

3. Repealed.

   Section repealed DOF 01-12-2023

4. Repealed.

   Section repealed DOF 01-12-2023

5. Workers in the service of the public administrations of the Federation, federal entities and municipalities that are excluded or not included in other laws or decrees as subjects of social security.

By means of an agreement with the Institute, the modalities and dates of incorporation to the mandatory regime of the subjects of insurance included in this article will be established.

Such agreements shall be subject to the regulations issued for such purpose by the Federal Executive.

Article 14 . The agreements referred to in the preceding article shall establish:

1. The date of commencement of the provision of services and the subjects of insurance covered;
2. Validity;
3. The benefits to be provided;
4. The contributions payable by the insured and other obligated parties;
5. The contribution to be paid by the Federal Government, when applicable;
6. The procedures for registration and collection of fees, and
7. The other modalities required by this Law and its regulations.

Article 15 . Employers are obliged to:

Amended paragraph DOF 24-01-2024

1. Register and register their workers with the Institute, communicate their registrations and cancellations, changes in their salaries and other data, within a period of no more than five working days;

   Reformed fraction DOF 20-12-2001

2. Keep records, such as payrolls and lists, which invariably include the number of days worked and the salaries received by its workers, in addition to other data required by this Law and its regulations. These records must be kept for five years after their date;

3. Determine the employer contributions payable and pay the amount thereof to the Institute;

   Reformed fraction DOF 20-12-201

4. Provide the Institute with the necessary elements to determine the existence, nature and amount of the obligations established by this Law and the corresponding regulations;

5. Allow the inspections and domiciliary visits made by the Institute, which shall be subject to the provisions of this Law, the Code and the respective regulations;

   Reformed fraction DOF 20-12-2001

6. In the case of employers who are permanently or sporadically engaged in the construction activity, they must issue and deliver to each worker written proof of the number of days worked and the salary received, on a weekly or biweekly basis, in accordance with the established payment periods, which, if applicable, may be exhibited by the workers to evidence their rights.

   Likewise, they must cover the employer contributions, even in the event that it is not possible to determine the worker or workers to whom they should be applied, due to the employer's noncompliance with the obligations set forth in the preceding sections; in the latter case, the amount will be allocated to the General Financial and Actuarial Reserve referred to in Article 280, Section IV of this Law, without prejudice to those workers who demonstrate their rights, being granted the deferred benefits to which they are entitled;

   Reformed fraction DOF 20-12-2001

7. Comply with the obligations imposed by Chapter Six of Title II of this Law, in connection with the retirement, advanced age unemployment and old age insurance;
8. Comply with the other provisions of this Law and its regulations, and
9. Issue and deliver, in the case of temporary or temporary workers in the city or in the countryside, proof of the days worked in accordance with the provisions of the respective regulations.

   Reformed fraction DOF 20-12-2001, 24-01-2024

   The provisions contained in Sections I, II, III and VI are not applicable in cases of construction, expansion or repair ofreal estate, when the work is carried out personally by the owner, or works carried out by community cooperation, and the fact must be proven, under the terms of the respective regulation.

   Amended paragraph DOF 20-12-2001

   The information referred to in sections I, II, III and IV shall be provided to the Institute in printed documents, or in magnetic, digital, electronic, electronic, optical, magneto-optical or any other type of media, in accordance with the provisions of this Law and its regulations.

   Amended paragraph DOF 20-12-2001

Article 15 A . The contracting of specialized services or the execution of specialized works shall comply with the conditions and requirements established in the Federal Labor Law.

The individual or legal entity that contracts the rendering of services or the execution of works with another individual or legal entity that fails to comply with social security obligations, will be jointly and severally liable in relation to the workers used to execute such contracts.

The individual or legal entity that provides specialized services or executes specialized works must provide quarterly, no later than the 17th day of the months of January, May and September, the information of the contracts entered into in the four-month period in question, in accordance with the following:

1. Of the parties to the contract: Name, denomination or corporate name; Federal Taxpayers' Registry, corporate or conventional domicile if different from the tax domicile, e-mail address and contact telephone number.
2. For each contract: Purpose; period of validity; list of workers or other subjects that will render the specialized services or perform the specialized works in favor of the beneficiary, indicating their name, CURP, social security number and base salary of contribution, as well as the name and Federal Taxpayer Registry of the beneficiary of the services for each of the contracts.

3. Simple copy of the registration issued by the Ministry of Labor and Social Welfare for the rendering of specialized services or the execution of specialized works.

   For the verification of compliance with the obligations established in the Federal Labor Law and in the present ordinance, the Institute and the Ministry of Labor and Social Welfare shall enter into collaboration agreements for the exchange of information and the performance of joint verification actions, in their respective areas of competence.

   The Institute shall inform the Ministry of Labor and Social Welfare of the non-compliance with the requirements indicated in this article for the purposes indicated in the Federal Labor Law.

   Article added DOF 20-12-2001. Amended DOF 09-07-2009, 23-04-2021.

Article 15 B. Persons who are not in the case established in the penultimate paragraph of Article 15 of this Law, who carry out extensions, remodeling or the construction of their own dwelling house, and those who sporadically carry out extensions or remodeling of any type of work, may enter into an agreement for payment in installments of the employer contributions payable by them, from the moment they register the workers who will be in charge of the same, individualizing the worker's account.

Article added DOF 20-12-2001

Article 16. Employers who, in accordance with the regulations, have an annual average of three hundred or more workers in the immediately preceding fiscal year, are obliged to have their compliance with their obligations reported to the Institute by an authorized public accountant, under the terms set forth in the regulations issued for such purpose by the Federal Executive.

Employers who are not included in the above paragraph may choose to have their contributions to the Institute audited by an authorized public accountant, in accordance with the terms of the above-mentioned regulation.

Employers who file a report will not be subject to a home visit for the years reported, except when:

1. The opinion has been presented with a disclaimer of opinion, with a negative opinion or with qualifications on aspects which, in the opinion of the public accountant, relate to essential elements of the opinion, or

2. As a result of the internal review of the report, differences were determined and these were not clarified and, if applicable, paid.

   Article amended DOF 20-12-2001

Article 17 . When giving the notices referred to in Section I of Article 15 of this Law, the employer may express in writing the reasons on which he bases any exception or doubt about his obligations, without being relieved from paying the corresponding contributions. The Institute, within a period of forty-five working days, will notify the employer of the resolution it issues and, if applicable, will proceed to cancel the employer, the employee or both, as well as the corresponding reimbursement.

The information provided by the employers for their registration may be analyzed by the Institute, in order to verify the existence of the assumptions and requirements established in this Law. If the Institute determines that the assumptions set forth in article 12, section I, of this Law are not met, it will notify the alleged employer so that the latter, within a term of five business days, may state what it deems appropriate and, in the event that it does not refute such situations, the Institute will proceed to deregister the alleged employer, the alleged workers or both.

In the above case, the Institute will apply the amounts paid to compensate its administrative and operating expenses, and the rights of the alleged worker to claim, if applicable, the amounts that have been deposited in the individual account opened in his name, in accordance with the terms of this Law, shall remain unaffected.

Article amended DOF 20-12-2001

Article 18 . Workers have the right to request their registration with the Institute, communicate any changes in their salary and other working conditions and, if applicable, present the documentation that accredits said relationship, demonstrates the period worked and the salaries received. The foregoing does not release the employers from complying with their obligations, nor does it exempt them from the penalties and liabilities they may have incurred.

Amended paragraph DOF 20-12-2001

Likewise, the employee, through the Institute, may carry out the necessary administrative procedures to exercise the rights derived from the pensions established by this Law.

Article 19 . For the purposes of this Law, cooperative societies shall pay the dues corresponding to the employers, and each of the members referred to in Section II of Article 12 of this Law shall pay their dues as workers.

Article amended DOF 20-12-2001

Article 22 . The documents, data and reports that workers, employers and other persons provide to the Institute, in compliance with the obligations imposed on them by this Law, shall be strictly confidential and may not be communicated or made known in a nominative and individual manner.

The provisions of the preceding paragraph shall not apply when:

1. In the case of lawsuits and proceedings in which the Institute is a party;
2. Collaboration agreements have been entered into with the Federation, federal entities or municipalities or their respective public administrations, for the exchange of information related to the fulfillment of their objectives, with the restrictions agreed upon in the agreements, which will invariably include a confidentiality clause and non-disclosure of the information exchanged;

3. At the request of the Ministry of Public Administration, the Internal Comptroller's Office at the Institute, the federal tax authorities, the social security institutions and the Federal Public Prosecutor's Office, in the exercise of their powers, and

   Reformed fraction DOF 09-04-2012

4. In the cases provided by law.

The Institute may enter into collaboration agreements with the social or private sectors for the exchange of statistical information, related to the fulfillment of its objectives, with the restriction referred to in the first paragraph of this article and those agreed upon in the agreements themselves.

The information derived from the retirement, severance at advanced age and old age insurance will be provided directly, as the case may be, by the retirement fund managers, as well as by the information processing companies of the Retirement Savings System. This information will be subject, in terms of confidentiality, to the general provisions issued by the National Commission of the Retirement Savings System, in terms of the corresponding law.

Article amended DOF 20-12-2001

Article 23 . When the collective bargaining agreements grant benefits lower than those granted by this Law, the employer will pay to the Institute all the contributions proportional to the contractual benefits. In order to satisfy the differences between the latter and those established by the Law, the parties will cover the corresponding quotas.

If benefits equal to those established by this Law are agreed upon in the collective bargaining agreements, the employer will pay to the Institute the full amount of the employer's contributions.

In those cases in which the collective bargaining agreements provide for benefits in excess of those granted by this Law, the provisions of the preceding paragraph will apply until the benefits are equal, and the employer will be obligated to comply with the excess benefits. In the case of economic benefits, the employer may contract with the Institute the corresponding additional insurance, under the terms of Title Three, Chapter II of this Law.

The Institute, by means of a technical-legal study of the collective bargaining agreements, having previously heard the interested parties, will make the actuarial valuation of the contractual benefits, comparing them individually with those of the Law, in order to prepare the corresponding contribution distribution tables.

Article 25 . In the cases provided for in Article 23, the State shall make the contribution that corresponds to it in terms of this Law, independently of the employer's contribution resulting from the actuarial valuation of its contract, and the employer shall pay both its own contribution and the part of the workers' contribution that corresponds to it in accordance with said valuation.

To cover the benefits in kind of the sickness and maternity insurance of pensioners and their beneficiaries, in the occupational, disability and life risk insurance, as well as retirement, unemployment at advanced age and old age, the employers, the workers and the State will contribute a contribution of one point five percent of the base contribution salary. Of such contribution, the employer will pay one point zero zero five percent, the workers will pay zero point three hundred seventy five percent and the State will pay zero point zero zero seventy five percent.

Article 27 . The contribution base salary is made up of the payments made in cash for daily quota, gratuities, payments, food, housing, bonuses, commissions, benefits in kind and any other amount or benefit given to the worker for his work. Given their nature, the following items are excluded as part of the contribution base salary:

Amended paragraph DOF 16-01-2009

1. Work instruments such as tools, clothing and the like;
2. If it is constituted in a different form or if the employee can withdraw it more than twice a year, it will be included in the salary; the amounts granted by the employer for social purposes of a union nature will not be taken into account either;
3. The additional contributions that the employer agrees to grant in favor of its employees for retirement insurance, severance at advanced age and old age;
4. The quotas that in terms of this Law correspond to the employer, the contributions to the Instituto del Fondo Nacional de la Vivienda para los Trabajadores (National Workers' Housing Fund Institute), and the company's profit sharing;
5. Food and housing when they are provided onerously to the workers; it is understood that these benefits are onerous when the worker pays for each of them, at least twenty percent of the general daily minimum wage in force in the Federal District;
6. Food allowances in kind or in cash, as long as their amount does not exceed forty percent of the general daily minimum wage in force in the Federal District;
7. Rewards for attendance and punctuality, provided that the amount of each of these concepts does not exceed ten percent of the base salary of contribution;
8. The amounts contributed for social purposes, considering as such the amounts delivered to constitute funds of any pension plan established by the employer or derived from collective bargaining. Pension plans shall only be those that meet the requirements established by the National Commission of the Retirement Savings System, and
9. Overtime within the margins indicated in the Federal Labor Law.

In order for the items mentioned in this provision to be excluded as part of the contribution base salary, they must be duly recorded in the employer's accounting records.

In the items set forth in Sections VI, VII and IX, when the amount of these benefits exceeds the established percentage, only the excess will be added to the contribution base salary.

Article amended DOF 20-12-2001

Article 28 A . The contribution base for the obligated parties mentioned in Section II of Article 12 of this Law, shall be made up of the total of the payments they receive for the contribution of their personal work, applying the provisions of Articles 28, 29, 30, 32 and other applicable articles of this Law.

Article added DOF 20-12-2001

Article 29 . The following rules shall apply to determine the form of contribution:

1. The calendar month shall be the installment payment period;
2. To fix the daily salary in case it is paid per week, fortnight or month, the corresponding remuneration shall be divided by seven, fifteen or thirty respectively. The same procedure shall be used when the salary is fixed for periods other than those indicated, and
3. If due to the nature or peculiarities of the work, the salary is not stipulated per week or per month, but per day worked and includes fewer days than those of a week or the insured person works reduced workdays and his salary is determined per unit of time, in no case shall contributions be received based on a salary lower than the minimum wage.

Article 30 . The following shall be used to determine the base daily salary:

1. When, in addition to the fixed elements of the salary, the employee regularly receives other periodic remunerations of a previously known amount, these shall be added to said fixed elements;

2. If, due to the nature of the work, the salary is made up of variable elements that cannot be previously known, the total income received during the two immediately preceding months will be added together and divided by the number of days of salary earned in that period. In the case of a newly hired worker, the probable salary corresponding to that period shall be taken, and

   Reformed fraction DOF 20-12-2001

3. In cases in which the salary of an employee is made up of fixed and variable elements, it shall be considered of a mixed nature, and therefore, for contribution purposes, the average obtained from the variable elements shall be added to the fixed elements in terms of the provisions of the preceding section.

Article 31 . When wages are not paid due to absences of the employee from work, but the labor relationship subsists, the monthly contribution shall be adjusted to the following rules:

1. If the employee's absences are for periods of less than eight consecutive or interrupted days, contributions will be made and paid for such periods only in the sickness and maternity insurance. In these cases the employers must present the corresponding clarification, indicating that they are omitted contributions due to absenteeism and will prove the lack of payment of the respective salaries, by means of the exhibition of the corresponding lists or payrolls. For this purpose, the number of days of each month will be obtained by subtracting from the total number of days contained in the period of quotas in question, the number of absences without payment of salary corresponding to the same period.

   If the employee's absences are for periods of eight consecutive days or more, the employer will be released from the payment of the employer's worker's contributions, as long as it is in accordance with the terms of Article 37;

   Reformed fraction DOF 20-12-2001

2. In the cases of fractions II and III of article 30, the same rules of the previous fraction shall be followed;
3. In the case of absences of workers included in Section III of Article 29, regardless of the nature of the salary they receive, the regulation shall determine what is appropriate in accordance with the criteria set forth in the preceding bases, and
4. In the case of absences covered by medical incapacities issued by the Institute, it shall not be obligatory to pay employer contributions, except in the case of retirement.

