2.00% - Retirement
5% - Housing Fund
1.92% - Up to 6,942.35
6.40% - 6,942.35 - 58,922.27
10.88% - 58,922.27 - 103,550.51
16.00% - 103,550.51 - 120,372.95
17.92% - 120,372.95 - 144,119.39
21.35% - 144,119.40 -290,667.83
23.52% - 290,667.83 - 458,132.39
30.00% - 458,132.39- 874,650.11
32.00% - 874,650.11 - 1,166,200.11
34.00% - 1,166,200.11 - 3,498,600.11
45.00% - Over 3,498,600.11
The minimum hourly wage is 123.22 MXN.
Paid Time Off
Employees are entitled to:
- 1st year of employment: 6 days of paid leave
- 2nd to 4th year of employment: an additional 2 days for each year worked
- 5th year of employment: 14 days of paid leave
- For every additional 5 years of employment: an additional 2 days of paid leave
Paid leave is paid at the rate of 125% per day.
There is no limit to sick leave in Mexico. The employee is required to get a sick note from a doctor of the Institute of Mexican Social Security. Employees are paid 100% of their salary.
The woman is entitled to 42 days of maternity leave before birth and 42 days after birth and receive 100% of their salary which is paid by social security. Maternity leave can be extended if work is not possible due to complications with the pregnancy of delivery. It is the responsibility of social security to pay the employee for maternity leave.
Male employees are entitled to 5 days of paternity leave.
There is no statutory parental leave in Mexico.
Work related injury leave: Temporary disability cause by an accident during the employment period – 52 weeks and can be extended for an additional 52 weeks
Permanent partial disability caused during the employment period: Permanent leave. Social security will pay the employee based on the amount that is established under the Federal Labor Law.
Permanent total disability: Permanent leave. Social security will pay the employee based on the amount that is established under the Federal Labor Law.
* For all of the above, Social Security is liable to pay 60% of the employee’s salary from the 4th day of absence.
Full time employment is considered 8 hours daily, 40 hours weekly.
Overtime is calculated on a weekly basis. If an employee works up to 8 hours of overtime in a week, they are entitled to be compensated at the rate of 200% of their regular pay, and 300% for 9 or more hours.
16% standard rate.
The employer contributes 3.15%. The employee contributes 2%, with a contribution limit of 25 times the minimum wage.
5.15% of covered payroll (old age) plus 1.75% (disability and survivors). The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.
Premium of 25% of wage during vacation.
Payroll cycle can be weekly, bi-weekly, semi-monthly (15 days) or monthly.
For blue collar employees, it is mandatory to pay on a weekly basis.
Under Mexican law, an employee can be terminated for a multitude of reasons, however, by law, an employee must behave with integrity while at work. “Lack of integrity,” therefore, is a common generic reason given for dismissal.
No advance notice needed.
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.