This 2022 ends the “grace period” and from 2023 to 2030, the Voluntary Continuation to the Compulsory Regime it will be more expensive. This pension scheme IMSS; known as Mode 40is a great option to improve two key aspects for the pension: the density of weeks contributed and the average salary.
The Modality 40 of the Mexican Social Security Institute is a scheme that allows – workers under the Social Security Law 73 – contribute independently to improve your pension. Amounts higher than 50 thousand pesos per month can even be reached. Due to its benefits, it has been a very popular scheme and is used by thousands of workers every year.
However, despite the fact that it is still an excellent pension option, the investment that has to be made to ensure a good monthly payment will be much higher. These increases begin to apply from 2023. This means that you will have to invest more than before to enjoy the benefits of IMSS Modality 40.
Cost of IMSS Modality 40 in 2023 – 2030:
The contributions or payments will be made in the following way, these being the percentages to be covered in relation to the salary with which the worker registers in Modality 40:
- 2022 = 10.075 percent
- 2023 = 11.166 percent
- 2024 = 12.256 percent
- 2025 = 13.347 percent
- 2026 = 14.438 percent
- 2027 = 15.528 percent
- 2028 = 16.619 percent
- 2029 = 17.709 percent
- 2030 = 18,800 percent
As you can see, in 2022 the cost of Modality 40 is equivalent to 10,075 percent of the salary with which you sign up for this scheme, which will increase until 2030, as we indicated in the previous points.
In addition to the increase in the Modality 40 quota, each year the value of the Measurement and Updating Units, known as UMAS, increases.
For 2022, the value of the monthly UMA was established at $294.70 pesos, which will increase in 2023 and year after year, which will impact your payment installments of Modality 40.
Requirements for registration in Modality 40:
- Be at least 60 years old at the time of submitting the application for a pension for Unemployment at Advanced Age and 65 years for Old Age
- Have at least 500 weeks quoted before the IMSS
- Stop trading with the IMSS, without letting more than 5 consecutive years pass
These changes are stipulated within a federal government decree, which also reforms, adds and repeals various provisions of the Social Security Law and the Retirement Savings Systems Law.
In conclusion, Modality 40 will be more expensive in 2023 and will increase year after year until 2023. This could mean that many people cannot register with a capped salary, but instead look for more conservative options or even decide not to enter.
Remember that registering in Modality 40 is a commitment of years paying fees and you should not fail because you could be unsubscribed. Therefore, personally, you must establish a personalized pension strategy, which is in accordance with your ability to pay and the age at which you want to retire.
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Finally, despite other pension options, Modality 40 is the most convenient for Social Security Law 73 workers. It is a benefit that once you obtain it, guarantees you that income for life.
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