Digital Platforms Will Need to Adjust Their Business Models in Mexico: What Does the Proposed Reform to the Social Security Law Entail?

The article analyzes the proposal promoted by the Mexican Social Security Institute (IMSS) following the conclusion of the pilot program carried out jointly with the Ministry of Labor and Social Welfare, which aims to integrate couriers and drivers of digital platforms into the mandatory social security regime under a scheme conditioned on their level of income. Under this framework, individuals earning more than the monthly minimum wage must be fully registered with the IMSS and Infonavit, while occasional workers will be covered solely for occupational risks during their time connected to the platform.

In the article, Santiago Villanueva Durán, partner in the Social Security practice at Pérez-Llorca Mexico, and Daniela Hidalgo, associate at the Firm, explain the scope of the reform, its implications for the platforms’ financial model, the new payment and transparency requirements, as well as the main legal risks and compliance challenges that companies in the sector will face.

Consult the full article here.