On September 20th, 2019, the Eighteenth Collegiate
Court for Administrative Matters of the First Circuit issued a
reiterative case law in labor and employment matters, which
considers that the Unit of Measurement and Update (UMA, for its
acronym in Spanish) can't be applied as a factor for the
estimation of retirement pensions, which must always respond to the
Minimum Wage.
The aforementioned precedent is located in the Decree of the
Constitutional Reform, published in the Official Journal of the
Federation on January 27th, 2016, in which article 123,
section A, subset VI of the Mexican Constitution, was amended in
order to separate the purposes and functions of the Minimum Wage
and the Unit of Measurement and Update, establishing the UMA as the
basis for calculation of various amounts of diverse obligations so
that the minimum wage could be increased without the financial
repercussions of increasing the cost of the obligations which
depended from it.
