Mexico

• New Year's Day
• Constitution Day
• Constitution Day Holiday
• Benito Juarez’s Day
• Maundy Thursday
• Good Friday
• Labour Day
• Anniversary of the Battle of Puebla
• Independence Day
• Day of the Race
• All Souls' Day
• Revolution Day
• Day of the Virgin of Guadalupe
• Christmas Day
• Festival Day

Working Hours

Employees can work up to eight hours a day, or 40 hours per week.

Minimum Wage

As of January 1, 2025, Mexico’s daily minimum wage is set at 278.80 pesos per day.

The rate along the ‘Northern Border Zone’ is set at 419.88 pesos per day. The ‘Northern Border Zone’ is a defined set of municipalities in Mexican states bordering the USA.

Employee Tax

Annual income	Tax rate
Up to MXN 8,952.49	1.92%
MXN 8,952.50 - 75,984.55	6.4%
MXN 75,984.56 - 133,536.07	10.88%
MXN 133,536.08 - 155,229.80	16%
MXN 155,229.81 - 185,852.57	17.92%
MXN 185,852.58 - 374,837.88	21.36%
MXN 374,837.89 - 590,795.99	23.52%
MXN 590,796.00 - 1,127,926.84	30%
MXN 1,127,926.85 - 1,503,902.46	32%
MXN 1,503,902.47 - 4,511,707.37	34%
More than MXN 4,511,707.38	35%
Social security contribution	Up to MXN 25,656 per year

Bonuses

There are several mandatory bonus schemes in Mexico, including:

• Profit sharing - employees must receive 10% of the firm’s annual profits.
• Christmas bonus - also known as aguinaldo.
• Vacation bonus - 25% of the base salary for every day of paid vacation.

Employment contracts in Mexico should be written and signed by both parties. They must include:

• Employer and employee personal details
• Job title and responsibilities
• Workplace
• Working hours
• Salary and benefits
• Start date
• Contract type and length (if applicable)
• Training provisions

Fixed-term contracts are permitted in certain circumstances.

Annual Leave

Minimum of 12 days’ leave in the first year of employment. Two additional days are added for each year worked up to ten years of service. Thereafter, two days are added for each additional five years of service.

Sick Leave

There is no statutory sick leave entitlement in Mexico. However, employees can claim payment for medically certified illness/injury from the Mexican SS institute (IMSS). If the illness is not work-related, the employee will receive 60% of their salary. If the injury is work-related, they will receive 100% of their salary.

Parental Leave

• Maternity leave: at least 12 weeks' paid leave, split into six weeks on either side of the birth.
• Paternity leave: five days' paid leave.

Termination Process

Notice periods are not enforced in Mexico. In addition, there are several instances in which employers can terminate an employment contract without paying severance or compensation to the employee. These include (but are not limited to):

• Provision of false references
• Ill-treatment of management staff or colleagues
• Serious misconduct outside of work
• Material damage to the workplace
• Negligence

Employees can resign without notice.

Severance Pay

Eligible employees are entitled to:

• Three months’ salary
• 20 days' salary for each year worked
• Seniority premium
• Accrued benefits owed

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions.  The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.