IMSS Piloting Mandatory Registration for Delivery and Ride-Hail Workers
On July 1, the Mexican Social Security Institute (IMSS) initiated a pilot program for mandatory registration of delivery and ride-hail workers on digital platforms. In less than a month, nearly double the estimated number of workers by authorities have registered, according to Mexico City’s President Claudia Sheinbaum.
Background on the IMSS Piloting Program
The pilot program stems from the reform of the Federal Labor Law, which regulated digital platform activities. This reform recognized full social security rights through a salary-based criterion, universal protection against accidents, and flexibility for providing services across multiple apps. The program aims to propose legislative adjustments for a social security regime aligned with the realities of this work model.
Key Figures and Comparison
President Sheinbaum’s announcement indicates more than double the estimated number of app workers by the Secretariat of Labor and Social Security (STPS). While STPS projected around 650,000 workers in digital platforms, companies consistently stated there were over a million delivery and ride-hail workers.
Who Will Have Social Security Coverage?
- Short Answer: No, not everyone will have full social security coverage.
- Explanation: The pilot program’s guidelines state that all workers will be registered in the first month, but employer-employee contributions will only be paid by the end of the month. Consequently, those not meeting the minimum monthly net income threshold may lose full social security coverage in August.
- Universal Accident Protection: The Federal Labor Law ensures universal accident protection for all delivery and ride-hail workers, regardless of income. The platform where the service is provided when a risk occurs will cover the costs.
- Additional Labor Law Benefits: The labor reform also provides access to the National Housing Fund for Workers (Infonavit), the right to utility distribution, and payment of benefits like year-end bonuses and vacation pay. Workers not earning the minimum monthly salary will be classified as independent contractors with work-related risk protection, covered by platform contracts registered at the Federal Center for Labor Conciliation and Registration (CFCRL) and algorithmic management policies.
Impact on Workers and Platforms
This pilot program’s implementation signifies a significant step towards formalizing app-based work. As the registration process unfolds, it will be crucial to monitor how workers and digital platforms adapt to these changes. The new regulations aim to balance the flexibility that attracts workers to app-based jobs with essential labor rights and social security protection.
