- Country Guide
- Mexico
Mexico
Last Update by Cecilia, 15 Jan 2025
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Exchange Rate
15 Jan 2025
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) | 37,727 |
| 3 Bedrooms Rental (Outskirt) | 23,713 |
Current Inflation Rate
4.58%
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
|
12,000 |
|
Mid-Level
5 Years
|
27,000 |
|
Experienced & Managerial Level
10 Years
|
48,000 |
|
Specialized & Senior-Level
15 Years
|
80,000+ |
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 2025 is 3,439.46 MXN per month
Country Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
| Occupational Risk Insurance (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 + 1.1% on salary exceeding 3 times UMA | 0.4% on salary exceeding 3 times UMA | All staff |
| Disability and Life (IMSS) | 1.75% | 0.625% | All staff |
| Child Care (IMSS) | 1% | - | All staff with children |
| Retirement and Old and Advance Age Unemloyment (IMSS or ISSSTE) |
2% - Retirement 3.15 % - Old and Advance age unemployment |
- 1.125 % - Old and Advance age unemployment |
All staff |
| National Housing Fund (INFONAVIT) | 5% | - | All staff |
| 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 | 15 working days' salary | - | All 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 |
State/Province Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
|
State-Level Payroll Tax (ISN) |
1.5% - 4% | All employers, varies by state |
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 - 41.50 MXN per day- up to this amount tax and contribution free
Income Tax
Residents
-
Tax period: 1st January - 31st December
Filing Due Date: 31st March following year
Country Level
| Taxable Income | Rate |
|---|---|
| 0.01 - 8,952.49 | 1.92% |
| 8,952.50 - 75,984.55 | 6.40% |
| 75,984.56 - 133,536.07 | 10.88% |
| 133,536.08 - 155,229.80 | 16.00% |
| 155,229.81 - 185,852.57 | 17.92% |
| 185,852.58 - 374,837.88 | 21.36% |
| 374,837.89 - 590,795.99 | 23.52% |
| 590,796.00 - 1,127,926.84 | 30% |
| 1,127,926.85 - 1,503,902.46 | 32% |
| 1,503,902.47 - 4,511,707.37 | 34% |
| Over 4,511,707.38 | 35% |
Non-residents
-
A tax resident is an individual who meets one of following criteria:
- Establishes a home in Mexico
- More than 50% of income comes from Mexican sources
- Mexico is the primary place of professional activities
Country Level
| Taxable Income | Rate |
|---|---|
| 1 - 125,900 | 0% |
| 125,900 - 1,000,000 | 15% |
| Over 1,000,000 | 30% |
Working Hours
Statutory
48 hours - Day Shift
8 hours a day, 6 days a week
48 hours - Night Shift
7 hours a day, 6 days a week
48 hours - Mixed Shift
7.5 hours a day, 6 days a week
Day Shift: 8 hours between 06:00 - 20:00
Night Shift: 7 hours between 20:00-06:00
Typical practice
48 hours
Monday - Saturday
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
Probation
All contracts of at least 180 days: 30 days
Managerial. technical or professional staff: 180 days
Contract Period
No maximum duration or renewal conditions
Termination
The contract may be terminated by the employer, the employee or by mutual agreement
| Voluntary Resignation | Involuntary Termination | Economic Layoff | |
|---|---|---|---|
| Notice Period - Probation | - No notice period | - No notice period | - No notice period |
| Notice Period - Regular | - No notice period, must be written - Typical practice: 2 weeks | - No notice period, must be written - Typical practice: 2 weeks | - No notice period, must be written - Typical practice: 2 weeks |
| Severance Pay | - if over 15 year in the company - 12 days of salary for each year worked, capped at 2 Mexican minimum wages. | For Just Terminations: - if over 15 year in the company - 12 days of salary for each year worked, capped at 2 Mexican minimum wages. For Wrongful Termination: - 3 months salary, - 20 days salary for each year's service, - if over 15 year in the company - 12 days of salary for each year worked, capped at 2 Mexican minimum wages. | - 3 months salary, - 20 days salary for each year's service, - if over 15 year in the company - 12 days of salary for each year worked, capped at 2 Mexican minimum wages. |
Public Holiday
7 days
Country Level
| Date | Name |
|---|---|
| 01 Jan | New Year's Day |
| 03 Feb | Constitution Day |
| 17 Mar - 18 Mar | Benito Juárez's Birthday Memorial |
| 01 May | Labor Day |
| 05 May | Battle of Puebla |
| 16 Sep | Independence Day |
| 17 Nov | Revolution Day Memorial |
| 20 Nov | Revolution Day Memorial |
| 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, then 2 days every 5 years' service | All staff with 1 year service |
| Sick Leave | Up to 52 weeks - 60% of salary from the fourth day of illness, 100% if injury/illness happened at work | All staff |
