Overview

Capital
Mexico City
Currency
Peso
Date Format
dd/mm/yyyy

calendar icon Public holidays calendar

Taxes

Employer
26.35% - Social Security
2.00% - Retirement
5% - Housing Fund
Employee
1.65% - Social Security
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

Minimum Wage

General
2867 MXN (113.6 EUR) monthly/ 88.36 MXN daily

Working Hours

General
Full time employment is considered 8 hours daily, 40 hours weekly.
Overtime
Overtime is paid at 200% for the first 9 hours (max), if unsual circumstances require more they are paid at 300%. Work on public holidays is paid at 300% regular wages, and work on Sundays at 125%.

VAT

General
16% standard rate.

Payment

Payroll Frequency
"The salaries are paid on weekly, bi-weekly and monthly basis. The paydays are decided between the employee and employer. arrow Monthly salaries are typically paid at the end of every month."

Mandatory Benefits

Pension Fund
The employer contributes 3.15%. The employee contributes 2%, with a contribution limit of 25 times the minimum wage.
Social Security
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.
Vacation Pay
Premium of 25% of wage during vacation.

Termination

Termination Process
Employers must notify employees on reason for termination in writing. Notice is not obligatory. Under termination regulations, all terminated employees must receive all outstanding wages, accrued vacation, vacation bonus, and any other payment under the employment contract (such as gratuity, provident fund etc.)
Advance Notice
No advance notice needed.
Severance Pay
Severance pay is three months’ salary, 20 days for each year in the company and seniority bonus of 12 days pay per year of service capped at twice minimum wage rate. The employee will also receive back salary which is the amount from the date of the dismissal until the employer complies with the Labor Board’s decision.