On February 21, 2025, the Decree amending, supplementing, and repealing various provisions of the Law of the Institute of the National Housing Fund for Workers and the Federal Labor Law, regarding socially oriented housing (the “Decree”) was published in the Official Gazette of the Federation (by its Spanish acronym, “DOF”).

The Decree amended the last paragraph of Article 29 of the Law of the Institute of the National Housing Fund for Workers (the “INFONAVIT Law”), adding the following text: “In the case of the obligation to make the deductions referred to in section III, such obligation shall not be suspended due to absences or disabilities under the terms of the Social Security Law.”

As of the Decree’s entry into force, employers are no longer allowed to suspend their obligation to withhold amounts from wages in cases where no salary is paid to the employee due to absences or disabilities.  This means that the employer becomes directly liable for covering INFONAVIT loan repayments, even in the absence of a salary base from which to make deductions.

Although labor legislation provides that the employment relationship remains in effect during periods of absence or incapacity, it also establishes that employers are not required to pay wages during such periods.  In this regard, the inability to suspend the obligation to withhold repayments in the absence of a salary base could potentially contravene the Mexican Constitution.

Considering the uncertainty caused by the Decree’s entry into force on March 13, 2025, INFONAVIT issued a non-binding regulatory interpretation concerning its application, stating the following:

1. Employers must adjust the calculation of deductions applied to employees during periods of incapacity or absence proportionally, so that the deduction matches the amount stated in the “withholding notice.”
2. Deductions may not exceed the salary actually paid to the employee or the limits established under Article 97 of the Federal Labor Law.
3. If the salary earned by the employee does not allow for the full deduction to be made, the employer is not obliged to cover the unpaid balance.
4. INFONAVIT will determine the implementation timeline for the application of the provisions established in the Decree.

While the above-mentioned interpretation is not legally binding, it provides greater clarity regarding the appropriate legal approach to challenge or comply with the Decree.  Nonetheless, given the legal uncertainty surrounding its application, as well as the operational and legal risks it may pose for employers, it is essential that companies not only ensure proper implementation of the changes, but also evaluate preventive strategies and legal options to mitigate financial impacts and potential legal disputes.