| Maternity Leave |
12 weeks + 2 weeks- births with complications + 60 days (50% salary) - serious 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
- https://www.numbeo.com/cost-of-living/in/Mexico-City
- https://www.economia.gob.mx/datamexico/en/profile/geo/mexico
- https://metrocdmx.mx/precios-metro-cdmx/#:~:text=La%20recarga%20de,activar%20una%20nueva
- https://www.salaryexplorer.com/average-salary-wage-comparison-mexico-human-resources-manager-c139j451
- https://www.gob.mx/cms/uploads/attachment/file/298270/incapacidades_laborales.pdf
- http://www.ordenjuridico.gob.mx/leyes.php#gsc.tab=0
- https://start-ops.com.mx/mexican-laws/labor-law-in-english/
- https://imss.gob.mx/
- https://www.gob.mx/stps
- https://www.diputados.gob.mx/LeyesBiblio//pdf/LFT.pdf
- https://www.gob.mx/stps/documentos/las-vacaciones-son-tu-derecho
- https://santandertrade.com/en/portal/establish-overseas/mexico/tax-system?url_de_la_page=%2Fen%2Fportal%2Festablish-overseas%2Fmexico%2Ftax-system&&actualiser_id_banque=oui&id_banque=0&memoriser_choix=memoriser
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Contact UsCountry Guide - Mexico
Last updated: 15 Jan 2025
Exchange Rate
Currency (MXN)
- 1 CNY = 0.185 MXN
- 1 USD = 1.32 MXN
Other currencies can be retrieved via the country guide link above.
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Labor Cost Calculator
To know the total employer cost for hiring a staff with certain salary, please go to our main site: https://marcopayroll.com
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) | 37,727 |
| 3 Bedrooms Rental (Outskirt) | 23,713 |
Current Inflation Rate
4.58%
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
|
12,000 |
|
Mid-Level
5 Years
|
27,000 |
|
Experienced & Managerial Level
10 Years
|
48,000 |
|
Specialized & Senior-Level
15 Years
|
80,000+ |
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 2025 is 3,439.46 MXN per month
Country Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
| Occupational Risk Insurance (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 + 1.1% on salary exceeding 3 times UMA | 0.4% on salary exceeding 3 times UMA | All staff |
| Disability and Life (IMSS) | 1.75% | 0.625% | All staff |
| Child Care (IMSS) | 1% | - | All staff with children |
| Retirement and Old and Advance Age Unemloyment (IMSS or ISSSTE) |
2% - Retirement 3.15 % - Old and Advance age unemployment |
- 1.125 % - Old and Advance age unemployment |
All staff |
| National Housing Fund (INFONAVIT) | 5% | - | All staff |
| 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 | 15 working days' salary | - | All 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 |
State/Province Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
|
State-Level Payroll Tax (ISN) |
1.5% - 4% | All employers, varies by state |
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 - 41.50 MXN per day- up to this amount tax and contribution free
Income Tax
Residents
-
Tax period: 1st January - 31st December
Filing Due Date: 31st March following year
Country Level
| Taxable Income | Rate |
|---|---|
| 0.01 - 8,952.49 | 1.92% |
| 8,952.50 - 75,984.55 | 6.40% |
| 75,984.56 - 133,536.07 | 10.88% |
| 133,536.08 - 155,229.80 | 16.00% |
| 155,229.81 - 185,852.57 | 17.92% |
| 185,852.58 - 374,837.88 | 21.36% |
| 374,837.89 - 590,795.99 | 23.52% |
| 590,796.00 - 1,127,926.84 | 30% |
| 1,127,926.85 - 1,503,902.46 | 32% |
| 1,503,902.47 - 4,511,707.37 | 34% |
| Over 4,511,707.38 | 35% |
Non-residents
-
A tax resident is an individual who meets one of following criteria:
- Establishes a home in Mexico
- More than 50% of income comes from Mexican sources
- Mexico is the primary place of professional activities
Country Level
| Taxable Income | Rate |
|---|---|
| 1 - 125,900 | 0% |
| 125,900 - 1,000,000 | 15% |
| Over 1,000,000 | 30% |
Working Hours
Statutory
48 hours - Day Shift
8 hours a day, 6 days a week
48 hours - Night Shift
7 hours a day, 6 days a week
48 hours - Mixed Shift
7.5 hours a day, 6 days a week
Day Shift: 8 hours between 06:00 - 20:00
Night Shift: 7 hours between 20:00-06:00
Typical practice
48 hours
Monday - Saturday
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
Permanent
Probation
- 30 days
- Managerial. technical or professional staff: 180 days
Termination
The contract may be terminated by the employer, the employee or by mutual agreement
| Voluntary Resignation | Involuntary Termination | Economic Layoff | |
|---|---|---|---|
| Notice Period - Probation | - No notice period | - No notice period | - No notice period |
| Notice Period - Regular | - No notice period - Typical practice: 2 weeks | - No notice period - Typical practice: 2 weeks | - No notice period - Typical practice: 2 weeks |
