Relevant Reforms to the Law of the National Workers' Housing Fund Institute (INFONAVIT) and the Federal Labor Law

On February 21, 2025, reforms to the Law of the National Workers' Housing Fund Institute (INFONAVIT) and the Federal Labor Law were published in the Official Gazette of the Federation (DOF). The purpose of these reforms is to regulate the organization, administration, operation, development, control, oversight, and accountability of the Institute, in accordance with its objectives and the nature of its functions, particularly with respect to social housing.

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The most significant changes include:

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A. Changes affecting workers:

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- In cases where a worker does not receive wages due to absence from work, they shall not be required to make contributions to the National Housing Fund, provided that the Institute is notified in a timely manner. However, if the worker has a disability recognized by the Mexican Institute of Social Security (IMSS), the obligation to make contributions will remain in effect. Similarly, the obligation to make deductions will not be suspended due to absences or disabilities pursuant to the Social Security Law.

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- In the event that a worker with an existing housing loan becomes permanently disabled or passes away, the Institute will forgive the outstanding debt and remove the lien on the property, provided that the worker has insurance that covers these circumstances. For the purposes of these provisions, total permanent disability is defined as the loss of the faculties or abilities of a person, rendering them incapable of performing any future work-related activities.

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- In the event that a worker with a pension for partial permanent disability of 50% or more, or total disability, subsequently obtains a housing loan, they shall remain obligated to repay the loan, even if their disability or condition worsens.

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- In cases of partial permanent disability (50% or more) or total disability, the worker will be relieved from the debt, encumbrances, or restrictions on the property in favor of the Institute, provided that the worker does not enter into a new employment relationship for a minimum of two years. During this period, the worker will be granted an interest-free extension for the repayment of the housing loan. Should the worker return to work, they will resume payment of the loan.

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B. Modifications impacting employers:

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- If an employee does not receive a salary due to an absence, the employer will not be required to make contributions to the National Housing Fund, provided that the Institute is notified in a timely manner. However, if the employee has a disability recognized by the Mexican Social Security Institute, the employer must continue making such contributions. In this regard, the employer’s obligation to make the corresponding deductions will not be suspended in the event of absence or disabilities, in accordance with the Social Security Law.

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- The Institute may collaborate with public and private companies to promote the development and reduction of insurance schemes for borrowers, which will allow for the expansion of coverage for claims.

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These reforms entered into force on February 22, 2025, one day after their publication in the DOF. As of the effective date of the amendments, all legal provisions that are in conflict with it are hereby repealed.

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Due to the foregoing, it is necessary to analyze the potential implications of the amendments on Mexican companies' operations taking into account the increase in labor costs, as well as analyzing the need to notify employees of the new applicable provisions, taking into account the needs of each particular case.

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If you have any questions or comments, please do not hesitate to contact our expert team.