On January 9, 2020, the National Institute of Statistics and Geography (INEGI by its acronym in Spanish) published the new values for the Updated Metric Unit (hereinafter UMA by its acronym in Spanish) that will take effect on February 1, 2020, as provided by Article 5 of the Law to Determine the Value of the UMA.
The values of the UMA for 2020 will be as follows:
The variation from the 2019 UMA is +2.83%.
The UMA (which stands for “Unidad de Medida y Actualización”) serves as the basis to calculate the payments, obligations or penalties that are owed to the government, whether under federal or state law. Its updated value is published on an annual basis.
Accordingly, it is important for employers to review their individual and collective work contracts, to ascertain how the UMA will impact the social security benefits agreed upon by the parties. Likewise, employers should review and adjust their payroll practices as appropriate to comply with UMA-related requirements.