Basic Facts

Mexico, a constitutional federal republic in North America, is bordered by the United States to the north, the Pacific Ocean to the south and west, the Gulf of Mexico to the east, and Guatemala and Belize to the southeast. The economy consists of highly diversified and modern industries with significant amounts of private investment. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports, among others.

It has a dynamic industrial base, vast mineral resources, a wide-ranging service sector, and the world’s largest population of Spanish speakers—about two and a half times that of Spain or Colombia. More than half of the Mexican people live in the center of the country, whereas vast areas of the arid north and the tropical south are sparsely settled. 


*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Mexico.

Capital :
Mexico City
Currency :
Mexican Pesos (MX$; MXN)
Languages spoken :
Population :
130.26 million (2021 est.)
Minimum wage 2023 :
248.93 pesos per day
Cost of Living index :
$ (130 of 139 nations)
Payroll Frequency :
VAT - standard rate :
GDP - real growth rate :
4.8% (2021 est.)

Statutory Holidays

The national holidays mentioned below are valid for the year 2024.

Holiday Name
Extra Information
January 1
New Year’s Day
February 5
Constitution Day
Movable - The first Monday in February
March 18
Benito Juarez Day
Movable - The third Monday in March
May 1
Labor Day
May 5
Anniversary of the Battle of Puebla
September 16
Independence Day
November 18
Revolution Day
Movable - The third Monday in November
December 25
Christmas Day

Contract Sharing Time

The approximate time for sharing the contract with an employee in Mexico is 10 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

What You Need To Know

  • A seniority bonus is paid to workers who have accumulated over 15 years of service at a rate of 12 days per completed year of service at the time of dismissal. 
  • The employers are to share the profits of the companies with the workers, in accordance with the percentage determined by the National Commission for the Participation of the Workers in the Profits of the Companies.

Labor Conditions

Working Hours

The maximum duration of the day is eight hours during the day, seven hours at night, and seven and a half hours for a mixed shift.



An employee can work up to three hours of overtime per day for up to nine hours per week at double the standard hourly rate. Employers must compensate employees who work more than nine overtime hours at three times their regular hourly rate

Probation Period

The probation period in Mexico for permanent employees is generally 90 days.


Termination Notice Period

There is no statutory minimum notice period in Mexico. However, Federal Labor Law states that should the circumstances dictate, the company must provide the employee with notice in writing within 30 days of knowing about the misconduct. The written notice must explain the grounds for dismissal, or the Labor Board must issue a termination notice.

Leave / Time Off

Annual Leave

Annual leave entitlement is based on employment duration.

Annual leave entitlement is based on employment duration:

Workers who have more than one year of service enjoy an annual paid vacation period, which in no case may be less than 12 working days, and which will increase by two working days, up to 20, for each subsequent year of employment. services.

As of the sixth year, the vacation period will increase by two days for every five days of services.

Workers who provide discontinuous and seasonal services are entitled to an annual vacation period, in proportion to the number of days worked in the year.

Workers have the right to a premium of no less than 25% on the wages that correspond to them during the vacation period.

Sick Leave

Employees unable to work because of a non-work-related injury or illness and who have made payments into the social security system for the four weeks before the condition was developed are eligible for paid sick leave through the Social Security Institute. The benefit, which is 60 % of an employee’s regular wage, is paid from the fourth day of the illness for up to 52 weeks and may be extended for another 52 weeks.

Parental Leave

Maternity Leave

Maternity leave is provided for 12 weeks with two to six weeks of pre-natal leave and six to 10 weeks of post-natal leave. It is obligatory to take the whole period. The insured are entitled during pregnancy and the puerperium to a cash subsidy equal to 100% of the last daily contribution salary, which they receive 42 days prior to delivery and 42 days after it.


Paternity Leave

The employer has the obligation to grant paternity leave of five working days with pay, to working men, for the birth of their children.

Adoption Leave

In the case of the adoption of an infant, the adopting parents enjoy a six-week break with pay, the day of adoption.

