What Are Housing Fund Contributions in Mexico?
Understand housing fund contributions in Mexico, how INFONAVIT works, the 5 percent employer rule, SBC calculation, and compliance for foreign companies.
What Are Housing Fund Contributions in Mexico?
Housing fund contributions in Mexico are mandatory payments employers must make to support employees’ access to affordable housing. These contributions go to INFONAVIT, the national housing fund that helps employees obtain mortgage loans, build homes, or improve existing property.
Every formal employer must contribute a percentage of each employee’s salary to this fund, regardless of industry or employee seniority.
Meaning of housing fund contributions: These are employer-paid contributions that finance an employee’s INFONAVIT housing balance.
Role of INFONAVIT: INFONAVIT manages these funds and provides low-interest mortgage loans, savings accounts, and housing support.
Why contributions exist: The purpose is to give employees fair access to homeownership and improve long-term financial stability.
Who must pay them: All formal employers in Mexico must pay housing fund contributions for every employee enrolled in IMSS.
Housing fund contributions ensure employees have real opportunities to secure housing through a national, government-backed system.
Purpose of Housing Fund Contributions (Why the System Exists)
Housing fund contributions exist to help employees in Mexico access safe, affordable, and long-term housing opportunities. Through INFONAVIT, these contributions become a financial tool that supports homeownership, property improvement, and long-term savings.
The system is part of Mexico’s labor and social-security framework, ensuring all formal employees receive fair housing support throughout their working life.
Ensure employees can buy, build, remodel, or improve homes: INFONAVIT uses employer contributions to finance mortgage loans, home construction, remodeling, or property upgrades. Employees can choose the type of housing support that fits their needs.
Create long-term savings for employees: Every contribution is added to the employee’s INFONAVIT account, building long-term savings that grow over time. These funds remain in the employee’s name, even if they change employers.
Support affordable credit programs: Housing contributions help INFONAVIT offer low-interest loans with flexible repayment terms. This makes homeownership possible for millions of employees who would otherwise struggle to access credit.
Protect employees’ rights: Housing fund contributions are a legal right under Mexico’s labor and social-security laws. Employers must pay them, ensuring employees benefit from national housing protections.
These contributions strengthen financial stability and help employees build long-term security through homeownership.
How Housing Fund Contributions Work Under INFONAVIT
1. The employee Housing Subaccount (Subcuenta de Vivienda)
The Subcuenta de Vivienda is the personal housing account every IMSS-registered employee automatically receives. All employer housing contributions are deposited into this account.
It belongs entirely to the employee and is managed by INFONAVIT. The balance grows over time and is used for mortgages, home improvements, or future retirement support.
2. How contributions accumulate
Housing contributions accumulate every two months when employers deposit 5 percent of the employee’s Salary Base of Contribution into the INFONAVIT system. These funds are recorded in the employee’s Subcuenta de Vivienda and earn returns.
Even when an employee changes jobs, the account continues growing, giving long-term financial security and a stable housing fund that follows the employee throughout their career.
3. How employees use funds (credits, mortgages, renovations)
Employees can use their INFONAVIT balance to access several credit options, including home purchase, construction, remodeling, debt consolidation, or shared credit programs with banks. INFONAVIT evaluates the employee’s age, salary, and savings to determine loan eligibility.
Funds can be applied toward down payments, monthly payments, or full financing. These programs help employees secure safe, affordable housing with government-backed support.
4. How unused balances can support retirement (AFORE integration)
If an employee never uses their INFONAVIT funds for a mortgage, the unused balance remains in their Subcuenta de Vivienda and automatically integrates into their AFORE retirement savings.
This amount supports the employee’s pension and increases their long-term retirement funds. Unused housing savings therefore, become an additional financial cushion later in life, strengthening overall retirement stability.
Who Must Pay Housing Fund Contributions in Mexico?
Housing fund contributions are mandatory for every employer who hires formal employees in Mexico. These payments ensure that employees have access to INFONAVIT housing support, long-term savings, and affordable credit.
