Automate payroll in Mexico with Al-powered calculations, local IMSS handling, and compliant payslips generated in seconds.
Establish credibility and match buyer objections: compliance, local knowledge, pricing clarity, and support.
Local Compliance Without Local Overhead: Ontop automates Mexico tax calculations and Contrato Colectivo de Trabajo requirements so you avoid setting up a local entity. The platform handles Aguinaldo payments, wage floors, and regional tax variation to keep payroll compliant and predictable. Transparent Pricing And Fees: Pricing clearly shows payroll fees, exchange rates, and contractor or EOR plan costs before payment.
Finance teams get predictable statements with no surprise charges. Human Support When It Matters: Live support helps resolve local queries and edge cases. Dedicated onboarding specialists guide tax registration and social security setup so teams move from hire to pay faster. Global Coverage With Mexico Expertise: Ontop supports hiring across 150+ countries while providing Mexico-specific workflows. Proration for Aguinaldo, Contrato Colectivo de Trabajo compliance, and SAT deadline management. Scale globally while keeping local accuracy.
Provide fast facts: minimum wage, pay frequency, bonuses, regional salary ranges. Satisfies informational intent and helps long-tail SEO.
Minimum Wage And Pay Frequency: Mexico's minimum wage is $7468 MXN Monthly. With Aguinaldo, annual total reaches the statutory requirements. Many employers pay 15 days of salary or prorate into Bi-weekly (Quincenal) payments. Ontop supports both structures.
Average Salary And Net Take Home: National average salary is ~$240000 MXN per year, about ~$20000 MXN per month gross. Ontop displays gross-to-net breakdowns so payroll and offers align with local expectations.
Regional Variation To Budget For: Salaries run higher in Mexico City and Monterrey. Mexico City averages $25,000 - $35,000 MXN (~20% above national). Monterrey around $22,000 - $32,000 MXN (~15%). Ontop lets you model regional differences in offers and cost projections.
Aguinaldo: Mexico commonly provides 15 days of salary. Payroll logic captures proration rules so payslips match local contract terms.
Mexico's wage structure includes Contrato Colectivo de Trabajo that set sectoral minimums. Buyers search "minimum wage by sector," "CCT wages." Captures mid-funnel research intent.
National Statutory Minimum Wage: Mexico's national minimum wage is $7468 MXN Monthly. Applies to all workers unless a higher sectoral minimum applies. Revised annually.
Contrato Colectivo de Trabajo Sectoral Minimums: Mexico has multiple active Contrato Colectivo de Trabajo agreements covering specific sectors. These set minimums higher than the statutory minimum depending on industry and role. Sectors include key local industries.
How Sectoral Wage Floors Affect Payroll: If an employee falls under a specific CCT, you must pay the sectoral minimum. Underpaying triggers wage claims, back pay, and penalties. Ontop stores and applies the correct rate based on employee role and sector.
How Ontop Applies Correct Wage Floors: Ontop maintains an updated CCT database and automatically applies the correct minimum wage. During payroll preview, the system displays which agreement applies and confirms compliance. Removes manual compliance risk.
National Average Salary Benchmark: Colombia's national average salary is approximately ~$240000 MXN per year. Varies by role, experience, and sector. Larger cities run up to 20% higher; rural regions typically align with the statutory minimum.
High-Cost Cities: Mexico City and Monterrey: Mexico City offers salaries ~20% above national average, particularly in tech and finance. Typical range: $25,000 - $35,000 MXN annually for mid-level roles. Monterrey offers ~15% premium with strength in innovation and services. Typical range: $22,000 - $32,000 MXN.
Secondary Cities and Regional Variation: Secondary cities generally sit between 5% to 10% above the national average, depending on local industries. Rural regions typically align with or fall below the national average. When budgeting for diverse teams, account for market research to ensure equitable offers.
How Ontop's Cost Calculator Handles Regional Modeling: Input location and role to preview total employer cost. See how regional differences, wage floors, and benefits combine to show true cost of employment by city.
Buyers search "contract types Mexico," "permanent vs fixed-term." Legal structure and misclassification risk are critical for compliance.
Permanent Full-Time Employment (Contrato por tiempo indeterminado): Standard indefinite contract with full statutory protections. Employees get all mandatory benefits (Aguinaldo, Vacaciones, sick leave, maternity leave, Liquidación / Finiquito). Termination requires just cause or economic redundancy with notice and severance payout. Employer IMSS contributions typically 30.0%.
Fixed-Term Contracts (Contrato por tiempo determinado): Limited-duration contracts (typically for a fixed period, renewable). Used for project work, seasonal roles, or temporary needs. Same taxes and benefits as permanent, but with defined end date. Subject to renewal restrictions and CCT rules. Simpler termination but accrued benefits paid in full.
Part-Time Contracts: Reduced hours subject to local statutory limits. Salary and benefits are prorated by hours worked. IMSS and taxes apply pro-rata. Ontop handles prorated Aguinaldo automatically.
Apprenticeships: Training contracts for students or junior profiles with reduced IMSS contributions where applicable. Includes structured training and on-the-job learning. Misclassification can trigger reclassification penalties.
Self-Employed / Prestación de Servicios Profesionales: Independent contractor operating own business. No employer obligations, only invoice payments. Contractor handles own IMSS, taxes, invoicing. Critical: if worker appears to be employee (direction, control, exclusivity), you face reclassification and back-pay exposure.
