Talent Wiki - Mexico
Your quick guide on talent and labor compliance norms in Mexico
Capital
Mexico City
Currency
Mexican Peso (MXN)
Languages
Spanish, Nahuatl
Payroll Frequency
Bi-weekly and monthly
GDP per Capita
$1,322
Employer Tax
16.93% - 31.43%
Talent Overview
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:
Automotive-related skills, Aviation-related jobs, Project Automation, Data Analyst, AI & Machine Learning, Digital Marketing & Strategy
Local Universities
Listed below are the top universities in Mexico
Universidad Nacional Autónoma de México
RANKING
Local: 1
World : 40
Tecnológico de Monterrey (Monterrey Institute of Technology)
RANKING
Local: 2
World : 212
Instituto Politécnico Nacional (National Polytechnic Institute)
RANKING
Local: 3
World : 215
Universidad de Guadalajara (University of Guadalajara)
RANKING
Local: 4
World : 275
Universidad Autónoma de Nuevo León (Autonomous University of Nuevo León)
RANKING
Local: 5
World : 354
Salary Data
A few jobs in Mexico and their salary ranges are as follows:
| Job Title | Average Monthly Salary (MXN) | Average Monthly Salary (USD) |
| Engineer | 28,000 MXN | 1,464 USD |
| Software Developer | 30,600 MXN | 1,600 USD |
| Data Analyst | 31,800 MXN | 1,663 USD |
| UX Designer | 22,600 MXN | 1,182 USD |
| Project Manager | 36,200 MXN | 1,893 USD |
Talent Sourcing Tips
Top Local Job Boards:
Bumeran Mexico, Buscojobs, OCC Mundial, Vacancy Open
Number of LinkedIn users:
19,270,000
Top Recruitment Agencies:
Employing in Mexico
Below listed are the key points an employer has to keep in mind while seeking employees in Mexico.
Employee Contract:
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.
Probation Period
The probationary period for new employees is 30 – 90 days.
Public and Provincial Holidays:
| Date | Holiday | Type |
| 1 Jan | New Year’s Day | Public Holiday |
| 5 Feb | Constitution Day | Public Holiday |
| 6 Feb | Constitution Day Holiday | Public Holiday |
| 20 Mar | Benito Juarez Day | Public Holiday |
| 1 May | Labor Day | Public Holiday |
| 16 Sep | Independence Day | Public Holiday |
| 20 Nov | Revolution Day | Public Holiday |
| 25 Dec | Christmas Day | Public Holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual/Earned Leave | Up to 12 to 20 days | Yes |
| Maternity Leave | 3 months | Yes |
Payroll
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 172.87 Mexican Pesos per day (except in the Free Trade Zone). In the Free Trade Zone of the Mexican Northern Border, the minimum wage is MX$ 260.34.
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.
Bonus
The 13th-month pay, also known as Aguinaldo in Mexico, is mandatory and has to be paid by 20th December every year.
Employee Benefits:
- Sick Leave
- Paternity Leave
- Social Security
- Housing Fund
- Retirement Fund
Taxes
Employer Payroll Tax:
| Tax Type | Rate |
| Social Security | 7.58% |
Employee Payroll Tax:
| Tax Type | Rate |
| Social Security | 1.65% |
Employee Income Tax:
For Mexican residents:
| Annual Income Range | Tax (MXN) | Tax on Excess (%) |
| 0 – 7,735 | 0 | 1.92% |
| 7,735.01 – 65,651.07 | 148.51 | 6.4% |
| 65,651.08 – 115,375.90 | 3,855.14 | 10.88% |
| 115,375.91 – 134,119.41 | 9,265.20 | 16% |
| 134,119.42 – 160,577.65 | 12,264.16 | 17.92% |
| 160,577.66 – 323,862.00 | 17,005.47 | 21.36% |
| 323,862.01 – 510,451.00 | 51,883.01 | 23.52% |
| 510,451.01 – 974,535.03 | 95,768.74 | 30% |
| 974,535.04 – 1,299,380.04 | 234,993.95 | 32% |
| 1,299,380.05 – 3,898,140.12 | 338,994.34 | 34% |
| Above 3,898,140.12 | 1,222,522.76 | 35% |
For non-residents:
| Annual Income Range | Tax Rate |
| 0 – 125,900 | 0% |
| 125,900 – 1,000,000 | 15% |
| Above 1,000,000 | 30% |
VAT:
VAT in Mexico is 16%.
Offboarding & Termination
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:
- Three months of the employee’s aggregate salary, plus
- Twenty days of an employee’s aggregate salary for each year of service
- A seniority premium of twelve days’ salary for each year of service
- Benefits due
Visa and Immigration
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.
