How much does an employee cost in Mexico in 2026? IMSS, INFONAVIT, bonuses and worked examples
About 28% to 34% on top of salary in Mexico City in 2026, before profit sharing. The employer pays IMSS social security on the integrated contribution salary, 5% to the INFONAVIT housing fund and a state payroll tax of 3% to 4%, and accrues a 15-day aguinaldo and a 25% vacation premium. An employee on MXN 40,000 a month costs about MXN 53,081, or USD 2,824, a month.
At a glance
What does an employee cost in Mexico on top of salary?
Five items: the IMSS social security branches, the INFONAVIT housing fund, the state payroll tax, and two mandatory bonuses, the aguinaldo and the vacation premium. IMSS contributions are calculated on the integrated contribution salary, which includes almost every payment for work, such as bonuses and premiums, up to a ceiling of 25 UMA,[1] MXN 2,932.75 a day in 2026.[4] Profit sharing comes on top, once a year.
Which IMSS contributions does the employer pay?
| Branch | Employer | Base |
|---|---|---|
| Sickness and maternity, fixed quota | 20.40% of one UMA a day per worker | UMA[1] |
| Sickness and maternity, excess | 1.10% (worker 0.40%) | Salary above 3 UMA[1] |
| Sickness and maternity, cash benefits | 0.70% (worker 0.25%) | Contribution salary[1] |
| Medical care for pensioners | 1.05% (worker 0.375%) | Contribution salary[1] |
| Disability and life | 1.75% (worker 0.625%) | Contribution salary[1] |
| Childcare and social benefits | 1% | Contribution salary[1] |
| Work risk | 0.54355% for class I in a new company | Contribution salary[1] |
| Retirement | 2% | Contribution salary[1] |
| Old age (cesantía y vejez) | 3.150% to 7.513% in 2026, by salary band (worker 1.125%) | Contribution salary[5][1] |
The employer withholds the worker’s share from wages and pays both by the 17th of the following month.[1]
How does the old-age contribution rise until 2030?
The 2020 pension reform raises the employer’s old-age contribution every January from 2023 to 2030.[9] The rate depends on the contribution salary, measured in minimum wages (SM) and UMA:[5]
| Contribution salary | 2026 | 2030 |
|---|---|---|
| 1.00 SM | 3.150% | 3.150% |
| 1.01 SM to 1.50 UMA | 3.676% | 4.202% |
| 1.51 to 2.00 UMA | 4.851% | 6.552% |
| 2.01 to 2.50 UMA | 5.556% | 7.962% |
| 2.51 to 3.00 UMA | 6.026% | 8.902% |
| 3.01 to 3.50 UMA | 6.361% | 9.573% |
| 3.51 to 4.00 UMA | 6.613% | 10.077% |
| 4.01 UMA and above | 7.513% | 11.875% |
The 2030 column is the law’s final table.[1] Most professional salaries are in the top band, above 4 UMA, which a first-year employee reaches at about MXN 13,400 a month (calculated). In that band the rate was 4.241% in 2023, 5.331% in 2024 and 6.422% in 2025, is 7.513% in 2026, and will be 8.603% in 2027, 9.694% in 2028 and 10.784% in 2029.[5] For an employee on MXN 40,000 a month, the step from 2026 to 2030 adds about MXN 1,856 a month at today’s salary (calculated by Nearshorers).
What else does the employer pay?
- INFONAVIT housing fund: 5% of salary.[2]
- State payroll tax: 4% of total payroll in Mexico City,[3] 3% in Jalisco[6] and 3% in Nuevo León.[7]
- Aguinaldo: at least 15 days of salary a year, paid before December 20.[2]
- Vacation premium: at least 25% of the salary for the vacation days;[2] vacation is 12 working days after the first year, rising by two days a year to 20, then by two days every five years.[2]
- Profit sharing (PTU): 10% of the company’s taxable income,[8] capped for each worker at three months of salary or the average received in the last three years, whichever is more favorable to the worker; new companies are exempt in their first year.[2]
What does an employee cost at different salaries?
Calculated by Nearshorers for an employee in Mexico City in 2026: first year of service, risk class I, no other benefits, profit sharing not included, and the Bank of Mexico’s FIX rate of October 30, 2026, MXN 18.7962 per dollar.[10] Monthly figures use 365/12 days.
| Item (MXN a month) | Salary 20,000 | Salary 40,000 | Salary 60,000 | Salary 100,000 |
|---|---|---|---|---|
| Daily contribution salary | 699.54 | 1,399.09 | 2,098.63 | 2,932.75 (ceiling) |
| IMSS, employer | 3,941.52 | 7,272.89 | 10,604.26 | 14,576.50 |
| INFONAVIT | 1,063.89 | 2,127.78 | 3,191.67 | 4,460.22 |
| Aguinaldo, accrued | 833.33 | 1,666.67 | 2,500.00 | 4,166.67 |
| Vacation premium, accrued | 166.67 | 333.33 | 500.00 | 833.33 |
| Mexico City payroll tax | 840.00 | 1,680.00 | 2,520.00 | 4,200.00 |
| Total on top of salary | 6,845.41 (34.2%) | 13,080.67 (32.7%) | 19,315.92 (32.2%) | 28,236.73 (28.2%) |
| Total monthly cost | 26,845.41 (USD 1,428) | 53,080.67 (USD 2,824) | 79,315.92 (USD 4,220) | 128,236.73 (USD 6,822) |
| Worker’s IMSS share, withheld | 547.64 | 1,138.10 | 1,728.56 | 2,432.61 |
The daily contribution salary adds the aguinaldo and vacation premium to the daily wage. In Jalisco or Nuevo León, with a 3% payroll tax, the MXN 40,000 example costs MXN 12,660.67 on top of salary instead of MXN 13,080.67. This is arithmetic on the published rates, not a payroll quote.
