v3.25.1
Employee Benefits
 12 Months Ended
Dec. 31, 2024
Employee Benefits [Abstract]  
Employee Benefits
Note 18. Employee Benefits

An analysis of the net liability and net period cost for employee benefits is as follows:

   
At December 31,
  
   
2023
    
2024
  
Mexico
  
Ps.
119,265,063    
Ps.
145,277,743  
Puerto Rico
    
7,227,422
      
6,954,741
  
Brazil
    
7,401,235
      
5,411,258
  
Europe
    
8,919,884
      
8,578,927
  
Ecuador
    
479,762
      
654,465
  
El Salvador
    
113,508
      
165,653
  
Nicaragua
    
53,974
      
71,266
  
Honduras
    
55,295
      
38,388
  
Total
  
Ps.
143,516,143    
Ps.
167,152,441  

   
For the year ended December 31,
  
   
2022
    
2023
    
2024
  
Mexico
   Ps.
13,673,155     Ps.
14,601,940     Ps.
16,074,164  
Puerto Rico
    
538,681
      
170,389
      
535,051
  
Brazil
    
587,552
      
369,624
      
(228,547
)
Europe
    
1,176,028
      
1,750,101
      
1,755,407
  
Ecuador
    
(29,743
)
    
40,498
      
65,123
  
El Salvador
    
14,384
      
15,190
      
16,430
  
Nicaragua
    
11,502
      
10,937
      
13,387
  
Honduras
    
7,593
      
13,257
      
1,527
  
Total
   Ps.
15,979,152     Ps.
16,971,936     Ps.
18,232,542  
 
a) Defined Benefit Plans
 
The defined benefit obligation (DBO) and plan assets for the pension and other benefit obligation plans, by country, are as follows:
 

  
At December 31
  

 
2023
    
2024
  
               
Effect of asset
    
Net employee
                
Effect of asset
    
Net employee
  
   
DBO
    
Plan Assets
    
ceiling
    
benefit liability
    
DBO
    
Plan Assets
    
ceiling
    
benefit liability
  
Mexico          
   Ps.
293,551,400     Ps.
(175,265,188 )   Ps.
—     Ps.
118,286,212
     Ps.
303,027,238
     Ps.
(159,328,024 )   Ps.
—
      Ps. 143,699,214  
Puerto Rico          
    
22,244,771
      
(15,017,349
)
    
—
      
7,227,422
      
24,608,173
      
(17,653,432
)
    
—
      
6,954,741
  
Brazil          
    
15,045,247
      
(13,810,050
)
    
4,055,040
      
5,290,237
      
12,113,660
      
(13,054,352
)
    
4,481,044
      
3,540,352
  
Europe          
    
3,384,633
      
—
      
—
      
3,384,633
      
3,379,389
      
—
      
—
      
3,379,389
  
Total          
   Ps.
334,226,051     Ps.
(204,092,587 )   Ps.
4,055,040     Ps.
134,188,504     Ps. 343,128,460     Ps.
(190,035,808 )   Ps.
4,481,044     Ps.
157,573,696  

Below is a summary of the actuarial results generated for the pension and retirement plans as well as the medical services in Puerto Rico and Brazil; the pension plans and seniority premiums related to Telmex; the pension plan, the service awards plan and severance in Austria corresponding to the years ended December 31, 2022, 2023 and 2024:
 
   
At December 31, 2022
  
   
DBO
    
Plan Assets
    
Effect of asset
ceiling
    
Net employee
benefit liability
  
Balance at the beginning of the year          
   Ps.
345,315,712     Ps.
(218,327,182 )   Ps.
4,422,459     Ps.
131,410,989  
Current service cost          
    
1,534,180
      
—
      
—
      
1,534,180
  
Interest cost on projected benefit obligation          
    
30,565,134
      
—
      
—
      
30,565,134
  
Expected return on plan assets          
    
—
      
(18,819,322
)
    
