IMSS Strengthens Regulation on the Exclusion of Attendance and Punctuality Rewards from the Base Contribution Salary (SBC)
The Mexican Social Security Institute (IMSS) published Criteria 03/2024/NV/SBC-LSS-27-VII, which clarifies the treatment of attendance and punctuality awards with respect to their exclusion from the Base Contribution Salary (SBC). This criterion seeks to ensure compliance with the Social Security Law (LSS) and protect the rights of workers.
According to this criterion, attendance and punctuality awards may be excluded from the SBC only if:
- They do not exceed 10% of the SBC.
- They are accredited by means of controls that demonstrate compliance with attendance or punctuality requirements.
- They are duly recorded in the employer’s accounting records.
Failure to comply with these requirements could result in such amounts being integrated to the SBC, increasing the employer’s obligations. In addition, practices such as mislabeling payments or not establishing clear conditions for granting these awards could be considered social security tax noncompliance.
Implications for Companies
This IMSS criterion underscores the importance of having adequate documentation and mechanisms in place to support the exclusion of attendance and punctuality awards from the SBC. It is essential that companies implement clear attendance and punctuality controls, accompanied by internal policies that specify how these controls should operate, how they are supported and how they should be recorded in the accounting.
Given that this criterion could lead to IMSS revisions, it is recommended to ensure that:
- Attendance and punctuality controls are well defined and operate correctly.
- Internal policies establish the procedures for granting these awards and document the conditions under which they are excluded from the SBC.
- There is an adequate accounting record in accordance with the criteria.
Recommendation
The correct implementation of these controls and policies will not only avoid legal and financial risks, but will also ensure compliance with possible IMSS inspections. At VGA we can help you evaluate and strengthen these mechanisms in your company, ensuring that they are aligned with current regulations. Contact us for specialized advice.
