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Basic Economic Summary


Mexico’s rich cultural heritage and abundant natural resources have led the country to be the 15th largest economy in the world and the 2nd largest in Latin America. And with the help of the North American Free Trade Agreement (NAFTA), Mexico has been leveraging its manufacturing activities, paving the way for easy transactions with the USA and Canada. This has produced more jobs for their citizens and more opportunities to showcase the country’s potentials to the world.

Basic Information

  • Local Languages: Spanish, Nahuatl 
  • Capital: Mexico City
  • Currency: Mexican Peso
  • Population: 130.12 million
  • Date Format: dd/mm/yyyy

Useful Information

  • GDP Per Capita (in USD): 10,541.44 (2022)
  • Exchange Rate (MEX/USD): 0.048
  • PISA Ranking (2018): 56*
  • Number of University Graduates (2017/18): 3,864,995*

Local Universities

Top Local Universities

University Rankings
Universidad Nacional Autónoma de México Ranking in Mexico: 1, World Ranking: 287
Centro de Investigación y de Estudios Avanzados del IPN CINVESTAV Ranking in Mexico: 2, World Ranking: 598
National Polytechnic Institute Ranking in Mexico: 3, World Ranking: 640
Benemérita Autonomous University of Puebla Ranking in Mexico: 4, World Ranking: 842
Autonomous University of San Luis Potosí Ranking in Mexico: 5, World Ranking: 955

Salary Data

Average Salary of Jobs (Per Month)

Job Title Salary Range (in MEX) Salary Range (in USD)
Technical Product Engineer 16,800 - 49,300 846.73 - 7524.79
Software Developer 1530 - 47,400 77.11 - 2388.98
Data Analyst 15,300 - 49,900 771.13 - 2514.98
UX Designer 11,500 – 34,900 579.61 - 1758.98
Project Manager 22,800 – 65,200 1149.13 - 3286.11
Sales Executive 9,720 – 33,600 489.89 – 1693.46
Chief Accountant 16,700 - 54,700 841.69 – 2756.91

More information about average salaries in Mexico can be found on SalaryExplorer.

Talent Sourcing Tips


Employer Payroll Tax

Employers must contribute the following taxes for social security benefit:

Tax Rate (%) Purpose
9.93% to 22.43% Social Security
2.00% Retirement
5.00% Housing Fund
Up to 31.43% Total Employment tax

Employees must contribute the following taxes:

Tax Rate (%) Purpose
2.727% Social Security
0% Retirement
0% Housing Fund
2.727% Total costs

Income tax is levied annually as follows:

Rate Annual Salary Level in MEX
1.92% 0 - 6,942.20
6.4% 6,9421.20 - 58,922.16
10.88% 58,922.17 - 103,550.40
16.00% 103,550.50 - 120,372.83
17.92% 120,372.84 - 114,119,23
21.36% 114,119.24 - 290,667.75
23.5 % 290,667.76 - 458,132.29
30% 458,132.30 - 874,650
32% 874,650.01 - 1,166,200
34% 1,166,200.01 - 3,498,600
35% Above 3,498,600

More information on income taxes levied can be found here.

Minimum Wage & Payroll

Minimum Wage

The national minimum wage set by law is 141.70 Mexican pesos per day.

Payroll Cycle

Workers are paid on a monthly and bimonthly basis.


13th month salary

Employees are entitled to an end-of-year bonus and are generally given out before Christmas on 20th December. It is generally equivalent to fifteen days of the employee’s salary.

Working Hours & Statutory Leave

Working hours

The standard working hours in Mexico are 48 hours a week from Monday - Saturday. The workday is generally divided into three shifts:

  1. Day Shift - the day shift is for any eight hours between 6am to 8pm
  2. Night Shift - the night shift occurs for a period of seven hours between 8pm to 6am
  3. Mixed Shift - the mixed shift is for 7.5 hours and considered partly day and partly night shift. Here the night shift is limited to 3.5 hour

Overtime pay

Overtime is permitted in Mexico with a limit of 3 hours a day and not exceeding 9 hours a week. If overtime exceeds 9 hours, the compensation allotted in Mexico is twice the regular pay.

Public Holidays

There are a total of 15 public holidays in Ireland. The list of public holidays can be found here.


Annual Paid Leave

Workers are entitled to 6 working days of leave after completing one year of employment. There is an increase by 2 days every year for the next three years of employment, until the duration of annual leave is 12 days. As of the fifth year, the employee is entitled to 14 days of vacation. For each additional group of 5 years, another 2 years are added. Employers should pay 25% of the salary earned during vacation period.

Sick Leave

In Mexico, there is no minimum number of days given to sick leaves. It is dependent on the illness and degree of disability. However, if an employee has made contributions to the social security system, four weeks before his/her condition was developed then he/she will be entitled to 60% of an employee’s regular wage from the fourth day of the illness.

Parental Leave

  • Maternity Leave

Maternity leave of twelve weeks ( 6 before the child is born and 6 after the child is born) is generally given to working mothers. In case their child was born with any kind of disability, they are given upto 8 weeks of leave after delivery. During maternity leave, working mothers are entitled to 100% of their salary. employees who are entitled to five days on leave when their child is born or adopted.

  • Paternity Leave 

Male employees are entitled to five days on leave when their child is born or adopted.

Offboarding & Termination

Termination Process

An employer can give termination notice to employees only when the employee gives cause for dismissal.

Notice Period

Employees in Mexico are not legally required to serve notice period before leaving their employment.

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: 

  1. Three months of the employee’s aggregate salary, plus
  2. Twenty days of an employee’s aggregate salary for each year of service
  3. A seniority premium of twelve day’s salary for each year of service
  4. Benefits due

Probation period

Probation periods in Israel range from one to twelve months depending on the terms of the contract.

Employee Benefits


The Mexican Institute of Social Security or Instituto Mexicano del Seguro Socia (IMSS) is the social security program that the government of Mexico provides for its citizens. This program is governed by the  Social Security Law (LSS) and is compulsory for all Mexican workers. The program is funded by employers, employees and the government and contributions are based on the workers’ salary level. The coverage includes Occupational accidents and illnesses , retirement, and survivor pensions, disability, sickness, medical benefits and maternity. 

Employee Share Option Plan

In Mexico, employers are free to offer ESOPs among their employees as a way to incentivize them for a long term commitment to the company. The most common share options given to employees are the incentive share options and restricted share units (RSUs). 

The Incentive Share option allows the employees to buy a company’s share on a specified future date at a price established at the time of the grant. RSUs, on the other, gives employees the right to receive the cash equivalent of the shares without paying it right away and will be subject to a vesting period. 


The general rate for VAT in Mexico is 16%.

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