The Hardest Market · Mexico

Mexico's HR data

The rules and costs of employing people in Mexico (Mexico City), from official sources, in English and Japanese.

39.3%women in management (2025, ILO)

1.27×employer's total cost on MX$45,000 a month, as a multiple of salary

7public holidays (2026)

Take-home pay calculator Japan take-home pay

Employment rules

Statutory annual leave	12 days after year 1, rising to 20 in year 5; 25% vacation premium
Public holidays (2026)	7 days
Notice of dismissal	None statutory; written notice of cause on dismissal
Severance required by law	3 months + 20 days/year (if no reinstatement) + 12 days/year seniority premium
Typical negotiated exit	Typically the constitutional severance (3 months + 20 days/year), negotiated
Probation	30 days; 180 days for managers and professionals
Working hours	8/day, 48/week; falling to 40 by 2030
How hard is dismissal?	Hard: just cause under LFT art. 47 or pay severance

Employer contributions

IMSS sickness & maternity (fixed quota per worker)	MX$8,709 a year
IMSS sickness & maternity (on SBC above 3 UMA)	1.1%	on pay above MX$122,048 a year, up to MX$1,017,065 a year
IMSS sickness & maternity (cash benefits, pensioners' medical)	1.75%	up to MX$1,017,065 a year
IMSS work-risk insurance (class I average premium)	0.54%	up to MX$1,017,065 a year
IMSS disability & life	1.75%	up to MX$1,017,065 a year
IMSS childcare & social benefits	1%	up to MX$1,017,065 a year
Retirement (SAR)	2%	up to MX$1,017,065 a year
Old-age & retirement at advanced age (cesantía y vejez), 2026 rate	7.51%	up to MX$1,017,065 a year
Housing fund (INFONAVIT)	5%	up to MX$1,017,065 a year
Mexico City payroll tax (Impuesto sobre Nóminas)	4%

Employee contributions

IMSS sickness & maternity (cash benefits, pensioners' medical)	0.63%	up to MX$1,017,065 a year
IMSS sickness & maternity (on SBC above 3 UMA)	0.4%	on pay above MX$122,048 a year, up to MX$1,017,065 a year
IMSS disability & life	0.63%	up to MX$1,017,065 a year
Old-age & retirement at advanced age (cesantía y vejez)	1.13%	up to MX$1,017,065 a year

Take-home pay and employer cost by monthly salary

Monthly salary	Employee contributions	Income tax	Take-home	Employer cost	Cost ÷ salary
MX$25,000	MX$685	MX$3,452	MX$20,863	MX$32,027	1.28×
MX$45,000	MX$1,268	MX$7,932	MX$35,801	MX$57,162	1.27×
MX$80,000	MX$2,287	MX$17,736	MX$59,977	MX$101,148	1.26×
MX$150,000	MX$2,425	MX$39,770	MX$107,805	MX$174,979	1.17×

A single employee in Mexico City, Mexican national and tax resident, no dependants, permanent contract, salary paid evenly as monthly pay with no bonus. Calendar year 2026. Income tax (ISR) is the 2026 tariff in Annex 8 of the 2026 Miscellaneous Tax Resolution (monthly withholding tariff under Art. 96 LISR, annualised; identical to the annual Art. 152 tariff). Social security (IMSS), housing fund (INFONAVIT) and retirement (SAR) are charged on the salario base de cotización (SBC), taken as salary × 1.0493: the statutory minimum integration for 15 days' aguinaldo and a 25% vacation premium on 12 days' first-year leave, even though the aguinaldo and vacation premium themselves are not modelled. UMA MX$113.14 a day in January and MX$117.31 from 1 February 2026; contribution ceiling 25 UMA. Employer: work-risk premium at the class I average (office work), the 2026 employer cesantía y vejez rate for an SBC above 4 UMA, and Mexico City payroll tax at 4%.

Sources: [1] [2] [3] [4] [5] Checked 2026-11-07; 2026 rates.