Other Types of Paid Leave

Care Leave

Parents of minors diagnosed with any type of cancer are granted paid leave for up to 28 days by the IMSS (El Instituto Mexicano del Seguro Social). IMSS may issue as many certificates as necessary within three years, but the employee’s leave cannot exceed a total of 364 days. 

Unpaid Leave

There is no statutory limit on the amount of unpaid leave. The law leaves this decision to the employer and employee negotiations as reflected in their employment contract.

Statutory Benefits

Mexico`s social security system covers:

  • Work risks (work accident or illness);
  • Diseases and maternity;
  • Disability (a general illness that prevents employees from working);
  • Life (death of the insured);
  • Retirement, unemployment in old age, and old age (pension by age and years of contributions); and
  • Nurseries and social benefits.

The social security system is funded by both employer and employee contributions. An overview of the employer contributions is presented in the table below.


Benefit Employer Contribution
Disability and Life Insurance
  • 1.75%
Sickness and Maternity Insurance
  • 20.4 % of the Unidad de Medida y Actualización (UMA)
  • 1.1% of covered earnings exceeding three times the UMA (pensioners’ medical benefits)
  • 1.75% Medical expenses for pensioners and beneficiaries
Work Injuries
  • 0.5-15% (variable rate)
Retirement, Unemployment in Advanced Age and Old Age (CEAV)
  • 2%: Retreat
  • 3.150%: CEAV
Nurseries and Social Benefits
  • 1%
National Housing Fund (INFONAVIT)
  • 5%

Health Insurance

Health Insurance provided under ISSSTE includes components of preventive health care, maternity and curative healthcare, and physical and mental rehabilitation. In case of illness, the worker and the pensioner have the right to receive medical attention for diagnosis, treatment, dental, outpatient, surgical, hospital, pharmaceutical, and rehabilitation care that is necessary from the beginning of the illness and for a maximum period of 52 weeks for the same disease. 

Social security contributions paid by the employer for sickness and maternity are 20.40% of the monthly UMA, plus 1.10 % of the employee’s monthly earnings in excess of three UMAs, plus 1.75% of the employee’s monthly earnings.

Other Insurances

Accident Insurance

Workers who suffer from work risk have the right to:

    • Medical and surgical assistance
    • Rehabilitation
    • Hospitalization
    • Medicines and healing material
    • Prosthesis’
  • Indemnifications provided by the applicable provisions.

The employer’s contribution for the accident insurance ranges from 0.5% to 15% of the gross salary.

Unemployment Insurance

When a worker becomes unemployed, they have the right to withdraw some money from their old age/retirement sub-account once every five years. Unemployed members may withdraw the minimum amount between 90 days of their average salary during the last 250 weeks in which they paid contributions or 11.5% of the balance of their old age/retirement sub-account. 

Public Pension

Mexico’s retirement income system has three components: 

  • A means-tested age pension called 65+;
  • A mandatory defined contribution system with a minimum pension; and 
  • Other individual and occupational private plans.

At retirement, if a worker is aged 65 and has contributed for around 24 years in the private sector, but the assets accumulated in their individual account are not enough to at least buy an annuity equivalent to the minimum pension, they are entitled to the minimum pension.

The employer’s contribution to the mandatory individual account and social insurance is 5.15% of the daily covered payroll.

Other Statutory Benefits

Disability and Life Insurance

Disability and Life Insurance grants disability pensions to the people covered by this insurance and pensions to the beneficiaries following the death of the insured or disability pensioner.

Employer contributions towards Disability and Life Insurance are pegged at 1.75%.

Nurseries and Social Benefits

Employers contribute 1% of the gross salary towards the financing of nurseries for children between the ages of 43 days and four years, and other social benefits.


National Housing Fund (INFONAVIT)

INFONAVIT is the main Mexican state institution for ensuring that families can exercise their constitutional right to decent housing. It is the main driver of housing development in Mexico.

Employers contribute 5% of the gross salary towards the National Housing Fund.


The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.