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Mexico

Global Employment Solutions & PEO in Mexico

Omnipresent makes it fast and easy to employ remote talent in Mexico. We take care of payroll, compliance, taxes, and admin so you can focus on growing your business.

MexicoMexico

Omnipresent Employment Rating

Capital City
Mexico City
Currency
Mexican peso ($, MXN)
Language
Spanish
Payroll Frequency
Fortnightly
Employment Costs
Termination
Population
128932753

What You Need to Know About Employing in Mexico

Don’t risk non-compliance with local employment, social insurance, and tax regulations.

Select any of the categories below to learn more, and even review our employee cost salary calculator in Mexico.

Quickly compare key information between top countries with our Country Comparison tool.

How it works
Employer Costs
Employee Income Taxes
Employee Social Contributions
Working Hours
Holidays & Vacation
Sick Leave Entitlement
Parental Leave
Annual Leave Entitlement
Severance Pay Entitlement
Termination
Employment Cost Calculator
Mexico

How does Omnipresent Global Employment Solutions work in Mexico?

Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Mexico. Traditional methods of establishing global employment and subsidiaries in Mexico typically take months and can incur heavy costs. Omnipresent’s global employment solutions and PEO services is helping hundreds of organisations onboard new employees in Mexico in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process. 

  • Your company conducts the hiring and candidate selection process in Mexico.
  • Omnipresent hires the selected candidate through our local professional employment organisation in Mexico.
  • We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in Mexico.
  • The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation as your full-time employee.
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Employer Costs in Mexico

Employer costs include Social Security, Federal/State Tax, and Christmas Bonus. Use the OmniCalculator to estimate costs, or contact us for further information.

Mexico

Employee Income Taxes in Mexico

Income taxes

0% - 35%

Tax rates range from zero to 35%.

Mexico's federal income tax rates are levied on a progressive scale, with rates for residents ranging from 1.92% to 35% and rates for nonresidents ranging from zero to 30%.

Mexico

Employee Social Contributions in Mexico

Employee Contributions

Effective from Feb. 1, 2024, to Jan. 31, 2025, the daily maximum contribution base is 25 times the daily UMA value of Mex$108.57, which is Mex$2,714.25; and the monthly maximum base contribution salary is 25 times the monthly UMA value of Mex$3,300.53, which is Mex$82,513.25.

Disability and life insurance (seguro de invalidez y vida, abbreviated as SIV)

Employees are assessed a contribution equivalent to 0.625% of their base contribution salary.

Illness and maternity insurance (seguro de enfermedades y maternidad, abbreviated as SEM):

- Surplus fee (cuota excedente): contributions to fund benefits in-kind: the taxable amount of wages paid to each employee during a month is the employee's monthly base contribution salary as capped by the monthly maximum base contribution salary, minus the product of three times the monthly unit of measure and update, with the employee contribution rate of 0.4% applicable to this taxable amount.

- Contributions to fund cash benefits (prestaciones en dinero): employees are assessed a contribution equivalent to 0.25% of their base contribution salary.

- Contributions to fund medical expenses for pensioners and beneficiaries (gastos médicos para pensionados y beneficiarios): employees are assessed a contribution equivalent to 0.375% of their base contribution salary.

Insurance for retirement, unemployment in advanced age, and old age (seguro de retiro, cesantía en edad avanzada y vejez, abbreviated as SRCV)

Employees contribute 1.125% of their base contribution salary as a contribution for elderly unemployment and old-age insurance funding.

Mexico

Working Hours in Mexico

Working hours are 48 hours per week on a day shift, 42 on a night shift and 45 for mixed (swing) shifts. Overtime is capped and compensated.

Mexico

Holidays & Vacation in Mexico

Please note that the below information covers national holidays and should be used for informative purposes only and not as a guarantee for payroll purposes. While we strive to offer you accurate information, public holidays are subject to frequent changes and can be dependent on regional differences. Should you need more detailed information on public holidays, please consult the government pages of the state and/or the local municipality of your employee.