—
      
(18,819,322
)
Changes in the asset ceiling during the period and others          
    
—
      
—
      
398,399
      
398,399
  
Past service costs and other          
    
—
      
142,911
      
—
      
142,911
  
Actuarial gain for changes in experience          
    
(43,603
)
    
—
      
—
      
(43,603
)
Actuarial gain from changes in demographic assumptions          
    
(64
)
    
—
      
—
      
(64
)
Actuarial gain from changes in financial assumptions          
    
(88,990
)
    
—
      
—
      
(88,990
)
Net period cost          
   Ps.
31,966,657     Ps.
(18,676,411 )   Ps.
398,399     Ps.
13,688,645  
Actuarial loss for changes in experience          
    
2,747,706
      
—
      
—
      
2,747,706
  
Actuarial loss from changes in demographic assumptions          
    
55,037
      
—
      
—
      
55,037
  
Actuarial gain from changes in financial assumptions          
    
(9,838,708
)
    
—
      
—
      
(9,838,708
)
Changes in the asset ceiling during the period and others          
    
—
      
—
      
1,283,501
      
1,283,501
  
Return on plan assets greater than discount rate (shortfall)          
    
—
      
13,719,181
      
—
      
13,719,181
  
Recognized in other comprehensive income          
   Ps.
(7,035,965 )   Ps.
13,719,181     Ps.
1,283,501     Ps.
7,966,717  
Contributions made by plan participants          
    
78,642
      
(78,642
)
    
—
      
—
  
Contributions to the pension plan made by the Company          
    
—
      
516,280
      
—
      
516,280
  
Benefits paid          
    
(13,502,781
)
    
13,221,202
      
—
      
(281,579
)
Payments to employees          
    
(23,753,735
)
    
—
      
—
      
(23,753,735
)
Plan changes
    
12,461
      
—
      
—
      
12,461
  
Effect of translation          
    
(2,218,050
)
    
1,098,953
      
(40,290
)
    
(1,159,387
)
Others          
   Ps.
(39,383,463 )   Ps.
14,757,793     Ps.
(40,290 )   Ps.
(24,665,960 )
Balance at the end of the year          
    
330,862,941
      
(208,526,619
)
    
6,064,069
      
128,400,391
  
Less short-term portion          
    
(275,209
)
    
—


—      
(275,209
)
Non-current obligation          
   Ps.
330,587,732     Ps.
(208,526,619 )   Ps.
6,064,069     Ps.
128,125,182  

   
At December 31, 2023
  
   
DBO
    
Plan Assets
    
Effect of asset
ceiling
    
Net employee
benefit liability
  
Balance at the beginning of the year          
   Ps.
330,862,941     Ps.
(208,526,619 )   Ps.
6,064,069     Ps.
128,400,391  
Current service cost          
    
2,044,102
      
—
      
—
      
2,044,102
  
Interest cost on projected benefit obligation          
    
33,203,706
      
—
      
—
      
33,203,706
  
Expected return on plan assets          
    
—
      
(20,251,931
)
    
—
      
(20,251,931
)
Changes in the asset ceiling during the period and others          
    
—
      
—
      
585,667
      
585,667
  
Past service costs and other          
    
(322,700
)
    
145,646
      
—
      
(177,054
)
Actuarial gain for changes in experience          
    
(20,645
)
    
—
      
—
      
(20,645
)
Actuarial loss from changes in demographic assumptions          
    
134
      
—
      
—
      
134
  
Actuarial loss from changes in financial assumptions          
    
30,958
      
—
      
—
      
30,958
  
Net period cost          
   Ps.
34,935,555     Ps.
(20,106,285 )   Ps.
585,667     Ps.
15,414,937  
Actuarial loss for changes in experience          
    
10,632,144
      
—
      
—
      
10,632,144
  
Actuarial gain from changes in demographic assumptions          
    
(430,315
)
    
