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Your guide to the employment landscape, working customs and local labor laws in Mexico.
Capital
Mexico City
Currency
Mexican Peso (MXN)
Languages
Spanish, Nahuatl
GDP per Capita
$13,097.79
Employer Tax
35.1% - 43.73%
Payroll Frequency
Bi-weekly and monthly
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:
Local: 1
World : 44
Local: 2
World : 274
Local: 3
World : 280
Local: 4
World : 331
Local: 5
World : 542
Bumeran Mexico, Buscojobs, OCC Mundial, Vacancy Open
20,370,000
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
A few jobs in Mexico and their salary ranges are as follows:
Job Title | Average Monthly Salary (MXN) | Average Monthly Salary (USD) |
Engineer | 28,200 MXN | 1,663 USD |
Software Developer | 30,600 MXN | 1,804 USD |
Data Analyst | 31,800 MXN | 1,875 USD |
UX Designer | 22,600 MXN | 1,333 USD |
Project Manager | 36,200 MXN | 2,134 USD |
Below listed are the key points an employer has to keep in mind while seeking
employees in Mexico.
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.
The probationary period for new employees is 30 – 90 days.
Date | Name | Type |
1 Jan | New Year’s Day | National holiday |
5 Feb | Constitution Day | National holiday |
18 Mar | Benito Juárez’s Birthday Memorial | National holiday |
28 Mar | Maundy Thursday | Bank holiday |
29 Mar | Good Friday | Bank holiday |
1 May | Labor Day / May Day | National holiday |
5 May | Battle of Puebla (Cinco de Mayo) | Common local holiday |
16 Sep | Independence Day | National holiday |
18 Nov | Revolution Day | National holiday |
12 Dec | Day of the Virgin of Guadalupe | Bank holiday |
25 Dec | Christmas Day | National holiday, Christian |
Type of Leave | Time Period | Mandatory |
Annual/Earned Leave | Up to 12 to 20 days | Yes |
Maternity Leave | 3 months | Yes |
Leave Compliance
Payroll cycle
Mexican employees can be paid either bi-weekly, or monthly depending on the employment contract.
Minimum wage
The minimum wage in Mexico is 248.93 (Mexican pesos) per day. The minimum wage in the North Border Free Zone (ZLFN) is currently MXN 374.89 per day.
In addition, there are professional minimum wages for 61 professions, ranging from MXN 250.36 to MXN 557.41 per day.
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.
Type of Insurance | Employer’s contribution | Employee’s Contribution | Government’s Contribution |
Retirement | 2% | – | – |
Unemployment in old age | 3.15% | 1.125% | 7.143% of the employer’s contributions (0.225%) |
Life and Disability | 1.75% | 0.625% | 7.143% of the employer’s contributions |
Taxable Income (MXN, Mexican Pesos) | Basic Tax | ||
Over | Not Over | Tax on Column 1 (MXN) | Tax on Excess (%) |
0.01 | 8,952.49 | 0 | 1.92 |
8,952.50 | 75,984.55 | 171.88 | 6.40 |
75,984.56 | 133,536.07 | 4,461.94 | 10.88 |
133,536.08 | 155,229.80 | 10,723.55 | 16.00 |
155,229.81 | 185,852.57 | 14,194.54 | 17.92 |
185,852.58 | 374,837.88 | 19.682.13 | 21.36 |
374,837.89 | 590,795.99 | 60,049.40 | 23.52 |
590,796.00 | 1,127,926.84 | 110,842.74 | 30.00 |
1,127,926.85 | 1,503,902.46 | 271,981.99 | 32.00 |
1,503,902.47 | 4,511,707.38 | 392,294.17 | 34.00 |
4,511,707.39 | and above | 1,414,947.85 | 35.00 |
Non-residents are taxed at 15% on income exceeding MXN 125,900 and at 30% on
their income over MXN 1,000,000.
VAT in Mexico is 16%.
The 13th-month pay, also known as Aguinaldo in Mexico, is mandatory and has to be paid by 20th December every year.
Both the employee and the employer are entitled to terminate the employment.
The notice period for permanent employees is a minimum of 30 days, and for employees on probation, it ranges from 7 – 14 days.
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:
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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Overtime Pay
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