Mexico

Last Update by Katie, 18 Jul 2024

You must log in to be able to download this document

Exchange Rate

18 Sep 2024

 

Cost of Living

Indicative value for a working adult in a city: Mexico City

Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff

Living Requirement Indicative Amount (MXN)
McDonalds Set Meal 150
Monthly Train and Bus Tickets 360
3 Bedrooms Rental (City Center) 35,454
3 Bedrooms Rental (Outskirt) 23,132

Current Inflation Rate

4.66%

Wage

Minimum Wages

  • Northern Border Free Zone: 374.89 MXN per day
    Rest of the Country: 248.93 MXN per day

Median Salary

Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.

Job Level Monthly Salary (MXN)
Entry-Level
Fresh Graduate
 30,500
Mid-Level
5 Years
 42,100
Experienced & Managerial Level
10 Years
 52,000
Specialized & Senior-Level
15 Years
 80000+

Annual Salary Growth

3%

Statutory Contribution

Social security for staff gross salary capped at 26,914 per year, for employers in low risk industries 188,657 MXN.
Salaries are regulated by a Unit of Measurement and Updating (UMA) used to calculate salary, social security and fines. UMA in 2024 is 3,300.53 MXA per month

Country Level

Type Employer Rates Employee Rates Notes
Work Injury (IMSS) Class 1 risk - 0.5435%
Class 2 risk- 1.1306%
Class 3 risk- 2.5984%
Class 4 risk- 4.6532%
Class 5 risk- 7.5887% 		- All employers pay premiums depending on company risk levels 1-5
Sickness and Maternity (IMSS) 20.4% - on monthly UMA + 1.75% of excess monthly salary
(staff's monthly salary 3 times over the UMA +1.1%) 		0.625% - on monthly UMA+ 0.4% of excess monthly salary
(staff's monthly salary 3 times over the UMA +1.1%) 		All staff
Disability and Life (IMSS) 1.75% 0.625% All staff
Child Care (IMSS) 1% - All staff with children
Retirement- Old Age and Advance Age (IMSS or ISSSTE) 2% -Old Age
1.125 % -Advance age 		-
1.125 % -Advance age 		All Staff
National Housing Fund (INFONAVIT) 5% - All Staff
Occupational Risk 2-4% - Corresponding Business in Manufacturing, Construction, Industrial
State-Level Payroll Tax 1%
3%- Mexico city 		- All employers- varies by state
Profit Sharing Payment (PTU) 10%
Paid to staff within 60 days of filing tax returns 		- All staff get a dividend of employer's pre- tax income
13-Month Salary (mandatory) 15 working days' salary - All full time staff paid on December 20th of each year
Vacation Allowance (Prima) 25% of Daily salary * number of annual vacation days - Employers cover staff's expenses during vacation
Remote working Subsidy 320 MXN per month - All staff working remotely

Other Benefit

Other common employment benefits in Mexico include:

  • Internet Allowance (remote, IT, Sales): Around 650 MXN per month
  • Company provided mobile phone: Around 165 MXN per month
  • Meal Vouchers through IMSS: 1,261.47 MXN per month , through ISR: 3,153.70 MXN per month

Income Tax

Residents

  • Tax period: 1st January - 31st December
    Filing Due Date: 31st March following year
  • Income tax below applies to all states

Country Level

Taxable Income Rate
0.01 - 8,952.49 0 MXN
Tax on excess 1.92%
8,952.50 - 75,984.55 171.88 MXN
Tax on excess 6.40%
75,984.56 - 133,536.07 4,461.94 MXN
Tax on excess 10.88%
133,536.08 - 155,229.80 10,723.55 MXN
Tax on excess 16.00%
155,229.81 - 185,852.57 14,194.54 MXN
Tax on excess 17.92%
185,852.58 - 374,837.88 19,682.13 MXN
Tax on excess 21.36%
374,837.89 - 590,795.99 60,049.40 MXN
Tax on excess 23.52%
590,796.00 - 1,127,926.84 110,842.74 MXN
Tax on excess 30%
1,127,926.85 - 1,503,902.46 271,981.99 MXN
Tax on excess 32%
1,503,902.47 - 4,511,707.37 392,294.17 MXN
Tax on excess 34%
Over 4,511,707.38 - 1,414,947.85 MXN
Tax on excess 35%

Non-residents

  • The first 125,900 MXN of income in 12-months is tax exempt, income after is subject to 15% - 30%

Working Hours

Statutory

48 hours
8 hours a day, 6 days a week

Typical practice

48 hours
Monday - Saturday

Day: 8 hours from 06:00 - 20:00
Night Shift: 6 hours from 20:00-06:00

Overtime

Over 48 hours per week is classed as overtime

  • Maximum 3 hours per day, 9 hours per week, 2 times payment rate
  • Beyond 9 hours per week, 3 times payment rate

Employment Contract

Fixed-Term

Can be used for seasonal activities, to temporarily replace staff on maternity leave, or temporary disability

Contract Format

Must be written, in Spanish and signed by both parties. Bilingual contracts are permitted but Spanish must be present

Payroll Currency

MXN

Contract Period

No maximum duration or renewal conditions

Termination

  • Voluntary resignation:
    - No notice, must be written
    - Typical practice: 2 weeks
  • Involuntary termination
    - No notice, must be written and sent to staff
  • Severance:
    Dismissal with just cause:
    - Under 1 year service: 50% total salary for the contract
    - Over 1 year service: 6 months' salary for the first year, 20 days salary for each year after
    Dismissal without just cause:
    - Under 1 year service: 50% total salary for the contract
    - Over 1 year service: 6 months' salary for the first year, 20 days salary for each year after, 90 days indemnity, and 12 days' seniority bonus for each years' service
    - Salary capped at twice the minimum daily wage

Public Holiday

7 days

Country Level

Date Name
01 Jan New Year's Day
05 Feb Constitution Day
18 Mar Benito Juárez's birthday
01 May Labour Day
16 Sep Independence Day
18 Nov Revolution Day
25 Dec Christmas Day

Leave

Leave Type Entitlement Notes
Annual Leave 12 days - 1st year of service + 2 days' for each year service up to 5 years
After 6th year- 2 days every 5 years' service 		All staff with 1 year service
Sick Leave Up to 52 weeks All staff
Maternity Leave 12 weeks
6 week before birth, 6 after
+ 8 weeks- births with complications 		All expectant mothers
Paternity Leave 5 working days All expectant fathers
Adoption Leave 6 weeks All female staff after the child is handed over

Reference

Ready To Expand in Mexico?

Have any questions? We’d love to hear from you

Contact Us