The law applies equally to Mexican companies, foreign employers, and EOR-managed employees. Understanding who must pay and who is exempt helps prevent compliance issues under Mexico’s social-security system.
All formal-sector employers: Any business hiring employees under an employment relationship must pay 5 percent of the employee’s Salary Base of Contribution into INFONAVIT. This applies from day one of employment and continues as long as the employee remains on payroll.
Foreign companies hiring employees in Mexico: International employers with staff in Mexico must comply with INFONAVIT obligations. Nationality does not exempt them; contributions are mandatory whenever a legal employment relationship exists.
EOR-hired employees also covered: When employees are employed through an Employer of Record, the EOR becomes responsible for paying INFONAVIT contributions on time and at the correct rate.
Who is exempt: Contractors, freelancers, and independent service providers are not covered because they are not employees. They do not receive INFONAVIT contributions unless they join a voluntary regime separately.
These rules ensure all employees receive fair housing support while keeping employers fully compliant with Mexican law.
Employer Contribution Rate (The 5 Percent Rule Explained)
Housing fund contributions in Mexico follow a clear and mandatory rule: every employer must contribute 5 percent of each employee’s Integrated Base Salary (SBC), calculated monthly and paid bimonthly, to INFONAVIT.
This percentage is fixed by law and cannot be reduced or negotiated. The contribution ensures that employees have continuous access to housing savings and credit options during their employment.
5 percent of the employee’s Integrated Base Salary (SBC): Employers must calculate the contribution using the SBC, which includes base salary plus recurring payments such as bonuses, commissions, and allowances. A higher SBC increases the contribution amount.
Applies monthly/bimonthly: Contributions are generally paid every two months to INFONAVIT. Employers must ensure payments are accurate and submitted on time to remain compliant.
Applies to all active, registered employees: Any employee enrolled in IMSS must receive housing contributions, regardless of job type, seniority, or contract duration. Even probationary and part-time employees are covered.
Non-negotiable, mandatory payment: The 5 percent rate is a legal obligation under Mexico’s Social Security and Housing laws. Employers cannot lower or avoid this payment under any circumstances.
This fixed contribution rate guarantees consistent housing support and long-term financial security for employees in Mexico.
Understanding the Integrated Base Salary (SBC) for Contribution Calculation
The Integrated Base Salary (SBC) is the foundation used by IMSS and, by extension, INFONAVIT to calculate employer contributions.
Because INFONAVIT contributions are calculated based on the IMSS SBC, understanding how the SBC is determined is critical to ensure the correct 5% housing contribution is paid for each employee. Using an incorrect SBC can lead to underpayments, fines, and compliance issues with social security authorities.
What SBC Includes (Base Wage + Recurring Compensation)
SBC includes the employee’s daily base salary plus salary-based compensation paid on a regular or recurring basis. This typically covers:
Commissions, incentives, and bonuses that form part of the employee’s ongoing remuneration
Any recurring payments that are directly linked to the employee’s salary
These components increase the SBC and, as a result, increase IMSS and INFONAVIT contributions. Food vouchers and transportation allowances are included in the SBC only to the extent that they exceed the legally exempt monthly limits or when they are paid in cash.
What SBC Excludes
SBC generally excludes payments that are not considered salary for social security purposes, including:
Statutory severance and termination payments
Properly documented expense reimbursements
Certain benefits may also be excluded as long as they remain within legally exempt limits. Any amount exceeding those limits may be integrated into the SBC. Variable compensation must always be reviewed based on its nature and regularity.
Impact of Salary Changes on Contributions
Any change to an employee’s salary or recurring salary-based compensation must be reported to IMSS within the legally required timeframe, which is a maximum of five business days. An increase in SBC results in higher social security and housing contributions, while a legally valid reduction may lower employer costs.
IMSS and INFONAVIT regularly audit employers based on SBC accuracy. Underreporting the SBC is considered a violation and may result in penalties, surcharges, and retroactive contribution payments. Accurate calculation protects employers from enforcement actions and labor disputes.
Accurate SBC management ensures correct INFONAVIT payments and keeps employers fully compliant with Mexican regulations.
Employer Registration and Employee Registration Requirements
To comply with INFONAVIT rules, both employers and employees must be properly registered in the housing fund system. Registration ensures that contributions are tracked, payments are applied correctly, and employees receive full access to their housing rights.
Employers must maintain accurate information from hiring to termination to avoid errors or penalties.
Registering the employer with INFONAVIT: Every company hiring formal employees must register as an employer with INFONAVIT. This registration links the business to its payroll obligations and enables it to submit housing contributions legally.
Registering each employee at hire: When an employee begins work, the employer must register them with IMSS, which automatically creates their INFONAVIT housing account. Contributions begin from the first day of employment and must match the employee’s correct SBC.
Updating data on promotions, salary changes, or shifts: Any adjustment to salary, recurring benefits, job classification, or employee information must be reported promptly. These updates ensure contributions are calculated accurately and reflect the employee’s true compensation.
Reporting terminations to stop contributions: When an employee leaves the company, the employer must report the termination immediately. This prevents unnecessary future contributions and keeps the INFONAVIT account accurate.
Proper registration and updates ensure compliance and protect employee’s access to housing benefits.
Payment Schedule and Reporting Obligations
INFONAVIT requires employers to follow a strict payment schedule and reporting process to keep housing contributions compliant. Payments must be submitted on time, using the correct systems and documentation.
These rules ensure that employees receive continuous credit toward their housing accounts and that employers avoid penalties, interest charges, or audits.
Bimonthly INFONAVIT contribution cycle: Housing fund contributions are paid every two months. Employers must calculate 5 percent of each employee’s SBC for the full period and submit the total payment before the deadline.
Unified Payment System (SIPARE): All payments are made through SIPARE, INFONAVIT’s official platform. Employers download their payment line (línea de captura) and submit contributions through banks or online payment portals.
Deadlines and required documentation: Each bimonthly period has a fixed due date. Employers must maintain copies of payment confirmations, employee SBC records, and the official payment line to prove compliance.
Record-keeping and audit expectations: INFONAVIT may audit employers at any time. Businesses must keep payroll records, SBC calculations, CFDI receipts, contracts, and contribution reports for several years to demonstrate accurate reporting.
Following the payment schedule and reporting rules ensures full INFONAVIT compliance and protects employees’ housing benefits.
When Employees Have an INFONAVIT Credit (Special Employer Duties)
1. Mandatory payroll deductions for loan repayment
When an employee has an active INFONAVIT credit, the employer must withhold loan payments directly from payroll. These deductions are mandatory and must follow the exact percentage or amount assigned by INFONAVIT.
The employer then submits the withheld amount along with housing contributions. Proper withholding ensures the employee’s loan stays current and avoids interest or penalties.
2. How repayment factors (FACTOR DE DESCUENTO) work
INFONAVIT assigns each borrower a repayment factor called Factor de Descuento. This factor can be a fixed amount, a percentage of salary, or a variable linked to the employee’s SBC.
Employers must apply the factor exactly as indicated in the employee’s loan notice. Any deviation results in underpayment, affecting the employee’s credit status and loan balance.
3. Reporting obligations when employee’s loan status changes
Employers must update INFONAVIT when an employee’s salary changes, when they receive a promotion, or when their employment ends. These updates adjust the repayment factor and ensure deductions match the current SBC.
If an employee leaves the company, the employer must report the termination immediately to stop future deductions and avoid errors.
4. Risk of failing to withhold correctly
Incorrect withholding can harm both the employer and employee. The employee may fall behind on mortgage payments, generating interest, penalties, or legal actions.
For employers, errors can trigger INFONAVIT audits, fines, and retroactive payment demands. Consistent and accurate payroll deductions are essential to maintain full compliance and protect employee’s loan obligations.
New 2025 Legal Amendments to Housing Fund Obligations
Mexico introduced new 2025 updates to strengthen housing security and ensure continuous INFONAVIT protection for employees. These changes increase employer responsibilities, especially in situations involving leave, disability, or reduced work activity.
The reforms aim to prevent contribution gaps and ensure that employees maintain an active housing fund even during temporary interruptions in employment.
Changes to employer responsibility during leave/disability: Employers must now maintain INFONAVIT contributions in more scenarios where the employee is temporarily out, such as extended medical leave, certain disability periods, or protected absences. The goal is to prevent employees from losing housing-credit eligibility.
Scenarios where contributions continue: In specific cases where IMSS pays a disability subsidy, employers may still need to continue or partially continue INFONAVIT contributions. This ensures the employee’s Subcuenta de Vivienda remains active.
Impact on payroll processing: Payroll teams must update systems to correctly calculate SBC adjustments during leave periods, apply special contribution rules, and submit updated payment lines through SIPARE.
Increased compliance burden for employers: The 2025 amendments require more reporting, record-keeping, and coordination between payroll, IMSS, and INFONAVIT. Failing to follow the new obligations can result in audits or retroactive contribution assessments.
These updates reinforce continuity in employee housing benefits and raise the compliance expectations for every employer in Mexico.
Penalties and Risks for Not Paying Housing Fund Contributions
Failing to pay INFONAVIT contributions creates serious legal and financial exposure for employers. Authorities monitor payments closely, and missed contributions can impact both company compliance and employee housing rights.
Understanding these risks helps employers avoid costly penalties and protect employee’s benefits.
1. Fines for late or missing contributions
INFONAVIT imposes financial penalties when employers fail to pay housing contributions on time. These fines apply per employee, per period, and increase based on the delay. Repeated noncompliance can trigger larger penalties and additional sanctions.
Employers must maintain accurate payment records to prove timely compliance and avoid administrative consequences under the housing fund regulations.
2. Back payments + interest
If contributions are missed or underreported, employers must pay the full amount owed plus accumulated interest. INFONAVIT calculates interest daily, making back payments expensive over time.
Retroactive corrections can include several months or years of contributions, especially after an audit. Employers who fail to update SBC changes often face significant retroactive charges.
3. Liability for unpaid INFONAVIT loans
If payroll deductions for INFONAVIT credits are not withheld correctly, the employer becomes liable for the unpaid amount. This includes missed loan installments, interest, and potential legal fees.
Incorrect deductions can damage the employee’s credit status and create long-term financial harm, leading to claims or disputes.
4. Risk of audits from INFONAVIT/SAT/IMSS
Noncompliance with housing contributions increases the likelihood of audits from INFONAVIT, SAT, or IMSS. These audits review payroll, SBC calculations, CFDI receipts, and payment records.
If discrepancies are found, authorities may impose fines, require back payments, or expand the audit to cover additional fiscal obligations.
5. Impact on employee housing rights
Missing contributions directly harm employees by lowering their INFONAVIT savings, reducing loan eligibility, or delaying access to housing credit.
Employees may lose the chance to buy or improve a home due to employer mistakes. This can lead to employee complaints, labor claims, or disputes with authorities over denied housing rights.
How an EOR (Employer of Record) Ensures Full INFONAVIT Compliance
An Employer of Record (EOR) takes full responsibility for managing all housing-fund obligations for employees hired in Mexico. Because the EOR becomes the legal employer, it handles every step of INFONAVIT compliance, from registration to contribution payments.
This protects foreign companies from complex administrative work, calculation errors, and penalties related to housing-fund obligations.
EOR registers employees properly: The EOR ensures every employee is registered with IMSS, which automatically creates their INFONAVIT housing account. Registration is completed from day one to guarantee uninterrupted housing benefits.
