Mexico

Mexico offers a strategic location bridging North and Latin America, a diverse and skilled workforce, and a growing digital economy. Recent labor reforms aim to enhance workers' rights and modernize employment practices.Understanding Mexico's evolving labor laws, tax obligations, and statutory requirements is crucial for compliant and successful operations
Contractor Management
EOR
Payroll
Contractor of Record
Currency
Mexican peso (MXN)
Payroll Frequency
Bi-Monthly/monthly
Employer Taxes
36.69 – 43.72%

Overview

Population
~130 million
Language
Spanish
Capital
Mexico City
Currency
Mexican peso (MXN)
Country code
+52
Min wage
278.80 MXN
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
48 hours per week

Payroll

Salaried Employees
Time-Based Employees
13th Salary

Mandatory "Aguinaldo" equivalent to 15 days' wages

Avg employer tax

36.69 – 43.72%

Tax Breakdown

Employer Contributions:

Social Security (IMSS)
~7.58%–25% of salary, depending on salary and benefits
Retirement Savings (SAR)
2%
National Housing Fund (INFONAVIT)
5%
Payroll Tax (ISN)
Varies by state; e.g., Mexico City increased from 3% to 4% in 2025

Employee Contributions:

Social Security (IMSS)
~2.375% of salary
Retirement Savings (SAR)
1.125%
National Housing Fund (INFONAVIT)
0% (employee does not contribute)

Personal Income Tax (ISR) - Progressive Rates 1.92% to 35%:

Income up to MXN 8,952.49
1.92%
Income above MXN 4,511,707.38
35%

VAT

VAT

16%

Tax Calculation for Mexico
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MX
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Top Countries
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Mexico typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, and termination conditions

Registration with Authorities

  • Register the employee with the Mexican Social Security Institute (IMSS)
  • Enroll the employee in the Retirement Savings System (SAR) and National Housing Fund (INFONAVIT)

Payroll Setup

  • Ensure accurate calculation and withholding of taxes and contributions
  • Provide payslips detailing earnings and deductions

Employee Documentation

Collect personal identification, tax identification number (RFC), and bank account details

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Mexico
When drafting an employment contract for employees in Mexico, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • Employees receive 60% of salary from the 4th day of illness, up to 52 weeks
  • Must be certified by the Mexican Social Security Institute (IMSS)
Maternity leave
  • 12 weeks (6 weeks before and 6 weeks after birth) with full pay
  • Paid by IMSS
Paternity leave
  • 5 working days with full pay

Parental Leave:

  • No statutory provision beyond maternity and paternity leave
Annual Leave
  • After 1 year of service: 12 days
  • Increases by 2 days each subsequent year until reaching 20 days
  • Afterward, increases by 2 days every 5 years of service
9 Public holidays in Mexico

Note: Employees are entitled to paid leave on statutory holidays. If required to work, they must be compensated at triple the normal rate.

1st
New Year's Day
3rd
Constitution Day
17th
Benito Juárez's Birthday
17th
Maundy Thursday
18th
Good Friday
1st
Labor Day
16th
Independence Day
17th
Revolution Day
25th
Christmas Day
  • 1 Jan: New Year's Day
  • 5 Feb: Constitution Day
  • 14 Mar: Benito Juarez Day
  • 14 Apr: Holy Thursday *
  • 15 Apr: Good Friday *
  • 1 May: Labor Day
  • 5 May: Anniversary of the Battle of Puebla *
  • 16 Sep: Independence Day
  • 12 Oct: Day of the Race *
  • 2 Nov: All Souls' Day *
  • 14 Nov: Revolution Day
  • 12 Dec: Lady of Guadalupe Day *
  • 25 Dec: Christmas Day

NB - dates marked with a * are not official national holidays but are widely observed across the country

Termination Process

Permissible Grounds

  • Mutual agreement
  • Resignation
  • Dismissal with cause
  • Redundancy

Notice Period

Not required by law; however, it's customary to provide 15 days' notice

Severance Pay

  • If dismissal is without cause:
    • 3 months' integrated salary
    • 20 days' salary per year of service
    • Seniority premium: 12 days' salary per year of service (capped at twice the minimum wage)

Probation Period

  • Up to 30 days for general employees
  • Up to 180 days for managerial or specialized positions

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team
in Mexico with RemotePass

Mexico presents significant opportunities for global employers, with its strategic location and skilled workforce.However, navigating compliance with its labor laws, tax obligations, and statutory contributions can be complex.RemotePass simplifies this process by handling contracts, payroll, benefits, and compliance, allowing you to focus on growing your business.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Mexico.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

