On December 16, 2020, the Resolution amending, adding and repealing various provisions of the Social Security Law (LSS) and the Savings Systems Law for the Federal Government was published in the Federal Official Gazette. Pursuant to the LSS, the payment of pensions shall be carried out based on the Measurement and Update Unit (UMA).

Notwithstanding the foregoing, in accordance with Jurisprudence Thesis No. I.18º.A. J/8 (10th.), published on September 20, 2019 in the Judicial Gazette of the Federation “as the retirement pension of employees is a social security benefit derived from the employment relationship and properly supported by salary, even to generate and pay it, the fund constituted during the active working life is used, through contributions of the salary received, capped at the maximum amount of ten times the minimum salary, it is clear that this benefit is labor; consequently, what is related to its amount, update, payment or maximum limit shall be applied to the salary, since it is not about issues beyond its nature; in addition, if these aspects were addressed to the Measurement and Updating Unit, the pension would be distorted and an economic factor outside the aforementioned social security benefit would be used, other than salary and outside the pension, which is not legally permissible”.

The use of the UMA for pension payment purposes, as established by the LSS, represents a disadvantage, and if it continues like this, the payment of the pension will be less and less in relation to the increases that will be established to the minimum wage, since the gap between the UMA and the minimum wage will be expanded each year. However, the provisions of reform to the LSS constitute a contradiction with the cited Jurisprudence. Therefore, said Jurisprudence could mean an open door to litigation for those individuals subject to a pension who refuse that the UMA will be used in the payment of their pensions.

At Trejo Gutiérrez Abogados, we have a group of experts in labor matters with more than 20 years in the market. Please do not hesitate to contact us, we will be glad to provide the personalized legal advice that you require.