Companies conducting due diligence on establishing manufacturing operations in Mexico usually ask, "Does Mexico have social security?"

And will come across the name "Instituto del Fondo Nacional de la Vivienda para los Trabajadores," in Spanish, in INFONAVIT, a federal organization that was founded in 1972 to provide worker housing credit in Mexico to maquiladora workers and other individuals employed in the country's formal sector.

Passed in 2006, according to INFONAVIT Mexico, the "constitutional right to decent, dignified, and affordable housing" now accounts for 7 out of 10 (>2 million) loans for Mexican workers.

INFONAVIT credits are available for:

• Home buying
• Financing
• Maintenance and repairs
• Mortgages
• Credit
• and all other services for new home buyers

This is often called one of the biggest Mexico social security programs for workers. Its goal is to make sure that cities grow in a sustainable way across all industries.

How it Works:

Companies must register themselves and their employees with INFONAVIT after establishing themselves in Mexico, according to the country's constitution (specifically, articulo 29 fracción II de la Ley del Instituto del Fondo Nacional). The federal housing agency's administrative requirements state that newly hired employees must be added to the INFONAVIT rolls within five business days of starting to work for their new employer.

Furthermore, the country's constitution requires employers to contribute 5% of each worker's salary to the fund as part of their payroll process. This is so that INFONAVIT can make worker housing credits in Mexico available to qualified parties for the purposes mentioned above. Employer contributions are paid every two weeks. If a company fails to meet its obligations under the INFONAVIT National Housing Law, it may face fines ranging from three to three hundred and fifteen times the locally established minimum wage. It is critical to understand that there are multiple minimum wage rates in Mexico. The Mexican government establishes several legal minimum wages based on the cost of living in various areas and the type of job.

When Mexican maquiladora workers and others in the formal sector of the Mexican economy are granted loans by INFONAVIT, they have certain defined rights and must fulfill several obligations. When they are ready to purchase, property negotiations take place to determine how much the employee will pay toward the loan.

INFONAVIT also promotes eco-technologies for the construction of INFONAVIT-financed homes in Mexico. This includes homes that run more efficiently, use less energy, and are far easier to maintain. Sustainable housing was often a second thought in past decades but is becoming a topic of political discussion in more recent times. Attractive housing lets more people live in these thriving manufacturing communities and makes sure that everyone has the same chances to live in a place that is safe and healthy. 

Mexican Shelter Helps Foreign Companies Navigate Labor in Mexico

Foreign manufacturing companies find the availability of a highly skilled and affordable workforce a key draw for manufacturing in Mexico. Shelter companies like Co-Production International can be a valuable resource for manufacturers looking to expand operations, offering quick ramps, scalability, and minimal risk to the business owner. CPI has over 44 years of U.S. and Mexican manufacturing expertise, bringing a robust network of strategic partners and dedicated teams to help you get up and running. Human resources, recruitment, hiring, and compliance with labor laws fall under CPI’s Shelter IMMEX Program, which allows manufacturers to focus 100% on manufacturing while CPI handles the rest. In their case studies archive, you can learn more about how CPI has helped manufacturers grow their supply chains and operations.

Further Reading:

• Varian case
• Made in Mexico
• Manufacture in Mexico