Basic Information

Minimum Wage (effective date)

The northern border free zone receives 374.89 MXN/day, and other regions receive 248.93 MXN/day.

Social Contribution

Employer  Contribution

38.83% - 41.89%

Health and Maternity Insurance: 23.25%
Occupational Injury Insurance: 0.54355% - 7.58875%
Disability and Life Insurance: 1.75%
Unemployment and Pension: 5.33%
National Housing Fund: 5%
Retirement Insurance: 2%
Childcare and Social Welfare: 1%

Employee Contribution

2.775% (affected by salary levels)

IMSS: 1.65%
Retirement and Pension Insurance: 1.125%

Personal Income Tax

Related to the employee's gross salary, the proportion ranges from 1.92% to 35%.

Payroll

Payroll Cycle

Biweekly payroll, typically disbursed on the 15th and 30th of each month.

13 Salary

Also referred to as the Christmas bonus or year-end bonus, the minimum standard is equivalent to 15 days' salary, which must be paid to employees by December 20th each year.
Paid vacation bonus: Employees are entitled to a bonus amounting to no less than 25% of their regular salary earned during paid vacation.

Working Time

Standard Working Hours (full time)

The standard workday is up to 8 hours, with a maximum of 48 hours per week (typically from Monday to Saturday with 8 hours per day). In practice, many companies adopt a 40-hour workweek from Monday to Friday.

Overtime

Employees may work up to 3 hours of overtime per day, but consecutive overtime cannot exceed 3 days. From Monday to Saturday, the first 9 hours of overtime are paid at 200% of the regular hourly rate, with any additional hours paid at 300% of the regular hourly rate. On Sundays and public holidays, all overtime is compensated at 300% of the regular hourly rate. If an employee does not agree to work overtime, the employer has no obligation to enforce overtime even if requested.

窗体顶端

窗体底端

Holidays

Public Holidays

There are a total of 7 public holidays in Mexico.

Annual Leave

Employees who have worked for 1 year are entitled to 12 days of paid annual leave. This entitlement increases by 2 days for each additional year of service: 12 days in the first year, 14 days in the second year, 16 days in the third year, 18 days in the fourth year, and 20 days in the fifth year. After the fifth year, employees accrue an additional 2 days of annual leave for every five-year period of service: 22 days for years 6-10, 24 days for years 11-15, 26 days for years 16-20, and so on.

Sick Leave

Employees who are eligible, as verified by medical institutions affiliated with IMSS, are entitled to up to 52 weeks of paid sick leave, compensated at 60.00% of their regular salary. In cases of work-related injuries, the compensation is provided at 100.00% of the regular salary.

Maternity Leave

Female employees are entitled to 12 weeks of paid maternity leave, which must be taken as 6 weeks prior to childbirth and 6 weeks following childbirth. During maternity leave, employees receive full salary, with IMSS covering 60.00% of the cost and the employer covering 40.00%. Maternity leave must be supported by a medical certificate from a clinic or private medical institution approved by IMSS. Male employees are entitled to 5 days of paid paternity leave.

Labor Contract

Labor Contract Type

Fixed-term contract: Used for positions of a temporary nature, such as for temporary work or to replace other workers. The maximum duration of a fixed-term contract is 6 months.

Permanent contract: Applicable to full-time positions, where a permanent contract is used.

Probation Period 

Employers typically use permanent contracts, with a probationary period generally lasting 3 months.

Termination

Notice Period

Local labor law does not specify a specific notice period; however, contracts typically stipulate a notice period of 15 days. If required, the company must issue a written notice to the employee within 30 days after becoming aware of any misconduct. The written notice must detail the reasons for termination; otherwise, the labor board must issue the termination notice. In cases of "unjust dismissal" or resignation, it is customary to provide a two-week notice period.

Severance Pay

During the probationary period, if an employee voluntarily resigns or is terminated by the employer (whether with or without cause), the employer is not required to provide severance pay.

After the probationary period, if the employer terminates the employee without just cause, the employer is obligated to pay severance equivalent to 3 months' salary. For employees with more than 15 years of service, an additional 20 days' salary must be paid for each year of service beyond 15 years.

In cases of voluntary resignation or termination with just cause, employees with over 15 years of service are entitled to a seniority allowance of 12 days' salary for each year of service.

To avoid severance payments upon regularization, it is advisable for employers to make employment decisions during the probationary period.

Just causes for termination include:Deceiving the employer regarding the employee's abilities, qualifications, and skills using forged documents;Breach of trust or acts of violence; Assaulting colleagues; Engaging in serious resistance against the employer or the employer’s family members or representatives;Willful or negligent damage to machinery or work equipment; Alcohol abuse in the workplace;Engaging in unethical behavior, harassment, and/or sexual harassment;Disclosure of trade secrets;Unauthorized absences from work on four occasions within a 30-day period; Defiant refusal to comply with the employer’s or employer’s representative’s instructions; Failure to implement preventive safety and health measures; Serving a prison sentence; Committing actions with severe consequences.