Overview of the Labor Reform for App Workers
As of June 22, the labor reform regulating work in apps has become effective. For delivery and driving workers on these platforms, one of the main concerns is the salary cap for full access to social security.
Automatic Enrollment and Uncertainty
Ivette Guadalupe Pichardo Contreras, from the Collective Conductors for Juarez, explained that workers were informed they would be automatically enrolled in the Mexican Social Security Institute (IMSS).
“Currently, workers’ accounts are receiving notifications from the apps regarding this topic, and we had to release statements on our social media to reassure them,” Pichardo said.
However, she noted that the situation remains uncertain for everyone. For women, who make up 10% of app workers (around 60,000), their diverse responsibilities as caregivers mean they work fewer hours. This makes it more challenging for them to reach the required minimum wage.
Impact on Wages and Social Security Plena
Alfredo Morales from the Independent App Delivery Workers Union (SIRA) agrees that a significant concern for app workers is how the salary will be affected by IMSS enrollment: whether gross income equals net income or if it’s considered part of the worker’s salary.
SIRA is waiting to see if their proposal to distinguish operational expenses from actual worker income is respected. They are also concerned about unplanned aspects and lack of dialogue with workers regarding the reform.
SIRA requests that not all driver incomes be taxable and that net utility be used as the basis for calculating their worker status under the app.
They propose a contribution scheme reflecting “the reality of the trade and consulted with workers,” considering differences in vehicle costs, such as those for bicycles, motorcycles, and cars.
Next Steps and Timeline
The Secretariat of Labor and Social Prevision (STPS) has five days to publish general dispositions defining net income calculation, linked directly to earnings.
On June 24, the Mexican Social Security Institute published in the Federal Official Gazette the General Rules for the Mandatory Obligatory Pilot Test for incorporating digital platform workers into the social security regime.
The pilot test begins on July 1 and concludes in December, allowing for evaluation and proposal of necessary legal adjustments to adapt the social security regime to these activities’ reality.
Key Questions and Answers
- What is the labor reform for app workers about? The reform regulates work in apps, with a focus on enrolling workers into the IMSS and addressing concerns over wages and social security.
- What are the workers’ main concerns? Workers worry about how their salaries will be affected by IMSS enrollment and whether gross income equals net income or is considered part of their salary.
- What makes it difficult for women to reach the minimum wage? Women’s diverse responsibilities as caregivers often result in fewer working hours, making it challenging to meet the minimum wage requirements.
- What is the timeline for the labor reform implementation? The reform became effective on June 22, and the STPS has five days to publish general dispositions. A mandatory pilot test begins on July 1 and concludes in December.
- What does the pilot test aim to achieve? The pilot test evaluates and proposes necessary legal adjustments to adapt the social security regime to the reality of app-based activities.
