Hire in Mexico

Quick overview

Mexico is a key location for international employers, with a straightforward labor system and growing remote workforce. The standard workweek and clear statutory benefits simplify compliance.

• Currency: Mexican peso (MXN)
• Typical workweek: 40–48 hours
• Minimum daily wage: MXN 248.93 – 374.89
• National holidays: 8 per year
• Official language: Spanish
• Tax year: January 1 – December 31

Taxes

Employer tax

Employers in Mexico face several mandatory contributions related to hiring staff.

• Total employer burden: 39.69%–46.72%
• Social Security: 26.54%–33.58%
• Retirement fund: 5.15%
• National housing fund: 5%
• Payroll tax: 3% (varies by state)

Employee tax

Employees contribute a portion of their salary to various tax and social funds.

• Total employee burden: 4.7%–37.7%
• Social Security: 1.65%
• Retirement fund: 1.1%
• Income tax: progressive, 1.92%–35%

Employee benefits

Mandatory benefits

Certain benefits are required by Mexican law for all employees.

• Pension scheme
• Paid annual leave and holiday bonus
• Vacation premium
• Christmas bonus (Aguinaldo)
• Occupational accident and illness coverage
• Sick leave and maternity leave
• Old age severance and insurance