Menu
Mexico

Mexico Guide

Mexico has one of the largest economies and is a key destination for hiring talent. Its strategic location, skilled workforce, and competitive costs make it an attractive option for companies looking to expand their teams internationally. 

This guide provides detailed information on labor laws, benefits, requirements, and best practices for hiring in Mexico. 

General Information

Currency:

Mexican Peso (MXN)

Main Language:

Spanish

Population:

Approximately 129 million

Capital:

Ciudad de Mexico

Employer Costs and Social Contributions

Employers in Mexico are required to make various contributions on behalf of their employees: 

 

  • IMSS: 9.23% 
  • INFONAVIT: 5% 
  • AFORE: 2% 
  • Work Risk Insurance: Variable 

Hiring and Employment Conditions

Mexican labor law recognizes several types of employment contracts:  

 

Types of Contracts: 

 

  • Indefinite-term contract (most common) 
  • Fixed-term contract (for projects or specific needs) 
  • Project-based contract 
  • Trial or training contract (cannot exceed 180 days) 

Benefits and Compensation

Mandatory Benefits: 

  • Social Security (IMSS) 
  • Retirement and Pension fund (AFORE and INFONAVIT) 
  • Work Risk Insurance 

 

Additional Payments: 

  • Vacation Bonus: 25% of vacation days 
  • Year-End Bonus (Aguinaldo): 15 days of annual salary 
  • Profit Sharing: 10% of the company’s net profits 

 

Minimum Wage

  • Northern Border Free Zone (NBFZ): MXN 374.89/day or MXN 134,960.4/year 
  • Rest of the country: MXN 248.93/day or MXN 89,614.8/year 

 

Note: Both working days and holidays are included in the wage calculation.

Working Hours

  • According to Mexico’s Federal Labor Law: 

    Standard Work Week: 48 hours, 8-hour workday 

    Shifts: 

    • Day Shift: 48 hours/week (6 am – 8 pm) 
    • Night Shift: 42 hours/week (8 pm – 6 am) 
    • Mixed Shift: 45 hours/week 

      Individual or collective contracts may specify different limits. 

       


      Overtime Pay:       

      • Up to 9 hours/week: 200% of hourly rate 
      • More than 9 hours/week: 300% of hourly rate 
      • Sunday Work: Additional 25% of ordinary hourly rate 

Payroll

  • Cycle: Twice a month (typically 15th and end of month) 
  • 13th Salary: Aguinaldo (15 working days’ salary) by December 20th, plus additional amount calculated on a 365-day basis 

Leaves

Paternity Leave: 

  • 5 paid days (minimum), at 100% of average salary 
  • May be extended voluntarily by employers 
  • Supports bonding and early childcare 

 

Maternity Leave: 

  • 84 days total, starting 40 days before birth 
  • Paid at 100% of average salary by IMSS 
  • Post-birth lactation breaks allowed within six months 

 

Sick Leave: 

  • 0–3 days: Paid by employer (100% base salary) 
  • 4–52+ weeks: Paid by IMSS 

IMSS may grant extensions depending on illness 

Termination

  • No at-will employment 
  • Valid Grounds for Termination: 
  • Voluntary resignation 
  • End of employment relationship 
  • Trial period end 
  • Justified cause 

 

Important Points: 

  • Do not inform the employee before dismissal process is complete 
  • Termination process must be completed in 24 hours (including payment) 
  • Resignation requires employee’s wet-ink signature 
  • Legal guidance is strongly recommended 

 

Notice Period: 

  • No legally mandated notice period 
  • May be included in company policy or collective agreements 

Vacations and Holidays

Vacation Days: 

  • 1 year: 12 days 
  • 2 years: 14 days 
  • 3 years: 16 days 
  • 4 years: 18 days 
  • 5 years: 20 days 
  • Every 5 years after that: +2 days 

Maximum: 32 days 

 

National Holidays: 

  • New Year’s Day 
  • Constitution Day 
  • Benito Juárez’s Birthday 
  • Labor Day 
  •  Independence Day 
  • Mexican Revolution Day 
  • Christmas 

Compliance Requirements

Required Documents for Hiring: 

  • Unique Population Registry Code (CURP) 
  • Social Security Number (NSS) 
  • Proof of Residence 
  • Official Identification (INE/Passport) 
  • Tax Situation Certificate