Article 32 . If, in addition to the salary in cash, the worker receives from the employer, without cost to him, room or board, his salary shall be increased by twenty-five percent, and if he receives both benefits, it shall be increased by fifty percent.

When the food does not cover the three meals, but only one or two of them, for each of them the salary shall be added eight point thirty-three percent.

Article 33 . For the enjoyment of cash benefits, in the event that the insured person renders services to several employers, the sum of the salaries received in the different jobs will be taken into account; when this is less than the upper limit established in Article 28, the employers will separately cover the contributions to which they are obliged based on the salary that each one of them pays to the insured person.

When the sum of the salaries received by a worker reaches or exceeds the upper limit established in Article 28 of this Law, at the request of the employers, the latter will cover the contributions of the maximum contribution salary, paying between them the proportional part resulting between the salary covered individually and the total sum of the salaries received by the worker.

Article 34 . When the insured is in the service of the same employer and the stipulated salary is modified, the following shall apply:

1. In the cases provided for in Section I of Article 30, the employer shall be obliged to submit to the Institute the notices of modification of the daily base salary of contribution within a maximum term of five working days, counted from the day following the date on which the salary changes;
2. In the cases provided for in Section II of Article 30, employers shall be obliged to inform the Institute within the first five working days of the months of January, March, May, July, July, September and November, of the changes in the average daily salary obtained in the previous two-month period, and

3. In the cases provided for in Section III of Article 30, if the fixed elements of the salary are modified, the employer must submit the notice of modification within five business days following the date on which the salary changes. If at the end of the respective two-month period there was a modification of the variable elements that make up thesalary, the employer shall submit to the Institute the notice of modification under the terms of Section II above.

   The daily salary will be determined by dividing the total amount of variable income earned in the previous two-month period by the number of days of salary earned and adding the result to the fixed elements of the daily salary

.

In all the cases provided for in this article, if the modification arises from a revision of the collective bargaining agreement, it shall be communicated to the Institute within thirty calendar days of its execution.

The cooperative societies must submit the notices of modification of the base contribution payments of their members, in accordance with the provisions of this article.

Article amended DOF 20-12-2001

Article 38 . The employer, when paying salaries to its employees, must withhold the contributions that they are required to pay.

When it fails to do so in a timely manner, it may only deduct four accumulated weekly contributions from the worker, the remaining contributions being at the worker's expense.

The employer will have the character of withholder of the contributions deducted from its workers and must determine and pay to the Institute the employer contributions, under the terms established by this Law and its regulations.

Article 39 . Employer's contributions are payable monthly in arrears and the employer is obliged to determine their amounts on the printed forms or using the computer program authorized by the Institute. Likewise, the employer must file with the Institute the assessment forms for the month in question, and make the respective payment no later than the seventeenth day of the following month.

The obligation to determine the quotas must be complied with even in the event that the corresponding payment is not made within the period indicated in the preceding paragraph.

The constitutive capitals have the character of definitive at the moment of notification and must be paid to the Institute, in the terms and terms provided in this Law.

Article amended DOF 20-12-2001

Article 39 A . Without prejudice to the provisions of the first paragraph of the preceding article, the Institute, in support of the employers, may submit a proposal for a determination form, prepared with the data it has on the affiliation movements reported to the Institute by the employers themselves and, if applicable, by their workers under the terms of this Law.

The proposal referred to in the preceding paragraph may be delivered by the Institute in hard copy or, upon written request of the employer or its legal representative, in magnetic, digital, electronic or any other type of media.

In the case of employers who receive the proposal through magnetic, digital, electronic, optical, magneto optical or any other means, and choose to use it to comply with their tax obligation, invariably, for payment purposes, they must use the computer program previously authorized by the Institute, referred to in Article 39.

When the employers choose to use the proposal in a printed document to comply with the tax obligation, it will be sufficient for them to present it and make the payment thereof at the office authorized by the Institute, within the term indicated in Article 39 of this Law.

If the employers decide to modify the data contained in the proposals submitted, they must adhere to the provisions of this Law and its regulations and shall note in a printed document or in the payment file generated by the authorized program, all the elements necessary for the exact determination of the quotas, in accordance with the procedure indicated in the corresponding regulations.

The fact that the employer does not receive the proposed determination letter issued by the Institute does not exempt it from complying with the obligation to determine and pay the contributions, nor does it exempt it from the legal consequences derived from noncompliance with such obligations.

Article added DOF 20-12-2001

Article 39 B . The determination letters submitted to the Institute by the employer shall be considered binding for the Institute.

Article added DOF 20-12-2001

Article 39 C . In the event that the employer or obligated subject does not timely pay the amount of the employer contributions or does so incorrectly, the Institute may determine them presumptively and fix them in a liquid amount, based on the data it has or based on the facts it learns in the exercise of its powers of verification as a tax authority or through the files or documents provided by other tax authorities. This determination must consider both the balances in favor of the Institute and those that may be in favor of the employer due to errors in the employer's submission.

The Institute will proceed in the same manner in those cases in which, upon reviewing the determination forms paid by the employers, it detects errors or omissions resulting in partial noncompliance in the payment of the contributions.

The settlement notices issued by the Institute must be paid by the employers within fifteen business days following the date on which their notification becomes effective, in accordance with the terms of the Code.

In the event that the employer or obligated subject spontaneously chooses to regularize its tax situation, in accordance with the regularization programs that may be established, the Institute may provide, upon written request, the corresponding issue either in printed form, or through magnetic, digital, electronic, optical, magnetic-optical or any other type of media.

Article added DOF 20-12-2001

Article 39 D . With respect to the liquidation certificates issued by the Institute in the case indicated in the second paragraph of the preceding article, the employer may, within five working days following the date on which the notification becomes effective, file clarifications with the office corresponding to its employer registration, which must be duly supported and may only refer to arithmetic or typographical errors, affiliation notices previously submitted by the employer to the Institute, certificates of disability issued by the Institute or factual situations that do not imply a legal controversy.

The administrative clarification will in no case suspend or interrupt the term established to make the payment up to the recognized amount. The Institute will have twenty working days to resolve the administrative clarification presented by the employer. If the clarification is not resolved after this period has elapsed, the number of working days indicated in the preceding paragraph will be suspended.

The Institute may accept the duly supported clarifications submitted by the employer outside the term set forth in this article, provided that, with respect to such document, the guarantee granted is not in process of effectiveness, an appeal of nonconformity or any other means of defense has been filed, or that having filed such an appeal, it has been withdrawn.

Article added DOF 20-12-2001

Article 40 . The liquidation notices issued by the Institute for fees, constitutive capital, updating, surcharges or fines, will be notified to the employers personally, under the terms established in the Code. The Institute may opt, at the request of the employer, to make the notifications through magnetic, digital, electronic, optical, magneto-optical or any other means under the terms of the Code, in which case, in substitution of the handwritten signature, electronic means of identification will be used, and will produce the same effects as the handwritten notification and, consequently, will have the same probative value that the applicable legal provisions grant to the latter.

For the effect of the notifications of the liquidation notices by electronic transmission, the employers and obligated parties must provide in writing through a legal representative, before the office that corresponds to their employer registry, their e-mail address, as well as any modification of the same. In addition, they must send an electronic acknowledgment of receipt evidencing the date and time of the notification; in the absence of such acknowledgment, it will be understood that the notification was made on the day it was sent by the Institute.

Such notifications shall take effect on the business day following the day on which they are made.

Article amended DOF 20-12-2001

Article 40 A . When the contributions or constituent capital are not paid within the term established in the respective provisions, the employer shall pay, as of the date on which the credits become due, the corresponding restatement and surcharges in accordance with the terms of the Code, without prejudice to the applicable penalties.

Article added DOF 20-12-2001

Article 40 B . The following will be accepted as forms of payment: cash, certified or cashier's checks, as well as electronic fund transfers and credit or debit cards issued by credit institutions, under the terms of the corresponding regulations. Payment may also be made by means of credit notes issued by the Institute for the refund of amounts paid without legal justification, which will only be received at the offices authorized by the Institute.

The employer may apply the credit notes issued by the Institute within the five years following their issuance or request their monetization once such term has expired, provided that the employer has no outstanding debts with the Institute. In the latter case, the employer must submit a request for monetization to the corresponding office, attaching the original credit note in order to process the payment of the same.

If the aforementioned term has elapsed without the employer having applied the credit note or requested its monetization within the fifteen days following the aforementioned term, the amount of the credit note will lapse in favor of the Institute. Credit notes will not be accepted as means of payment in the case of credits for retirement, severance at advanced age and old age insurance quotas or their legal accessories.

Likewise, the Institute may accept, at the request of its suppliers and contractors, who have accounts payable, liquid and enforceable, to apply the corresponding resources against any debts they may have for employer and employee contributions, in accordance with the provisions issued for such purpose by the Technical Council.

Article added DOF 20-12-2001

Article 40 C . The Institute, at the request of the employers, may grant an extension for the payment of the credits owed for quotas, constitutive capital, updating, surcharges and fines. During the period granted, surcharges will be incurred on the unpaid balance restated in accordance with the terms established in the Code. The term for payment in installments will not exceed forty-eight months.

In no case will an extension be authorized for the payment of the contributions that the employers have withheld from the workers under the terms of this Law, and the employers must pay them to the Institute within the legally established term.

The processing of the applications referred to in this article shall be carried out in accordance with the terms and requirements established in the respective regulations.

Article added DOF 20-12-2001

Article 40 D . In the case of retirement, severance at advanced age and old age insurance contributions not paid in a timely manner, deferred payment may only be authorized for full periods owed, without remission of accessories.

The deferred payments made by the employers based on an agreement will be applied to the workers' individual accounts, proportionally to the base contribution salaries used to determine the agreed contributions.

The deferred payment of retirement, unemployment at advanced age and old age insurance premiums will also cause the accessories referred to in the preceding article, and the updated premiums and surcharges will be deposited in the worker's individual account.

The Institute must inform the National Commission of the Retirement Savings System of all extensions involving retirement, severance at advanced age and old age insurance quotas. Notwithstanding the foregoing, the employers must provide a copy of the extensions involving such contributions to the National Commission of the Retirement Savings System, as well as to the financial entities determined by the Commission through general rules.

Article added DOF 20-12-2001

Article 40 E . The Technical Council of the Institute by the vote of at least three fourths of its members may authorize, on an exceptional basis and upon request of the employer, the payment in installments or deferred payment of the contributions payable, which are generated for up to six periods after the date of the request, when it complies with the following requirements:

1. Not having debts in the last two fiscal years prior to the date of application;
2. That no differences in the payment of quotas have been determined and notified within the two previous fiscal years, or that these have been clarified or, as the case may be, paid;
3. Cover at least ten percent of the issue of the respective period requested;
4. That the period requested for payment does not exceed twelve months, as of the last period to which the corresponding request refers. The percentage in excess of that indicated in the previous section must be paid at the end of the term indicated in the request;
5. Demonstrate to the satisfaction of the Institute the exceptional economic reasons why it is unable to meet its obligations; and
6. Guarantee the tax interest in terms of the Code.

During the extension period authorized for the payment, no surcharges will be charged, only the actualization and financing costs will be charged, according to the terms of the Code.

An employer will not be able to benefit from this type of authorization in the year following the year in which it received one of them, counted from the last period of the payment term granted.

All resolutions for the benefit of the employers that are issued based on the provisions of this article, shall be made generally known through the media that the Institute has to disseminate the topics it considers of general interest.

The provisions of this article shall only be applicable to the contributions payable by the employer. The contributions corresponding to retirement, unemployment at an advanced age and old age insurance, as well as those withheld from its workers, must be covered under the terms and conditions established in this Law.

Article added DOF 20-12-2001

SECTION ONE
GENERAL

Article 41 . Occupational risks are accidents and diseases to which workers are exposed in the course of or in connection with their work.

Article 43 . Occupational disease is any pathological condition derived from the continuous action of a cause that has its origin or motive in the work, or in the environment in which the worker is forced to render his services. In any case, occupational diseases shall be those set forth in the Federal Labor Law.

Article 45 . The existence of previous conditions such as physical, mental or sensory disability, intoxications or chronic diseases, is not a cause to reduce the degree of temporary or permanent disability, nor the benefits that correspond to the worker.

Article 48 . If the Institute proves that the occupational hazard was caused intentionally by the employer, either by himself or through a third party, the Institute will grant the insured the benefits in cash and in kind established in this Law, and the employer will be obliged to fully reimburse the Institute for the expenditures made by it for such concepts.

Article 52 . The employer who conceals the occurrence of an accident suffered by any of his workers during their work or improperly reports it as an accident while en route, shall be subject to the penalties determined by this Law and the respective regulations.

Article 53 . The employer who has insured the workers in his service against occupational hazards shall be relieved, under the terms set forth in this Law, from complying with the obligations regarding liability for this type of hazards established in the Federal Labor Law.

SECTION TWO
OF BENEFITS IN KIND

Article 57 . The benefits referred to in the preceding article shall be granted in accordance with the provisions of this Law and its regulations.

SECTION THREE
OF CASH BENEFITS

Article 59 . The pension granted in the case of total permanent disability shall always be higher than that to which the insured would be entitled for disability, and shall include in all cases, family allowances and welfare assistance, as well as any other cash benefit to which he may be entitled under the terms of this chapter.

Article 67 . When two or more partial disabilities are combined, the insured or his beneficiaries shall not be entitled to receive a pension greater than that which would have corresponded to the total permanent disability.

SECTION FOUR
OF THE PERIODIC INCREASE OF PENSIONS

Article 68 . The amount of permanent disability pensions shall be updated annually in the month of February, in accordance with the National Consumer Price Index corresponding to the previous calendar year.

SECTION FIVE
OF THE FINANCIAL REGIME

Article 70 . The benefits provided by the occupational risk insurance, including the capital constitutive of the net income at the end of the year and the administrative expenses, shall be fully covered by the contributions made for this purpose by the employers and other obligated parties.

Article 71 . The contributions to be paid by employers for occupational risk insurance shall be determined in relation to the amount of the base contribution salary, and to the risks inherent to the activity of the business in question, under the terms established in the related regulations.

Article 78 . Employers who cover the constitutive capital determined by the Institute, in the cases provided for in the preceding article, shall be released, under the terms of this Law, from complying with the obligations regarding liability for occupational hazards established in the Federal Labor Law, as well as from paying the contributions prescribed in this Law, for the period prior to the accident, with respect to the injured worker and the occupational hazard insurance; the liability and penalties established by the Law and its regulations, if any, shall remain in force for all legal purposes.

SECTION SIX
PREVENTION OF OCCUPATIONAL HAZARDS

Article 81 . The Institute will coordinate with the Ministry of Labor and Social Welfare, with the agencies and entities of the Federal Public Administration, of the federal entities and will also coordinate with the representation of the organizations of the social and private sectors, in order to carry out programs for the prevention of occupational accidents and diseases.

SECTION ONE
GENERAL

Article 86 . In order to be entitled to the benefits set forth in this chapter, the insured, the pensioner and the beneficiaries shall be subject to the medical prescriptions and treatments indicated by the Institute.

Article 90 . The Institute shall draw up the basic tables of medicines it deems necessary, subject to permanent updating, in order to ensure that the products included therein are those with the highest therapeutic efficacy.

SECTION TWO
OF BENEFITS IN KIND

Article 92 . If at the end of the fifty-two week period provided for in the preceding article, the insured continues to be ill, the Institute shall extend his treatment for up to fifty-two more weeks, subject to a medical opinion.

