Austerity reaches Mexican bureaucrats at all levels

08/01/2019
|
15:16
|
Leonor Flores
Austerity reaches Mexican bureaucrats at all levels
The new federal provision forbids independent contractors from receiving FOVISSSTE and Fonacot credit - Photo: Juan Carlos Reyes/EL UNIVERSAL

Austerity reaches Mexican bureaucrats at all levels

08/01/2019
15:16
Leonor Flores
Mexico City
-A +A
As of 2019, temporary government staff will not be entitled to the same employee benefits as regular workers

In 2019, all temporary staff and independent contractors hired by branches of the federal government of Mexico, including the President’s Office, will not be entitled to the same employee benefits as regular workers and will not be allowed to earn more than their immediate bosses or supervisors, according to the Ministry of Finance and Public Credit (SHCP).

The new provision means that workers hired under fee-for-service contracts will not have access to social security, credits from the Institute of Social Security and Social Services for State Employees (FOVISSSTE), Christmas bonus, or vacation pay.

It also forbids independent contractors from receiving Fonacot (National Fund for Workers’ Expenditures) credit for the purchase of goods and services, as well as permits and monetary support for their children, or toys for Chrildren’s Day and Three Kings Day.

Fee-for-service workers will also be denied automatic retirement funds (Afore) and will have to give voluntary contributions to improve their perspective of retirement. Should independent contractors wish to contribute to the Security and Social Services Institute for State Workers (ISSSTE), they will have to cover an annual fee determined by the institute depending on their profile.

As for the specific provision for the authorization of eventual job positions, as well as budget control for professional and independent services for the fiscal year of 2019, the ministry indicated that benefits included in the Federal Work Law or other collective contracts would not be applied to this type of workers.

These provisions will be of mandatory compliance to decentralized administrative institutions, as well as the President’s Office, the Legal Council of the Mexican President, Agrarian Courts, and parastatal entities.

The Attorney General’s Office pointed out that regulations that may be applicable to expense implementers would be subject to scrutiny.

Administration and finance branches of each federal body that have now replaced major official offices will have to provide thorough details of job positions requested for budget allocation.

The document signed by the head of the UPCP (Budget Policy and Control Unit) within the Federal Expense Undersecretariat, Víctor Mojica Vilchis, explained that fee-for-service contracts would only last until December 31, 2019.

As for the budget for temporary staff recruitment, the provision establishes that the UPCP will have to notify the Ministry of Public Affairs on the budget approved for said purpose.

Temporary workers

Regarding temporary workers, federal bodies will have to provide details on the number of job positions requested. Authorizations will be granted with a duration of six months, as long as there is enough budget to cover them.

Expense executors in need of modifying wage levels for temporary positions will have to file a request with the UPCP.
 

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