Introduction to the Reform
On Sunday, June 22, Mexico took a significant step forward by implementing the first digital era labor rights for gig workers, including riders and drivers from apps like Uber, DiDi, and Rappi. This reform acknowledges their connection with platforms and grants them access to social security, paid vacations, profit-sharing, and written contracts.
Background and Development
The reform, published in the Federal Official Gazette (DOF) on December 24, 2024, was crafted through numerous meetings between labor authorities, the platforms themselves, IMSS, Infonavit, SAT, and worker representatives. Its unanimous approval in Congress marked a turning point in digital work regulation in Mexico.
Eligibility and Benefits
Starting now, those earning equal to or above the monthly minimum wage (~8,350 pesos) will fully access IMSS and Infonavit benefits: medical care, retirement pension, disability and maternity insurance, childcare, and housing savings. Those below this income threshold will only be covered for work-related risks during their trips.
Key Figures and Statements
Marath Bolaños, the Secretary of Labor, emphasized that “technological innovation does not have to conflict with labor justice,” and highlighted that “the dignification of work should not hinder innovation, nor can innovation leave workers’ rights behind.”
Implementation and Regulations
The IMSS pilot program for rider and driver affiliation begins on July 1, running until December 31. This phase will test and fine-tune the registration, contribution, and oversight process before its general application.
Taxes and Fiscal Implications
Bolaños clarified that the labor formalization “does not imply a greater tax burden,” meaning significant rights gains for working individuals without increased fiscal obligations.
Algorithmic Management Regulation
The reform introduces regulations for algorithmic management, ensuring that decisions made by systems for trip allocation are “transparent, understandable, and subject to human review.” Disconnections will only be permitted in extreme cases like fraud or security risks, following a prior hearing.
Recognition and Challenges
The International Labour Organization (ILO) acknowledged Mexico for presenting an “innovative regulatory model in the digital economy,” one that guarantees rights without imposing rigidity and respects work freedom.
Future Challenges
Despite external recognition, the real challenge lies ahead. There’s a risk that platforms may seek evasion schemes, affiliation may be limited, or algorithms could remain opaque without practical consequences.
Lessons from Past Reforms
Mexico’s history with labor reform shows that even impeccable legal design can fail without commitment, effective oversight, and accessible mechanisms for individuals. The homeworker reform serves as an example.
Key Questions and Answers
- What is the purpose of this reform? The reform aims to recognize and protect the labor rights of gig workers in Mexico, providing them with social security, paid vacations, profit-sharing, and written contracts.
- Who is eligible for these benefits? Workers earning equal to or above the monthly minimum wage (~8,350 pesos) are eligible for full IMSS and Infonavit benefits. Those below this threshold will only be covered for work-related risks.
- What are the implications for taxes? The labor formalization does not imply a greater tax burden for gig workers.
- How will algorithmic management be regulated? Decisions made by systems for trip allocation must be transparent, understandable, and subject to human review. Disconnections will only occur in extreme cases.
- What challenges lie ahead? The risk of platform evasion schemes, limited affiliation, and opaque algorithms without practical consequences pose significant challenges to the successful implementation of this reform.
