Controversial Housing Fund Reform in Mexico Adds More Burdens to Employers

The recent amendment to Article 29 of the Housing Fund Law "INFONAVIT" now requires employers to continue paying house loan contributions for employees, even during their unpaid absences, significantly impacting employers. This change could increase business costs. 

The obligation for employers to deduct the INFONAVIT payment during employee absences or disabilities has changed. Previously, employers could skip contributions to INFONAVIT and avoid deducting salaries for loan payments when employees were on unpaid leave. Now, with the new amendment, employers must continue these payments even if employees are absent or incapacitated. Once employees return and receive their salaries, employers must deduct the amounts previously covered. 

Different interpretations: Some law firms believe that employers must pay contributions even when employees aren't compensated, deeming this change unlawful and planning to pursue legal action. However, Santamarina y Steta SC argues that withholding these deductions is tied to the salary actually paid. Therefore, they believe employers aren't obligated to pay contributions if employees aren't receiving their salaries. 

Action plans for employers: