Mexico’s Savings Fund (Fondo de Ahorro)
In today’s Mexican workplace, discussing employees’ financial well-being is no longer a luxury or mere courtesy. It is a core pillar of any serious organizational strategy. It’s not just about “taking care of the team” for its own sake, but about offering concrete solutions that help people keep their finances under control and respond calmly when the unexpected happens.
Among those solutions, one tool has gained ground for a very simple reason: it works. The savings fund not only promotes the habit of setting aside a portion of income each month. It also delivers something less tangible yet just as powerful: peace of mind. Knowing a financial buffer is available in an emergency changes how a person approaches money. Below, we cover what you need to know about this scheme—from how it operates and the benefits it provides, to the legal and tax limits you should keep on your radar.
What is the savings fund (fondo de ahorro) in Mexico?
The Fondo de Ahorro is an optional benefit. Companies offer it as part of compensation. It uses matching contributions. The employee contributes a portion of salary. The company contributes an equal amount, or more if agreed. A financial institution holds and invests the money for a defined period.
The goal is clear. It encourages consistent saving. It also creates a financial buffer. Employees can handle emergencies, qualify for credit, or invest. As a result, they feel more secure and future-oriented.
There is a tax angle. Properly structured funds qualify as social welfare (previsión social). Consequently, companies can deduct up to 53% under specific conditions. So, the benefit helps people and supports sound economics. Let’s move to the mechanics.
How does the savings fund work?
The logic is quite simple—hence its wide adoption. It typically follows four key steps:
Collective labor agreement: Everything starts with a formal agreement that stipulates how much each party will contribute—that is, what percentage of salary the employee contributes and how much the company will add.
Employee contribution: Most commonly, the employee authorizes an automatic payroll deduction up to 13% of salary. The percentage is deducted directly from payroll.
Employer contribution: The company deposits a matching amount—although it may be higher—according to the agreement.
Administration and returns: The money is channeled into a specific account or fund managed by a financial institution. These resources are invested (e.g., bonds, equities, or similar instruments) to generate returns. At year-end—or upon termination of employment—the employee receives the accumulated total.
Implementing a savings fund is more than offering a one-off benefit. Organizationally, it can be a lever for retention, strengthen internal climate perceptions, and—when managed correctly—take advantage of tax incentives that can directly impact the company’s bottom line.
What is the difference between a caja de ahorro (savings box) and a fondo de ahorro (savings fund)?
This question often comes up. At first glance they look similar: both help people save in an orderly way. In practice, they are quite different:
Savings fund (fondo de ahorro): A collective benefit formally established in the collective bargaining agreement. It is offered to all personnel without distinction, and the rules—company contribution percentages, employee contributions, and how returns are managed—are set jointly.
Savings box (caja de ahorro): More flexible and voluntary. Only the employee contributes; the company does not. The employee channels part of salary to a common account, which can generate interest and serve as collateral for loans. However, without employer contributions, the accumulated amount is typically lower than in a fund.
When discussing a savings fund, it’s worth pausing to consider everything it can bring—not only for participants, but for the company that implements it.
Advantages for employees
This benefit removes friction. The deduction is automatic. The habit forms easily. And the impact grows every month.
Concrete benefits include:
Fostering a stronger financial culture and more deliberate expense planning.
Serving as a lifeline during unexpected events—medical emergencies, job loss, or unmanageable debt—thus avoiding more expensive solutions.
Helping accumulate funds for major goals, like buying a home, paying for education, or launching a personal project.
Offering potential financial growth through long-term investment returns.
Strengthening the bond with the company, building a sense of belonging, and improving the perception of the work environment.
In short, this benefit supports each person’s financial well-being and also builds something broader: a more stable, more committed employment relationship with a stronger emotional foundation.
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How do you calculate the savings fund?
Both sides should understand the math. Clear figures build trust. The process has three steps:
Set the percentage: Typically 5%–13% of gross monthly salary. Both parties agree the rate.
Compute monthly amounts: Apply the rate to the employee’s gross salary. Payroll deducts that amount. The employer matches it.
Example: Salary MXN 20,000; total 10% (split evenly). Employee: MXN 1,000/month. Employer: MXN 1,000/month.Estimate annual returns: The institution applies an annual yield, often 10%–13%. It calculates interest on the total accumulated at year-end.
Illustration: MXN 2,000 per month into the fund → MXN 24,000 per year. A 10% return adds MXN 2,400. Therefore, the final total reaches MXN 26,400.
Set clear rules. Communicate transparently. Then the model will deliver consistent value.
Is the savings fund tax-exempt?
Under the Income Tax Law (LISR), savings funds can be tax-exempt when structured properly. The benefit is treated as exempt income for employees unless:
Employer contribution < Employee contribution: Not included in the Base Contribution Salary (SBC).
Employer contribution > Employee contribution: The excess over the employee’s amount is included in the SBC.
Equal contributions (amount or percentage): Not included in the SBC, consistent with LISR.
If the plan is structured differently, or the employee withdraws more than twice per year, it is included in the SBC (LISR requires one annual withdrawal or at termination).
What is the cap for the savings fund?
The law sets a hard limit. Contributions may not exceed 13% of salary, or 1.3× the annual UMA, whichever is lower. The cap applies to combined contributions from employee and employer.
Example: Salary MXN 10,000/month. The maximum monthly contribution is MXN 1,300. Staying within this cap preserves tax treatment and avoids future issues with the SAT.
When are the funds received?
Timing can vary according to each company’s policies and agreements. General practices include:
One disbursement per year (sometimes structured as a loan against the fund).
At the end of employment (upon termination of the labor relationship).
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These funds benefit both company and worker. The company can integrate them into its social welfare plan and—when requirements are met—deduct amounts contributed to employees. The worker can use the pooled amount as a loan or pure savings mechanism.
Including the savings fund as part of employees’ total compensation and reflecting the contributions on each payslip helps secure the related tax deductions.
For efficient administration, a reliable provider of savings programs is recommended.
