Country comparison
Mexico or Portugal: which costs the employer more
Portugal costs the employer more: 40.4% on top of the salary, against 20.5% in Mexico.
Each country uses its own currency, so we compare the percentage. We publish no exchange rate and convert nothing.
| Mexico | Portugal | |
|---|---|---|
| Salary used | MX$720,000 | €60,000 |
| Statutory contributions | MX$117,288 | €14,250 |
| Mandatory extra pay | 0.5 months | 2 months |
| Total employer cost | MX$867,288 | €84,250 |
| Added on top of the salary | 20.5% | 40.4% |
| Statutory paid leave | 12 days | 22 days |
| Public holidays | 7 | 13 |
| Minimum employer notice | 0 weeks | 2.14 weeks |
Where the difference actually comes from
Mexico: 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.
Portugal: The 23.75% employer rate is uncapped and applies to the full salary, so the burden is identical for a junior hire and a senior one.
The formula behind both columns
Ceilings are the reason this ordering can reverse at a higher salary. Run both countries through the calculator at the salary you actually intend to pay before you treat either number as settled.
Related
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.
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