Currency: Mexican Peso (MXN) (Rate)
Public Holidays: 9 public holidays (see here)
Employer taxes & benefits: 30-35% of salary
Official Language: Spanish
Payroll frequency: Monthly / Bi-Monthly
13th / 14th Salary: Mandatory 13th salary at end of the year
The minimum number of statutory paid holidays depends on the employee's length of service and varies upward from 6 days.
For example, an employee with 1 year of service is only entitled to a minimum holiday of 6 working days, while an employee with 5 years of service is entitled to a minimum holiday of 14 days.
In addition to the paid holiday entitlement, employees are also entitled to a vacation premium consisting of 25% of their base salary, payable during the vacation period.
Employees terminated without cause are entitled to claim reinstatement or severance in the amount of:
While not legally required, in Mexico, it is very common to offer team members private health insurance as well as a grocery coupon card (vales de despensa)
Normal working hours cannot exceed an average of 8 hours a day and 48 hours per week.
An employee is required to work up to three hours of overtime a week, and a total of nine hours in a week, at double the normal hourly rate. An employee can choose to work more than nine hours of overtime, but must get paid 3 times the normal hourly rate.
Employees may be eligible for Maternity, Paternity, Parental or Adoption Leave.
Minimum wage is: MXN 185.56 for the 43 municipalities. For others it is MXN 123.22.
There is no statutory notice period.
Employees are entitled to a maximum of 52 weeks’ paid sick leave through the national social security system (IMSS). Employees may also be entitled to unpaid time off in certain circumstances.
Non-compete agreements are considered unconstitutional in Mexico; for them to be enforceable with the employee's consent. Employers may offer financial incentives for a former employee to voluntarily abide by non-compete restrictions by paying them a lump sum of an agreed-upon amount of money during the time of employment.
Employee Social contributions (10.15%)
Sickness & Maternity: 5.25%
Disability & Death: 1.75%
Layoff and Retirement Benefits: 3.15%
Employee Income tax
Up to 6,942.35 MXN: 1.92%
6,942.35 - 58,922.27 MXN: 6.40%
58,922.27 - 103,550.51 MXN: 10.88%
103,550.51 - 120,372.95 MXN: 16.00%
120,372.95 - 144,119.39 MXN: 17.92%
144,119.40 -290,667.83 MXN: 21.35%
290,667.83 - 458,132.39 MXN: 23.52%
458,132.39- 874,650.11 MXN: 30.00%
874,650.11 - 1,166,200.11 MXN: 32.00%
1,166,200.11 - 3,498,600.11 MXN: 34.00%
Over 3,498,600.11 MXN: 45.00%
Sickness & Maternity: 5.25%
Disability & Death: 1.75%
Retirement: 2.00%
Layoff and Retirement Benefits: 1.75%
Child Care: 1.00%
Work Related Accidents: 0.50% - 3.00%
Housing Tax: 5.00%
Payroll State Tax: 0.50% - 3.00%