In Mexico, the following must be adhered to under strict local legislation:

• Minimum Wage MXN 141.70
• 13th Month Payments
• Employer Taxes 17% to 23%

How does payroll work in Mexico?

Employers are required to pay a 13th month payment by the 20th December each year. This must be the equivalent of at least 15 days’ salary, though many employers opt to pay a full month’s salary.

Employers in Mexico are obligated to share a percentage of profits to their staff. This is usually done within 60 days of completing its annual tax declaration.

What are the general employment rules?

Employees in Mexico have a minimum paid vacation entitlement of 6 days after the first year of service. This progressively increases to a minimum entitlement of 16 days after 10 years’ service, acquiring a further 2 days’ entitlement after every 5 additional years thereafter. Whilst on vacation, employees are paid a slight premium as mandated by local law.

What about dismissing an employee?

Employers are required to follow a very strict protocol in order to legally terminate an employee contract. We suggest speaking with our Employment Law Experts prior to engaging in a dismissal. If an employee contests a dismissal and wins, they would be entitled to a settlement sum.