Payment in Mexico

Employment payment requirements in Mexico

This guide outlines the core payment obligations and payroll standards for employers in Mexico. It covers minimum wage, pay frequency, payment methods, and other key requirements for compliance with Mexican labor laws.

Minimum wage

As of January 1, 2024, Mexico applies updated minimum wage rates nationwide. These rates are reviewed annually and enforced by law.

• General minimum wage: 248.93 Mexican pesos per day
• Northern Border Free Zone minimum wage: 374.89 Mexican pesos per day

Employers must pay at least the minimum wage according to the employee’s work location.

Pay frequency and deadlines

Mexican labor law defines strict timelines for wage payments to employees.

• Manual labor or operational workers: wages must be paid at least once per week
• Other employees: wages must be paid at least once every 15 days

Delays in pay or longer intervals are not permitted.

Payment methods

Employers are required to pay salaries in legal Mexican currency. Payment can be made through several authorized methods.

• Direct bank deposit
• Cash payments (less common, subject to legal limits)
• Cheque

Employers typically use electronic banking for salary payments, with paystubs provided for each period.

Salary components and regular deductions

Salaries in Mexico may include base pay, bonuses, and extra compensation as defined by contract or law. Standard deductions apply.

• Income tax (pay-as-you-earn, withheld by employer)
• Social security contributions (employee and employer shares)
• Other statutory withholdings such as retirement savings

Deductions must be clearly listed in the employee’s payslip each period.

Employee pay documentation

Employees are entitled to a payslip (recibo de nómina) for each pay period. The payslip details gross income, itemized deductions, and net pay.

Employers are required to keep records of payments as evidence of compliance.

Penalties for non-compliance

Failure to comply with wage laws can lead to sanctions and fines by Mexican labor authorities. Employers are responsible for maintaining payment records and meeting all deadlines.