Key Takeaways for Hiring in Mexico
- Minimum wage: MXN 278.80/day
- Standard working hours: 8 hours/day per day / 48 hours per week
- Recommended hiring model: EOR
- Local currency: Mexican peso (MXN)
Continent
North America
Capital
Mexico City
Currency
Mexican Peso (MXN)
Language
Spanish
VAT
16%
Overview
| Indicator | Details |
|---|---|
| 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
Average employer cost
36.69 – 43.72%
| Category | Details |
|---|---|
| 13th Salary | Mandatory “Aguinaldo” equivalent to 15 days’ wages |
| Avg employer tax | 36.69 – 43.72% |
Tax Breakdown
Employer Contributions
| Category | Rate / Details |
|---|---|
| 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
| Category | Rate / Details |
|---|---|
| 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%
| Category | Rate / Details |
|---|---|
| Income up to MXN 8,952.49 | 1.92% |
| Income above MXN 4,511,707.38 | 35% |
VAT
| Category | Rate / Details |
|---|---|
| VAT | 16% |
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
- Payroll Setup
- 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
Employee Leave Policies
Sick Leave
- 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.
| Month | Date | Holiday |
|---|---|---|
| January | 1st | New Year’s Day |
| February | 3rd | Constitution Day |
| March | 17th | Benito Juárez’s Birthday |
| April | 17th | Maundy Thursday |
| April | 18th | Good Friday |
| May | 1st | Labor Day |
| September | 16th | Independence Day |
| November | 17th | Revolution Day |
| December | 25th | Christmas Day |
Termination Process
| Requirement | Details |
|---|---|
| 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. |
Legal Disclaimer: The information provided in this guide is intended for general informational and guidance purposes only and does not constitute legal, financial, or human resources advice. While we strive to keep the information up to date and accurate, laws and regulations in Mexico are subject to change. We recommend consulting with qualified legal and HR professionals for advice specific to your situation. RemotePass does not accept liability for any errors, omissions, or outcomes related to the use of this information.
