Mexico Payroll Guide

Q: 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.

Q: 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.

Q: 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.

Hire employees in Mexico

Currency

Mexican Peso (MXN)

Population

128,649,565

Capital

Mexico City

Official language(s)

Spanish

Date format

dd/mm/yyyy

Fiscal year

1 January - 31 December

Why use PeoplePay?

Guaranteed Compliance

Robust, compliant payroll and hiring supported by a dedicated Account Manager.

Local Expertise

Avoid international payroll and hiring pitfalls including language barriers, regulations and employment laws.

Lower Costs

Reduced administration, no need for an in-country team, and consolidated, outsourced payroll.

Mexico Payroll

Get peace of mind with a streamlined, fully-managed payroll solution for 1+ employees.

Mexico HR

Helping you hire compliantly, steering you through the local HR laws and regulations.

Mexico Payments

Consolidated, one-wire transfers to cover your entire global workforce – at competitive rates.

Mexico Payroll & HR Solutions

PeoplePay Global are here to assist with all your Payroll and HR requirements in Mexico

In-Country Employment Contracts

Creation of locally-compliant Mexican employment agreements, ensuring you and your employees are protected in-country. Our experts in Mexico will create your bespoke agreement.

Payroll Processing

With global knowledge and local proficiency, we provide a fully-managed payroll solution that handles all the complex tasks, leaving you to focus on your business.

Tax and Labor Law

Mexico’s complex legislation can be daunting. Our in-country specialists are an extended member of your team, steering you safely through tax and labor law.

Regulatory Compliance

Our in-country professionals provide a wealth of experience and expertise in Payroll & HR compliance, ensuring your venture complies with ever-changing legislation.

Start-Up Implementation

We’ll ensure you’re operational promptly in accordance with local law, advising on the best route for your business, whether it’s via a legal entity or foreign registration.

Declarations and Audits

Our local specialists will manage and submit annual declarations on your behalf, guaranteeing accurate and prompt reporting to the authorities and also providing support for audits.

To discuss your individual needs get in touch today

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Frequently Asked Questions

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.