—
      
—
      
(430,315
)
Actuarial loss from changes in financial assumptions          
    
1,900,436
      
—
      
—
      
1,900,436
  
Changes in the asset ceiling during the period and others          
    
—
      
—
      
(2,247,990
)
    
(2,247,990
)
Return on plan assets greater than discount rate (shortfall)          
    
—
      
(6,210,593
)
    
—
      
(6,210,593
)
Recognized in other comprehensive income          
   Ps.
12,102,265     Ps.
(6,210,593 )   Ps.
(2,247,990 )   Ps.
3,643,682  
Contributions made by plan participants          
    
45,404
      
(45,404
)
    
—
      
—
  
Contributions to the pension plan made by the Company          
    
—
      
(10,853
)
    
—
      
(10,853
)
Benefits paid          
    
(27,844,968
)
    
27,547,809
      
—
      
(297,159
)
Payments to employees          
    
(10,868,600
)
    
—
      
—
      
(10,868,600
)
Plan changes
    
(29,383
)
    
—
              
(29,383
)
Effect of translation          
    
(4,745,061
)
    
3,259,358
      
(346,706
)
    
(1,832,409
)
Others          
   Ps.
(43,442,608 )   Ps.
30,750,910     Ps.
(346,706 )   Ps.
(13,038,404 )
Balance at the end of the year          
    
334,458,153
      
(204,092,587
)
    
4,055,040
      
134,420,606
  
Less short-term portion          
    
(232,102
)
    
—
      
—
      
(232,102
)
Non-current obligation          
   Ps.
334,226,051     Ps.
(204,092,587 )   Ps.
4,055,040     Ps.
134,188,504  

   
At December 31, 2024
  
   
DBO
    
Plan Assets
    
Effect of asset
ceiling
    
Net employee
benefit liability
  
Balance at the beginning of the year          
   Ps.
334,458,153     Ps.
(204,092,587 )   Ps.
4,055,040     Ps.
134,420,606  
Current service cost          
    
1,889,699
      
—
      
—
      
1,889,699
  
Interest cost on projected benefit obligation          
    
34,540,808
      
—
      
—
      
34,540,808
  
Expected return on plan assets          
    
—
      
(20,306,050
)
    
—
      
(20,306,050
)
Changes in the asset ceiling during the period and others          
    
—
      
—
      
357,182
      
357,182
  
Past service costs and other          
    
(103,657
)
    
139,115
      
—
      
35,458
  
Actuarial gain for changes in experience          
    
(42,968
)
    
—
      
—
      
(42,968
)
Actuarial gain from changes in demographic assumptions          
    
—
      
—
      
—
      
—
  
Actuarial gain from changes in financial assumptions          
    
(23,068
)
    
—
      
—
      
(23,068
)
Net period cost          
   Ps.
36,260,814     Ps.
(20,166,935 )   Ps.
357,182     Ps.
16,451,061  
Actuarial loss for changes in experience          
    
13,338,950
      
—
      
—
      
13,338,950
  
Actuarial gain from changes in demographic assumptions          
    
(3,654
)
    
—
      
—
      
(3,654
)
Actuarial gain from changes in financial assumptions          
    
(3,018,488
)
    
—
      
—
      
(3,018,488
)
Changes in the asset ceiling during the period and others          
    
—
      
—
      
345,672
      
345,672
  
Return on plan assets greater than discount rate (shortfall)          
    
—
      
20,947,473
      
—
      
20,947,473
  
Recognized in other comprehensive income          
   Ps.
10,316,808     Ps.
20,947,473     Ps.
345,672     Ps.
31,609,953  
Contributions made by plan participants          
    
40,319
      
(40,319
)
    
—
      
—
  
Contributions to the pension plan made by the Company          
    
—
      
(548,872
)
    
—
      
(548,872
)
Benefits paid          
    
(16,298,480
)
    
15,970,322
      
—
      
(328,158
)
Payments to employees          
    
(24,325,925
)
    
—
      
—
      
(24,325,925
)
Plan changes
    
(847,269
)
    
