PRIMA DE RIESGO - OCCUPATIONAL RISK RATE
In Mexico, Health and
Safety programs are an EMPLOYER obligation for
the protection of the workers. The
Employer has the obligation to register all
their workers in Social Security and include
them in the Employer’s Health and Safety
program.
What is the “prima de
riesgo” or risk rate?
In a company, the
probability that an accident or occupational
illness will occur varies by the type of
activities carried out and the controls
implemented to diminish the risk. Employers
should be aware of the risk rate and how to
present their determination opportunely.
It is one of the fees that
the Employer must pay to the IMSS (Mexican
Institute of Social Security) to cover the
probability of risk of accident or illness to
which workers are exposed to according to the
activities with which they are involved.
Am I obligated to pay a
RISK RATE?
All Employers that are
Individuals or companies that have workers in
their employ must calculate their risk rate
through an annual review of their accidents and
illnesses, that is to say, the frequency or
index of occupational accidents or illnesses
their employees have had between the 1st of
January and the 31st of December.
What occurs when an
Employer initially registers as an Employer?
When registering for the
first time or changing activities, the companies
must classify themselves in order to determine
and pay the risk rate according to the catalogue
of activities for the classification of
companies. The criteria for doing so are the
activities, economic division, economic group,
section and class that correspond to them.
How is the
classification of economic activities made for
determining the occupational Risk Rate?
Article 196 of the
REGULATION of the Social Security Law in matters
of enrollment, the classification of companies,
collection, and taxation contains the catalogue
of activities and indicates the division to
which they belong.
According to the
activities, the company can identify the
classification that corresponds to them within
the eight divisions covered in the catalogue.
Once the Division is
identified, the group that it belongs to must be
determined.
What are the classes and
percentage of the fees for each one?
For this answer we consult
Article 73 of the Social Security Law.
“Article 73. After
registering in the Social Security System for
the first time or changing activity, companies
will pay the median rate for the Class that
corresponds to them according to the Regulation,
according to the following table:
Is the Risk Rate a
permanent indicator?
NO. Each year the company
should recalculate the risk rate and according
to the accidents and illnesses registered for
the company, the risk rate can be lowered or
increased. The Risk Rate is recalculated before
the end of February.
“Article 74.
Companies will have the obligation to review
annually their accident rate, according to the
period and within the time period stipulated by
the regulation for determining whether they stay
with the same rate, or if it decreases or
increases.
The rate that the
companies are using for payment of their
contributions can be modified, either by
increasing or decreasing it at a proportion no
higher than ONE PERCENT according to the
immediate past year, taking into consideration
the finished occupational accidents during the
time period that the regulation establishes,
independently of the date they occurred and the
documentary corroboration of the establishment
of programs or preventive actions for accidents
and occupational illnesses. These modifications
cannot exceed the limits set for the minimum and
maximum rate, which will be zero point five
percent and FIFTEEN PERCENT of the respective
base wage estimate rate.”
How is the risk rate
calculated?
Article 72 of the Social
Security Law contains the formula for the
calculation of the risk rate.
“Article 72. For the purposes of the setting of the
rates to pay for insurance for occupational
risks, companies must calculate their rates,
multiplying the accident rate of the company by
a factor of the rate, and add 0.005 to the
results. The result will be the rate to apply on
the salaries to be calculated according to the
following formula:
Rate = [(S/365)+V * (I + D)] * (F/N) + M
Where:
V = 28 years, which is the average active life
on an individual that has not been the victim of
a fatal accident or a permanent total
disability.
F = 2.3, that is the factor of the rate.
N = Average number of workers exposed to risk.
S = Total of the days that have subsidized for
temporary disability.
I = Sum of the percentages of permanent,
partial, and total disabilities, divided by 100.
D = Number of deaths
M = 0.005, the is the minimum rate of risk.
After enrollment in the Social Security program for the first time or
after changing activity, the companies will pay,
in the industrial classification that
corresponds to them according to the regulation,
the median rate. Once the company is designated
for the rate it is to pay, the following
increases or decreases of the rate will be made
according to the first paragraph of this
Article.
The accidents that occur to the workers in their movement from home
to the workplace or vice versa will not be taken
into account for the accident rate of the
companies.
The employers whose workplaces have a system of administration and
occupational safety accredited by the Secretary
of Labor and Social Welfare (STPS)*, will apply
an “F” of 2.2 as a rate factor.
Companies of less than 10 workers can opt for presenting the
corresponding annual declaration or pay the
average rate that corresponds to them according
to the Regulation, according to Article 73 of
this Law.”
*Certification of the company Health and Safety program through
the Federal STPS Auto Gestión certification
program.
Is the Risk Rate a permanent indicator?
NO. Each year the company should recalculate the risk rate and according
to the accidents and illnesses registered for
the company, the risk rate can be lowered or
increased. The Risk Rate is recalculated on the
first of March of the year.
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