Employment taxes

• You’ll pay income tax (known as ISR - Impuesto Sobre la Renta) on your earnings. Rates are progressive and go up to 35%.
• The employer deducts withholdings from your salary and remits them to the tax authority (Servicio de Administración Tributaria - SAT).

Leave policy

• Vacation: After your first year of service, you're entitled to 12 days of paid annual leave. The annual leave increases with tenure up to 32 days.
• Public holidays: Mexico celebrates 7 national public holidays.
• Sick leave: Up to 52 weeks paid at 60% by the IMSS.
• Maternity leave: Mothers are entitled to 84 days of maternity leave, paid 100% by the IMSS.
• Paternity leave: Fathers are entitled to a 5 working days of paid leave after the child’s birth or adoption, paid at 100% by the employer.

Employment termination

• Termination in Mexico is regulated and protections are strong for employees.
• If an employment relationship is ended without cause, the employer must pay severance: typically three months’ salary + 20 days of salary for each year of service + seniority premium (for employees with more than 15 years of service) + accrued benefits (vacation, bonuses) etc.
• Notice period: In Mexico, there is no notice period for terminations, but the employer must provide a written notice of termination (aviso de rescisión) clearly stating the specific cause for termination and the factual circumstances supporting it.

Hiring and contracts

• Contracts must be written in Spanish and can be bilingual, outlining job duties, salary, hours, type of contract (indefinite, fixed-term, seasonal), etc.
• Many roles are on an indefinite term. Fixed-term contracts are allowed but regulated.
• Probation periods are allowed (up to 30 days for most roles or up to 180 days for senior/technical positions) and must be properly documented.

Payroll and salary payments

• Payroll is typically bi-weekly (every 15 days) or sometimes weekly, depending on the sector.
• As of January 1st 2025, the daily minimum wage for most of Mexico is MXN 278.80 (EUR 13.08/ USD 15.15). For the Northern Border Zone it's MXN 419.88 (EUR 19.69/ USD 22.81) per day.
• Employers must provide a payslip (recibo de nómina) showing gross salary, deductions (taxes, social security), and net pay.

Benefits

Mandatory:

• Social security via IMSS (health, disability, maternity).
• Housing fund contributions via INFONAVIT (employer pays 5% of integrated salary).
• Profit-sharing (PTU) of 10% of pre-tax profits distributed among eligible employees.
• Mandatory Christmas bonus (aguinaldo) of at least 15 days’ salary, payable by December 20th.

Optional:

• Private health or dental insurance
• Flexible work arrangements / remote work policies
• Gym memberships, commuter subsidies, extra vacation days

Monthly living cost (Mexico City Edition)

• Rent (one-bedroom in the city centre): MXN $22,000-30,000 (USD $1,190-1,620 / EUR €1,030-1,390).
• Utilities (electricity, water, gas): MXN $2,500-4,500 (USD $135-245 / EUR €110-210).
• Internet (basic home broadband): MXN $400-1,000 (USD $22-55 / EUR €19-47).
• Grocery (monthly spending for one person): MXN $4,000-6,500 (USD $215-350 / EUR €195-300).
• Monthly public transport (metro/bus/tram): MXN $300-800 (USD $16-44 / EUR €14-37).
• Coffee, dining out, and going out (basic entertainment): MXN $2,000-4,000 (USD $108-215 / EUR €100-195).

How to get a local ID number (CURP, RFC)

• If you become resident or work in Mexico, you’ll need your CURP (Clave Única de Registro de Población) and often the RFC (Registro Federal de Contribuyentes) for tax purposes.
• Your employer will generally help register you with IMSS and with other authorities so that your social security, taxes, and benefits are set up.
• For remote workers or digital nomads, rules are evolving, but generally, you’ll need proper visa/residency and tax registration if staying long term or performing work locally.

Social security registration

• If you’re employed, your employer must register you with IMSS. Once registered you gain access to health insurance, maternity benefits, disability cover, etc.
• For foreigners: once you are legally working (with a work permit), you’ll be in the social security system just like local employees.

Banking

• Mexico has many reputable banks, such as BBVA México, Citibanamex, Santander México, among others.
• To set up a bank account, you’ll usually need your passport, proof of address in Mexico, and tax ID (RFC) for certain account types.
• Salary payments are typically made via direct deposit into a bank account.

Housing and rental process

• Typical lease is 12 months.
• Expect a security deposit (often one or two months’ rent) + first month’s rent up front.
• Tenant rights: in Mexico City and other large cities, tenants have protections - written contracts are mandatory, property must be habitable, etc. Always clarify maintenance responsibilities, how and when rent can be increased, and the termination notice.

Healthcare system

• Public healthcare is available via IMSS for employees, covering a broad range of treatments, maternity, disability, etc.
• Many expats and professionals choose to combine public coverage with private health insurance for more flexibility, English-speaking doctors, or quicker access.
• Quality varies by region, but in major centres the facilities are good and modern, and costs are much lower compared to many Western countries.

Driving and public transport

• In Mexico City and other large metro areas there is an extensive public transport (metro, buses, light rail). Good for daily commuting.
• If you drive, you’ll need a valid driver’s licence and insurance. Foreign licences may work for a while, but if staying longer, you might need to get the local licence.
• Ride-sharing, taxis, and electric scooter/bike options are widely available too.

Emergency and important contacts

General emergency number: 911 for police, ambulance, fire.

Work permit and visa requirements

• If you plan to live and work in Mexico for more than 180 days, you’ll typically need a Temporary Resident Visa with a work permit.
• The sponsoring employer (or entity) helps with the process. If you’re remote-working from Mexico, you’ll still need to verify your permit/visa status.
• After about 4 years on temporary resident status (valid work permit), you may be eligible to apply for Permanent Residency.
• For short business trips (< 180 days, no local employment), a visitor visa may be enough, but you cannot be employed locally.

Business culture and work norms

• Formality and respect: Business culture values courtesy, titles, and relationships. Building trust and rapport matters.
• Meetings and communication: Face-to-face or video calls, personal introductions, and small talk are common.
• Work-life balance: Mexicans appreciate time with family, good food and social networks, so it’s not all desk and screen.
• Punctuality: It’s appreciated. While there may be more flexibility than some places, being reliable and respectful goes far.