Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.
On January 7, 2021, Mexico’s National Institute of Statistics and Geography (INEGI by its acronym in Spanish) published the new values for the Updated Metric Unit (hereinafter UMA by its acronym in Spanish) that will take effect on February 1, 2021 as provided by Article 5 of the Law to determine the value of the UMA.
The values of the UMA for 2021 will be as follows:
|
Year |
Daily |
Monthly |
Annual |
|
2021 |
$89.62 MXN |
$2,724.45 MXN |
$32,693.40 MXN |
The variation from the 2020 UMA is +3.15%.
The UMA (which stands for “Unidad de Medida y Actualización”) serves as the basis to calculate the payments, obligations or penalties that are owed to the government, whether under federal or state law. Its updated value is published on an annual basis.
The UMA was adopted as an economic reference in 2016. Before this, the minimum wage was used to calculate payment obligations and sanctions. Any reference to the minimum wage that is maintained in the legislation or the legal system and that is not related to employment relationships or payments derived from employment relationships, will be understood as a reference to the UMA, which will be the new value that must be considered for the payment of obligations according to federal and state laws.
Accordingly, it is important for employers to review their individual and collective work contracts to ascertain how the UMA will impact the social security benefits agreed upon by the parties. Likewise, employers should review and adjust their payroll practices as appropriate to comply with UMA-related requirements.
Our attorneys are available for consultation on this development or any employment-related topic.
