. Author manuscript; available in PMC: 2017 Mar 10.

Published in final edited form as: Am Econ J Econ Policy. 2011 Nov;3(4):1–24. doi: 10.1257/pol.3.4.1

Table 4. Requirements and Benefits of the Private-Sector (IMSS) and Public-Sector (ISSSTE) Social Security Systems.

	Private PAYG system	Public PAYG system
Early retirement age	60	60
Minimum years of contribution	10	10
Contributions (percentage of worker's wage)	10.5	9.0
Method to compute social security benefts	Average wage of 5 years preceding retirement	Wage of year preceding retirement
Indexation of social security benefts	Minimum wage	Minimum wage

Notes: PAyg refers to the pay-as-you-go system. Contributions in the private-sector social security system are made by the employee, the employer, and the government. For the public-sector social security system, contributions are made by the employee and the employer. The employee contributes 2.125 percent in the private-sector system and 3.5 percent in the public-sector scheme. The minimum wage varies by region. There are three determined regions. The indexation of benefits is computed with the minimum wage for the Mexico City region.

Sources: IMSS (1994), ISSSTE (1994)