Mexico: Payroll & Employment Facts
Verified statutory employment facts for Mexico, each with its official source and the date it applies from. This is our reference record. For provider choice and hiring advice, see the Mexico employer-of-record guide and the Mexico country hub.
What is the minimum wage in Mexico?
| National minimum wage |
$315.04 / day
|
|---|---|
| Next review date |
Not available
|
What employer social contributions apply in Mexico?
Rates are a percentage of gross wage, applied up to the annual contribution ceiling.
| Employer social security rate |
2.25% to 16.75%
|
|---|---|
| Pension |
5.150% to 8.288%
|
| Healthcare |
Fixed quota + 1.10% on salary exceeding 3x UMA
|
| Housing Fund (INFONAVIT) |
5.00%
|
| State Payroll Tax (Impuesto Sobre Nómina - ISN) |
1.0% to 3.5%
|
| Annual contribution ceiling |
25 x daily UMA x 365 MXN per year
|
| Total employer burden |
17.40% to 36.14%
|
What notice and leave rules apply in Mexico?
Statutory minimum notice the employer must give, by completed length of service.
| Length of service | Employer notice |
|---|---|
| 0+ months | 4 weeks |
| Payment in lieu of notice (PILON) |
Permitted
|
|---|---|
| Minimum annual leave |
12 days
|
| Annual leave includes public holidays |
No
|
| Public holidays per year |
7 days
|
Is 13th-month pay required in Mexico?
None of the following are mandated by statute; they may still arise from a contract or collective agreement.
| Thirteenth-month pay required |
Yes
|
|---|---|
| Profit sharing required |
Yes
|
| Holiday bonus required |
Yes
|
How is severance calculated in Mexico?
| Formula |
Termination without cause (LFT Art.48/50): 3 months of integrated daily salary (90 days) + 20 days of integrated daily salary per year of service + a 12-day/year seniority premium (prima de antiguedad, base capped at 2x the minimum daily wage). Accrues from day one.
|
|---|---|
| Per-year multiplier |
20 weeks of pay per year of service
|
| Minimum qualifying tenure |
0 months
|
| Calculation base |
Integrated daily salary (salario diario integrado) other
|
Worked example
An employee with 5 years of service and an annual salary of £30,000 is dismissed without cause. Assumptions: Exchange Rate: 1 GBP = 21.50 MXN; Annual Salary: £30,000 * 21.50 = 645,000 MXN; Integrated Daily Salary (IDS): 645,000 MXN / 365 days = 1,767.12 MXN; General Minimum Wage (2024): 248.93 MXN/day. Calculation: 1. Constitutional Indemnity: 3 months' salary = 90 days of IDS; 90 * 1,767.12 MXN = 159,040.80 MXN. 2. Seniority Premium: The salary base for this component is capped at twice the daily minimum wage. Capped Daily Salary: 2 * 248.93 MXN = 497.86 MXN; Premium: 12 days * 5 years of service * 497.86 MXN; 60 * 497.86 MXN = 29,871.60 MXN. Total Statutory Severance Pay: 159,040.80 MXN + 29,871.60 MXN = 188,912.40 MXN.