—
      
—
      
(847,269
)
Effect of translation          
    
3,816,947
      
(2,104,890
)
    
(276,850
)
    
1,435,207
  
Others          
   Ps.
(37,614,408 )   Ps.
13,276,241     Ps.
(276,850 )   Ps.
(24,615,017 )
Balance at the end of the year          
    
343,421,367
      
(190,035,808
)
    
4,481,044
      
157,866,603
  
Less short-term portion          
    
(292,907
)
    
—
      
—
      
(292,907
)
Non-current obligation          
   Ps.
343,128,460     Ps.
(190,035,808 )   Ps.
4,481,044     Ps.
157,573,696  

In the case of other subsidiaries in Mexico, the net period cost of other employee benefits for the years ended December 31, 2022, 2023 and 2024 was Ps. 126,735, Ps.120,843 and Ps. 657,868 respectively. The balance of other employee benefits at December 31, 2023 and 2024 was Ps. 978,851 and Ps. 1,578,529 respectively.
 
In the case of Brazil, the net period cost of other benefits for the years ended December 31, 2022, 2023 and 2024 was Ps. 166,503, Ps. 82,870, and Ps.685,287 respectively. The balance of employee benefits at December 31, 2023 and 2024 was Ps. 2,057,470 and Ps. 1,831,600, respectively.
 
In the case of Ecuador, the net period cost of other benefits for the years ended December 31, 2022, 2023 and 2024 was Ps. (29,743), Ps.  40,498 and Ps. 65,123 respectively. The balance of employee benefits at December 31, 2023 and 2024 was Ps. 479,762 and Ps. 654,465, respectively.
 
In the case of Central America, the net period cost of other benefits for the years ended December 31, 2022, 2023 and 2024 was Ps. 33,479, Ps. 39,384 and Ps. 31,344, respectively. The balance of employee benefits at December 31, 2023 and 2024 was Ps. 222,777 and Ps. 275,307, respectively.
 
Plan assets are invested in:

At December 31


  
2023
    
2024
  
   
Puerto Rico
    
Brazil
    
Mexico
    
Puerto Rico
    
Brazil
    
Mexico
  
Equity instruments          
    
42
%
    
—
      
76
%
    
53
%
    
—
      
76
%
Debt instruments          
    
23
%
    
91
%
    
24
%
    
12
%
    
93.0
%
    
24
%
Others          
    
35
%
    
9
%
    
—
      
35
%
    
7
%
    
—
  
     
100
%
    
100
%
    
100
%
    
100
%
    
100
%
    
100
%

Included in the Telmex’s net pension plan liability are plan assets of Ps. 175,265,188 and Ps. 159,328,024 as of December 31, 2023 and 2024, respectively, of which 49.3% and 45.8% during 2023 and 2024, respectively, were invested in equity and debt instruments of both América Movil and also of related parties, primarily entities that are under common control of the Company’s principal shareholder. The Telmex pension plan recorded a re-measurement of its defined pension plan of Ps. 3,396,589 and Ps. 33,858,384 during 2023 and 2024, respectively, attributable to a change in actuarial assumptions, and also a decrease in the fair value of plan investments from December 31, 2023 to December 31, 2024. The variation in fair value of the aforementioned related party pension plan investments approximated Ps. (6,965,748) and Ps. 21,428,270 during the years ended December 31, 2023 and 2024, respectively.
 