Calculates SBC accurately: The EOR determines each employee’s Integrated Base Salary (SBC) by including salary plus recurring payments. Accurate SBC prevents underpayments, audits, and retroactive corrections.
Handles bimonthly housing-fund contributions: The EOR calculates, schedules, and submits the required 5 percent INFONAVIT contributions through SIPARE on time, every cycle.
Manages loan withholding & compliance: If an employee has an INFONAVIT credit, the EOR applies the correct repayment factor, withholds payroll deductions, and reports updates when salaries change.
Avoids penalties and back payments: By managing reporting, payments, and documentation, the EOR protects companies from fines, audits, and legal exposure.
Using an EOR ensures smooth, accurate, and fully compliant INFONAVIT management for all employees.
Why HRM Is the Safest EOR for Housing Fund Compliance in Mexico
Managing INFONAVIT contributions correctly requires deep knowledge of Mexican payroll law, social-security rules, and SBC calculations.
Human resources Mexico (HRM) stands out as the safest and most reliable EOR because it operates physically in Mexico, maintains full legal compliance, and manages every obligation directly.
Unlike global EOR platforms that outsource payroll to third parties, HRM handles contributions, reporting, and audits with complete transparency.
16+ years operating physically in Mexico: HRM has a long-established presence with real offices, real staff, and proven infrastructure inside Mexico.
Full payroll compliance with IMSS, INFONAVIT, and SAT: Every contribution, deduction, and report is handled under strict legal requirements, ensuring total compliance across all government systems.
Transparent SBC calculation: HRM calculates each employee’s Integrated Base Salary with precision, avoiding underreports that lead to fines or back payments.
Fully REPSE-registered provider: HRM complies with Mexico’s 2021 outsourcing reform, offering legal certainty for all employer obligations.
Local HR team ensures error-free contributions: Payroll experts manage bimonthly payments, loan deductions, and reporting without mistakes.
Protects foreign companies from legal exposure: HRM shields client companies from INFONAVIT audits, penalties, and miscalculated contributions.
Want to hire in Mexico without INFONAVIT risks? Contact us today for a fully compliant, transparent hiring experience and get a custom proposal for your hiring needs.
FAQs About Housing Fund Contributions in Mexico
How much do employers pay to INFONAVIT?
Employers must contribute 5 percent of each employee’s Integrated Base Salary (SBC) to INFONAVIT. This payment is mandatory and cannot be negotiated. Contributions are deposited every two months into the employee’s housing subaccount, helping them access mortgages, home improvements, or long-term savings for retirement.
Do employees contribute to the housing fund?
No. Only employers contribute to the INFONAVIT housing fund. Employees do not pay any percentage from their salary unless they have an active INFONAVIT loan. In that case, payroll deductions are applied for loan repayment, but these are separate from housing contributions.
How are payments made and reported?
Employers make bimonthly payments through SIPARE using their official payment line. After submitting the contribution, they must keep receipts, SBC records, and CFDI payroll documents. These records are required for INFONAVIT audits and help ensure accurate reporting and compliance.
What is the SBC and how is it calculated?
The Integrated Base Salary (SBC) includes an employee’s base wage plus recurring salary-based compensation such as commissions, incentives, or bonuses when they form part of regular remuneration. Certain benefits may integrate depending on their nature and form of payment. Termination payments and properly documented reimbursements are generally excluded.
What if an employer does not pay INFONAVIT?
Missing or late contributions can lead to fines, back payments, interest charges, and audits. Employers may also become liable for unpaid loan deductions. Failure to comply harms the employee’s housing rights and may result in legal or fiscal penalties from INFONAVIT, SAT, or IMSS.
How does an EOR manage housing fund obligations?
An EOR acts as the legal employer and handles all INFONAVIT responsibilities, including registration, SBC calculation, contribution payments, loan deductions, and reporting. This ensures full compliance for foreign companies and prevents errors or penalties linked to mismanaged housing contributions.
