Understanding Social Security Processing

SDI (Salario Diario Integrado) represents the base salary that is used for social security calculations, including contributions to social security and INFONAVIT loan paybacks. It consists of:

• Fixed SDI, which is the payee's daily rate plus Aguinaldo (Christmas bonus), vacation premium, food coupons, or any other benefits the payee receives regularly.

• Variable SDI, which includes benefits that vary from one pay period to another, such as Sunday premium, triple overtime, and commissions.

The process for defining and updating social security contributions in Mexico consists of these steps:

1. (Optional) Update the social security contribution table and the repayment of INFONAVIT loans table.

   Global Payroll for Mexico delivers rules that compute fixed and variable SDI for payees and calculate deductions for social security and repayment of INFONAVIT loans. The calculations are based on tables that contain rates and ceilings. PeopleSoft HRMS delivers the data for these tables initially, but you must keep the tables current.

   Note: You can update the social security contribution table on the Quotas MEX Page.

2. View and update SDI wage data for payees on the Maintain SDI Data MEX page.

3. Select additional elements that contribute to fixed SDI and define the integration parameters for these elements on the Fixed SDI page.

4. Define Variable SDI for a pay group on the Variable SDI page.

   Note: Before you can run the Variable SDI process, you must define Variable SDI for a pay group by selecting the earnings, accumulators, and formulas used in the Variable SDI process. See Variable SDI Page.

5. Run SDI processes to calculate new SDI amounts when certain events or changes occur, such as employee anniversaries, or at the end of two months, if variable earnings are paid. The two SDI processes are:

   • Process SDI MEX (SDI FIJO).

   • Variable SDI (SDI VARIABLE).