Article 95 . The beneficiaries indicated in sections I and II of the preceding article shall have the right to enjoy the benefits indicated in sections III and IV of article 84 of this Law.

SECTION THREE
OF CASH BENEFITS

Article 98 . The cash subsidy granted to the insured shall be equal to sixty percent of the last daily contribution salary. The subsidy shall be paid for overdue periods not exceeding one week, directly to the insured or to his duly accredited representative.

Article 99 . In case of non-compliance by the patient with the Institute's indication to undergo hospitalization, or when he/she interrupts the treatment without due authorization, the payment of the subsidy will be suspended.

Article 100 . When the Institute hospitalizes the insured, the subsidy established in Article 98 of this Law shall be paid to him or to his entitled family members as indicated in Article 84 of this Law.

Article 104 . Upon the death of a pensioner or an insured person who has at least twelve weekly contributions recognized in the nine months prior to death, the Institute will pay to the person preferably related to the insured or pensioner, who presents a copy of the death certificate and the original account of the funeral expenses, an allowance for this concept, consisting of two months of the general minimum wage in force in the Federal District on the date of death.

SECTION FOUR
OF THE FINANCIAL REGIME

Article 105 . The resources necessary to cover the cash benefits, benefits in kind and administrative expenses of the sickness and maternity insurance shall be obtained from the contributions that employers and workers or other subjects are obliged to cover, and from the contribution corresponding to the State.

Article 108 . The contributions of the Federal Government will be covered in equal monthly payments, equivalent to one twelfth of the estimate submitted by the Institute for the following year to the Ministry of Finance and Public Credit, in the month of July of each fiscal year. In the event that in a four-month period inflation is four percentage points higher or lower than the inflation forecast in such calculations, the corresponding preliminary compensations will be made before the end of the following two-month period, and the definitive adjustments will be made, based on real annual inflation, during the month of January of the following year.

SECTION FIVE
CONSERVATION OF RIGHTS

SECTION SIX
OF PREVENTIVE MEDICINE

Article 110 . With the purpose of protecting health and preventing diseases and disability, the preventive medicine services of the Institute shall carry out programs for the dissemination of health, prevention and rehabilitation of disability, epidemiological studies, production of immunobiologicals, immunizations, health campaigns and other special programs focused on solving medical-social problems.

Article 111 . The Institute shall coordinate with the Secretariat of Health and with other public agencies and organizations, in order to carry out the campaigns and programs referred to in the preceding article.

SECTION SEVEN
REGISTRATION OF HEALTH ACTIVITIES FOR THE ELIGIBLE POPULATION

Section added DOF 20-12-2001

SECTION ONE
GENERAL

Article 112 . The risks protected in this chapter are disability and death of the insured or disability pensioner, under the terms and in the manner provided for in this Law.

Article 114 . The payment of the disability pension, if applicable, shall be suspended for as long as the pensioner performs a job in a position equal to the one he/she held at the time the disability pension was declared.

Article 115 .When a person is entitled to two or more of the pensions established in this Law, because he/she is simultaneously a pensioner, insured and beneficiary of another or other insured persons, he/she will receive the pension according to the resources accumulated in the corresponding individual account.

Article 116 . If a person is entitled to any of the pensions of this chapter and also to a pension from the occupational risk insurance, he/she shall receive both of them without the sum of their amounts exceeding one hundred percent of the highest salary, of those that served as the basis for determining the amount of the pensions granted. The adjustments not to exceed the limit indicated will not affect the pension from occupational risk insurance.

SECTION TWO
OF THE DISABILITY BRANCH

Article 121 . Temporary pension is the one granted by the Institute, charged to this insurance, for renewable periods to the insured in cases where there is a possibility of recovery for work, or when due to the continuation of a non-occupational disease the benefit is terminated and the disease persists. A definitive pension is the one that corresponds to the state of disability that is considered of a permanent nature.

Article 125 . Entitlement to disability pension shall commence from the day on which the loss occurs and if the day cannot be fixed, from the date of filing the application for disability pension.

SECTION THREE
OF LIFE INSURANCE

Article 131 . The widow's pension shall be equal to ninety percent of that which would have corresponded to the insured in the case of disability or of that which the pensioner had been enjoying in this case.

SECTION FOUR
OF FAMILY ALLOWANCES AND WELFARE ASSISTANCE

SECTION FIVE
OF THE AMOUNT OF DISABILITY AND LIFE PENSIONS

Article 143 . The pension granted for disability, including the amount of family allowances and assistance granted, shall not exceed one hundred percent of the average salary that served as the basis for setting the amount of the pension.

Article 145 . The disability and life pensions granted shall be increased annually in the month of February in accordance with the National Consumer Price Index.

SECTION SIX
OF THE FINANCIAL REGIME

Article 146 . The resources necessary to finance the benefits and administrative expenses of the disability and life insurance, as well as the constitution of the technical reserves, shall be obtained from the contributions that employers, workers and other obligated parties are obliged to cover, as well as from the contribution corresponding to the State.

Article 147 . Employers and workers are responsible for covering, for disability and life insurance, one point seventy-five percent and zero point six hundred twenty-five percent of the base contribution salary, respectively.

Article 148 . In all cases in which the amount of the State's contribution for disability and life insurance is not expressly provided for by law or by agreement, it shall be equal to seven point one hundred forty-three percent of the total employer's contributions and shall be covered under the terms of Article 108 of this Law.

SECTION SEVEN
CONSERVATION AND RECOGNITION OF RIGHTS

SECTION ONE
GENERAL

Article 152 . The risks protected by this chapter are retirement, unemployment at advanced age and old age of the insured, as well as the death of the pensioners under this insurance, under the terms and conditions provided for in this Law.

SECTION TWO
OF THE OLD-AGE PENSION PLAN

Article 156 . The right to an old age severance pension will begin on the day on which the insured person meets the requirements set forth in Article 154 of this Law, provided that he/she requests the granting of such pension and proves that he/she has been deprived of work, if the notice of termination was not received by the Institute.

Article 160 . A pensioner who is receiving an old age severance pension shall not be entitled to a subsequent old age or disability pension.

SECTION THREE OF THE OLD-AGE BRANCH

Article 163 . The granting of the old age pension can only be made upon request of the insured and will be paid from the date on which he/she stopped working, provided that he/she complies with the requirements set forth in Article 162 of this Law.

SECTION FOUR
OF THE ASSISTANCE FOR MARRIAGE EXPENSES

SECTION FIVE
OF THE FINANCIAL REGIME

Article 167 . The employers and the Federal Government, in the part that corresponds to them, are obliged to pay to the Institute the amount of the employer contributions and the state contribution of the retirement, unemployment at an advanced age and old age insurance. Such contributions will be received and deposited in the respective subaccounts of the individual account of each worker, in accordance with the terms set forth in the Law for the Coordination of the Retirement Savings Systems.

SECTION SIX
OF THE GUARANTEED PENSION

Article 170 . Guaranteed pension is that which the State assures to those who are sixty years of age or older, have contributed one thousand or more weeks, and which will be calculated in accordance with the table provided in this Article, considering the average of their base contribution salary during their affiliation to the Institute. For these purposes, the salary indicated will be updated in accordance with the National Consumer Price Index as of the date on which the worker retires.

The amount of the pension will be updated annually in February, in accordance with the National Consumer Price Index, in order to guarantee its purchasing power.

In the computation of the weeks of contribution and the average of the base salary of contribution, the weeks of contribution that the workers have registered with the Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado will be considered, under the terms of the portability agreement that the latter has signed with the Institute.

Article amended DOF 16-12-2020

SECTION SEVEN
OF THE INDIVIDUAL ACCOUNT AND OF THE SPECIALIZED INVESTMENT COMPANIES FOR RETIREMENT FUNDS

Article 174. For the purposes of this insurance, every insured worker is entitled to have an individual account, which shall be set up in accordance with the terms set forth in Article 159, Section I of this Law.

Article 178 . The employee may, once in a calendar year as from the last time this right is exercised, request directly to the Retirement Funds Administrator the transfer of the resources of his/her individual account to another Administrator.

Article 179 . Upon payment of the employer contributions, the Retirement Funds Administrator shall identify the portion corresponding to each worker, so that with such information, under the terms established by the Law for the Coordination of the Retirement Savings Systems, the specific applications are made to each subaccount of the individual account.

Article 181. The Retirement Funds Administrator must inform each worker who holds an individual account of the status thereof, under the terms, periodicity and form established for such purpose by the Law for the Coordination of the Retirement Savings Systems, without prejudice to the right of the insured party at all times to request any type of information related to his individual account from the administrator.

Article 182 . The documentation and other characteristics of these accounts, not provided for in this Law and in the Law of the National Workers' Housing Fund Institute, shall be subject to the provisions of the Law for the Coordination of the Retirement Savings Systems.

Article 184 . In the event of termination of the employment relationship, the employer must pay to the Institute the contribution corresponding to the two-month period in question or, as the case may be, the proportional part of such contribution on the date on which the payment of the contributions corresponding to that period must be made.

Article 186 . The employer is liable for the damages and losses caused to the worker or his beneficiaries, when for failure to comply with the obligation to register him or to notify his actual salary or the changes thereof, the benefits set forth in this chapter could not be granted, or if such benefits were reduced in amount. In this case, the Institute will establish the respective constitutive capitals, under the terms of Article 79 of this Law.

Article 187 . The workers who hold individual accounts, and, if applicable, their beneficiaries, must file directly or through their unions or any other representative organization, their claims against the Retirement Fund Administrators or financial entities authorized by the National Commission of the Retirement Savings System, before the Commission itself. The corresponding procedure before the Commission will be subject to the provisions of the Law for the Coordination of the Retirement Savings Systems.

Article 189. With charge to the accumulated resources of the worker's individual account, the Retirement Funds Administrator shall acquire in the name of the worker and in favor of his legal beneficiaries, at the time the pension is granted, a survivorship insurance policy, under the terms determined for such purpose by the National Insurance and Bonding Commission, after hearing the National Commission of the Retirement Savings System, in the same percentages and conditions established for such purpose in Chapter V, Section Five of this Title.

Article 195 . The National Commission of the Retirement Savings System, taking into account technical considerations and ensuring the interests of the workers, through the issuance of administrative provisions may authorize mechanisms, procedures, forms and terms related to retirement insurance, severance at advanced age and old age, in accordance with the provisions of this Law and the Law for the Coordination of Retirement Savings Systems.

Article 197 . The Insurance Companies and the Retirement Fund Administrators may not withhold, under any circumstances, the payment of overdue annuities or scheduled withdrawals not collected by the pensioner, the amounts of which shall at all times be available to the latter.

Article 199 . The dissolution and liquidation of the Retirement Fund Administrators and specialized investment companies of retirement funds shall be subject to the applicable legislation, as well as to the administrative provisions issued by the National Commission of the Retirement Savings System to safeguard the rights of the insured under the terms of this Law.

Article 200 . For the purposes of this section, the Law for the Coordination of the Retirement Savings Systems shall provide for such administrative provisions as may be necessary to achieve effective compliance with the provisions contained in this Law.

SECTION ONE
OF THE NURSERY BRANCH

Article 206 . Day care services shall be provided to the minors referred to in Article 201 from the age of forty-three days until they reach four years of age.

SECTION TWO
OF THE BRANCH OF SOCIAL BENEFITS

SECTION THREE
OF THE FINANCIAL REGIME

Article 211. The amount of the premium for this insurance shall be one percent of the base contribution salary. Only up to twenty percent of said amount may be used for social benefits.

Article 212. Employers shall fully cover the premium for the financing of the benefits of this chapter, regardless of whether or not they have workers of those mentioned in Article 201 in their service.

Article 213. The Institute may enter into agreements for the reversion of quotas or subrogation of services, with employers who have installed daycare centers in their companies or establishments, when they meet the requirements set forth in the related provisions.

SECTION FOUR
OF SOCIAL SOLIDARITY BENEFITS

Article 214 . The social solidarity benefits or services include community health actions, medical, pharmaceutical and even hospital assistance, in the form and terms established in Articles 215 to 217 of this Law.

Article 216 . The Institute shall provide the necessary support to the social solidarity services assigned to it by this Law, without prejudice to the effective granting of the benefits to which the workers and other beneficiaries of the mandatory system are entitled.

Article 218. The insured with a minimum of fifty-two credited weekly contributions in the obligatory regime, in the last five years, upon being discharged, has the right to continue voluntarily in the same, being able to continue in the joint disability and life insurance as well as retirement, unemployment at advanced age and old age, having to remain enrolled with the last salary or higher than the one he/she had at the time of the discharge. The insured will cover the corresponding contributions per month in advance and will contribute in the following manner:

Amended paragraph DOF 20-12-2001

1. With respect to the retirement, unemployment at advanced age and old age insurance, the insured shall cover the total contribution for the first branch and for the other two branches shall cover the amount of the employer contributions, and the State shall contribute the part of the social contribution corresponding to it under this Law, and

   Reformed clause DOF 16-12-2020

2. In the case of disability and life insurance, the insured will cover the employer's contributions and the State will cover the part corresponding to it in accordance with the percentages set forth in this Law.

In addition, the insured must pay the contributions that would correspond to the employer and the employee, as indicated in the second paragraph of Article 25 of this Law.

Paragraph added DOF 20-12-2001

Article 219 . The right established in the preceding article is lost if it is not exercised by written request within a period of five years from the date of cancellation.

Article amended DOF 20-12-2001

Article 220 . The voluntary continuation of the mandatory regime ends by:

1. Express declaration signed by the insured;

2. Failure to pay dues for two months, and

   Reformed fraction DOF 20-12-2001

3. To be registered again in the mandatory regime, under the terms of Article 12 of this Law

The insured may apply in writing for reinstatement in the mandatory social security system through voluntary continuation, when he/she has been dropped for nonpayment of contributions for two consecutive months. The request must be made within twelve months from the date of the voluntary continuation.

Paragraph added DOF 20-12-2001

Article 221 . The conservation of rights is governed by the provisions of the relative chapters of the mandatory regime.

Paragraph added DOF 20-12-2001

Article 222 . The voluntary incorporation of the subjects referred to in this chapter shall be made by agreement and shall be subject to the following modalities:

1. It may be carried out individually or as a group at the written request of the interested party or parties. In the case of collective incorporation, each of the insured parties shall be responsible for their obligations before the Institute;
2. The insurance scheme, for the subjects indicated in this chapter, includes:

1. For the subjects referred to in Section I of Article 13 of this Law, the benefits of the sickness and maternity insurance, with respect to the benefits in kind, will be subject to the waiting times determined in the regulations of the law on the subject, those of the occupational risk insurance, those corresponding to the disability and life insurance, retirement, unemployment at an advanced age and old age, as well as those of the daycare insurance and social benefits, under the terms of the respective chapters;

   Reformed clause DOF 20-12-2001, 01-12-2023

2. Repealed.

   Subsection repealed DOF 16-11-2022

3. Repealed.

   Subsection repealed DOF 01-12-2023

4. For the parties referred to in Section V of Article 13 of this Law, the benefits of the occupational risk insurance, the benefits in kind of the sickness and maternity insurance and those corresponding to the disability and life insurance, as well as retirement, unemployment at advanced age and old age, under the terms of the respective chapters, and

   At the request of the public entities, the insurance scheme may include only the benefits in kind of the joint labor, sickness and maternity insurance, provided that such entities have established a pension system for their employees, and

   Paragraph added DOF 20-12-2001

5. In case of death of the insured, the provisions of Article 104 of this Law shall apply.

Article 223 . Once the incorporation has been accepted, the provisions of the mandatory regime shall be applicable, with the exceptions and modalities established by this Law.

