Social Security: 26.54%-33.58%
National housing fund: 5%
Social Security: 1.65%
Income tax: 1.92% - 35%
Paid time off: 6-12 days + 8 bank holidays
Paternity leave: 5 days
Paid sick leave: 52 weeks (+26 weeks)
Parental leave: unpaid upon request
Maternity leave: 12 weeks
HQ country employment & payroll
Direct local employer setup
Partnering with an Employer of Record Mexico /full-service Professional Employer Organisation
Setting up a local company in Mexico can be complicated, in particular after the initial setup when payroll needs to be calculated and run every month, taxes filed, benefits extended, change of rules and regulations followed.Here is an overview of everything you will find yourself needing to do.
As with every other country, there are certain costs associated with employing a worker in Mexico that come on top of the gross salary you are offering. In Mexico those are social security, retirement, contributions to the National housing fund, and payroll. To view the exact percentages and amounts given the salary you are planning to offer, you can use our handy calculator tool.
Boundless as the Employer of Record Mexico files all pertinent taxes and and contributions to the Mexican Social Security Institute as they relate to the compliant employment of an individual in their home country.
Any new employee that is locally employed through an Employer of Record gets full employment rights and benefits as specified in Mexican employment law. They get a locally compliant employment contract, statutory paid maternity leave, annual leave, illness benefits, relevant tax credit, severance pay, and many more. Health coverage is provided by the national healthcare system but due to long waiting times, employers often offer private insurance to employees.
In Mexico, both employers and employees have to pay taxes. For employers, these include social security, retirement, contributions to the National housing fund, and payroll and for employees, they include social security, retirement, and income tax. To get a clear overview with both employee and employer taxes, use our salary breakdown calculator, submitting any additional data needed and get a downloadable pdf like this one.