Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Mexico

Your quick guide on talent and labor compliance norms in Mexico
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Capital
Mexico City
Currency
Mexican Peso (MXN)
Languages
Spanish, Nahuatl
Payroll Frequency
Bi-weekly and monthly
GDP per Capita
$10,166
Employer Tax
16.93% - 31.43%

Supplementary Guide for Employment and Expansion in Mexico

Talent Overview

Major economic sectors in Mexico are services, agriculture, manufacturing, commerce, mining, and energy production. Mexico houses the highest number of Spanish speakers in the world, and it is the 10th most populous country in the world.

Major Economic Hubs:

Mexico City, Guadalajara, Monterrey

Skills in Demand:

Automotive-related skills, Aviation-related jobs, Project Automation, Data Analyst, AI & Machine Learning, Digital Marketing & Strategy

Local Universities

Listed below are the top universities in Mexico:

Universidad Nacional Autónoma de México

RANKING

Mexico : 1

World : 40

Tecnológico de Monterrey (Monterrey Institute of Technology)

RANKING

Mexico : 2

World : 212

Instituto Politécnico Nacional (National Polytechnic Institute)

RANKING

Mexico : 3

World : 215

Universidad de Guadalajara (University of Guadalajara)

RANKING

Mexico : 4

World : 275

Universidad Autónoma de Nuevo León (Autonomous University of Nuevo León)

RANKING

Mexico : 5

World : 354

Salary Data

A few jobs in Mexico and their salary ranges are as follows:

Job Title Average Monthly Salary (MXN) Average Monthly Salary (USD)
Engineer 28,000 MXN 1393.17 USD
Software Developer 30,600 MXN 1522.53 USD
Data Analyst 31,800 MXN 1582.24 USD
UX Designer 22,600 MXN 1124.49 USD
Project Manager 36,200 MXN 1801.17 USD

Talent Sourcing Tips

Top Local Job Boards

Bumeran Mexico, Buscojobs, OCC Mundial, Vacancy Open

Number of LinkedIn users

15,940,000

Top Recruitment Agencies

Coders Link, Remote Team Solutions

Employing in Mexico

Below listed are the key points an employer has to keep in mind while seeking employees in Mexico.

Employee Contract:

Written contracts are not required to be in Spanish. But in cases where a contract will be used for evidence, it must be presented in Spanish before labor authorities.

Probation Period

The probationary period for employees is 30 - 90 days with a notice period of 7 - 14 days before termination.

Public and Provincial Holidays:

Date Name Type
1st January New Year’s Day Public Holiday
7th February Constitution Day Public Holiday
21st March Benito Juárez's Birthday Memorial Public Holiday
1st May Labor Day Public Holiday
16th September Independence Day Public Holiday
21st November Revolution Day Memorial Public Holiday
25th December Christmas Public Holiday

Payroll

Payroll Cycle

Mexican employees can be paid either bi-weekly, or monthly depending on the employment contract.

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Minimum Wage

The minimum wage in Mexico is 172.87 Mexican Pesos per day (except in the Free Trade Zone). In the Free Trade Zone of the Mexican Northern Border, the minimum wage is MX$ 260.34.

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Overtime Pay

Overtime is permitted in Mexico with a limit of 3 hours a day and not exceeding 9 hours a week. This is compensated at twice the regular pay. If overtime exceeds 9 hours, the compensation allotted in Mexico is thrice the regular pay. For working on Sundays, an extra 25% of the regular pay is provided.

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Health Examination Clause

Bonus

13th Month Pay: 

The 13th-month pay, also known as Aguinaldo in Mexico, is mandatory and has to be paid by 20th December every year. 

Employee Benefits:

  • ~Sick Leave
  • ~Paternity Leave
  • ~Social Security
  • ~Housing Fund
  • ~Retirement Fund
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Taxes

Employer Payroll Tax:

Tax Type Rate
Social Security 7.58%

Employee Payroll Tax:

Tax Type Rate
Social Security 1.65%

Employee Income Tax:

For Mexican residents:

Annual Income Range Tax (MXN) Tax on Excess (%)
0 - 7,735 0 1.92%
7,735.01 - 65,651.07 148.51 6.4%
65,651.08 - 115,375.90 3,855.14 10.88%
115,375.91 - 134,119.41 9,265.20 16%
134,119.42 - 160,577.65 12,264.16 17.92%
160,577.66 - 323,862.00 17,005.47 21.36%
323,862.01 - 510,451.00 51,883.01 23.52%
510,451.01 - 974,535.03 95,768.74 30%
974,535.04 - 1,299,380.04 234,993.95 32%
1,299,380.05 - 3,898,140.12 338,994.34 34%
Above 3,898,140.12 1,222,522.76 35%

For non-residents:

Annual Income Range Tax Rate
0 - 125,900 0%
125,900 - 1,000,000 15%
Above 1,000,000 30%

VAT:

VAT in Mexico is 16%.

Offboarding & Termination

Termination Process

Both the employee and the employer are entitled to terminate the employment.

Notice Period

The notice period for permanent employees is a minimum of 30 days, and for employees on probation, it ranges from 7 - 14 days.

Severance Pay

If the termination is with a clause, employees are entitled to all benefits including commissions on a prorated basis until the termination date and the seniority premium of twelve days' salary for each year of service.

If the termination is without a clause, employees are entitled to the following lump-sum payment:

  • ~Three months of the employee’s aggregate salary, plus
  • ~Twenty days of an employee’s aggregate salary for each year of service
  • ~A seniority premium of twelve days’ salary for each year of service
  • ~Benefits due

Visa and Immigration

A temporary resident visa with a work permit (work visa) will allow you to enter Mexico, receive a temporary resident card and undertake paid activities in the country. All temporary resident visas with a work permit must first be requested from the National Migration Institute (INM) directly by the employer. Only the employers registered with the INM can apply for a Work Visa. The Visa holds validity for 6 months and includes 1 entry.

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