The status of insured shall only be lost if the characteristics that gave rise to the insurance cease to exist.

Article 224. The subjects of insurance included in this chapter shall pay monthly, bimonthly, semi-annually or annually in advance, at the insured's choice. In the case of payment in installments, no updates or surcharges shall be applied to the amount to be paid.

The provisions of the preceding paragraph are applicable regardless of the fact that a person may contribute simultaneously as an Independent or self-employed worker and as a worker subject to a subordinate personal relationship regulated by the Federal Labor Law.

In this case, the person who is located in both cases may choose to voluntarily affiliate as an Independent Worker or self-employed, in which case he/she must pay the corresponding employer contributions, regardless of the payment obligations deriving from the subordinate personal employment relationship regulated by the Federal Labor Law.

Article amended DOF 20-12-2001, 01-12-2023

Article 225 . When carrying out the acts that determine the incorporation of the subjects of insurance of this chapter and when opening the relative enrollment periods, the Institute may establish waiting periods for the enjoyment of the benefits in kind of the sickness and maternity insurance.

The Technical Council may issue the general rules that may be applicable for the insurance of the subjects referred to in Section I of Article 13 of this Law.

Paragraph added DOF 01-12-2023

Article 227 . The employer contributions corresponding to the subjects of this chapter shall be covered based on:

Clarification to the paragraph DOF 16-01-1996

1. Reported income from the activity that gave rise to the seizure, for the parties referred to in Section I of Article 13 of this Law.

   For the purpose of calculating the employer contributions, the limits established in Article 28 of this Law shall be considered; and

   Reformed fraction DOF 20-12-2001, 01-12-2023

2. According to the real salary integrated in accordance with article 27 of this ordinance, for the persons referred to in section V of article 13 of this Law.

   Section amended DOF 16-11-2022

The bases of the preceding fractions shall be applicable for all the insurance covered by the insurance in each case, with the exception of sickness and maternity insurance, with respect to which the provisions of article 106 of this Law shall apply.

The Technical Board of the Institute, before the competent authorities, will provide the necessary means for them to promote before the Congress of the Union the revision of these contribution bases, in order to promote the maintenance or restoration, as the case may be, of the financial equilibrium of these insurance policies.

Article 228 . To the contribution bases indicated in the preceding article, the financing premiums established by this Law and corresponding to the insurance policies included in the protection scheme in each case shall be applied, reducing the proportional part related to the benefits that are excluded.

The fee thus determined shall be paid as follows:

1. For the persons referred to in Section V of Article 13, in accordance with the provisions of Article 12 of this Law, and

   Section amended DOF 16-11-2022

2. For the subjects referred to in Section I of Article 13 of this Law, the worker-employer contribution shall be paid in full, with the State contributing in accordance with each branch of insurance, in accordance with the provisions of this Law, including the social contribution.

   Reformed fraction DOF 20-12-2001, 01-12-2023

Article 229 . In the case of the subjects referred to in Section I of Article 13 of this Law, the Institute may agree, with the prior consent of the subjects of insurance, with companies, credit institutions or public or private entities, with which they have commercial or legal relations derived from their activity, that such entities shall be the ones to withhold and pay the corresponding fees and, if applicable, their legal accessories, in which cases they shall be jointly and severally liable.

Article amended DOF 20-12-2001, 01-12-2023

Article 231 . The voluntary incorporation to the mandatory regime established in Article 13, Sections I and V, terminates by express declaration signed by the subject or group of insured persons, or for failure to pay the corresponding contributions.

Amended paragraph DOF 01-12-2023

1. Repealed.

   Section amended DOF 2002-12-20-2001. Repealed DOF 01-12-2023

2. Repealed.

   Section repealed DOF 16-11-2022

Article 232 . For the incorporation of persons rendering services to agencies or entities of the Federal Public Administration, the prior approval of the Ministry of Finance and Public Credit must be obtained.

In the case of agencies or entities of the state or municipal public administrations, the authorization of the corresponding local congress or town council must be obtained when, in order to comply with their obligations to the Institute, their participation in federal tax collection corresponding to the state or municipality in question is granted as a guarantee.

Article amended DOF 20-12-2001

Article 237. Permanent and temporary salaried workers in rural activities are included in Article 12, Section I, of this Law and shall have access to social security in the terms and forms established therein, in accordance with the modalities established for such purpose by the corresponding regulations.

Article amended DOF 20-12-2001, 24-01-2024

Article 237-A.- In those places where the Institute does not have facilities, in the opinion of the Institute itself, to provide the health services entrusted to it, the Institute may enter into agreements with the rural employers, so that they may grant to the rural workers the benefits in kind corresponding to the Sickness and Maternity Insurance referred to in Section Two, Chapter IV, of Title Two of this Law, related to medical and hospital services, Chapter IV, of Title Two of this Law, relating to medical and hospital services, and may agree on the reversion of part of the employer's contribution in proportion to the nature and amount of the services provided, through a programmed reimbursement scheme, under the terms established in the general rules issued by the Technical Board for such purpose.

Amended paragraph DOF 24-01-2024

Likewise, in those places where the Institute does not have facilities, in the opinion of the Institute itself, to provide the daycare services it is responsible for, the Institute may enter into agreements with rural employers and organizations of temporary farm workers for the subrogation of the services contemplated in the Daycare Branch referred to in Section One, Chapter VII, of Title Two of this Law, under the terms established in the general rules issued for such purpose by the Technical Council.

Amended paragraph DOF 24-01-2024

In any case, the employers in the field and the organizations referred to in this article shall be obliged to provide the Institute with the reports and statistics required by the Institute and to comply with the instructions, technical standards, inspections and surveillance prescribed by the Institute itself, under the terms of the general rules issued by the Technical Board with respect to medical and daycare services.

Article added DOF 29-04-2005

Article 237-B.- Employers in the field shall have the inherent obligations established in this Law and its regulations, in addition, they shall comply with the following:

1. When registering with the Institute, they must provide the period and type of crop, surface or production unit, estimate of workdays to be used in each period and other data required by the Institute. In the case of employers with livestock activities, they must provide information on the type of livestock and the number of heads they own. The modification of any of the data provided must be communicated to the Institute within a period of no more than thirty calendar days from the date on which they occur;
2. They shall communicate the registration, dismissal and reinstatement of their employees, as well as the changes in their salaries and other data, under the terms of the corresponding regulations, within a term not to exceed seven working days, and

3. They shall issue and deliver a record of the days worked and total wages earned, in accordance with the provisions of the respective regulations.

   Article added DOF 29-04-2005

Article 237-C - Employers in the field may exclude, regardless of the provisions of Article 27 of this Law as part of the base contribution salary, given their nature, the additional payments made for productivity, up to twenty percent of the base contribution salary, observing the provisions of Article 29, Section III of this Law. In order for the productivity concept mentioned in this article to be excluded as part of the contribution base salary, it must be duly recorded in the employer's accounting records.

If applicable, they will pay the portion of the employer's contribution that corresponds to them together with the respective update, on a deferred basis or in installments, without the generation of surcharges, in accordance with the general rules issued by the Technical Council, taking into account the existence of seasonal cycles in the flow of resources in certain branches of agricultural production.

Article added DOF 29-04-2005

Article 237-D .- The Institute may verify that rural employers are up to date with respect to compliance with their obligations under this Law, prior to the granting of subsidies, support or benefits, derived from the Federal Expenditure Budget, that such rural employers request from the Federal Government, through the Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food.

For such purposes, without prejudice to the exercise of the powers of verification that correspond to the Institute in its capacity as an autonomous tax agency, the Ministry of Agriculture and Rural Development must provide the Institute every six months with the list of agricultural employers that are subject to the provisions contained in this Chapter, corresponding to the agricultural, horticultural, livestock, forestry, aquaculture, beekeeping or other similar sectors, identifying those subject to receive subsidies, support or benefits derived from the Federal Expenditure Budget.

Amended paragraph DOF 24-01-2024

At the request of the Institute, and in accordance with the agreement it signs with the Ministry of Agriculture and Rural Development for this purpose, the latter will suspend the delivery of subsidies, support, or benefits that, charged to its budget from the Federal Expenditure Budget, to rural employers who do not comply with the social security provisions set forth in this Law.

Amended paragraph DOF 24-01-2024

Article added DOF 29-04-2005

Article 237-E .- Pregnant temporary farm workers during the time of effective rendering of services are entitled to the benefits corresponding to the Sickness and Maternity Insurance referred to in the Second and Third Sections of Chapter IV, of the Second Title of this Law, related to medical and hospital services.

Article added DOF 24-01-2024

Article 239-A . A domestic worker is a person who, in a remunerated manner, performs care, cleaning, assistance or any other activity inherent to the household within the framework of an employment relationship that does not provide the employer with a direct economic benefit, in any of the following modalities:

1. Whoever works for an employer and resides in the domicile where he/she carries out his/her activities;
2. Whoever works for a single employer and who does not reside in the domicile where he performs his activities, and
3. Whoever works for different employers and does not reside in the domicile of any of them.

Article added DOF 16-11-2022

Article 239-B . A person is not considered a domestic worker:

1. Whoever performs household work only occasionally or sporadically, and
2. Whoever renders services of cleaning, assistance, customer service and other similar services in hotels, nursing homes, restaurants, inns, bars, hospitals, sanatoriums, schools, boarding schools and other similar establishments.

Article added DOF 16-11-2022

Article 239-C . The person employing the domestic worker shall have the inherent obligations established by this Law and its regulations; additionally, he/she shall comply with the following:

1. Must register and enroll the domestic worker at the date of the beginning of the labor relationship, to safeguard her rights, for the days she works during the calendar month, as well as submit the documents and data requested by the Institute for such purpose;
2. Based on the information provided by the employer of the domestic worker, the Institute will calculate the proposed schedule for the determination of the corresponding employer contributions, distinguishing between the worker's and employer's contributions. The employer will not determine the employer contributions. The employer must withhold the worker's contribution corresponding to the domestic worker for her insurance and pay it together with the employer's contribution;
3. The employer of the domestic worker is obliged to pay the determined amounts of the employer's contributions on the printed forms or using the computer program authorized by the Institute;
4. The payment of the employer contributions corresponding to the month of the beginning of the labor relationship must be made in terms of the periodicity established in Article 39 of this Law;
5. The insurance and payment of the employer's contributions corresponding to the months subsequent to the month of the beginning of the labor relationship must be made in advance, with the periodicity chosen by the employer, whether it is a monthly, bimonthly, semiannual or annual period;
6. In the case of payment in advance, the insurance shall begin in the month immediately following the month of payment;
7. In the case of the month of the beginning of the labor relationship, coverage will be granted from the first day of insurance until the last day of the corresponding calendar month, as long as at least the amount of the employer contributions equivalent to the value of the minimum integrated base contribution salary of Mexico City is paid for the days included in the coverage. Otherwise, the domestic worker will be covered for the days reported by the employer(s), and

8. In case of advance payment, the insurance will be for the full month, as long as at least the amount of the employer's contributions equivalent to the value of the minimum integrated monthly contribution base salary of Mexico City is paid. Otherwise, the domestic worker will be covered for the days reported by the employer(s).

   For bimonthly, semiannual and annual periods, the employer must pay at least the amount of the employer's contributions equivalent to the value of the minimum integrated monthly contribution base salary of Mexico City, for each of the months covered by the chosen payment period.

Article added DOF 16-11-2022

Article 239-D . The insurance of domestic workers terminates when the labor relationship that gave rise to it is terminated, due to the failure to pay the employer contributions, at the end of the periods covered in advance or due to simulation of the labor relationship. The latter regardless of the corresponding sanctions. The employer of the domestic workers must present the notice of termination in the means provided by the Institute for such purpose.

Article added DOF 16-11-2022

Article 239-E . In the case of medical incapacities issued by the Institute, the employer must continue with the payment of employer contributions, as established in Section IV of Article 31 of this Law, for the period of incapacity established by the Institute.

Article added DOF 16-11-2022

Article 239-F . In the case of persons who perform care, cleaning, assistance or any other activity inherent to the home, on an occasional or sporadic basis, they may choose to be insured as independent workers, in terms of Section I of Article 13 of this Law.

Article added DOF 16-11-2022

Article 239-G. The factor for integrating the base contribution salary must consider the days of rest and vacations to which domestic workers are entitled, in terms of the provisions established in the Federal Labor Law. For these purposes, the Technical Council, based on said benefits, as well as on the provisions of Article 28 of this Law, will define by means of general rules the integration factor, with the purpose of monitoring and promoting the financial balance of all the insurance branches included in this Law.

Article added DOF 16-11-2022

Article added DOF 16-11-2022

Article 241. The subjects covered by the family health insurance are those indicated in Article 84 of this Law and shall be subject to the requirements indicated therein.

Reform DOF 12-20-2001: Repealed the then second paragraph of the article.

Article 242.- All subjects who voluntarily join the family health insurance, including the family members referred to in the preceding article and any additional family members shall pay annually the corresponding established contribution, classified by the age group to which they belong.

The Technical Board may annually determine the amount of the contributions to be applied, after conducting the pertinent actuarial analyses and studies, without detriment to the principle of social solidarity.

The State shall contribute in accordance with the provisions of Section III of Article 106 of this Law per family, regardless of the size of the family.

Article amended DOF 20-12-2001, 16-01-2014

Article 247. The higher conditions of the agreed benefits on which the agreements may be based are: increases in the amounts; reduction of the minimum age for their enjoyment; modification of the average base salary of the calculation and in general all those that result in coverage and benefits higher than the legal ones or in better conditions for their enjoyment.

The economic benefits referred to in this article will correspond to the occupational risk, disability and life insurance, as well as retirement, unemployment at advanced age and old age.

Article 250 A . The Institute, with the prior agreement of its Technical Council, may grant life insurance coverage and others, exclusively in favor of persons, groups or population groups with lower incomes, as determined by the Federal Government, as subjects of social solidarity with the insured amounts and conditions established by the latter.

Likewise, the Institute, with the prior agreement of its Technical Council, may use its infrastructure and services, at the request of the Federal Government, in support of programs to combat marginalization and poverty considered in the Federal Expenditure Budget. For the purposes of this article, the Federal Government will provide the Institute with the necessary financial resources in a timely manner, charged to the corresponding program and item, to cover the services entrusted to it.

