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Looking to hire in Mexico

Companies must either set up a local entity or partner with a global employment provider.

NEO AI Last Updated Mar 6, 2026 with NEO AI

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Employing in Mexico

Key employment information for hiring and managing employees in Mexico.

Employer costs
~2% – 4%
of salary
Employee costs
~2.78%
of salary

Employer costs

  • Payroll Tax: 2% – 4%

Employee costs

  • Imss Retire Adv Age Severance: 1.13%
  • Imss Disability Life Insurance: 0.63%
  • Imss Health Maternity Surplus: 0.4%
  • Imss Medical Expense Retirees: 0.38%
  • Imss Health Maternity Inmoney: 0.25%

Taxes

Estimated employer contributions of approximately 2% – 4%, and employee contributions of approximately 2.78% of gross salary, covering mandatory social contributions and insurance.

Employee Taxes

Resident

1.92% 0 – 8,952
6.4% 8,953 – 75,985
10.88% 75,985 – 133,536
16% 133,536 – 155,230
17.92% 155,230 – 185,853
21.36% 185,853 – 374,838
23.52% 374,838 – 590,796
30% 590,796 – 1,127,927
32% 1,127,927 – 1,503,902
34% 1,503,902 – 4,511,707
35% 4,511,707+

Non-Resident

0% 0 – 125,900
15% 125,900 – 1,000,000
30% 1,000,000+
  • Imss Retire Adv Age Severance 1.13%
  • Imss Disability Life Insurance 0.63%
  • Imss Health Maternity Surplus 0.4%
  • Imss Medical Expense Retirees 0.38%
  • Imss Health Maternity Inmoney 0.25%

Employer Taxes & Contributions

Estimated Employer Cost

~2% – 4%
Payroll Tax 2% – 4%
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