Cost to Hire an Employee in Mexico (2026)

• Gross salary, usually paid monthly.
• Employer costs of about 32.7% at a MX$600,000 salary: MX$196,428 a year, of which the largest is IMSS employer contributions (incl. retirement & old age) (estimate).
• An EOR fee, if you hire without your own entity. The providers in our Mexico guide publish starting prices of US$399–699 per employee per month.

Mandatory employer costs at a MX$600,000 salary (mid-level professional). Employee contributions and income tax come out of gross pay and aren't included.

Contribution ceilings mean employer costs can be a smaller share of higher salaries. Figures exclude the EOR fee.

• Aguinaldo (Christmas bonus): Min. 15 days' pay
• Profit sharing (PTU): 10% of employer profit
• Minimum wage (2026): MXN 315.04 / day
• Paid annual leave: 12 days (year 1), rising
• Standard working week: 48 hours in 2026, falling to 40 by 2030

• Major medical insurance (optional) (MX$25,000 / year): Private medical insurance (SGMM) is a standard benefit for professional roles.
• Profit sharing (PTU) is not included: employers must distribute 10% of taxable profit to employees, capped per employee at three months' salary or the average of the last three years. With an EOR, ask how PTU is calculated and billed.
• IMSS contributions use a blended rate. Real contributions depend on salary level (some components are fixed amounts or apply only above 3 UMA), the employer's risk class and the old-age contribution schedule, which rises each year until 2030.
• Employee IMSS contributions and income tax (ISR) are withheld from pay and are not employer costs.
• Common extra benefits include food vouchers (vales de despensa), a savings fund (fondo de ahorro) and life insurance.

Without your own entity in Mexico, an Employer of Record can employ your hire for a monthly fee. The alternative is setting up your own Mexican entity. See the comparison in our Mexico guide and EOR vs local entity.