Can retirees under the Mexican Social Security Institute continue working?

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Can retirees under the Mexican Social Security Institute continue working?

December 20, 2021
Francisco Trejo Gutiérrez

How many employees and employers have asked themselves this question?

According to the provisions of the third transitory article of the Social Security Law (LSS), if a person receives a pension from the Mexican Institute of Social Security (IMSS), but wants to start some paid work activity, his pension is insured as long as he respect the following conditions:

  1. That at least six months have passed since he retired;
  2. That he does not occupy the same position that he held just before retiring; and
  3. That his salary is less than 50% of what he received before leaving work.

In addition, in accordance with the provisions of article 196 of the LSS, “the pensioner who enjoys a retirement pension in advanced age or old age, when re-entering the mandatory scheme, will not make the contributions referred to in the second paragraph of the Article 25 of this Law, nor those of disability and life insurance”.

Likewise, it is necessary for the pensioner to open an Afore account to start contributing and save the resources that come from the new job, since now he will work under the LSS in force as of 1997.

This could be useful when a skilled labor employee retires, as he could be hired again to train new employees, pass on knowledge, and build a seedbed for the future.

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, including regarding the details so that companies can hire retired people in accordance with what the law establishes.