Social Protection

Building social protection floors
and comprehensive social security systems

Mexico

Publications

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Situation and Priorities

Social protection situation
As of 2019, Mexico had lower social protection (SP) coverage and expenditure than the average of the Latin American countries, despite its status as one of the 20 most important economies in the world. Social insurance only reached 30% of the working population in 2018, with no unemployment insurance scheme. Pensions are privatized, although there has been a recent reform to the system, with the government implementing a minimum pension guarantee and employers increasing their contributions. The coverage of social assistance has also gradually increased but, overall, there are severe issues regarding legal exclusion, access, and quality of SP.

In January 2020, Seguro Popular, a non-contributory health insurance program for poor persons, was replaced by the Instituto de Salud para el Bienestar(INSABI). Although Seguro Popular had covered 45% of the population, INSABI was established with the aim of increasing coverage, services, and reducing out-of-pocket spending and corruption.
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COVID-19 and other crises
Social protection measures to respond to the effects of COVID-19 included increasing health expenditure, bringing forward two payments of old-age and disability pensions, deferring employers social seucirty contributions, and deferring or covering the mortgage payments of certain accredited workers. Please consult the ILO COVID-19 Monitor for more information.

The states of Yucatan and Mexico introduced non-contributory unemployment benefits in response to COVID, and the State of Mexico City adapted their pre-existing unemployment scheme to include additional workers who were laid-off as a result of COVID. However, the potential to expand these schemes into contributory mechanisms is limited.
Visit the Social Protection COVID-19 Monitor
Government and social partner priorities
  • Build an effective welfare policy for the Mexican population through eradication of poverty and reducing inequality gaps.
  • Build a solid and well-articulated universal social protection system.
  • Implement the rollout of the INSABI

ILO Projects and Programmes

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Results

In 2018 the ILO provided technical support for the new "Programa Pensión para Adultos Mayores", extending a universal monthly pension to all adults over 68 years of age (Over 65 for members of indigenous communities). The benefit level was doubled from MXN$580(US$28) to MXN$1,275(US$62) and coverage was increased from 3.5 million to 8.3 million people.

In 2019 the ILO coordinated and wrote the the "Continuity Plan after natural & human caused disasters" in a participatory process, which was then published by the Social Security Institute of the workers in the state of Chipias (ISSTECH)
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ILO Experts

IMG
Fabio Duran Valverde
Social Protection and Economic Development Specialist
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