Must Employers Pay INFONAVIT Loans During Employee's Absence Or Disability? Unpacking The Latest Legal Challenges

An amendment made to Mexico's National Housing Fund Institute for Workers (INFONAVIT) law in February 2025 that requires employers to adjust their systems and payroll processes to determine, make, and enter salary deductions from employees who are granted INFONAVIT loans has created uncertainty among employers and led to speculation about debts between the parties and how subsidizing credits could financially affect companies. However, in a recent ruling, the Supreme Court of Justice of the Nation (Suprema Corte de Justicia de la Nación (SCNJ)) provided much-needed guidance for employers.

Quick Hits

• In an attempt to provide clarity to amendments to the National Housing Fund Institute for Workers issued in February 2025, INFONAVIT has issued criteria and extensions to employers' obligations, but these criteria were neither mandatory nor obligatory to anyone.
• On November 4, 2025, Mexico's Supreme Court of Justice of the Nation issued criteria interpreting the obligations imposed on employers under the latest amendment.

INFONAVIT and Mexican Supreme Court Criteria

Initially, INFONAVIT issued criteria on the interpretation and application of the law's amendment, in addition to granting an extension for compliance. However, these criteria were neither binding nor mandatory for employers, as they were not published in the Official Gazette of the Federation (Diario Oficial de la Federación) by the authority. (In Mexico, any criteria, notice, or communication from a government institution must be published in the Official Gazette of the Federation to provide certainty to citizens and for it to be considered enforceable.)

Given the lack of clarity surrounding the amendment and INFONAVIT's criteria, on November 5, 2025, the SCJN discussed and issued a ruling regarding salary deductions for INFONAVIT housing loans, whenever an employee is absent or incapacitated. This ruling provides the official criteria that employers must follow.

According to the SCJN's rulings, the following points are emphasized:

1. The legal certainty, proportionality, and economic security for employees who are absent or incapacitated must be prioritized.
2. Employers may suspend salary deductions for INFONAVIT housing loans when employees are absent or incapacitated, on the condition that payment is guaranteed within the time limits established by law.
3. Employers are not required to deduct pay if doing so under such circumstances (absence or incapacity) would impose a disproportionate economic burden on both employees and employers, as there would be no salary basis to apply the deductions.

The latest official criteria issued by the SCJN clarify the obligations imposed on employers under the amendment and employers now have clear instructions that they may suspend salary deductions for INFONAVIT loans during periods of employee absence or incapacity.

María José Bladinieres is a law clerk in the  Mexico City office of Ogletree Deakins.

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