If you started contributing before July 1, 1997 and you belong to the Social Security Law of 1973, you have the possibility of enrolling in the Voluntary Continuation of the Mandatory Regimeknown as mode 40.
Remember that Mode 40 allows you to maintain the conservation of rights in the IMSSto disability and life insurance, retirement, unemployment at an advanced age and old age. In addition, you can raise the average salary by giving high contributions, which in the end translate into a better pension.
How much will you pay for Modality 40 in 2023?
If you want to enroll in Modality 40 of the Mexican Social Security Institute (IMSS), you should know that this 2023 the quotas will be higher than last year and will increase in subsequent years.
For example, if you decide to contribute within Modality 40 with a salary greater than 4 UMAS, you must cover 11.16 percent with the amount you decide to register.
In many cases, people seek to achieve the highest pension and this is done through the quota capped at 25 UMAS, within Modality 40, which will have the following values in 2023:
- Capped Salary 2023 (25 UMAS) = $8,165
- Capped Salary 2024 (25 UMAS) = $8,962
- Capped Salary 2025 (25 UMAS) = $9,760
- Capped Salary 2026 (25 UMAS) = $10,558
- Capped Salary 2027 (25 UMAS) = $11,335
- Capped Salary 2028 (25 UMAS) = $12,153
- Capped Salary 2029 (25 UMAS) = $12,950
- Capped Salary 2030 (25 UMAS) = $13,749
if this 2023 you pay Modality 40 up to the maximum of 25 UMAS, you would pay an approximate of 98 thousand pesos Mexicans per year
In 2024 Modality 40 capped at 25 UMAS would have an approximate annual cost of 107 thousand 600 pesos.
while in 2025 the payment of the 25 UMAS would already exceed the 117 thousand pesos of contributions per year.
And in the previous points we say “approximate” because this will be modified with the value of the UMA, which cannot be known in advance.
An important point to note is that the increases in Modality 40 quotas will not only be for those who register from 2023, but will also be for those who have registered from previous years and continue to contribute within this modality.
It is always important that before signing up for Modality 40, you make an evaluation with a pension expert. This starts with finding out if you meet the requirements.
The recommendation is given because each particular case requires a special analysis, which varies from person to person due to factors such as weeks of contribution, wages or the age at which you want to retire. If you don’t have a plan, you can waste time and money.
In Modality 40 in particular, another important pillar is knowing the investment capacity of each person, because while some will be able to put in a lot of money, others would have very little capacity to inject money into their pension.
These types of factors make the difference of an identical investment, for an identical period of time, have a very different result from person to person. That is why you cannot rely on the experiences of friends or acquaintances with this IMSS scheme.
Finally, remember that Modality 40 cannot be paid in advance. Normally the scheme is monthly payment, or retroactive payment of a single exhibition, but again, that should depend on an analysis with your personal advisor.
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