Why does the percentage fall at higher salaries?
Because two pieces stop growing. The IMSS fixed quota is a flat amount per worker, about MXN 24 a day, and every IMSS branch and INFONAVIT stop at the 25 UMA ceiling of MXN 2,932.75 a day,[1][4] which the MXN 100,000 example reaches. Above the ceiling, only the payroll tax and the bonuses keep growing with salary.
How does that compare with a US employee?
US private employers spent $46.89 per hour worked on employee compensation in June 2026: $32.82 in wages and $14.07 in benefits, 30.0% of the total, which is about 43% on top of wages.[11] Legally required benefits were 7.0% of compensation for full-time workers.[11] Mexico’s statutory on-cost of 28% to 34% is lower as a share of salary and applies to a lower base.
The Mexico hiring guide covers contracts, termination, REPSE and contractors, the 40-hour workweek page explains the hours reform, and the Colombia cost guide runs the same exercise for Colombia.
Key statistics: 29 figures with sources
Each figure is quoted as its source states it, with the period it measures. Official statistics come first; company figures describe only that company's own product.
Reference values, 2026
| Metric | Figure | What it measures | Source |
|---|---|---|---|
| UMA, daily | MXN 117.31 | From February 1, 2026; MXN 3,566.22 a month and MXN 42,794.64 a year | [4] |
| IMSS contribution ceiling | MXN 2,932.75 a day | 25 UMA | [1][4] |
| FIX exchange rate | MXN 18.7962 per USD | October 30, 2026 | [10] |
IMSS employer rates, 2026
| Metric | Figure | What it measures | Source |
|---|---|---|---|
| Sickness and maternity, fixed quota | 20.40% of one UMA a day | Per worker | [1] |
| Sickness and maternity, excess over 3 UMA | 1.10% | Worker 0.40% | [1] |
| Disability and life | 1.75% | Worker 0.625% | [1] |
| Retirement | 2% | Of the contribution salary | [1] |
| Childcare and social benefits | 1% | Of the contribution salary | [1] |
| Work risk, class I, new company | 0.54355% | Of the contribution salary | [1] |
Old-age contribution (cesantía y vejez), employer
| Metric | Figure | What it measures | Source |
|---|---|---|---|
| 1.00 minimum wage | 3.150% in 2026; 3.150% in 2030 | By contribution salary band | [5][1] |
| 1.51 to 2.00 UMA | 4.851% in 2026; 6.552% in 2030 | By contribution salary band | [5][1] |
| 2.51 to 3.00 UMA | 6.026% in 2026; 8.902% in 2030 | By contribution salary band | [5][1] |
| 3.51 to 4.00 UMA | 6.613% in 2026; 10.077% in 2030 | By contribution salary band | [5][1] |
| 4.01 UMA and above | 7.513% in 2026; 11.875% in 2030 | 4.241% in 2023, 5.331% in 2024, 6.422% in 2025 | [5][1] |
| Worker's old-age contribution | 1.125% | Unchanged by the reform | [1] |
Other employer costs
| Metric | Figure | What it measures | Source |
|---|---|---|---|
| INFONAVIT housing fund | 5% | Of salary | [2] |
| Mexico City payroll tax | 4% | Of total payroll for subordinated work | [3] |
| Jalisco and Nuevo León payroll tax | 3% | 2026 | [6][7] |
| Aguinaldo | 15 days of salary | Minimum, paid before December 20 | [2] |
| Vacation premium | 25% | Of the salary for vacation days; 12 vacation days after the first year | [2] |
| Profit sharing | 10% of taxable income | Capped per worker at 3 months of salary or the 3-year average | [8][2] |
Worked examples, Mexico City, calculated by Nearshorers
| Metric | Figure | What it measures | Source |
|---|---|---|---|
| Total monthly cost, salary MXN 20,000 | MXN 26,845.41 (USD 1,428) | 34.2% on top of salary | [1][2][3][10] |
| Total monthly cost, salary MXN 40,000 | MXN 53,080.67 (USD 2,824) | 32.7% on top of salary | [1][2][3][10] |
| Total monthly cost, salary MXN 60,000 | MXN 79,315.92 (USD 4,220) | 32.2% on top of salary | [1][2][3][10] |
| Total monthly cost, salary MXN 100,000 | MXN 128,236.73 (USD 6,822) | 28.2% on top of salary; IMSS at the 25 UMA ceiling | [1][2][3][10] |
| Extra old-age contribution by 2030, salary MXN 40,000 | About MXN 1,856 a month | From 7.513% to 11.875% at the 2026 salary | [5][1] |
US comparison (BLS, June 2026)
How do you hire in Latin America with Nearshorers?
