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Countries / Mexico

🇲🇽 Hiring in Mexico

Federal labour law (LFT) plus IMSS social security and INFONAVIT housing. Statutory year-end bonus (aguinaldo), vacation premium and profit sharing (PTU) all sit on top of salary. The work week is being cut from 48 to 40 hours by 2030.

Scope: Private-sector employee in the general minimum-wage zone, 2026. IMSS figures use the 2026 UMA. State payroll tax (ISN) varies by state. Last reviewed 2026-11-10. 7 items marked verify.

Calculate employer costSources

Employer payroll taxes and contributions

Bonuses: statutory vs customary

Statutory and customary items are kept separate. Customary items are never added to the statutory cost.

  • Aguinaldo (year-end bonus)

    Statutory

    At least 15 days' salary, paid before 20 December (pro rata for part years).

    LFT art. 87.

    Source: Ley Federal del Trabajo (Cámara de Diputados) · as of 2026-11-10

  • Prima vacacional

    Statutory

    At least 25% of the salary for vacation days.

    LFT art. 80.

    Source: Ley Federal del Trabajo (Cámara de Diputados) · as of 2026-11-10

  • PTU (profit sharing)

    Statutory if conditions apply

    10% of the company's taxable profit is shared with staff, capped per worker at 3 months' salary or the average of the last 3 years' PTU, whichever is higher.

    Only if the employing entity has profit. Not included in the calculator. LFT arts. 117–127.

    Source: Ley Federal del Trabajo (Cámara de Diputados) · as of 2026-11-10

Mandatory benefits

Leave

Termination, notice and severance

  • Unjustified dismissal

    Statutory

    The employee can claim reinstatement or 3 months' integrated salary, plus back pay (capped at 12 months) if they win.

    LFT art. 48.

    Source: Ley Federal del Trabajo (Cámara de Diputados) · as of 2026-11-10

  • 20 days per year

    Statutory if conditions applyverify

    In some cases (e.g. the employer refuses reinstatement) 20 days' salary per year of service is added.

    LFT arts. 49–50. In practice it is often part of a negotiated settlement; get local counsel.

    Source: Ley Federal del Trabajo (Cámara de Diputados) · as of 2026-11-10

  • Seniority premium

    Statutory

    12 days' salary per year of service, with the salary capped at 2× minimum wage. Paid on any dismissal, and on resignation after 15 years.

    LFT art. 162.

    Source: Ley Federal del Trabajo (Cámara de Diputados) · as of 2026-11-10

Contracts and working time

Hiring options: EOR, contractor or your own entity

  • Subcontracting rules

    Statutoryverify

    Since the 2021 reform, subcontracting personnel is banned. Only specialized services outside the client's core business are allowed, and the provider must be registered (REPSE).

    Ask any EOR how its Mexico model complies with LFT arts. 12–15 and REPSE.

    Source: Ley Federal del Trabajo (Cámara de Diputados) · as of 2026-11-10

  • Contractor risk

    Statutory

    If there is subordination and pay, the LFT presumes an employment relationship whatever the contract says.

    Source: Ley Federal del Trabajo (Cámara de Diputados) · as of 2026-11-10

  • Own entity

    Statutoryverify

    An S. de R.L. or S.A. de C.V., registered with SAT, IMSS and INFONAVIT and the state for payroll tax.

    Source: IMSS: Información para patrones · as of 2026-11-10

Official sources