The Mexican Social Security Institute ('IMSS') recently published the Criterion 01/2015, by which the IMSS determines that the amounts paid by employers to employees for weekly rest days or mandatory rest days, shall be considered in the calculation of employees base quotation salary for the payment of social security contributions.

According to the IMSS opinion, employers that make payments to employees by way of weekly rest days or mandatory rest that are worked, shall add these amounts to the employees' base quotation salary.

In this regard, Article 27 of the Mexican Social Security Law, provides that depending on their nature, not all payments made to employees must integrate the employees' base quotation salary for purposes of calculating and determining the social security contributions.

Please note that Federal Courts in Mexico have issued precedents indicating that payments made to employees by way of weekly rest days or mandatory rest days that are worked, do not have the nature of salary. Therefore, employers are not required to consider these payments as part of the employees' base quotation salary.

Finally, please be advised that Criteria issued by the IMSS are only recommendations made by the own Institute and can be used as guidelines in audit processes to review employer's compliance with social security obligations. However, they are not mandatory for employers.