The assumptions used in determining the net period cost were as follows:
 
   
2022
    
2023
    
2024
  
   
Puerto Rico
    
Brazil
    
Mexico
    
Europe
    
Puerto Rico
    
Brazil
    
Mexico
    
Europe
    
Puerto Rico
    
Brazil
    
Mexico
    
Europe
  
Discount rate and long- term rate return
   
5.42
%
    
10.11% & 10.05
%
    
11.5
%
    
3.75
%
    
5.13
%
    
9.050% & 9.20
%
    
11.65
%
    
3.25
%
    
5.58
%
    
11.4% & 11.07
%
    
11.43
%
    
2.75
%
Rate of future salary increases    
2.75
%
    
3.50
%
    
2.8
%
    
4.5%, 5.3% & 3.4%, - 4.6
%
    
2.00
%
    
3.50
%
    
2.8
%
    
6.0% & 
 3.6% - 5.4
%
    
2.00
%
    
3.5
%
    
2.8
%
    
3.8%, 4.4% & 2.9% - 3.8
%
Percentage of increase in health care costs for the coming year
    
5.44
%
    
9.71
%
                    
5.13
%
    
9.71
%
                    
5.53
%
    
9.71
%
                
Year to which this level will be maintained
    
 NA
     
2031
                      
NA
     
2032
                      
NA
     
2033
                  
Rate of increase of pensions
                            
1.90
%
                            
2.50
%
                            
1.70
%
Employee turnover rate*
                            
0.00% 1.03
%
                            
0.00%-0.91
%
                            
0.00%- 0.90
%

*
Depending on years of service

Biometric
 
Puerto Rico:
Mortality:
RPI 2012, MSS 2024 Tables.
 
Brazil:
Mortality:
2000 Basic AT Table for gender
Disability for assets:
UP 84 modified table for gender
Disability retirement:
80 CSO Code Table
Rotation:
Probability of leaving the Company other than death, Disability and retirement is zero
 
Europe
 
Life expectancy in Austria is base on “AVÖ 2018-P – Rechnungsgrundlagen für die Pensionsversicherung – Pagler & Pagler”.
 
Telmex
Mortality:
Mexican 2000 (CNSF) adjusted
Disability:
Mexican Social Security adjusted by Telmex experience
Turnover:
Telmex experience
Retirement:
Telmex experience
 
For the year ended December 31, 2024, the Company conducted a sensitivity analysis on the most significant variables that affect the DBO liability, simulating independently, reasonable changes to roughly 100 basis points in each of these variables. The increase (decrease) in the DBO pension and other benefits liability at December 31, 2024 are as follows:
 
 
   -100 points     +100 points  
Discount rate
  Ps.
24,948,713     Ps.
(21,924,526 )
Health care cost trend rat    Ps.
(254,926 )   Ps.
287,834
  
                                                                  
Telmex Plans

Part of the Telmex´s employees are covered under defined benefit pension plans and seniority premiums. Pension benefits and seniority premiums are determined on the basis in their final year of employment, their seniority, and their age at the time of retirement. Telmex has set up an irrevocable trust fund to finance these employee benefits and has adopted the policy of making contributions to such fund when it is considered necessary.

Europe

Defined benefit pension plans

A1 Telekom Austria Group provides defined benefits for certain former employees in Austria. All eligible employees are retired and were employed prior to January 1, 1975. This unfunded plan provides benefits based on a percentage of salary and years employed, not exceeding 80% of the salary before retirement, and taking into consideration the pension provided by the social security system. A1 Telekom Austria Group is exposed primarily to the risk of development of life expectancy and inflation because the benefits from pension plans are lifetime benefits.

Service awards

Civil servants and certain employees (in the following “employees”) are eligible to receive service awards. In accordance with the legal regulations, eligible employees receive a cash bonus of two months’ salary after 25 years of service and four months’ salary after 40 years of service. Employees with at least 35 years of service when retiring (at the age of 65) or who are retiring based on specific legal regulations are also eligible to receive the service award of four monthly salaries. The obligation is accrued over the period of service, taking into account the employee turnover rate for employees who leave employment prematurely. The main risk that A1 Telekom Austria Group is exposed to is the risk of development of salary increases and changes of interest rates.

Severance

Defined contribution plans

Employees who started work for A1 Telekom Austria Group in Austria on or after January 1, 2003 are covered by a defined contribution plan. As of December 31, 2023 and 2024, A1 Telekom Austria Group paid Ps. 74,994 and Ps. 87,323 respectively, 1.53% of the salary or wage, into this defined contribution plan (BAWAG Allianz Mitarbeitervorsorgekasse AG).

