On the way the update social security benefits

One of the variables that has to be stipulated in defined benefits social security schemes is the way to update the benefits. In Mexico, until 2002 the benefits were updated based on the increase in the minimum wage. Since then, the pensions are updated by the consumer price index. The following table shows that for the case of Mexico, there has not been any significant difference, since both the minimum wage and the consumer price index have evolved in similar way.

Evolution over time of the minimum wage and consumer price index in Mexico