Employment Cost Calculator for Mexico
Calculate your complete hiring costs for Mexico employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Salary Benchmarking Report for Mexico
1. Employment Costs by Experience Level
Employment Costs by Experience Level in Mexico in 2025
| Experience Level | Base Salary Range (MXN) | Base Salary Range (USD) | Total Cost to Employer (MXN) | Total Cost to Employer (USD) |
|---|---|---|---|---|
| Entry Level (0-2 years) | $180,000 - $300,000 | $10,500 - $17,500 | $234,000 - $390,000 | $13,650 - $22,750 |
| Junior (2-5 years) | $300,000 - $480,000 | $17,500 - $28,000 | $390,000 - $624,000 | $22,750 - $36,400 |
| Mid-Level (5-8 years) | $480,000 - $720,000 | $28,000 - $42,000 | $624,000 - $936,000 | $36,400 - $54,600 |
| Senior (8-12 years) | $720,000 - $1,200,000 | $42,000 - $70,000 | $936,000 - $1,560,000 | $54,600 - $91,000 |
| Lead/Principal (12+ years) | $1,200,000 - $1,800,000 | $70,000 - $105,000 | $1,560,000 - $2,340,000 | $91,000 - $136,500 |
Exchange rate: 1 USD = 17.15 MXN (January 2024). Total Cost to Employer includes mandatory benefits and employer contributions: IMSS (Social Security) at 31.5%, SAR (Retirement) at 2%, INFONAVIT (Housing) at 5%, and other statutory benefits, totaling approximately 30% above base salary.
2. Average Total Employment Costs by Role (Annual)
Average Annual Employment Costs by Role in Mexico (2024)
The following table presents current market salary data and total employment costs for key professional roles in Mexico. Total employer costs include mandatory contributions such as IMSS (social security), INFONAVIT housing fund (5%), state payroll tax (varies by state, averaged at 3%), and other statutory benefits. Exchange rate used: 1 USD = 17.05 MXN
| Role | Base Salary (MXN) | Base Salary (USD) | Total Cost to Employer (MXN) | Total Cost to Employer (USD) |
|---|---|---|---|---|
| Software Engineer | 720,000 | 42,230 | 936,000 | 54,898 |
| Product Manager | 960,000 | 56,305 | 1,248,000 | 73,196 |
| Marketing Manager | 840,000 | 49,267 | 1,092,000 | 64,047 |
| Sales Representative | 480,000 | 28,153 | 624,000 | 36,598 |
| HR Manager | 780,000 | 45,747 | 1,014,000 | 59,471 |
| Finance Manager | 900,000 | 52,786 | 1,170,000 | 68,622 |
| Operations Manager | 840,000 | 49,267 | 1,092,000 | 64,047 |
| Data Scientist | 780,000 | 45,747 | 1,014,000 | 59,471 |
| UX Designer | 660,000 | 38,710 | 858,000 | 50,323 |
| Customer Success Manager | 540,000 | 31,672 | 702,000 | 41,173 |
Common Additional Benefits in Mexico:
- Private health insurance (Major Medical Insurance)
- Annual performance bonus (typically 1-2 months' salary)
- Food vouchers (vales de despensa)
- Life insurance
- Vacation days above statutory minimum (typically 14-20 days)
- Year-end bonus (Aguinaldo) of at least 15 days' salary
- Company-provided mobile phone and/or internet allowance
- Private pension plans (for senior roles)
Note: All figures are approximations based on current market data. Actual salaries may vary based on specific company policies, location within Mexico, and other factors. Currency conversions are approximate and subject to change.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Income Tax Withholding (ISR) | 1.92% - 35% (progressive) | Employee's income |
| Social Security (IMSS) | ~24% - 38% | Employee's salary |
| State Payroll Tax | 1% - 3% | Total payroll |
| Housing Fund (INFONAVIT) | 5% | Employee's integrated salary |
Filing & Compliance
- Monthly tax payments (ISR, IMSS, State Payroll Tax) are due between the 17th and 22nd of the following month.
- INFONAVIT contributions are paid bimonthly by the 17th of the month.
- Annual tax returns for corporations must be filed by March 31.
In Mexico, employers are responsible for withholding and remitting various taxes from employee salaries, encompassing income tax, social security contributions, and state payroll taxes.
Income Tax (ISR)
Employee income tax, known as Impuesto Sobre la Renta (ISR), is calculated based on a progressive table with rates ranging from 1.92% to 35%. For 2025, the rates applicable to resident individuals are:
- 1.92% for monthly income up to 8,952.49 MXN
- 6.40% for monthly income between 8,952.50 MXN and 75,984.55 MXN
- 10.88% for monthly income between 75,984.56 MXN and 133,536.07 MXN
- ...
- 35% for monthly income exceeding 4,511,707.38 MXN.
Non-residents are subject to different rates, typically between 15% and 30%. A tax exemption exists for the first 125,900 MXN of employment income within a 12-month period. Employers withhold ISR based on the employee's projected annual income and remit it monthly to the Tax Administration Service (SAT) by the 17th of the following month.
Social Security Contributions (IMSS)
Employers also deduct social security contributions (Instituto Mexicano del Seguro Social - IMSS) from employee salaries. These contributions cover various benefits including healthcare, pensions, and work-related injury insurance. The total contribution varies between 10% and 31.125% of the employee's salary depending on factors such as:
- Minimum wage
- UMA (Unidad de Medida y Actualización) - a unit of measure used to calculate social security contributions and other obligations. The UMA value for 2025 is 113.14 MXN daily or 3,445.40 MXN monthly.
- Employee's age
- Industry
- Number of working days per month
- Fringe benefits
- Employer/employee location.
State Payroll Tax
Most Mexican states levy a payroll tax, payable by the employer, which is calculated on the employee's salary. The rate varies by state but is generally low. For example, Mexico City has a 3% payroll tax. Employers are responsible for remitting state payroll taxes monthly.
Deductions
Employees can claim certain deductions to reduce their taxable income. Deductible expenses may include:
- Medical, hospital, and dental expenses
- Medical insurance premiums (limited)
- Retirement annuities (limited)
- Mortgage interest payments
- Charitable donations
- Funeral expenses
- Education expenses.
A general limit applies to most deductions, capped at the lesser of 15% of the employee's annual income or five times the annual UMA. However, deductions for retirement accounts and education expenses have separate limits. Medical expenses, supported by a certificate from a government health institution, are not subject to this general limit. For 2025, the five-times-UMA limit is 206,368 MXN.
Year-End Obligations and Deadlines
Employers must prepare and submit an annual declaration of withheld income tax to the SAT. Employees also receive an annual information return detailing payments and withholdings. Individuals whose income exceeds certain thresholds must file an annual tax return by April 30th of the following year.
Plan Mexico Incentives
The "Plan México" initiative introduced new tax incentives effective January 22, 2025, lasting until September 30, 2030:
- Accelerated Depreciation: Businesses can immediately deduct investments in new fixed assets at rates ranging from 35% to 91% depending on the asset type.
- Training and Innovation Expenses: An additional 25% deduction is available for the increase in training or innovation expenses compared to the average of the previous three fiscal years.
It's important to consult a tax advisor for specific guidance on Mexican tax regulations as they apply to your unique circumstances. As of today, February 5, 2025, regulations for some aspects of Plan Mexico are still pending and are expected by March 23, 2025. This information is current as of today's date and may be subject to change.