Article added DOF 20-12-2001

Article added DOF 20-12-2001

Article 251. The Mexican Social Security Institute has the following powers and duties:

1. To administer the occupational risk, illness and maternity, disability and life, day care and social benefits, family health, additional and other insurances, as well as to provide the collective benefit services set forth in this Law;

   Reformed fraction DOF 20-12-2001

2. Satisfy the benefits established in this Law
3. Invest its funds in accordance with the provisions of this Law

4. In general, to carry out all kinds of legal acts necessary to fulfill its purposes, as well as those necessary for the administration of institutional finances;

   Reformed fraction DOF 20-12-2001

5. To acquire real and personal property for its own purposes;

6. Establish medical units, day care centers, pharmacies, funeral homes, as well as training, sports, cultural, vacation, social security centers for family welfare and other establishments for the fulfillment of its own purposes, without being subject to the conditions, except for sanitary conditions, established by the respective laws and regulations for private companies with similar activities;

   Reformed fraction DOF 20-12-2001

7. Organize its administrative units, in accordance with the authorized organizational structure;

   Reformed fraction DOF 20-12-2001

8. To issue guidelines of general observance for the application for administrative purposes of this Law;

   Reformed fraction DOF 20-12-2001

9. To disseminate knowledge and practices of social welfare and social security

10. Registering employers and other obligated parties, registering salaried workers and specifying their contribution base even without prior request of the interested parties and independent workers at their request, without this relieving the obligated parties from the responsibilities and penalties for infractions they may have incurred;

    Reformed fraction DOF 20-12-2001

11. To remove from the mandatory regime the employers, obligated parties and insured parties, once the Institute has verified the disappearance or non-existence of the event that gave rise to their insurance, even if the employer or obligated parties had omitted to file the respective notice of cancellation, without prejudice to the penalties provided for in this Law;

    Reformed fraction DOF 20-12-2001

12. Collect and collect insurance premiums for occupational risks, illness and maternity, disability and life, day care and social benefits, family and additional health, constituent capital, as well as their legal accessories, collect the Institute's other resources, and carry out programs for regularization of payment of premiums. Likewise, to collect and collect the contributions and their legal accessories of the retirement, unemployment at advanced age and old age insurance;

    Reformed fraction DOF 20-12-2001

13. Establish the procedures for enrollment, collection of dues and granting of benefits;

14. Determine the credits in favor of the Institute and the basis for the liquidation of quotas and surcharges, as well as their accessories and fix them in a liquid amount, collect them and collect them, in accordance with this Law and other applicable provisions

    The settlements of the retirement, unemployment at advanced age and old age insurance contributions may be issued and notified jointly with the settlements of the contributions and discounts corresponding to the National Housing Fund by the personnel of the Instituto del Fondo Nacional de la Vivienda para los Trabajadores, subject to a coordination agreement with the aforementioned Institute;

    In the case of persons who have voluntarily enrolled in the mandatory regime of this Law, within the calculation of the employer contributions, the calculation corresponding to the housing contributions will be made on the reported income;

    Paragraph added DOF 29-11-2023

15. Determine the existence, content and scope of the obligations not complied with by the employers and other obligated parties under the terms of this Law, applying, as the case may be, the data available to it or with the support of the facts known to it as a result of the exercise of its powers of verification as a tax authority or through the files or documents provided by other tax authorities;

    Reformed fraction DOF 20-12-2001

16. Ratify or rectify the class and risk premium of the companies for purposes of the coverage of occupational risk insurance quotas;

    Reformed fraction DOF 20-12-2001

17. Determine and make effective the amount of the constituent capitals under the terms of this Law;

18. Order and conduct home visits with the personnel designated for such purpose and require the exhibition of books and documents, in order to verify compliance with the obligations established in the Law and other applicable provisions;

    Reformed fraction DOF 20-12-2001

19. To order and carry out the corresponding investigations in the cases of employer substitution and joint and several liability provided for in this Law and in the Code, and to issue the respective rulings;

    Reformed fraction DOF 20-12-2001

20. To establish coordination with the agencies and entities of the Federal, State and Municipal Public Administrations, for the fulfillment of its objectives;

21. To review the opinions issued by public accountants on compliance with the provisions contained in this Law and its regulations, as well as to impose on such public accountants, as the case may be, the administrative sanctions established in the respective regulations;

    Reformed fraction DOF 20-12-2001

22. To make investments in companies and enterprises whose corporate purpose is complementary or related to that of the Institute itself;

    Reformed fraction DOF 20-12-2001

23. Enter into coordination agreements with the Federation, federal entities, municipalities and their respective public administrations, as well as collaboration agreements with the social and private sector, for the exchange of information related to the fulfillment of its objectives, under the terms set forth in this Law;

    Reformed fraction DOF 20-12-2001

24. To promote and foster research in health and social security, using it as a tool for the generation of new knowledge, for the improvement of the quality of care provided and for the education and training of personnel;

    Section added DOF 20-12-2001

25. Apply the administrative enforcement procedure for the collection of settlements that have not been paid in a timely manner, subject to the rules of the Code and other applicable provisions;

    Section added DOF 20-12-2001

26. To issue and notify by the personnel of the Institute, the certificates of determination of the contributions of the retirement insurance, unemployment at advanced age and old age, together with the settlements of the contributions and discounts corresponding to the national housing fund, prior coordination agreement with the Instituto del Fondo Nacional de la Vivienda para los Trabajadores, in magnetic, digital, electronic or any other type of devices, or in printed documents;

    Section added DOF 20-12-2001

27. To make effective the bonds granted in its favor to guarantee tax obligations of third parties, in which case the provisions of the Code shall apply exclusively;

    Section added DOF 20-12-2001

28. Rectify arithmetic errors, omissions or others appearing in the applications, notices or determination forms submitted by the employers, for which purpose it may require them to submit the appropriate documentation.

    Likewise, the Institute may require employers, jointly and severally liable parties or third parties related to them, without a home visit, to exhibit their accounting records at the offices of the Institute, in order to carry out its review, as well as to provide the data, other documents or reports that may be required;

    Section added DOF 20-12-2001

29. Authorize the registration of public accountants, in order to assess compliance with the provisions contained in this Law and verify that they comply with the requirements established for such purpose in the respective regulations;

    Section added DOF 20-12-2001

30. Approve the rules and bases to cancel debts owed to third parties and in favor of the Institute, when it is notoriously impossible or unaffordable to collect them. The cancellation of these credits does not release the debtor from its payment obligation;

    Section added DOF 20-12-2001

31. Enter into agreements with foreign entities or institutions for technical assistance, exchange of information related to the fulfillment of its objectives and the care of beneficiaries, under the principle of reciprocity, with the restrictions agreed upon in the agreements signed for such purpose, which shall invariably include a confidentiality and non-disclosure clause;

    Section added DOF 20-12-2001

Enter into cooperation and exchange agreements on preventive medicine, medical care, management and hospital care and rehabilitation of any level with other social security or health institutions of the federal, state or municipal public sectors or of the social sector;

Section added DOF 20-12-2001

32. Enter into agreements for the acknowledgment of debts and payment facilities, related to employer contributions, constitutive capital, restatement, surcharges and fines; approve the change of guarantee of such agreements, and the cancellation, in accordance with the applicable provisions, of tax credits in favor of the Institute and in charge of unlocated or insolvent employers in accordance with the amounts authorized by the Technical Council of the Institute;

    Section added DOF 20-12-2001

33. To process and, as the case may be, resolve the appeal of non-conformity referred to in Article 294 of this Law, as well as the appeals provided for in the Code, with respect to the administrative enforcement procedure;

    Section added DOF 20-12-2001

34. Declare the statute of limitations of the employer's obligation to pay the employer's contributions and the constituent capital, when requested by the employers and other obligated parties, under the terms of the Code;

    Section added DOF 20-12-2001

35. Provide services to those who are not its beneficiaries, for valuable consideration, in order to efficiently use its installed capacity and contribute to the financing of its operation and maintenance, provided that this does not represent a reduction in the quality and warmth of the service it must provide to its beneficiaries;

    Section added DOF 2002-12-20-2001. Amended DOF 23-04-2024

36. To promote the incorporation, use and exploitation of the Information and Communications Technologies in the rendering of services and the granting of insurance and benefits under its responsibility, for the benefit of its beneficiary and beneficiary population, and

    Fraction added DOF 23-04-2024

37. Any other powers granted by this Law, its regulations and any other applicable provision.

    Section added DOF 2002-12-20-2001. Repealed DOF 04-23-2024

Article 251 A . The Institute, in order to achieve greater efficiency in the administration of Social Security and in the handling of matters within its competence, shall have decentralized administrative operating bodies, as well as collegiate bodies made up in a tripartite manner by representatives of the labor, employer and government sectors, whose powers, dependencies and territorial scope shall be determined in the Internal Regulations of the Institute.

Article added DOF 20-12-2001

Article 252 . The federal and local authorities shall provide the assistance requested by the Institute for the better fulfillment of its functions.

The Institute shall have access to all kinds of statistical, census and fiscal material and, in general, to obtain from public offices any data or report deemed necessary, unless there is no legal prohibition.

Article 253. They constitute the patrimony of the Institute:

1. Movable and immovable property of any kind, with the exception of those resulting from adjudication or dation in payment of employer contributions, constituent capitals and accessories, as well as any other that is expressly assigned to the reserves that the Institute must constitute under the terms of this Law;
2. The rights of ownership and possession of movable and immovable property, whatever its legal nature may be, which by just title are in the possession of the Institute;
3. The rights of any nature that the Institute obtains or may obtain;
4. Donations, inheritances, legacies, awards, subsidies and transfers made in its favor in which the destination of the corresponding assets or rights is not pre-established;
5. Interest, dividends, realization of assets, rents, income, yields, profits, fruits and products of any kind, generated by the assets and rights related to its equity, and

6. The real estate that the federal entities, municipalities and decentralized agencies assign to the Institute for the purpose of paying employer contributions, either to settle debts or to cover obligations to which they are liable.

   For purposes of the preceding paragraph, the Institute shall have the power to accept or not accept the real estate, observing the following:

   1. They may not be accepted as payment of the contributions corresponding to retirement, advanced age severance and old age insurance;
   2. The assets must be functional to comply with the powers and duties of the Institute, as provided in this Law;
   3. The real estate must be free of liens, encumbrances, legal proceedings or contingencies of any nature;
   4. The value of the real estate will be determined by the Instituto de Administración y Avalúos de Bienes Nacionales, and based on this appraisal, the competent area of the Institute will determine the balances of the credits or the amount of the obligations to be covered; and

   5. The Technical Council of the Institute shall issue the guidelines that establish the basis for the incorporation of the assets referred to in this section into the institutional patrimony.

      In no case shall the dation in payment or payment in kind give right to the return of any amount in cash, in favor of the public entity.

      In the event that there is a balance in favor of the public entity, once the amount of the debts has been settled and the award expenses have been deducted, this balance may be applied, considering the maximum award percentage, to future amounts, without being used to cover the contributions or debts derived from the contributions corresponding to retirement insurance, severance at advanced age and old age; and

      Section added DOF 21-05-2024

7. Any other income established by laws and regulations.

   Section amended and reworded DOF 21-05-2024

All real estate that is part of the assets of the Institute will be destined to the national public service of the Social Security referred to in Article 4 of this Law and will have the character of assets of the public domain of the Federation.

Article amended DOF 20-12-2001

Article 257 . The superior bodies of the Institute are:

1. The General Assembly;
2. The Technical Council;
3. The Surveillance Commission, and
4. The General Management.

Article 258 . The supreme authority of the Institute is the General Assembly, composed of thirty members who shall be appointed as follows:

1. Ten for the Federal Executive;
2. Ten for the employers' organizations, and
3. Ten for the workers' organizations.

Said members shall serve for a term of six years, and may be reelected.

Article 262 . The sufficiency of the resources for each and every one of the occupational risk, sickness and maternity, disability and life insurance and childcare and social benefits as well as family and additional health insurance, must be examined annually when making the financial and actuarial report.

If the actuarial balance shows a surplus, such surplus shall be used to constitute an emergency fund up to a maximum limit of fifty percent of the respective annual income. After reaching this limit, the surplus shall be applied, according to the decision of the General Assembly in this respect, to improve the benefits of the insurances that are in this case.

Article 263 . The Technical Council is the governing body, legal representative and administrator of the Institute and shall be composed of up to twelve members, four of which shall correspond to the representatives of the employers in the General Assembly, four to the representatives of the workers and four to the representatives of the State, with their respective alternates, and the Federal Executive, when he deems it convenient, may reduce by half the State representation.

The Secretary of Finance and Public Credit, the Secretary of Health, the Secretary of Labor and Social Welfare and the General Director will be State Counselors, without prejudice to the provisions of the preceding paragraph. The General Director shall always preside over the Technical Council.

Amended paragraph DOF 20-12-2001

When the Technical Council is to be renewed, the representative sectors of the State, the employers and the workers shall propose proprietary and alternate members for the positions of Councilor. The appointment shall be made by the General Assembly under the terms set forth in the respective regulations.

The term of office of the Board Members thus elected shall be six years, and they may be reelected.

The appointment shall be revocable, provided that it is requested by the members of the sector that proposed the Director in question or for justified reasons. In any case, the final decision shall be made by the General Assembly, which shall resolve the appropriate matter in accordance with the terms of the by-laws, through proceedings in which the Board Member whose removal is requested shall be heard in his defense.

The Board Members representing the employers and the workers will receive the emoluments and benefits determined by the Board Members representing the State, as proposed by the Director General, without this granting them the status of workers, insured persons, beneficiaries of the Institute or any other additional right.

Paragraph added DOF 20-12-2001

The members of the Technical Council must abstain from promoting or participating directly or indirectly, in their personal capacity, in the attention of requests, proposals or appeals that employers or beneficiaries submit to the Institute. The Technical Council will issue guidelines on which its members may exercise representation and management functions before the Institute, with respect to the sectors and organizations they represent, in order to avoid conflicts of interest.

Paragraph added DOF 20-12-2001

The provisions of the two preceding paragraphs shall also apply to the members of the Oversight Committee referred to in Chapter IV of Title Four of this Law, as well as to any tripartite body already established or to be established in the future at the Institute.

Paragraph added DOF 20-12-2001

Article 264 . The Technical Council shall have the following attributions;

1. Decide on the investment of the reserves and other resources of the Institute, subject to the provisions of this Law and its regulations, except for those coming from the retirement, unemployment at advanced age and old age insurance
2. To oversee and promote the financial equilibrium of all insurance branches included in this Law
3. Resolve on the operations of the Institute, except for those which, due to their importance, require the express agreement of the General Assembly, in accordance with the provisions of this Law and the regulations

4. Approve the basic organizational structure of the Institute, in order to propose it to the Federal Executive for its consideration in its Internal Regulations, as well as the corresponding occupational structure and its modifications, salary levels, benefits and performance incentives for the workers in positions of trust referred to in Article 256 of this Law, which shall be determined in accordance with the tabulators issued for such purpose by the Ministry of Finance and Public Credit, without prejudice to the rights of the rank and file workers, in accordance with a job evaluation system;

   Reformed fraction DOF 20-12-2001

5. To call an ordinary or extraordinary General Assembly;
6. Discuss and approve the draft budget of income and expenditures of the Institute submitted for its consideration by the Director General, as well as authorize adjustments to the approved budget;

   Reformed fraction DOF 20-12-2001

7. To authorize the execution of agreements related to the payment of quotas, being able to delegate this power to the administrative units indicated in the Internal Regulations, as well as to issue general provisions on the reversion of quotas for the insurance policies expressly established in this Law and those corresponding to the indirect rendering of services;

   Reformed fraction DOF 20-12-2001

8. To grant, reject and modify the pensions, which in accordance with this Law it is incumbent upon the Institute to grant, being able to delegate these powers to the competent agencies

9. Appoint and remove the employees of trust referred to in Article 256 of this Law, who occupy the hierarchical level immediately below the General Director of the Institute;

   Reformed fraction DOF 20-12-2001

10. Approve the bases for the execution of agreements for voluntary incorporation to the mandatory regime;

11. Discuss and, if applicable, approve the program of activities submitted for its consideration by the Director General;

    Reformed fraction DOF 20-12-2001

12. Approve the bases for the establishment, organization and operation of a system for the professionalization and development of workers classified as "A" employees in the collective bargaining agreement.