Free 7-day trial

No credit card required

Cancel anytime

Let’s Chat

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Mexico

العملة
Mexican peso (MXN)
تردد الرواتب
Bi-Monthly/monthly
ضرائب أصحاب العمل
36.69 – 43.72%

عن 

Mexico

Mexico offers a strategic location bridging North and Latin America, a diverse and skilled workforce, and a growing digital economy. Recent labor reforms aim to enhance workers' rights and modernize employment practices.Understanding Mexico's evolving labor laws, tax obligations, and statutory requirements is crucial for compliant and successful operations

ملخص

التركيبة السكانية
~130 million
اللغة
Spanish
العاصمة
Mexico City
العملة
Mexican peso (MXN)
رمز الاتصال الدولي
+52
الحد الأدنى للأجور
278.80 MXN
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
48 hours per week

الرواتب

موعد صرف الرواتب

Bi-Monthly/monthly

متوسط ​​ضريبة صاحب العمل

36.69 – 43.72%

تحصيل الضرائب

التوزيع الضريبي - صاحب العمل

Employer Contributions:

Social Security (IMSS)
~7.58%–25% of salary, depending on salary and benefits
Retirement Savings (SAR)
2%
National Housing Fund (INFONAVIT)
5%
Payroll Tax (ISN)
Varies by state; e.g., Mexico City increased from 3% to 4% in 2025

Employee Contributions:

Social Security (IMSS)
~2.375% of salary
Retirement Savings (SAR)
1.125%
National Housing Fund (INFONAVIT)
0% (employee does not contribute)

Personal Income Tax (ISR) - Progressive Rates 1.92% to 35%:

Income up to MXN 8,952.49
1.92%
Income above MXN 4,511,707.38
35%
ضريبة القيمة المضافة

16%

العطل / PTO

العطلات الرسمية في عام 2024
  • 1 Jan: New Year's Day
  • 5 Feb: Constitution Day
  • 14 Mar: Benito Juarez Day
  • 14 Apr: Holy Thursday *
  • 15 Apr: Good Friday *
  • 1 May: Labor Day
  • 5 May: Anniversary of the Battle of Puebla *
  • 16 Sep: Independence Day
  • 12 Oct: Day of the Race *
  • 2 Nov: All Souls' Day *
  • 14 Nov: Revolution Day
  • 12 Dec: Lady of Guadalupe Day *
  • 25 Dec: Christmas Day

NB - dates marked with a * are not official national holidays but are widely observed across the country

الإجازات المرضية
  • Employees receive 60% of salary from the 4th day of illness, up to 52 weeks
  • Must be certified by the Mexican Social Security Institute (IMSS)
إجازة الأمومة
  • 12 weeks (6 weeks before and 6 weeks after birth) with full pay
  • Paid by IMSS
إجازة الأبوة
  • 5 working days with full pay

Parental Leave:

  • No statutory provision beyond maternity and paternity leave

إنهاء العقد

عملية الإنهاء

Permissible Grounds

  • Mutual agreement
  • Resignation
  • Dismissal with cause
  • Redundancy

Notice Period

Not required by law; however, it's customary to provide 15 days' notice

Severance Pay

  • If dismissal is without cause:
    • 3 months' integrated salary
    • 20 days' salary per year of service
    • Seniority premium: 12 days' salary per year of service (capped at twice the minimum wage)

Probation Period

  • Up to 30 days for general employees
  • Up to 180 days for managerial or specialized positions
فترة الإشعار

Mexico does not have statutory minimum notice periods.

مكافأة نهاية الخدمة

Severance payments of three times an employee's regular salary are required in cases of dismissal without reasonable cause. Extra payments equivalent to 20 days' salary are required for each year of service over 15 years.

فترة الاختبار

Typical probation periods in Mexico are 90 days.

ازدهار القوى العاملة عن بعد في _

تحديات التوظيف عن بعد في _

تبسيط التوظيف عن بعد في _ باستخدام ريموت باس

حساب الضريبة

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MX
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Top Countries
تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري
GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي
GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
طلب عرض أسعار مفصل

Mexico

Mexico offers a strategic location bridging North and Latin America, a diverse and skilled workforce, and a growing digital economy. Recent labor reforms aim to enhance workers' rights and modernize employment practices.Understanding Mexico's evolving labor laws, tax obligations, and statutory requirements is crucial for compliant and successful operations
Contractor Management
EOR
Payroll
Contractor of Record
العملة
Mexican peso (MXN)
تردد الرواتب
Bi-Monthly/monthly
ضرائب أصحاب العمل
36.69 – 43.72%