Tell us the role on a 15-minute call and we turn it into a scorecard; most roles are filled in 7 to 14 days. Then choose one of our two hiring models. With Staffing, Nearshorers engages and pays the specialist, handles contracts, compliance and payments, and takes on the risk of the relationship, while you direct the work. With Headhunting, you hire them directly for a single placement fee, and the rules on this page apply to your company.
- 01/The briefA 15-minute call: the role, the metrics it should own and your budget, turned into a scorecard.
- 02/The shortlistWe search our Latin America network and vet for skill, English and ownership.
- 03/The interviewsYou interview the shortlist; we handle scheduling and feedback.
- 04/The onboardingHire through us with Staffing, where we take on the contract, payments and risk, or directly for a one-time fee.
Frequently asked questions
How much does it cost to employ someone in Mexico?
In Mexico City in 2026, about 28% to 34% on top of salary in our examples, before profit sharing: IMSS social security, 5% for the INFONAVIT housing fund, a 4% state payroll tax, and the accrued aguinaldo and vacation premium. An employee on MXN 40,000 a month costs about MXN 53,081 a month.
What is the IMSS contribution rate in 2026?
There is no single rate: the employer pays several branches on the integrated contribution salary, including a fixed quota of 20.40% of one UMA a day, 1.75% for disability and life, 2% for retirement and an old-age contribution of 3.150% to 7.513% depending on salary. In our MXN 40,000 example, IMSS is about 18.2% of salary.
Why is the IMSS old-age contribution going up?
The 2020 pension reform phases in higher employer rates every year from 2023 to 2030. For salaries above 4 UMA, the rate is 7.513% in 2026 and reaches 11.875% in 2030.
Is profit sharing included in the cost?
Not in the monthly examples. Profit sharing is 10% of the company's taxable income, paid once a year and capped per worker at three months of salary or the average of the last three years, whichever is more favorable to the worker. New companies are exempt in their first year.
Does the payroll tax change by state?
Yes. It is a state tax: 4% of total payroll in Mexico City and 3% in Jalisco and Nuevo León in 2026.
Sources
Every figure on this page links to the source below that states it. Rules are cited from the statute or the agency that applies it, and every source was checked on November 2, 2026. This page is general information to plan a hire, not legal or tax advice; laws change, so confirm your case with a local lawyer or accountant.
- Ley del Seguro Social (texto vigente, última reforma publicada DOF 15-01-2026; Cámara de Diputados compilation hosted by IMSS) Law · Instituto Mexicano del Seguro Social (IMSS) · 2026-01-15 · checked November 2, 2026
- Ley Federal del Trabajo (texto vigente; última reforma publicada DOF 21-02-2025) Law · Secretaría de Gobernación - Orden Jurídico Nacional · 2025-02-21 · checked November 2, 2026
- Gaceta Oficial de la Ciudad de México No. 1566 - Reglas de Carácter General para la presentación de la Declaración Informativa prevista en el párrafo décimo del artículo 278 del Código Fiscal de la Ciudad de México Law · Gobierno de la Ciudad de México - Secretaría de Administración y Finanzas (Gaceta Oficial; copy hosted by Alcaldía Milpa Alta) · 2025-03-12 · checked November 2, 2026
- Unidad de Medida y Actualización (valores 2026) Official statistics · Diario Oficial de la Federación / Instituto Nacional de Estadística y Geografía (INEGI) · 2026-01-09 · checked November 2, 2026
- Aspectos relevantes en la determinación de la cuota patronal del ramo de Cesantía y Vejez Law firm · BDO México (Castillo Miranda y Compañía, S.C.) · 2024 · checked November 2, 2026
- Ley de Ingresos del Estado de Jalisco para el ejercicio fiscal 2026 (Decreto 30121/LXIV/25) Law · H. Congreso del Estado de Jalisco - Biblioteca Virtual · 2025-12-23 · checked November 2, 2026
- Preguntas frecuentes sobre las reformas a la Ley de Hacienda del Estado Government · Gobierno del Estado de Nuevo León (historico.nl.gob.mx) · 2024-09-27 · checked November 2, 2026
- Reparto de utilidades 2026. Manual laboral y fiscal sobre la participación de las personas trabajadoras en las utilidades Government · Servicio de Administración Tributaria (SAT) · 2026 · checked November 2, 2026
- DECRETO por el que se reforman, adicionan y derogan diversas disposiciones de la Ley del Seguro Social y de la Ley de los Sistemas de Ahorro para el Retiro Law · Diario Oficial de la Federación (SIDOF, Secretaría de Gobernación) · 2020-12-16 · checked November 2, 2026
- Tipo de cambio FIX Government · Banco de México · 2026-10-30 · checked November 2, 2026
- Employer Costs for Employee Compensation, June 2026 Official statistics · U.S. Bureau of Labor Statistics · 2026-09-09 · checked November 2, 2026
