Mexico City, March 6, 2025
On February 21, 2025, the Decree amending, adding, and repealing various provisions of the Law of the National Workers’ Housing Fund Institute (“LINFONAVIT”); and the Federal Labor Law regarding socially oriented housing was published in Mexico’s Official Gazette of the Federation. This decree came into effect on February 22, 2025.
As a result of the reform, —amongst other changes—, the second paragraph of Article 29 of the «LINFONAVIT » was modified to establish that, the obligation to deduct payments from workers’ salary to cover loans granted by the National Workers’ Housing Fund Institute («INFONAVIT «) will not be suspended due to workers’ medical absence, in accordance with Mexico’s Social Security Law.
Until February 20, 2025, Article 29 of the LINFONAVIT allowed for the suspension of the employers’ obligation to deduct from workers’ salary and make subsequent contributions to the INFONAVIT for the payment of loan installments in cases where salaries were not paid due to medical absences in terms of the Social Security Law, provided that timely notice was given to the Institute.
However, due to the aforementioned reform, the suspension now only applies to the employer contributions of 5% of the workers’ salaries.
We believe that the new provision violates various constitutional guarantees. If we consider that: (i) the basis for contributions and deductions for the repayment of INFONAVIT loans is the worker’s salary, and (ii) under labor regulations, medical absences caused by an accident or illness are grounds for the temporary suspension of salary payments without employer liability. Therefore, this provision should not impose the obligation on employers to make deductions in the absence of a proper basis, nor should it limit the suspension solely to the 5% employer contribution on workers’ salaries.
Employers with workers who have INFONAVIT loans must comply with the required deductions to avoid a tax contingency, regardless of whether this obligation falls under their responsibility. According to Articles 50 and 52 of the Regulation on Registration, Payment of Contributions, and Submission of Discounts to the National Workers’ Housing Fund Institute, employers are jointly responsible for submitting the deductions to the Institute. If they fail to make the required deductions, they must cover the installments for loan repayments at their own expense.
Furthermore, under Article 30 of the LINFONAVIT, the obligation to submit deductions to INFONAVIT is of a fiscal nature.
Those in disagreement with Article 29 of the amended law may file an amparo injunction to challenge its constitutionality within the time limits established by the applicable law.
The lawyers in the tax area of the Firm are at your disposal to address any questions or comments regarding this communication.
Sincerely,
Gerardo Nieto
Gil Zenteno
Alejandro Barrera
Victor Barajas
Norberto A. Ruiz
José Miguel Tuirán
