New Retirement Pension Guarantee And Other Pending Reforms

The level of state pensions for many current and future retirees in Mexico will increase substantially, which along with other proposed reforms may have impacts on employer pay and benefit programs.

Employer Action Code: Act

Congress has approved legislation to guarantee that an individual's state retirement monthly pension is at least 100% of his or her final monthly salary, up to a cap. This reform is part of a wide-ranging set of proposals that were presented to Congress by outgoing President Obrador in March, shortly before the national elections on June 2, 2024. The pension reform was approved on May 1, just a month before President Obrador's protégé, Claudia Sheinbaum, won a landslide victory to become the next president. Sheinbaum will be inaugurated on October 1. Other proposals, which will require constitutional amendment, are pending. The coalition government (the Seguimos Haciendo Historia alliance) also increased its number of seats in both houses of