Defined benefit plans
 
Severance benefit obligations for employees, whose employment commenced before January 1, 2003, excluding civil servants, are covered by defined benefit plans. Upon termination of employment by A1 Telekom Austria Group or upon retirement, eligible employees receive severance payments. Depending on their time in service, their severance amounts to a multiple of their monthly basic compensation plus variable components such as overtime or bonuses, up to a maximum of twelve monthly salaries. In case of death, the heirs of eligible employees receive 50% of the severance benefits. The primary risks to A1 Telekom Austria Group are salary increases and changes of interest rates.

b) Defined Contribution Plans

Brazil

Claro makes contributions to the DCP through Embratel Social Security Fund – Telos. Contributions are computed based on the salaries of the employees, who decide on the percentage of their contributions to the plan (participants enrolled before October 31st, 2014 is from 1% to 8% and, for those subscribed after that date, the contribution is from 1% to 7% of their salaries). Claro contributes the same percentage as the employee, capped at 8% of the participant’s balance for the employees that are eligible to participate in this plan.

At December 31, 2023 and 2024, the balance of the DCP liability was Ps. 53,528 and Ps. 39,306 respectively. For the years ended December 31, 2022, 2023 and 2024 the cost of labor were Ps. 5,021, Ps. 3,846 and Ps. 3,046, respectively.

Europe

In Austria, pension benefits are generally provided by the social security system for employees, and by the government for civil servants. The contributions of 12.55% of gross salaries that A1 Telekom Austria Group made in 2023 and 2024 to the social security system and the government in Austria amount to Ps. 1,105,037 and Ps. 1,169,174 respectively. In 2023 and 2024, contributions of the foreign subsidiaries into the respective systems range between 7% and 28% of gross salaries and amount to Ps. 560,777 and Ps. 651,574 respectively.

Additionally, A1 Telekom Austria Group offers a defined contribution plan for employees of some of its Austrian subsidiaries. A1 Telekom Austria Group’s contributions to this plan are based on a percentage of the compensation not exceeding 5%. In 2023 and 2024, the annual expenses for this plan amounted to Ps. 199,345 and Ps. 211,733 respectively.

As of December 31, 2023 and 2024, the liability related to this defined contribution plan amounted to Ps. 145,456 and Ps. 154,380, respectively.

Other countries

For the rest of the countries where the Company operates and that do not have defined benefit plans or defined contribution plans, the Company makes contributions to the respective governmental social security agencies which are recognized in results of operations as they are incurred.

c) Long-term direct employee benefits

   
Balance at
December 31,
2022
    
Effect of
translation
    
Increase of
the year
    
Payments
    
Balance at
December 31,
2023
  
Long-term direct employee benefits
   Ps.
6,403,752
     Ps.
(647,033
)
   Ps.
1,608,275
     Ps.
(1,975,199
)
   Ps.
5,389,795
  

   
Balance at
December 31,
2023
    
Effect of
translation
    
Increase of
the year
    
Payments
    
 Balance at
December 31,
2024
  
Long-term direct employee benefits
   Ps.
5,389,795
     Ps.
619,696
     Ps.
1,102,643
     Ps.
(2,066,976
)
   Ps.
5,045,158
  

In 2008, a comprehensive restructuring program was initiated in the segment Austria. The provision for restructuring includes future compensation of employees who will no longer provide services for A1 Telekom Austria Group but who cannot be laid off due to their status as civil servants. These employment contracts are onerous contracts under IAS 37, as the unavoidable cost related to the contractual obligation exceeds the future economic benefit. The restructuring program also includes social plans for employees whose employment will be terminated in a socially responsible way. In 2009 and every year from 2011 to 2020, new social plans were initiated that provide for early retirement, special severance packages and golden handshake options. Due to their nature as termination benefits, these social plans are accounted for according to IAS 19.