Mexico: Social security (IMSS) deadline extensions regarding subcontracting

An extension of time to comply with an April 2021 decree on subcontracting

An extension of time to comply with an April 2021 decree on subcontracting

The social security agency (Instituto Mexicano del Seguro Social—IMSS) in guidance no. 320/2021 (23 July 2021) authorized an extension of time to comply with an April 2021 decree on subcontracting.

The decree on subcontracting implemented labor law, social security law, and tax law measures relating to the use of outsourcing personnel and was published in the official gazette on 23 April 2021. Read TaxNewsFlash

The IMSS deadline extensions are available under certain situations including for:

  • Employers that have one or more employer records, assigned by class
  • Individuals or legal entities that provide specialized services or that engaged in “specialized work” under subcontracting arrangements
  • Secondment of workers from companies that operated under the labor subcontracting regime (and thus are to be considered as an employer “substitution,” provided the workers’ labor rights are recognized)

The IMSS extension seeks to safeguard the rights of workers and provisions regarding their social security rights and the obligations of employers.

Read a July 2021 report (Spanish) prepared by the KPMG member firm in Mexico


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