| Severance Pay | - if over 15 year in the company - 12 days of salary for each year worked, capped at 2 Mexican minimum wages. | For Just Terminations: - if over 15 year in the company - 12 days of salary for each year worked, capped at 2 Mexican minimum wages. For Wrongful Termination: - 3 months salary, - 20 days salary for each year's service, - if over 15 year in the company - 12 days of salary for each year worked, capped at 2 Mexican minimum wages. | For Wrongful Termination: - 3 months salary, - 20 days salary for each year's service, - if over 15 year in the company - 12 days of salary for each year worked, capped at 2 Mexican minimum wages. |
Fixed-Term
Can be used for seasonal activities, to temporarily replace staff on maternity leave, or temporary disability
Probation
All contracts of at least 180 days: 30 days
Managerial. technical or professional staff: 180 days
Termination
The contract may be terminated by the employer, the employee or by mutual agreement
| Voluntary Resignation | Involuntary Termination | Economic Layoff | |
|---|---|---|---|
| Notice Period - Probation | - No notice period | - No notice period | - No notice period |
| Notice Period - Regular | - No notice period, must be written - Typical practice: 2 weeks | - No notice period, must be written - Typical practice: 2 weeks | - No notice period, must be written - Typical practice: 2 weeks |
| Severance Pay | - if over 15 year in the company - 12 days of salary for each year worked, capped at 2 Mexican minimum wages. | For Just Terminations: - if over 15 year in the company - 12 days of salary for each year worked, capped at 2 Mexican minimum wages. For Wrongful Termination: - 3 months salary, - 20 days salary for each year's service, - if over 15 year in the company - 12 days of salary for each year worked, capped at 2 Mexican minimum wages. | - 3 months salary, - 20 days salary for each year's service, - if over 15 year in the company - 12 days of salary for each year worked, capped at 2 Mexican minimum wages. |
Initial Training
An employment relationship for initial training is when a worker provides services under an employer's supervision to gain the skills and knowledge needed for a specific job.
Probation
Not possible
Termination
The contract may be terminated by the employer, the employee or by mutual agreement
| Voluntary Resignation | Involuntary Termination | Economic Layoff | |
|---|---|---|---|
| Notice Period - Probation | - | - | - |
| Notice Period - Regular | - No notice period | - No notice period | - No notice period |
| Severance Pay | - No severance pay | - No severance pay | - No severance pay |
Public Holiday
7 days
2025
| Date | Name |
|---|---|
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave | 12 days - 1st year of service + 2 days' for each year service up to 5 years, then 2 days every 5 years' service | All staff with 1 year service |
| Sick Leave | Up to 52 weeks - 60% of salary from the fourth day of illness, 100% if injury/illness happened at work | All staff |
| Maternity Leave |
12 weeks + 2 weeks- births with complications + 60 days (50% salary) - serious 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
- https://www.numbeo.com/cost-of-living/in/Mexico-City
- https://www.economia.gob.mx/datamexico/en/profile/geo/mexico
- https://metrocdmx.mx/precios-metro-cdmx/#:~:text=La%20recarga%20de,activar%20una%20nueva
- https://www.salaryexplorer.com/average-salary-wage-comparison-mexico-human-resources-manager-c139j451
- https://www.gob.mx/cms/uploads/attachment/file/298270/incapacidades_laborales.pdf
- http://www.ordenjuridico.gob.mx/leyes.php#gsc.tab=0
- https://start-ops.com.mx/mexican-laws/labor-law-in-english/
- https://imss.gob.mx/
- https://www.gob.mx/stps
- https://www.diputados.gob.mx/LeyesBiblio//pdf/LFT.pdf
- https://www.gob.mx/stps/documentos/las-vacaciones-son-tu-derecho
- https://santandertrade.com/en/portal/establish-overseas/mexico/tax-system?url_de_la_page=%2Fen%2Fportal%2Festablish-overseas%2Fmexico%2Ftax-system&&actualiser_id_banque=oui&id_banque=0&memoriser_choix=memoriser
Contact Info
-
Singapore (Headquarters)
8 Marina Boulevard, MBFC Tower 1, #11-01, Singapore, 018981
+65 6653 4334 -
China (Headquarters)
79 Jianguo Road, China Central Place Tower 2, #09-52, Beijing, 100025
+86 10 6580 0555 -
China (Service Center)
23 Dagong Street, Eton Place Tower 2, Unit 1808, Dalian, 116001
-
United States
445 S Figueroa St, 31st Floor, Los Angeles, California, 90071
-
United Kingdom
71 - 75 Shelton Street, London, England GB
-
Netherlands
Vijzelstraat 68, 1017 HL, Amsterdam
-
Australia
Level 22, Salesforce Tower, 180 George Street, Sydney, NSW 2000