    Likewise, to establish, if applicable, by mutual agreement with the workers' union, the terms under which this system may be extended to workers classified as "B" rank and file and trust workers in the collective bargaining agreement and to the application of the regulations derived therefrom.

    Reformed fraction DOF 20-12-2001

13. To grant to beneficiaries of the system, in exceptional cases and after the respective socioeconomic study, the enjoyment of medical and economic benefits provided for by this Law, when any legal requirement is not fully complied with and the granting of the benefit is evidently fair or equitable;

14. To hear and resolve, ex officio or at the request of the Director General, those matters which, due to their importance, transcendence or special characteristics, so warrant;

    Reformed fraction DOF 20-12-2001

15. To establish the insurance and contribution conditions for those groups of workers who, due to their professional activities, the nature of their work, their special conditions of time and place or the nature of their productive processes, do not meet the general requirements of the mandatory regime of this Law, in order to make them equitable, respecting the elements of subject, object, base, quota, financing premiums and time of payment of the quotas, in accordance with the provisions of this Law;

    Reformed fraction DOF 20-12-2001

16. To issue the bases for extending, up to twenty-five years of age, the rights to the benefits in kind of the sickness and maternity insurance, which will be granted within the national territory, to the children of insured Mexican workers who work abroad and who are studying outside the country in educational institutions comparable to those of the national educational system, and

    Reformed fraction DOF 20-12-2001

17. The others indicated in this Law and its regulations.

    Reformed fraction DOF 20-12-2001

18. (Repealed)

    Section repealed DOF 20-12-2001

19. (Repealed)

    Section repealed DOF 20-12-2001

Article 265 . The General Meeting shall appoint the Surveillance Committee, which shall be composed of six members. To form this Committee, each of the representative sectors constituting the Assembly shall propose two proprietary members and two alternates, who shall hold office for six years, and may be reelected. The election may be made by persons who are not members of said sectors. At least one of the members appointed by the Federal Executive must be assigned to the Ministry of Public Administration. The Federal Executive, when it deems it convenient, may reduce by half the state representation. The appointment shall be revocable, provided that it is requested by the members of the sector that had proposed the representative in question or because there are justified causes for it. In any case, the definitive decision shall be made by the General Assembly, which shall resolve the matter by means of a procedure in which the member whose removal is requested shall be heard in defense, in terms of the provisions of the Internal Regulations.

Article amended DOF 20-12-2001, 09-04-2012

Article 266 . The Surveillance Committee shall have the following powers:

1. Oversee that investments are made in accordance with the provisions of this Law and its regulations;

2. To audit the balance sheets and the financial and actuarial report referred to in Article 261 of this Law, as well as to verify the appraisals of the assets subject to the Institute's operations;

   Reformed fraction DOF 20-12-2001

3. To suggest to the General Assembly, the Technical Council and the National Commission of the Retirement Savings System, as the case may be, the measures it deems convenient to improve the operation of the insurance covered by this Law

4. Submit to the General Assembly a report on the activities report and the financial statements submitted by the Technical Council, for which purpose these shall be made known to it in due time;

   Reformed fraction DOF 20-12-2001

5. In serious cases and under its responsibility, to call an Extraordinary General Assembly, and

   Reformed fraction DOF 20-12-2001

6. Any others indicated in the provisions of this Law and its regulations.

   Section added DOF 20-12-2001

Article 267 .- The Director General shall be appointed by the President of the Republic and must be Mexican by birth and not acquire another nationality and be in full enjoyment and exercise of his civil and political rights.

Article amended DOF 23-01-1998

Article 268 . The Director General shall have the following attributions:

1. To preside over the sessions of the General Assembly and the Technical Council
2. Execute the resolutions of the Council itself

3. Legally represent the Institute, with all the powers that correspond to general agents for litigation and collections, acts of administration and domain, and the special powers that require a special clause in accordance with the Federal Civil Code or any other law, as well as before all authorities.

   Reformed fraction DOF 20-12-2001

4. To present annually to the Council the activities report, as well as the work program and the income and expense budget for the following period
5. To present annually to the Technical Council the balance sheet and the statement of income and expenses
6. Submit annually to the Technical Council the financial and actuarial report

7. Propose to the Board the appointment or dismissal of the employees in positions of trust mentioned in Section IX of Article 264;

   Reformed fraction DOF 20-12-2001

8. Appoint and remove the employees in positions of trust referred to in Article 256 of this Law, which power may be delegated under the terms established in the Internal Regulations of the Institute, which shall indicate the administrative units of the same and their geographic circumscription.

   In any case, the workers in positions of trust referred to in this and the preceding section must have the capacity, experience and other requirements determined in the Statute referred to in Article 286 I of this Law;

   Reformed fraction DOF 20-12-2001

9. To carry out all kinds of legal acts necessary to fulfill the purposes of the Institute, and
10. Exercise the functions in budgetary matters, in accordance with the provisions of this Law;

    Reformed fraction DOF 20-12-2001

11. Submit annually to the Federal Executive and to the Congress of the Union the reports referred to in the present Law, and

    Section added DOF 20-12-2001

12. Any others indicated in the provisions of this Law and its regulations.

    Section added DOF 20-12-2001

Article 268 A. The Director General shall be assisted in the performance of his duties by the public servants in command, base and trust personnel established in the Internal Regulations of the Institute, which, at the proposal of the Technical Council, shall be issued by the Federal Executive considering the provisions of the collective bargaining agreement signed with the workers of the Institute.

Article added DOF 20-12-2001

Article 270 . The Institute, as an autonomous fiscal agency, shall be subject to the regime established in this Law, exercising the powers conferred by the same in an executive manner, with managerial and technical autonomy, in the areas regulated by this Law.

Article amended DOF 20-12-2001

Article 271 . With respect to the collection and administration of the contributions corresponding to it under this Law, which in accordance with the provisions of Article 2o, II and penultimate paragraph of the Code, are in the nature of social security contributions, the Institute will collect, administer and, if applicable, determine and liquidate the contributions corresponding to the insurance established in this Law, applying for such purpose the provisions of the same and, as not expressly provided therein, the Code, having with respect to both provisions all the powers that such Code confers on the tax authorities provided therein, which will be exercised in an executive manner by the Institute, without the participation of any other tax authority.

Article amended DOF 20-12-2001

Article 272 . The Institute, in matters of budget, expenditure and accounting, shall be governed by the provisions of this Law and, in all matters not expressly provided for therein, shall apply the Federal Budget and Fiscal Responsibility Law and the provisions derived therefrom.

Amended paragraph DOF 16-01-2009

The Institute's public servants will be liable for any damage or loss estimable in money that affects the federal public treasury or the assets of the Institute itself, for which reason the Federal Law of Budget and Fiscal Responsibility will be applicable, without prejudice to the provisions of the Federal Law of Administrative Responsibilities of Public Servants and the Law of Superior Auditing of the Federation.

Amended paragraph DOF 16-01-2009

The Ministry of Public Administration, by itself or through the internal control body of the Institute itself, will be responsible for exercising the control, inspection, surveillance and evaluation powers conferred by the Organic Law of the Federal Public Administration and other applicable legal provisions, without prejudice to the powers of the Federal Superior Audit Office.

Amended paragraph DOF 16-01-2009

The Institute must formulate its proposed budget and exercise the corresponding expenditure with strict respect for the criteria of discipline, productivity, savings, austerity, effectiveness, efficiency, budgetary deregulation and transparency, and must apply them in such a way that it does not affect the care provided to its beneficiaries. The Institute will plan its expenditure in such a way as to contribute to maintain its financial stability and balance in a medium and long term horizon, in accordance with the demographic and epidemiological trends of its beneficiary population.

The quotas, contributions and contributions to be paid by the Federal Government to the Institute pursuant to the provisions of this Law will be expressly stated, indicating their specific destination, in an individual section of the corresponding decree of the Federal Expenditure Budget approved annually, making reference to the total expenditure expected to be made by the Institute itself, indicating, if applicable, the rules for their control and follow-up.

Article amended DOF 20-12-2001

Article 273 . The Institute shall submit to the Federal Executive, through the Ministry of Finance and Public Credit, and to the Congress of the Union, no later than June 30 of each year, a report audited by an external auditor, including at least the following elements:

1. The financial situation of each of the insurance policies offered by the Institute, and the actuarial status of its reserves, providing elements of judgment to evaluate whether the corresponding premiums are sufficient to cover the current and future expenses of the benefits derived from each insurance policy;
2. The possible risks, contingencies and liabilities being taken on each insurance and the financial capacity of the Institute to respond to them based on its income and available reserves;
3. Estimates on the possible modifications to the employer's contributions and to the quotas, contributions and contributions of the Federal Government of each insurance, if any, that may be foreseen, in order to maintain the financial viability of the Institute, and the estimated dates on which such modifications may be required, and
4. The status of its total labor liabilities and any other liabilities that commit its expenditure for more than one fiscal year.

For the above purposes, the Institute will report on the demographic trends of its beneficiary population, including changes in life expectancy, trends in the epidemiological transition, and changes in the gender composition of the labor force, among other factors. The risk estimate, in turn, will consider factors derived from the economic cycle, the evolution of the cost of treatments and medications, labor costs, the macroeconomic situation, as well as any other factor affecting the Institute's ability to meet its commitments. In all cases, the estimate of labor and other risks and liabilities will be formulated in strict compliance with accounting principles generally accepted by the Mexican accounting profession.

The report should also contain information on the state of the Institute's facilities and equipment, particularly those dedicated to medical care, in order to be able to satisfactorily serve its beneficiaries.

Article amended DOF 20-12-2001

Article 274 . No later than forty-five calendar days before, in accordance with the provisions of the Political Constitution of the United Mexican States, the Federal Executive submits to the Congress of the Union the initiative of the Income Law and the Draft Budget of Expenditures of the Federation, the Director General shall propose to the Technical Council the preliminary draft budget of income and expenditures of the Institute, including operating expenses and cash flow, taking into account the economic and budgetary policy criteria of the Federal Government, as well as the evolution of its income and guidelines for the control of expenditures.

The Technical Council will discuss and approve said preliminary draft budget, which will be submitted to the Ministry of Finance and Public Credit for the purposes of Article 276 of this Law.

The Technical Council will approve, at any stage of the fiscal year, the adjustments required by the Institute's budget to better comply with the objectives of its programs, provided that such adjustments do not affect the reserves referred to in Sections III and IV of Article 280 of this Law, approved in the Decree of the Budget of Expenditures of the Federation, nor the stability of the Institute and that, respecting the programs related to the timely and sufficient provision of its services for the benefit of its beneficiaries, they are consistent, in the judgment of the Board itself, with the income-expenditure policies of the Federal Public Administration.

Article amended DOF 20-12-2001

Article 275 . The preliminary draft budget referred to in the preceding article shall contain a report from the General Directorate that includes, at least, the following information:

1. The analysis of the impact that the proposed budget will have for the Institute in a medium-term horizon;
2. The budget allocated by programs, indicating priorities, objectives, goals and units responsible for their exercise, as well as their estimated valuation by program, and the evaluation mechanisms and indicators for each program;
3. The express indication of the programs that, due to their nature and characteristics, must cover more than one annual budget period, subject for the purposes of execution and payment to the budgetary availability of subsequent years;
4. Total and cash flow revenues, expressed on an accrual basis, per:
   1. Employee and employer contributions;
   2. Fees, contributions and contributions from the Federal Government, and
   3. Financial income from reserves, and any others.
5. Total expenses and expenses by expense caption, expressed as accrued and in cash flow;
6. Operating surpluses;
7. Cash flow surpluses, before and after the creation, increase or decrease of the Fund for the Fulfillment of Legal and Contractual Labor Obligations referred to in Article 286 K;
8. Amounts by which it is proposed to increase, decrease or, if applicable, reconstitute the Financial and Actuarial Reserves and the General Financial and Actuarial Reserve referred to in sections III and IV of Article 280 of this Law, for each insurance policy and the Fund for Compliance with Legal and Contractual Labor Obligations, as well as the financial investment support to be given to the same;
9. Total insurance income and expenses on an accrual basis;
10. Total staff positions to be filled, including permanent and temporary positions, as well as the contracting of professional services for fees;
11. Total labor liabilities, detailing legal and contractual obligations, and the effect that the creation of new personnel positions would have on such liabilities during the fiscal year and over a period of twenty-eight years;
12. Physical Investment Program, indicating the main works and equipment. The Program must be specified by insurance and must include an analysis of the liabilities and operating expenses of all types generated by the investment;
13. Budget of the Institute's central administrative areas, and
14. Any others deemed appropriate by the Technical Council.

Article amended DOF 20-12-2001

Article 276 . The preliminary draft budget approved by the Technical Council shall be submitted to the Ministry of Finance and Public Credit no later than twenty-five calendar days before, in accordance with the provisions of the Political Constitution of the United Mexican States, the Federal Executive submits to the Congress of the Union the Revenue Law initiative and the Federal Expenditure Budget Project, so that the latter may analyze it and, if applicable, modify and approve the amounts referred to in sections IV, paragraph b) and VIII of Article 275 of this Law. For such purposes, the Secretary shall take into account the report referred to in Article 273 of the Law. Once these amounts have been approved, the Institute will make the related modifications so that they may be timely submitted to the Secretariat for its inclusion in the Income Law Initiative and in the Federal Expenditure Budget Bill to be submitted for approval by the Congress of the Union.

The Chamber of Deputies, when approving the Federal Expenditure Budget, shall consider the report and the report referred to in Articles 273 and 275 of this Law.

Article amended DOF 20-12-2001

Article 277. The Institute shall exercise its budget by evaluating the income received and the expenditure incurred in quarterly periods, in order to verify its development in accordance with the budget.

When in any of the quarters of the year, the income obtained is higher than expected, or the expenses are lower than planned, and there is a reasonably well-founded expectation, in the opinion of the Technical Council, that the surplus generated in that period will have a net positive effect at the close of the annual fiscal year, and the quarterly goal of increasing or reconstituting the reserves and funds in the terms of Article 276 of this Law has been met, the Institute may use them to apply them in the following quarter to strengthen its Operating Reserve for Contingencies and Financing, and with the express agreement of the Technical Council, to its priority programs.

Article amended DOF 20-12-2001

Article 277 A . In the event that, in the remainder of the fiscal year, it is foreseen that the resources considered surplus in a previous quarter will be required to finance the operation of the Institute according to the approved budget or that it is foreseen that it will not be possible to comply with the goals of reserves and funds indicated in the Federal Expenditure Budget, in accordance with the provisions of Article 276 of this Law, the Technical Council shall proceed to generate adjustments to reduce expenses in the least necessary items, seeking at all times not to compromise the adequate rendering of its services.

If the downward adjustments indicated above are not sufficient, the Institute may draw on the Operating Reserve for Contingencies and Financing referred to in Article 280 of this Law, with the prior authorization of the Technical Council, and must inform the Federal Executive, through the Ministry of Finance and Public Credit, of such adjustments.

If having made use of the Reserve indicated in the preceding paragraph, the adjustment to the expenditure budget necessary to comply with the established reserve and fund goals significantly affects the Institute's operating programs, the Institute may, with the prior authorization of the Federal Executive, through the Ministry of Finance and Public Credit, decrease the amounts of reserves or funds to be increased.

