Mexico has taken a historic step in formalizing work via digital platforms. In July, more than 1.29 million app workers registered with the Mexican Social Security Institute (IMSS), Quiahuitl Chávez Domínguez, Deputy Minister of Employment and Labor Productivity, reported.
Of this total, almost 1.05 million are unique registrations, making Mexico a pioneer in recognizing and insuring those who earn income through transportation/delivery apps as formal workers. This progress is part of the pilot program stemming from the Labor Reform on Digital Platforms, in force since July 1, which requires companies in this sector to enroll their workers in the IMSS.
“If at the end of the month such workers earn income equivalent to at least one month’s minimum wage —$456.4 USD (8,480 pesos)— the platform must insure them with all IMSS benefits,” Chávez Domínguez explained. Benefits include accident coverage, access to pensions, healthcare, childcare services, and other labor rights, while maintaining flexibility to choose working hours and the platform they work for.
IMSS Director General Zoé Robledo specified that 80% of those registered work for a single platform and 20% for multiple platforms; 90% are men and 10% are women. In addition, 56% are under 35 years old, highlighting the importance of this schema for younger workers.
As part of the reform, those who exceed the net monthly minimum income will have full coverage of the five IMSS insurance plans for themselves and their beneficiaries. They will also be able to continue contributing under Modality 40 and keep receiving their pension, regardless of income level, ensuring work accident coverage and other benefits for everyone.
As of July 31, the IMSS reported a record 25.59 million registered jobs, with a monthly increase of 5% —almost 1.27 million new jobs— and annual growth of 6%.