Austerity in Mexico : No more golden pensions

Mexico has taken a historic step in its wealth redistribution policy with the immediate implementation of a decree eliminating excessive pensions for high-ranking officials, commonly known as « golden pensions. »

Published yesterday afternoon in the Official Gazette of the Federation (DOF), this text reforms and supplements Article 127 of the Political Constitution of the United Mexican States, now imposing a strict cap: no high-ranking official’s pension can exceed 50% of the total compensation received by the head of the federal executive branch.

This initiative, championed with determination by President Claudia Sheinbaum Pardo since its submission to the Senate last February, aims to end the historical financial privileges of a trusted administrative elite, while preserving the acquired rights of workers governed by general labor conditions.

The economic impact of this measure is massive: the government estimates it can recover approximately 5 billion pesos (around 275 million euros), a colossal sum that will be entirely reinvested in social welfare programs, particularly for student grants and support for the most vulnerable elderly.

By enshrining this limit in constitutional law, the Sheinbaum administration is consolidating its model of republican austerity, ensuring that state resources are used primarily to reduce the country’s structural inequalities by 2026.