The Civil Service Secretariat will oversee the strict and timely compliance with this provision.

Amended paragraph DOF 16-01-2009

Article added DOF 20-12-2001

Article 277 B . The Institute is not authorized to incur financial liabilities to pay the benefits corresponding to the insurances established by this Law.

In order to cover its operations, it may only incur liabilities derived from letters of credit or foreign exchange hedges with terms of less than one year without revolving terms, to be used to settle commitments with suppliers of inputs, without prejudice to similar commitments previously authorized by the Ministry of Finance and Public Credit.

The Ministry of Finance and Public Credit will authorize the maximum annual amount for contracting the transactions referred to in the preceding paragraph. To this effect, the Institute will send to the Congress of the Union and the Federal Executive, through the aforementioned Agency, in the month of January of each year, a report of the characteristics, terms and conditions under which it will carry out such financial operations.

Article added DOF 20-12-2001

Article 277 C . The Institute shall not be obliged to concentrate its income in the Treasury of the Federation, with the exception of the remainder of subsidies and transfers from social solidarity programs and others financed directly by the Federal Government.

If at the end of the fiscal year there is a balance from revenues in excess of those budgeted, the Institute will transfer them to the Operating Reserve for Contingencies and Financing provided for in Article 280, Section II of this Law, and they may, in exceptional cases, be used for its priority investment programs in subsequent fiscal years.

The Institute will manage and disburse its resources through its competent administrative units. With respect to the subsidies and transfers established in the Expenditure Budget for the operation of the programs entrusted to it by the Federal Government, it will receive them from the Treasury of the Federation, and must also manage and administer them through its competent administrative units, subjecting itself, in the case of the latter, to the respective controls and reports in accordance with the applicable legislation.

Article added DOF 20-12-2001

Article 277 D . The Technical Council, subject to budgetary provisions, shall approve the salaries and benefits of the workers in positions of trust referred to in Article 256 of this Law, and the contracting of professional services on a fee basis, which are strictly necessary, in accordance with the bases of mandatory observance issued by the same.

The salaries referred to in the preceding paragraph will be determined considering the tabulators issued by the Ministry of Finance and Public Credit for the agencies and entities of the federal public sector and the prevailing market conditions, in accordance with a job evaluation system. The adjustments must be consistent with the guidelines issued by the Federal Government, for which purpose the Institute will request the opinion of the Ministry of Finance and Public Credit.

The Director General of the Institute may not receive a salary higher than that of a Secretary of the Office in the Centralized Federal Public Administration.

The Technical Council may only create, substitute or contract positions subject to criteria of productivity, efficiency and quality of service, as well as to the increase in collection, provided it has the resources approved in its respective budget for such creation, substitution or contracting of positions, and those indispensable to cover the annual cost of their repercussions. Notwithstanding the foregoing, in order to create, substitute or contract positions, the necessary resources to cover the future costs derived from the Retirement and Pension System must be deposited in the Fund referred to in Article 286 K of this Law, so that it is fully funded at all times.

Amended paragraph DOF 11-08-2004

The Institute is required to publish in the Official Gazette of the Federation, no later than June 30 of the corresponding fiscal year, the analytical report of all positions and positions, including temporary, substitute, resident and analogous positions; salaries, benefits and incentives of all types of its public servants, grouped by level, grade and command group, and the changes authorized to its organizational structure by the Technical Council, as well as the number, characteristics and total remuneration of the hiring of professional services on a fee basis.

Article added DOF 20-12-2001

Article 277 E . Without prejudice to the provisions of the Federal Budget and Fiscal Responsibility Law, the income and expenses of each insurance policy shall be recorded separately in the accounts. The common indirect expenses shall be subject to the general rules for the distribution of costs, the chart of accounts and the manual for accounting and the exercise of expenses issued for such purpose by the Technical Council upon proposal of the Director General, who must have the prior opinion of the Ministry of Finance and Public Credit.

Amended paragraph DOF 16-01-2009

The chart of accounts and the accounting and expenditure manual shall be based on the equivalents established by the competent authorities for the entities of the federal public administration, adapting them to the characteristics and needs of the Institute.

The resources of each line of insurance referred to in this Law may only be used to cover the benefits and payment of benefits and the constitution of reserves corresponding to each one of them.

Article added DOF 20-12-2001

Article 277 F . In duly justified cases, the Technical Board may authorize the Institute to enter into multi-year contracts for public works, acquisitions, leases or services during the fiscal year, provided that:

1. Justify that its execution represents economic advantages or that its terms or conditions are more favorable, considering, if applicable, the validity of the patents of the goods to be acquired;
2. Justify the term of the contract and that it will not negatively affect economic competition in the sector in question;
3. Identify the corresponding current or investment expense, and
4. Breakdown of expenses at year-end prices for the corresponding fiscal year, as well as for subsequent fiscal years.

The Ministry of Finance and Public Credit must be previously informed of such contracts. The Institute may not enter into new contracts of this type if, in the reasoned and well-founded opinion of such agency, the Institute's income is not sufficient in subsequent fiscal years to cover the related commitments.

Multi-year contracts shall be formalized by the public servants established in its Internal Regulations.

In the case of those contracts whose performance generates a payment obligation for the Institute equal to or greater than 190,150 times the general minimum wage in force for the Federal District in any of its years of validity, these must be subscribed, in a non-delegable manner, by the General Director of the Institute.

The Institute shall inform the Ministry of Public Administration of the execution of the contracts referred to in this article, within 30 days after their formalization.

Article added DOF 20-12-2001. Amended DOF 16-01-2009.

Article 277 G . The Institute shall apply the Public Works and Related Services Law and the Public Sector Procurement, Leasing and Services Law, under the same terms and conditions as the other entities of the Federal Public Parastatal Administration.

In the preliminary draft budget referred to in Articles 274 and 275 of this Law, the Technical Council will propose to the Chamber of Deputies, through the Federal Executive, the manner in which the rules of discipline and austerity, if any, contained in the Federal Expenditure Budget Decree, will be applied to the Institute in order not to affect the public service it is obliged to provide to its beneficiaries, for the purposes of such Chamber to decide accordingly and to be considered in the rules for the control and monitoring of the public service it is obliged to provide to its beneficiaries, shall be applied to the Institute so that they do not affect the public service that it is obliged to provide to its beneficiaries, for the purpose that such House may resolve as appropriate and be considered in the rules for the control and monitoring of the expenditure of the Institute itself, in the individual section of such Decree, referred to in the last paragraph of Article 272 of this Law.

The foregoing shall not affect the goals for the constitution or increase of reserves that the Chamber of Deputies establishes annually for the Institute in accordance with this Law.

Article added DOF 20-12-2001

SECTION ONE
GENERAL

SECOND SECTION
OF INSURANCE RESERVES

THIRD SECTION
OF THE ANNUAL PROGRAM OF ADMINISTRATION AND CONSTITUTION OF RESERVES

Section added DOF 20-12-2001

SECTION FOUR
OF THE INVESTMENT OF THE RESERVES AND THEIR USE FOR THE OPERATION

Section added DOF 20-12-2001

Article added DOF 20-12-2001

Article 286 G. In order to have a permanent body of professionals, qualified and specialized in the activities and functions that correspond to them, as well as to guarantee the adequate provision and improvement of services for the benefit of the beneficiaries and society in general, the Institute shall establish the policies and carry out the necessary actions to establish a system for the professionalization and development of the workers in positions of trust referred to in the preceding article.

This system shall include the processes of recruitment, selection, hiring, compensation, personnel development, including training, performance evaluation, promotion and separation from service. The personnel referred to in this Chapter may be subject to incentives based on their performance under the terms authorized by the Technical Council, which shall be subject to the limits established annually in the Federal Expenditure Budget.

Article added DOF 20-12-2001

Article 286 H . The appointments of the personnel referred to in this Chapter, corresponding to the two hierarchical levels below the Director General and those who represent the Institute in the territorial circumscription established in the respective regulations, shall be made to persons who meet the following requirements:

1. Be of recognized honorability and moral quality;
2. Meet the necessary profile to occupy the position, and
3. Have three years of professional or technical experience in matters related to the position for which they are proposed or have served for at least five years in high-level decision-making positions.

The Technical Council and the Director General of the Institute shall be responsible for the application and observance of the provisions of this Article.

Article added DOF 20-12-2001

Article 286 I. The Institute shall form its organizational and occupational structure in accordance with the needs of the service. Likewise, it will design and establish the compensation system that will serve as the basis for determining the payment of remuneration, benefits and incentives in favor of the workers in positions of trust referred to in Article 256 of this Law, in order to maintain their competitiveness in the labor market.

The specific regime, processes and other characteristics of the personnel professionalization and development system referred to in this Chapter shall be established in the Bylaws approved for such purpose by the Technical Council.

Article added DOF 20-12-2001

Article 286 J . The professionalization and development system included in the Statute referred to in the preceding article shall be governed by the following principles:

1. Merit and equal opportunity for admission and promotion in the service, based on general and/or Institute experience, performance, aptitudes, knowledge and capacity;
2. Specialization and professionalization for the performance of the functions and activities assigned to each position;
3. Remuneration and benefits linked to productivity, in accordance with the labor market, which are sufficient to ensure that the Institute hires and retains the best public servants and workers;
4. Training and integral development related to the substantive activities of the Institute and linked to the improvement of the services provided, in order to guarantee the efficiency in the provision of services, and
5. Integrity, responsibility and proper conduct of these personnel.

Article added DOF 20-12-2001

Article 286 K . The Institute will administer and manage, in accordance with the guidelines issued for such purpose by the Technical Council, a fund to be called Fund for the Fulfillment of Labor Obligations of a Legal or Contractual Nature, for the purpose of having the necessary resources available at the time of retirement of its workers. To this effect, the Technical Council will approve the rules of said Fund at the proposal of the Director General, who must previously hear the opinion of the Ministry of Finance and Public Credit. The management of the Fund must take into consideration the policies and guidelines applied by the Federal Public Administration in this matter.

Said Fund must be recorded separately in the accounts of the Institute, establishing within it a special account for the Retirement and Pension System of the workers of the Institute. The resources allocated to said Fund and special account may only be used for the purposes set forth in this article.

The Institute, in its capacity as employer, may not allocate to this Fund, for the financing of the special account of the Retirement and Pension System, resources from the contributions payable by employers and workers established in the Social Security Law. Neither may it allocate resources for such purpose, from the contributions, fees and dues, which in accordance with the Social Security Law, are the responsibility of the Federal Government; nor from the Reserves referred to in Article 280 of this Law or from the financial products obtained therefrom.

Article added DOF 12-20-2001. Amended DOF 11-08-2004

Article 286 L . The Institute, in order to achieve the best application of the powers contained in this Law, as well as the powers conferred on it by other laws or regulations, will receive the promotions or requests that individuals submit in writing, without prejudice to the fact that such documents may be submitted through electronic, magnetic, digital, optical, magneto-optical or any other means of communication, for which purpose they will use the corresponding means of identification.

The use of such means of communication shall be optional for any interested party, but at the time of making use of them in a promotion, the presentation of any type of document related to such promotion must continue in this manner.

The documents submitted by the means referred to in this Chapter shall produce the same legal effects as documents signed by handwriting and, consequently, shall have the same evidentiary value that the applicable provisions grant to them.

Likewise, the personal identification code corresponding to the records made in the clinical file, which is indicated in Article 111 A of this Law, will produce the same legal effects referred to in the preceding paragraph. In these cases, the Institute, upon receiving a promotion or request, will consider the identity or existence of the promoter and, if applicable, the powers of its representative, as long as the documentation required for this purpose corresponds to that submitted by the individual to obtain its electronic signature certificate, and will therefore refrain, if applicable, from requesting such documentation as a requirement in the administrative proceeding in question.

Article added DOF 20-12-2001

Article 286 M . The Institute may issue notices, summons, subpoenas; require or request reports or documentation, as well as issue resolutions through electronic means of communication, provided that the individuals previously and expressly state their agreement to receive the actions mentioned in this provision, with respect to each promotion or request they make.

Article added DOF 20-12-2001

Article 286 N . When the documents are submitted through the means of communication referred to in this Chapter, are used for the payment of employer contributions, or other procedures related thereto, they shall be governed by what is established in the Code with respect to this type of documents.

Article added DOF 20-12-2001

Article 287 . The fees, the constitutive capital, their updating and surcharges, the fines imposed under the terms of this Law, the expenses incurred by the Institute for improper registrations and those it has the right to demand from non-entitled persons, have the character of tax credit.

Article amended DOF 20-12-2001

Article 288 . In cases of bankruptcy or other proceedings, in which the priority of credits is disputed, those of the Institute shall be preferential to any other.

Article amended DOF 20-12-2001

Article 289 . In the case referred to in the preceding article, the credits of the Institute shall be collected only after the credits for food, wages and salaries accrued in the last year or indemnities to workers, which shall enjoy preference in accordance with the Federal Labor Law.

Article amended DOF 20-12-2001

Article 290 . For the purposes of payment of the credits referred to in Article 287 of this Law, it is considered that there is substitution of employer when:

1. There is a transfer, by any title, between the replaced employer and the substitute employer, of the essential assets related to the operation, with the intention of continuing it. The intention to continue the operation shall be presumed in all cases, and
2. In cases in which the partners or shareholders of the substituted employer are, for the most part, the same as those of the substitute employer and it is the same line of business.

In the event of substitution of an employer, the substituted employer will be jointly and severally liable with the new employer for the obligations derived from this Law, arising prior to the date on which the Institute is notified in writing of the substitution, for a period of up to six months, after which time all liabilities will be attributable to the new employer.

The Institute must, upon receiving the notice of substitution, notify the substitute employer of the obligations it acquires in accordance with the preceding paragraph. Likewise, it must, within a period of six months, notify the new employer of the substituted employer's debt status.

When the workers of a company receive the assets of the company in payment of benefits of a contractual nature by judicial resolution, in terms of the provisions of the Federal Labor Law, and are directly in charge of its operation, it will not be considered as employer substitution for the purposes of this Law.

SECTION ONE
ADMINISTRATIVE ENFORCEMENT PROCEDURE

Section added DOF 20-12-2001

SECOND SECTION
OF THE MEANS OF DEFENSE

Section added DOF 20-12-2001

Article 297 . The power of the Institute to fix in liquid amount the credits in its favor is extinguished in a term of five years, not subject to interruption, counted from the date of presentation by the employer or by any other obligor under the terms of this Law, of the notice or liquidation or from the date on which the Institute itself becomes aware of the event giving rise to the obligation.

Amended paragraph DOF 20-12-2001

The expiration period set forth in this article shall only be suspended when an appeal of non-conformity or lawsuit is filed.

Article 298 . The obligation to pay the installments and constituent capital shall expire five years after the date on which they become due.

The statute of limitations shall be governed as to its consummation and interruption, by the applicable provisions of the Federal Fiscal Code.

Article 299 .- The contributions paid without legal justification will be refunded by the Institute, updated in accordance with the provisions of Article 17-A of the Federal Tax Code, from the month in which the undue payment was made or the return containing the balance in favor was filed and until the month in which the refund is available to the taxpayer, provided that they are claimed within five years from the date of the corresponding payment, except those coming from retirement insurance, unemployment at an advanced age and old age; In the case of the latter, the provisions of the respective legal and regulatory provisions shall apply. In the case of the other branches of insurance, the Institute may deduct the cost of the benefits granted.

