January 13, 2022

Registering Construction Projects with Mexico’s Social Security Institute

By Miriam Name and Esteban Gómez Aguado

Mexico’s Social Security Institute (“IMSS”) provides Mandatory Social Security Rules for Independent Contractors which do Construction Work and Fixed-Term Projects (“ROTIC” for its acronym in Spanish).  The ROTIC sets forth the obligation and process to register construction works with the IMSS. Accordingly, while the primary mission and purpose of the IMSS is to provide medical care, such agency maintains a registry for construction projects taking place in Mexico.

In order to maintain a more organized and reliable registry of construction employees, employers, and their respective responsibilities, the IMSS has opted to digitalize the process to register construction projects as a system and platform for the registry.

The purpose of the registry is to streamline the regular process from six forms to only two modules with the Integral Registry Service for Construction Work, thereby simplifying the process to complete the forms and modules.

Pursuant to Article 5 of the ROTIC, owners, persons hired to perform construction services and which have employees, as well as the individuals or entities subcontracted to perform construction services, must each register their work and projects with the IMSS.

Of note, Article 12 provides that an employer must register the construction project within a period of five business days from the project’s starting date, otherwise the employer will be subject to applicable fines.

Employers and owners of a construction project which have permanent employees are exempt from compliance with the ROTIC, since such applies to independent contractors and employees hired for fixed terms. In order to register, the applicant must have a valid electronic signature (valid “e.firma” with the Tax Administration Service).