If you are affiliated with the Social Security Law 73you have the option to take advantage of Modality 40, a program provided by the Mexican Social Security Institute (IMSS). Through this program, you have the ability to make voluntary contributions at a higher salary for a sufficient number of weeks to increase your pension.
It is important to remember that IMSS Modality 40, also legally known as “Voluntary Continuation of the Compulsory Regime”is an extremely beneficial scheme to increase the average salary of the last five years of contribution, since this period is used to calculate your pension.
Can I change my salary in Modality 40?
In the event that you are currently quoting within Modality 40, if you stop giving your contributions in two months, The law establishes that you are automatically discharged due to a delinquency issuethat is, not pay the fees that you signed to register in this scheme.
In the event of being terminated, You have up to 12 months to return to Modality 40 to continue making your contributions. Obviously, since you stopped paying for a long time, the law establishes that you can re-enter paying the last salary registered or higher.
That is, if you paid an amount of 10 UMAS, you can return with that amount, or from 10 UMAS onwardsbut do not go below that amount. For this reason, it is important that when you register in Modality 40, analyze very well the amount you can really pay.
The times for a cancellation to be registered for not paying Modality 40 are faster when the person registered online, because by stopping contributing for the last two months, the third will reflect the loss of this regime. In the case of face-to-face payments, cancellations could take a couple more months to be reflected.
This option to stop paying, to being discharged and then re-entering with a higher salary, is a common practice and it is contemplated as something correct within the Social Security Law.
It is a way of simply starting to contribute more for a better pensionand the process can be done both in person and online.
What is Modality 40 and what benefits does it have?
IMSS Modality 40 is a benefit that provides the opportunity to workers who began to contribute before July 1, 1997 to make voluntary contributions on their own account. This is intended to improve two aspects that determine the amount of the pension they will receive:
- Increase the average salary of the last 5 years of contribution.
- Add more weeks quoted before the IMSS.
Those people who wish to obtain a pension under the Law of 1973 must comply with the following requirements:
- Be at least 60 years old at the time of requesting the Old Age Unemployment pension, or 65 years old for the Old Age pension.
- Have at least 500 weeks quoted before the IMSS.
- Not having stopped contributing to the IMSS for a continuous period of more than 5 years.
When you stop contributing to the IMSS, Modality 40 allows you add weeks of quote with each payment you make through voluntary contributions.
In addition, by signing up with a salary considerably higher than the last one with which you contributed, You will be able to increase your average salary as much as possible and, consequently, improve your pension.
The IMSS pays special attention to modality 40 pensions, avoiding errors such as the “injection” of quoted weeks, since it is about frauds that can make you lose money and your pension.
Finally, remember that, when you retire, you have to be strategic and plan things in advance. For example, he values the pension at 60 years, six months and one day.
Before starting to process your pension by modality 40 or any scheme, it is important that you obtain your proof of listed weeks, to see that everything is correct and they give you the amount that really corresponds to you.
You should also know that there are cases in which modality 40 is not appropriate. This depends on your profile, quoted weeks and investment capacityTherefore, the best thing is always to advise you with a specialist beforehand.
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