Looking to hire in Mexico

In Mexico, the reference annual minimum wage is MXN 90859.45. Typical employer payroll-related costs, including payroll tax, social housing (Infonavit), and social security (IMSS), are estimated in the range of 25.5–30% of salary. Employees usually contribute around 2.4–2.8% of salary to IMSS. Personal income tax is progressive, with headline rates ranging from 1.92–35%.

We can help you get a new employee started in Mexico fast. The minimum onboarding time we need is only 48 hours. Our team ensures fast, compliant employee onboarding and payroll processing. The onboarding timeline starts once the employee submits all required information via the NEO platform.

In Mexico, employer payroll costs typically include payroll tax, social housing contributions to Infonavit, and social security contributions to IMSS, with an overall estimated range of 25.5–30% of salary. Employees usually contribute around 2.4–2.8% of salary to IMSS through payroll withholding.

Standard working time in Mexico is typically set on a weekly basis, with workdays concentrated Monday through Friday. Employers should ensure that contractual hours align with these norms and any applicable overtime rules under Mexican law.

Mexico’s leave framework here covers general paid time off and sick leave. Policies specify how many days accrue each year and whether medical certificates are required for sickness-related absences.

Employees in Mexico must respect strict submission deadlines for expense claims. Late submissions, especially for prior-year expenses, may be rejected.

For compliance purposes, every reimbursed expense must be supported by a paid invoice or receipt issued to the client, not to the local Mexican employer. Many common business costs are treated as non tax-deductible for the employer and may be taxed as personal income for the employee, sometimes with a gross-up applied through payroll.

Expenses approved after the payroll cut-off dates are processed in the next payroll run. Mexico typically operates with two payroll cycles each month, each with its own cut-off and pay date.

For taxi or rideshare, flights, trains, accommodation, car rental, visa fees, public transport, and parking or toll fees, employees must provide an invoice or receipt showing the date, amount, service provider or merchant name, a description of the purchase or service, and the serial number for invoices. Reimbursements for these travel expenses are taxable.

For breakfast, lunch, dinner, meals with clients or partners, and groceries, employees must submit an invoice or receipt that includes the date, amount, service provider or merchant name, a description of the purchase or service, and the serial number for invoices. These reimbursements are taxable.

For office equipment and laptops, employees must provide an invoice that shows the date, amount, service provider or merchant name, description of the purchase or service, serial number, and for computers, the IMEI and MAC address. Office supplies require an invoice or receipt with the date, amount, service provider or merchant name, description of the purchase or service, and serial number for invoices. These reimbursements are taxable.

For internet and phone subscriptions, coworking, and software subscriptions, employees must submit an invoice or receipt that includes the date, amount, service provider or merchant name, description of the purchase or service, and serial number for invoices. These reimbursements are taxable.

For training, courses, book purchases, promotional items, and gifts, employees must provide an invoice or receipt showing the date, amount, service provider or merchant name, description of the purchase or service, and serial number for invoices. These reimbursements are taxable.

Allowances in Mexico are one-time or recurring benefits and cannot be grossed-up to guarantee a specific net amount to employees. Several remote-work-related allowances are tied to Mexican labor law requirements, and some are treated as taxable benefits for employees even if they support statutory obligations.

In addition, employers may choose to offer a range of discretionary allowances. These are optional, can be extended to selected employees at the employer’s discretion, and are treated as taxable income when provided.

Termination terms in Mexico often address notice periods and any applicable probationary period. The figures below reflect the baseline policy settings provided here and may be adapted in individual contracts within legal limits.