Employer Payroll Contributions
Employee Payroll Contributions
Employee Income Tax
The minimum wage is 141.70 MXN per day. It is 213.39 MXM per day in the Free Economic Zone of the Northern Border.
The payroll cycle is bi-weekly. Payments are made every 15th day & last day of the month.
Employees receive 15 days of pay on 20th December as a Christmas bonus.
Paying 13th and 14th salaries is also a common practice.
Full time employment is considered 8 hours daily, 48 hours weekly.
Employees who earn minimum wage can work up to 9 hours exempt per week. The following 9 hours will be paid at a rate of 200% salary, with any hour beyond that paid at a rate of 300%.
Employees that earn more than the minimum wage are exempt for only 50% of the overtime worked per week up to 5 minimum wages per week. The first 9 hours will be paid at a rate of 200% and the following hours will be paid at a rate of 300%.
1 year seniority = 6 days
2 years seniority = 8 days
3 years seniority = 10 days
4 years seniority = 12 days
5 to 9 years seniority = 14 days
10 years or above – additional 2 days per 5 years.
No Carryover policy
8 public holidays.
No minimum required by law.
Up to 3 months of leave fully paid by social security.
1 week of leave fully paid by the employer.
Parental leave is not mandatory.
An employer with cause to terminate an employee must show the reason. Otherwise, the termination may be deemed without cause.
No notice period for termination is required.
Voluntary resignation: the employer must pay the employee all benefits that are due. If the employee has 15 years or more of seniority, the employee is entitled to 12 days’ salary for each year employed.
Termination with cause: The employer must pay the employee all benefits that are due. In addition, 12 days of salary for each year employed.
Termination without cause: 3 month’s salary, 20 days for each year in the company, and a seniority bonus of 12 days per year of service. The employee will also receive back salary from the date of dismissal to the day that the employer complies with the Labor Board’s decision.
Optional, but the common practice is 3 months.
To get a work permit in Mexico, a candidate would first need to apply for a residence visa, which can be temporary (6 months to 4 years) or permanent. After that, a work permit can be obtained by applying to the Instituto Nacional de Migración (INM) for permission to work.
For short visits (up to 180 days):
Visitor Visa with Permission to Work – For short visits (up to 180 days) for people who are working at a Mexican branch of a foreign company. The visa cannot be extended beyond 180 days and cannot be used for receiving payment from a Mexican company.
For visits longer than 180 days:
People who plan to work in Mexico for more than 6 months need a resident visa and a work permit.
Temporary Resident Visa – Those who plan to live and work in Mexico but do not plan to remain there permanently can request a temporary resident visa.
The applicant must have a job offer from a local business and the employer must request a permit from the INM. When the permit is granted, the applicant must submit a request as well from outside Mexico and allow up to 45 days for the request to be processed. The visa is valid for 4 years. After that, the visa holder must apply for a permanent resident visa or leave the country.
Permanent Resident Visa – someone who plans to move to Mexico permanently can request a permanent resident visa if the requirements are met. Conditions include family connections in Mexico, or having sufficient livelihood, or having held a temporary resident visa for 4 years. This visa entitles the holder to work in Mexico.
16% standard rate.
Papaya Global offers full Mexico PEO services for companies not wishing to open a local entity