  • Monday, Jan 01, 2024 - New Year's Day (Año Nuevo)
  • Monday, Feb 05, 2024 - Constitution Day (Día de la Constitución)
  • Monday, Feb 05, 2024 - Constitution Day (day off) (Día de la Constitución (día libre))
  • Monday, Mar 18, 2024 - Benito Juárez's birthday (day off) (Natalicio de Benito Juárez (día libre))
  • Thursday, Mar 21, 2024 - Benito Juárez's birthday (Natalicio de Benito Juárez)
  • Thursday, Mar 28, 2024 - Maundy Thursday (Jueves Santo)
  • Friday, Mar 29, 2024 - Good Friday (Viernes Santo)
  • Wednesday, May 01, 2024 - Labour Day (Día del trabajador)
  • Monday, Sep 16, 2024 - Independence Day (Día de la Independencia)
  • Saturday, Nov 02, 2024 - All Souls' Day (Día de los Difuntos)
  • Monday, Nov 18, 2024 - Revolution Day (day off) (Día de la Revolución (día libre))
  • Wednesday, Nov 20, 2024 - Revolution Day (Día de la Revolución)
  • Sunday, Dec 01, 2024 - Change of Federal Government (Transmisión del Poder Ejecutivo Federal)
  • Thursday, Dec 12, 2024 - Day of the Virgin of Guadalupe (Día de la Virgen de Guadalupe)
  • Wednesday, Dec 25, 2024 - Christmas Day (Navidad)
Mexico

Sick Leave Entitlement in Mexico

Employees are entitled to paid time off in the case of illness or injury, whether or not such illness or injury was work-related or not. The Mexican Social Security Institute will provide a subsidy equal to 60% of total salary starting on the fourth day of the illness and up to a 52-week period, which can be extended for another 26 weeks.

Parental Leave in Mexico

Maternity leave: 12 weeks' paid maternity leave. The Mexican Social Security Institute (IMSS) pays at a rate of 100% of the employee's salary. However, this is capped at 25 times the general minimum wage.

Paternity leave: 5 days of paid leave. Parental leave: Parental leave is not mandatory.

Annual Leave Entitlement in Mexico

Minimum annual leave in Mexico is based on seniority and ranges between 12 days to 5 days up to 5 years of service. After 5 years of service the annual leave allowance increases by 2 days in 5 year increments.

Severance Pay Entitlement in Mexico

Severance depends on the cause of termination. Below is a breakdown for indefinite contracts. Severance also applies to fixed-term contracts, but is calculated differently on a case-by-case basis and can be higher than the below.

Voluntary resignation: Seniority premium (after 15 years service) - 12 days’ salary for each year employed.

Termination with cause: Seniority premium (after 15 years service) - 12 days’ salary for each year employed.

Termination without cause: 3 months' salary, plus 20 days for each year in the company, plus a seniority premium of 12 days per year of service. The employee will also receive back salary from the date of dismissal to the day that the employer complies with the Labor Board’s decision.

Termination in Mexico

In Mexico there is no prescribed process for terminating an employee for cause, but it is important to notify the employee of the specific reasons.

Termination without a justified cause would be seen as an unjustified dismissal, and statutory severance would be paid to the employee. 

In the case of unjustified dismissal, the employee is entitled to demand at the proper Conciliation and Arbitration Board either to be reinstated or indemnified in an amount equal to 3 months’ salary, plus lost wages.

Global Employment Cost Calculator in Mexico

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Mexico

- annual salary
Base Salary
-
Employer's Costs (Estimate)
-
Social Security - Unemployment insurance contribution
GBP 695.47
Health Insurance
GBP 695.47
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VAT
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Average Monthly Employer Cost *
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Mexico

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Mexico

Grow your global team. 
Employ the best talent, anywhere in the world

The benefits of growing a global team and finding the best talent anywhere in the world are endless. It’s important to note that labour laws and regulations in Mexico are strict with penalties for non-compliance. Let our team take care of the global employment solutions such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We are here to help you every step of the way.

Want to onboard an international employee today? Get started.

Omnipresent makes it easy to hire, pay, and support your international team with our top-notch services including our global EOR & PEO services. Book a call with us to start building your global team today. Book a call with us to start building your global team today.

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