Country file
What it costs an employer to hire in Mexico
An employer in Mexico pays MX$867,288 on a gross salary of MX$720,000. That is 20.5% more than the salary.
At MX$1,440,000 the employer adds 16.3%, because the contribution ceilings start to bite.
Every rate below comes from a statutory source with the date it was read. The figures are for 2026.
A mid salary of MX$720,000
| Contribution | Rate | Annual base charged | Amount | Source |
|---|---|---|---|---|
| INFONAVIT, housing fund | 5.00% | MX$1,069,866 | MX$36,000 | source checked 2026-08-21 |
| IMSS, old-age and severance (CEAV), lowest step | 3.15% | MX$1,069,866 | MX$22,680 | source checked 2026-08-21 |
| IMSS, retirement (SAR) | 2.00% | MX$1,069,866 | MX$14,400 | source checked 2026-08-21 |
| IMSS, disability and life | 1.75% | MX$1,069,866 | MX$12,600 | source checked 2026-08-21 |
| IMSS, sickness and maternity, surplus above 3 UMA | 1.10% | MX$1,069,866 | MX$7,920 | source checked 2026-08-21 |
| IMSS, medical costs of pensioners | 1.05% | MX$1,069,866 | MX$7,560 | source checked 2026-08-21 |
| IMSS, nurseries and social benefits | 1.00% | MX$1,069,866 | MX$7,200 | source checked 2026-08-21 |
| IMSS, cash sickness benefits | 0.70% | MX$1,069,866 | MX$5,040 | source checked 2026-08-21 |
| IMSS, occupational risk, legal minimum | 0.54% | MX$1,069,866 | MX$3,888 | source checked 2026-08-21 |
| Statutory employer contributions | MX$117,288 |
Scroll sideways on a phone.
| Gross salary | MX$720,000 |
| Statutory employer contributions | MX$117,288 |
| Mandatory extra pay (0.5 months) | MX$30,000 |
| Total employer cost | MX$867,288 |
| Added on top of the salary | 20.5% |
A senior salary of MX$1,440,000
| Contribution | Rate | Annual base charged | Amount | Source |
|---|---|---|---|---|
| INFONAVIT, housing fund | 5.00% | MX$1,069,866 | MX$53,493 | source checked 2026-08-21 |
| IMSS, old-age and severance (CEAV), lowest step | 3.15% | MX$1,069,866 | MX$33,701 | source checked 2026-08-21 |
| IMSS, retirement (SAR) | 2.00% | MX$1,069,866 | MX$21,397 | source checked 2026-08-21 |
| IMSS, disability and life | 1.75% | MX$1,069,866 | MX$18,723 | source checked 2026-08-21 |
| IMSS, sickness and maternity, surplus above 3 UMA | 1.10% | MX$1,069,866 | MX$11,769 | source checked 2026-08-21 |
| IMSS, medical costs of pensioners | 1.05% | MX$1,069,866 | MX$11,234 | source checked 2026-08-21 |
| IMSS, nurseries and social benefits | 1.00% | MX$1,069,866 | MX$10,699 | source checked 2026-08-21 |
| IMSS, cash sickness benefits | 0.70% | MX$1,069,866 | MX$7,489 | source checked 2026-08-21 |
| IMSS, occupational risk, legal minimum | 0.54% | MX$1,069,866 | MX$5,777 | source checked 2026-08-21 |
| Statutory employer contributions | MX$174,281 |
Scroll sideways on a phone.
| Gross salary | MX$1,440,000 |
| Statutory employer contributions | MX$174,281 |
| Mandatory extra pay (0.5 months) | MX$60,000 |
| Total employer cost | MX$1,674,281 |
| Added on top of the salary | 16.3% |
The formula
Each ceiling above applies only to its own line, which is why the employer percentage for Mexico is not the same at both salaries. Employer contribution ceilings, country by country lists where every ceiling on this site sits.
Time off, extra pay and leaving
| Statutory paid leave | 12 days |
| Public holidays | 7 |
| Mandatory extra pay | 0.5 months |
| Minimum employer notice | 0 weeks |
Under the 2023 Vacaciones Dignas reform, 12 days in year one, rising by two a year to 18 by year four, then two more every five years. Seven official holidays under Article 74.
Aguinaldo of at least fifteen days' wages a year is statutory under Article 87 of the Federal Labour Law and must be paid by 20 December.
Unjustified dismissal is three months' salary plus twenty days' wages per year of service where there is no reinstatement, plus a seniority premium of twelve days' wages per year capped at twice the minimum wage. A vacation premium of at least 25% of vacation pay is also statutory.
What the percentage hides
Mexico is not a flat percentage of salary. Part of the IMSS charge is a fixed peso amount tied to the UMA (3,566.22 pesos a month in 2026) regardless of pay, and the rest runs on a contribution base capped at 25 UMA a day. The effective share of an actual salary therefore falls as the salary rises.
The occupational risk premium is set annually per employer from its own accident record, with a legal minimum near 0.54%.
A primary IMSS page could not be retrieved, so the per-item percentages rest on convergent secondary sources and are marked medium confidence.
Not confirmed on a statutory source, and therefore not in any figure above: a primary imss.gob.mx confirmation of the per-branch percentages; the CEAV step that applies at a given salary multiple, within the 3.15% to 7.51% range; an individual employer's occupational risk premium.
Using an employer of record in Mexico
Everything above is what the state takes. An employer of record adds its own fee on top, and that fee is a flat monthly amount rather than a percentage, so it weighs far more on a junior salary than a senior one. The published prices are here, and the calculator will add one to the figures on this page.
Compare with another country
- Mexico compared with United States
- Mexico compared with United Kingdom
- Mexico compared with Germany
- Mexico compared with France
- Mexico compared with Netherlands
- Mexico compared with Spain
Written by Kaz, independent publisher. No commercial relationship with the providers named unless it is listed on the disclosure page.
Page last updated 2026-08-30. Sources: statutory bodies only, listed per figure. Rates last verified 2026-08-21. This is not legal, tax or payroll advice and we do not file anyone's payroll.
Every formula on this site is written out in full on Method. Ordering is by computed cost, never by what a provider pays us.
Corrections: contact form.