Article amended DOF 14-12-2005

Article 300. The right of the insured or their beneficiaries to claim the payment of cash benefits, with respect to occupational risk, sickness and maternity, disability and life insurance and day care and social benefits prescribes in one year in accordance with the following rules:

1. Any monthly payment of a pension, family allowance or welfare assistance, as well as the Christmas bonus;
2. Benefits for incapacity for work due to non-occupational illness and maternity;
3. Assistance for funeral expenses, and
4. The settlements established by Law.

Benefits for inability to work as a result of an occupational hazard expire two years from the date on which the right to receive such benefits arose.

Article 302 . The right of the worker or pensioner and, if applicable, of his beneficiaries to receive the resources of the Retirement, Severance at Advanced Age and Old Age Subaccount is imprescriptible.

Notwithstanding the foregoing, the retirement fund administrators, the institutions that perform similar functions of a public nature, as well as the service provider administrators must transfer the resources of the subaccounts indicated in the preceding paragraph at the time the workers reach the age of seventy, without the need for a judicial resolution, to the Pension Fund for Welfare, and must notify the Institute of each transfer on the same day on which it is made. The Institute will notify the trustee of the Fund of the sub-account to which such resources should be applied, in terms of the rules of operation of the Fund and other applicable provisions. The foregoing will not be applicable to the resources of the individual accounts of those workers who have an active labor relationship with the Institute.

Amended paragraph DOF 30-04-2024

The Welfare Pension Fund will have a Technical Committee that will issue the operating rules for the receipt, administration, investment, delivery and yield of resources to the Institute.

Paragraph added DOF 30-04-2024

The Institute will coordinate with the Instituto del Fondo Nacional de la Vivienda para los Trabajadores and the Comisión Nacional del Sistema de Ahorro para el Retiro in order to issue, within the year prior to the worker's seventieth birthday, the notice referred to in Article 37 of the Law of the Instituto del Fondo Nacional de la Vivienda para los Trabajadores.

Paragraph added DOF 30-04-2024

In order to guarantee the imprescriptibility established in the first paragraph of this article, the Fund will have a reserve constituted with a charge to the resources referred to in this article and under the terms established in its constitutive contract, in order to guarantee the financial sufficiency for the Institute to be able to carry out, if necessary, the return of the resources of the workers, pensioners or beneficiaries.

Paragraph added DOF 30-04-2024

The financial adequacy of the reserve will be determined every two years by the Institute, which must inform the Technical Committee in accordance with its operating rules.

Paragraph added DOF 30-04-2024

The workers and, if applicable, their beneficiaries may apply to the Institute to access the refund mechanism on a permanent basis to receive the pension to which they are entitled under this Law or, if applicable, the refund of the resources, as well as the interest corresponding to them under the terms of the applicable provisions.

Paragraph added DOF 30-04-2024

The workers' savings transferred to the Fund will generate interest according to the net yield derived from the investments effectively made by said Fund in accordance with the investment regime determined by the Technical Committee. The Institute will make the corresponding individualization based on the yield reported by the Fund itself.

Paragraph added DOF 30-04-2024

Without prejudice to the provisions of the first paragraph of this article, the Institute may dispose, without the need for a judicial resolution, of the resources related to any monthly payment of a pension, family allowance or welfare assistance, to the calendar year in which it is due, provided that it constitutes a sufficient reserve to meet the refund requests submitted to it by the workers or their beneficiaries.

Paragraph added DOF 30-04-2024

The Ministry of Finance and Public Credit will approve the methodology to determine the amount of the reserve that the Institute will constitute to meet the refund requests mentioned in the preceding paragraph and the procedure to be followed for such purpose.

Paragraph moved and published without changes DOF 30-04-2024

Article amended DOF 16-12-2020

Article 303 . The public servants of the Institute are obliged to observe in the performance of their duties, the principles of responsibility, professional ethics, excellence, honesty, loyalty, impartiality, efficiency, warmth, good treatment and quality in the provision of services and in the attention to the beneficiaries, and shall be subject to the civil or criminal liabilities they may incur as those in charge of a public service.

Therefore, the Institute will implement periodically and programmed training and updating strategies, among others, on ethics and protocols to ensure dignified and efficient attention to beneficiaries, with respect for human rights, non-discrimination and gender equality.

Article amended DOF 20-12-2001, 29-11-2023

Article 303 A . Failure to comply with the corresponding administrative obligations, as the case may be, shall be sanctioned in the terms set forth in the Federal Law of Responsibilities of Public Servants, except for those included in Article 5 of said law.

Article added DOF 20-12-2001

Article 304 . When employers and other obligated parties carry out acts or omissions that imply noncompliance with the payment of the tax items established in Article 287, they will be sanctioned with a fine of forty to one hundred percent of the omitted item.

Article amended DOF 20-12-2001

Article 304 A . The following acts or omissions of the employer or obligated subject are violations of this Law and its regulations:

1. Failure to register before the Institute, or doing so outside the term established in the Law;
2. Not registering its workers with the Institute or doing so in an untimely manner;
3. Not communicating to the Institute or doing so untimely the modifications to the base contribution salary of its workers;
4. Not to determine or to determine in an extemporaneous manner the employer contributions legally in charge;
5. Failure to inform the employee or the union of the contributions made to the individual account of the retirement, advanced age severance and old age insurance;
6. Submit to the Institute the affiliation notices, forms, affiliation vouchers, records of works or tax returns for the determination of employer contributions with false information, except for those which, due to their nature, are not their responsibility;
7. Failure to keep payroll records or checklists in accordance with the terms set forth in the Law and the Regulations for the Payment of Social Security Contributions;
8. Failure to deliver to its workers the weekly or biweekly record of the days worked, in case it is obliged to do so;
9. Failure to provide, when required by the Institute, the necessary elements to determine the existence, nature and amount of the obligations under its responsibility or to do so with altered or false documentation;
10. Obstruct or impede, by itself or through an intermediary, inspections or home visits, as well as the administrative enforcement procedure ordered by the Institute;
11. Failure to cooperate with the Institute under the terms of Article 83 of the Law, in carrying out studies and research to determine causal factors and preventive measures of occupational hazards, in providing data and reports that allow the preparation of statistics of occurrences and in disseminating, within the scope of their companies, the rules on prevention of occupational hazards;
12. Not notifying the Institute of occupational hazards, concealing their occurrence in the facilities or outside them in the course of their activities, or not keeping records of occupational hazards or not keeping them up to date;
13. Not to keep the documents that are being reviewed during a domiciliary visit or the personal property in which the same are deposited as a consequence of their securing;
14. Alter, remove or destroy, by himself or through an intermediary, the documents, seals or marks placed by the visitors of the Institute for the purpose of securing the accounting, in the systems, books, records and other documents that comprise it, as well as in the equipment, furniture or offices in which said accounting is deposited and that have been left in deposit as a consequence of the seizure derived from a domiciliary visit;
15. Failure to file the mandatory annual review of its accident rate and determination of the occupational risk insurance premium or doing so extemporaneously or with false or incomplete data, in relation to the period and deadlines indicated in the corresponding regulation. Employers will not be fined for not submitting the forms for determining the aforementioned insurance premium when it is equal to that of the previous year;
16. Not giving notice to the Institute or doing so untimely of the change of domicile of a company or establishment, when it is in any of the cases indicated in the respective regulation;
17. Not withholding the contributions payable by its workers when legally required to do so, or having withheld them, not reporting them to the Institute;
18. Failure to notify the Institute in writing of the outbreak of a strike or termination thereof; suspension; change or termination of activities; closure; change of name or corporate name; merger or spin-off;
19. Omitting or submitting extemporaneously the report by an authorized public accountant when such option has been exercised in terms of Article 16 of this Law;

20. Not to comply or to do it extemporaneously with the obligation of having their contributions audited by an authorized public accountant before the Institute;

    Reformed fraction DOF 09-07-2009

21. Notifying in an untimely manner, doing so with false or incomplete data or omitting to notify the Institute under the terms of the respective regulations, the address of each of the works or phase of work performed by employers who sporadically or permanently engage in the construction industry; and

    Reformed fraction DOF 09-07-2009

22. Not submitting or submitting outside the established legal term, the information indicated in Article 15 A of this Law.

Section added DOF 09-07-2009. Amended DOF 23-04-2021

Article added DOF 20-12-2001

Article 304 B . The infractions indicated in the preceding article shall be sanctioned considering the seriousness, particular conditions of the offender and, if applicable, recidivism, in the following manner:

1. Those provided for in sections IV, V, VII, VIII, XI, XVI and XIX with a fine equivalent to the amount of twenty to seventy-five times the general daily minimum wage in force in the Federal District;
2. Those provided for in sections III, X, XIII and XVIII with a fine equivalent to the amount of twenty to one hundred and twenty-five times the general daily minimum wage in force in the Federal District;
3. Those provided for in sections VI, IX and XV with a fine equivalent to the amount of twenty to two hundred and ten times the general daily minimum wage in force in the Federal District, and
4. Those provided for in sections I, II, XII, XIV, XIV, XVII, XX and XXI, with a fine equivalent to the amount of twenty to three hundred and fifty times the value of the Unit of Measurement and Actualization.

   Reformed fraction DOF 09-07-2009, 23-04-2021

5. That provided for in section XXII, with a fine equivalent to the amount of 500 to 2000 times the value of the Unit of Measurement and Actualization.

   Fraction added DOF 23-04-2021

Article added DOF 20-12-2001

Article 304 C . Fines shall not be imposed when the employer's obligations are complied with spontaneously outside the terms established by law or when the infraction has been incurred due to an act of God or force majeure. Compliance shall be deemed not to be spontaneous in the event that:

1. The omission is discovered by the Institute;
2. The omission has been corrected by the employer after the Institute has notified a home visit order, or there has been a requirement or any other action notified by the Institute, aimed at verifying compliance with its social security obligations; and
3. The omission has been corrected by the employer after the 15 days following the presentation of the report by the certified public accountant before the Institute, with respect to acts or omissions in which the employer has incurred and which are observed in the report.

Article added DOF 20-12-2001

Article 304 D . The Institute may annul the fines imposed for infringement of the provisions of this Law and its regulations, when in its opinion, with the sole documentary evidence by the interested parties, it is proven that the infringement was not incurred.

The request to set aside the fines under the terms of this article does not constitute an instance and the resolutions issued by the Institute in this respect may not be challenged by the means of defense established by this Law.

The request will give rise to the suspension of the administrative enforcement procedure, if so requested and if the interest of the Institute is guaranteed.

Only fines that have become final may be remitted, provided that a related administrative act is not subject to challenge.

Article amended DOF 20-12-2001

Article 306 . In the crimes provided for in this Chapter in which the damage or harm or undue benefit is quantifiable, the Institute shall make the corresponding quantification in the complaint itself.

In the crimes referred to in this Chapter, the judicial authority shall not impose a pecuniary penalty.

Article added DOF 20-12-2001

Article 307 . The crime of defrauding the social security systems is committed by employers or their representatives and other obligated parties who, using deceit or taking advantage of errors, omit totally or partially the payment of employer contributions or obtain an undue benefit to the detriment of the Institute or the workers.

The total or partial omission of the payment of employer contributions referred to in the preceding paragraph includes, indistinctly, payments for employer contributions or definitive payments for employer contributions or constituent capital under the terms of the applicable provisions.

Article added DOF 20-12-2001

Article 308 . The crime of defrauding the social security systems shall be punishable by the following penalties:

1. With imprisonment from three months to two years when the amount defrauded does not exceed thirteen thousand minimum daily wages in force in the Federal District;
2. With imprisonment of two to five years when the amount of the defrauded amount exceeds thirteen thousand minimum daily wages in force in the Federal District, but not nineteen thousand minimum daily wages in force in the Federal District, or
3. With imprisonment of five to nine years, when the amount of the defrauded amount is greater than nineteen thousand minimum daily wages in force in the Federal District.

Article added DOF 20-12-2001

Article 309 . The crime of defrauding the social security systems shall be qualified when the employers or their representatives and other obligated parties knowingly omit to pay the workers' contributions withheld from the workers under the terms and conditions established in this Law.

When the offense is qualified, the corresponding penalty shall be increased by one half.

Article added DOF 20-12-2001

Article 310 . Shall be punished with the same penalties as the crime of defrauding the social security systems, whoever knowingly:

1. Alter the computer programs authorized by the Institute;
2. Manifests false information to obtain from the Institute the reimbursement of employer contributions that do not correspond to him/her;
3. Benefits without right from a subsidy or fiscal stimulus, or
4. Simulates one or more acts or contracts obtaining an undue benefit to the detriment of the Institute.

Article added DOF 20-12-2001

Article 311 . A penalty of three months to three years imprisonment shall be imposed on employers or their representatives and other regulated entities that:

1. Fail to file registration notices or provide the Institute with false information, evading payment or reducing the amount of employer contributions, to the detriment of the Institute or the workers, by a percentage of twenty-five percent or more of the tax obligation, or
2. Obtain an undue benefit and do not communicate to the Institute the suspension or termination of activities; closure; change of corporate name; change of salary; activity; domicile; employer substitution; merger or any other circumstance that affects their registration before the Institute and provide the Institute with false information regarding their obligations, in terms of this Law.

Article added DOF 20-12-2001

Article 312 . A sanction of one to six years of imprisonment shall be imposed on the depositary or auditor appointed by the Institute who disposes for himself or for another, of the deposited property, its products or the guarantees that have been constituted for any tax credit, if the value of what is disposed of does not exceed nine hundred minimum daily wages in force in the Federal District; when it exceeds, the sanction shall be four to nine years of imprisonment.

The same sanction, according to the value of such assets, shall be applied to the depositary who conceals them or does not make them available to the Institute.

Article added DOF 20-12-2001

Article 313 . A penalty of three months to three years imprisonment shall be imposed on employers or their representatives and other regulated entities that:

1. Record their accounting and tax operations in two or more books or in two or more accounting systems or in two or more different media with different contents, and
2. Conceal, alter or destroy, partially or totally, the accounting systems and records or any other means, as well as the documentation related to the respective entries, which in accordance with this Law they are obliged to keep.

Article added DOF 20-12-2001

Article 314 . It shall be considered as fraud and shall be punished as such, under the terms of the Federal Criminal Code, to obtain, as well as to promote the obtaining thereof, of the insurance, benefits and services established by this Law, without being a beneficiary, by means of any deception or taking advantage of error, whether by virtue of simulation, substitution of persons or any other act.

Article added DOF 20-12-2001

Article 315 . A penalty of one to six years of imprisonment shall be imposed on public servants who order or carry out house visits or seizures without a written order from the competent tax authority.

Article added DOF 20-12-2001

Article 316. A public servant shall be punished with imprisonment of one to five years if he threatens in any way an employer or any other obligated subject, to file a complaint with the Public Prosecutor's Office, either by himself or through the agency to which he belongs, in order to bring a criminal action for the possible commission of the crimes provided for in this Chapter.

Article added DOF 20-12-2001

Article 317 . If a public servant in the exercise of his functions commits or in any way participates in the commission of an offense provided for in this Chapter, the applicable penalty for the resulting offense shall be increased from three months to three years of imprisonment.

Article added DOF 20-12-2001

Article added DOF 20-12-2001