ملخص

التركيبة السكانية
~130 million
اللغة
Spanish
العاصمة
Mexico City
العملة
Mexican peso (MXN)
رمز الاتصال الدولي
+52
الحد الأدنى للأجور
278.80 MXN
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
48 hours per week

الرواتب

Salaried Employees
Time-Based Employees
13th Salary

Mandatory "Aguinaldo" equivalent to 15 days' wages

متوسط ​​ضريبة صاحب العمل

36.69 – 43.72%

تحصيل الضرائب

Employer Contributions:

Social Security (IMSS)
~7.58%–25% of salary, depending on salary and benefits
Retirement Savings (SAR)
2%
National Housing Fund (INFONAVIT)
5%
Payroll Tax (ISN)
Varies by state; e.g., Mexico City increased from 3% to 4% in 2025

Employee Contributions:

Social Security (IMSS)
~2.375% of salary
Retirement Savings (SAR)
1.125%
National Housing Fund (INFONAVIT)
0% (employee does not contribute)

Personal Income Tax (ISR) - Progressive Rates 1.92% to 35%:

Income up to MXN 8,952.49
1.92%
Income above MXN 4,511,707.38
35%

ضريبة القيمة المضافة

ضريبة القيمة المضافة

16%

حساب الضريبة في Mexico
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
MX
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Top Countries
تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
طلب عرض أسعار مفصل
How it works

إعداد الموظفين

Onboarding in Mexico typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, and termination conditions

Registration with Authorities

  • Register the employee with the Mexican Social Security Institute (IMSS)
  • Enroll the employee in the Retirement Savings System (SAR) and National Housing Fund (INFONAVIT)

Payroll Setup

  • Ensure accurate calculation and withholding of taxes and contributions
  • Provide payslips detailing earnings and deductions

Employee Documentation

Collect personal identification, tax identification number (RFC), and bank account details

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Mexico
When drafting an employment contract for employees in Mexico, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • Employees receive 60% of salary from the 4th day of illness, up to 52 weeks
  • Must be certified by the Mexican Social Security Institute (IMSS)
إجازة الأمومة
  • 12 weeks (6 weeks before and 6 weeks after birth) with full pay
  • Paid by IMSS
إجازة الأبوة
  • 5 working days with full pay

Parental Leave:

  • No statutory provision beyond maternity and paternity leave
Annual Leave
  • After 1 year of service: 12 days
  • Increases by 2 days each subsequent year until reaching 20 days
  • Afterward, increases by 2 days every 5 years of service
9 العطلات الرسمية في Mexico

Note: Employees are entitled to paid leave on statutory holidays. If required to work, they must be compensated at triple the normal rate.

1st
New Year's Day
3rd
Constitution Day
17th
Benito Juárez's Birthday
17th
Maundy Thursday
18th
Good Friday
1st
Labor Day
16th
Independence Day
17th
Revolution Day
25th
Christmas Day
  • 1 Jan: New Year's Day
  • 5 Feb: Constitution Day
  • 14 Mar: Benito Juarez Day
  • 14 Apr: Holy Thursday *
  • 15 Apr: Good Friday *
  • 1 May: Labor Day
  • 5 May: Anniversary of the Battle of Puebla *
  • 16 Sep: Independence Day
  • 12 Oct: Day of the Race *
  • 2 Nov: All Souls' Day *
  • 14 Nov: Revolution Day
  • 12 Dec: Lady of Guadalupe Day *
  • 25 Dec: Christmas Day

NB - dates marked with a * are not official national holidays but are widely observed across the country

فترة الإشعار

Permissible Grounds

  • Mutual agreement
  • Resignation
  • Dismissal with cause
  • Redundancy

Notice Period

Not required by law; however, it's customary to provide 15 days' notice

Severance Pay

  • If dismissal is without cause:
    • 3 months' integrated salary
    • 20 days' salary per year of service
    • Seniority premium: 12 days' salary per year of service (capped at twice the minimum wage)

Probation Period

  • Up to 30 days for general employees
  • Up to 180 days for managerial or specialized positions

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team
in Mexico with RemotePass

Mexico presents significant opportunities for global employers, with its strategic location and skilled workforce.However, navigating compliance with its labor laws, tax obligations, and statutory contributions can be complex.RemotePass simplifies this process by handling contracts, payroll, benefits, and compliance, allowing you to focus on growing your business.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Mexico.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

Free 7-day trial

No credit card required

Cancel anytime