Compliance Differences Between Contract Types: Tax rates, IMSS contributions, benefits, termination rules, and Liquidación / Finiquito accrual vary by type. Misclassification triggers wage claims, penalties, and reclassification costs.
How Ontop Templates & Payroll Logic Handle Each Type: Ontop provides compliant templates for each type and applies correct payroll logic: permanent benefits, fixed-term accruals, part-time prorations, apprenticeship rates, and Prestación de Servicios Profesionales invoicing. Avoids misclassification risk.
Explain operational flow from onboarding to monthly payments. Reduces friction and clarifies steps.
Onboarding And Registration: Ontop handles registration with Mexico tax authorities (SAT) and IMSS and collects required IDs. Automation plus human verification reduces setup time and avoids compliance gaps. Typical onboarding: a few business days.
Monthly Payroll Calculation: Gross-to-net includes progressive 1.92 - 35 tax rates, 2.5% IMSS, and Aguinaldo proration. Platform applies region-specific tax bands, CCT rules, and wage floors for accurate payslips.
Contributions And Filings: Employer contributions include IMSS (2.5) and applicable local surcharges. Submitted according to statutory deadlines to IMSS on your behalf. Ontop maintains records for annual reconciliation.
Payment Execution And Reconciliation: Payments in MXN $ via local bank transfers to local accounts. Ontop shows conversion rates and fees before approval. Audit-ready receipts and instant USD payout options available.
EOR Vs Prestación de Servicios Profesionales: Your Options: Choose Prestación de Servicios Profesionales plans for flexible work or full EOR for permanent employees. Ontop supports both and highlights compliance differences so you pick the right structure.
Finance teams search "Mexico payroll deadline." Captures operational queries and establishes Ontop as deadline-management partner.
Monthly Tax Withholding & IMSS Payment Deadlines: SAT tax withholding due April 30th (Individuals) via SAT online portal. IMSS contributions due 17th of each month to IMSS authority. Late payments trigger Recargos and Multas by SAT/IMSS penalty plus interest.
Annual Compliance Deadlines: Liquidación SUA/IDSE: annual IMSS reconciliation, due Monthly. Declaración Anual: due April 30th. Constancia de Retenciones: annual employee tax certificate due February 28th.
Payroll Processing Calendar (Monthly Example):
Week 1-2: Gather -> Week 3: Calc -> Day 15/30: Pay. Key Regulatory Bodies & Filing Channels: SAT:
Tax collection. Online filing via official portals.
IMSS: Social security and health.
STPS: Labor rights and inspections.
Penalties for Non-Compliance: Late SAT remittance:
Recargos and Multas by SAT/IMSS plus interest. IMSS shortfalls result in fines. Missing documentation increases audit exposure. Audit exposure increases with missing filings. Willful violations can trigger criminal liability.
How Ontop Manages Deadlines Automatically: Ontop tracks all compliance deadlines, sends alerts before due dates, and submits filings automatically. Finance team approves payroll ahead of deadlines. All documentation audit-ready.
Buyers search "how much leave Mexico," "maternity leave," "paid leave entitlements." Impacts total cost of employment and satisfies planning intent.
Aguinaldo (Paid by December 20th): All permanent employees entitled to 15 days of salary. Typically paid in Paid by December 20th, or prorated across year. Statutory bonus, not discretionary. Must factor into annual payroll cost.
Vacaciones: Minimum 12 working days (Vacaciones Dignas) of paid vacation annually. Unused leave carryover varies by CCT. Some allow unlimited carryover; others limit carryover. Leave paid at regular rate upon termination if unused.
Incapacidad por Enfermedad: Statutory sick leave paid at 60% from day 4 via IMSS. Medical certification required after a few consecutive days as per local law. IMSS may provide supplementary coverage for longer absences.
12 weeks of maternity leave. Paid at 100% via IMSS by the local health entity. Additional parental leave may apply.
Public Holidays: Mexico observes 7 days national holidays annually. Employees receive full pay or premium pay if required to work. Regional variations exist. Liquidación / Finiquito: Permanent employees receive 3 months salary + 20 days per year worked (if unjustified) when terminated without just cause. Liquidación / Finiquito is a significant liability, must be accrued regularly and paid in full at termination.
How Ontop Automates Benefit Accrual & Compliance: Ontop automatically calculates Aguinaldo, leave balances (by CCT type), maternity deductions, and Liquidación / Finiquito reserves. Payslips show accruals and deductions clearly. Audit-ready.
Decision makers need concrete cost inputs. Provide contribution ranges, deduction rates, and sample calculations for budget decisions.
Employer IMSS And Additional Charges: Employer IMSS varies by sector and contract. Approximate rates:
Employee Deductions And Tax Bands: Employee deductions include 2.5% IMSS and progressive SAT tax: 1.92 - 35 Regional/local taxes may add extra percentages.
Total Employer Cost Example: Scenario: Permanent employee in Mexico City at $20000 MXN/month gross.
For annual planning, expect the total employer cost to be roughly ~25% to ~35% above the gross salary, plus applicable statutory accruals for benefits.
Clarify payment rails, currency handling, and worker features that influence adoption and retention.
Local MXN $ Transfers And Pay Runs: Payroll in Mexico typically uses MXN $ payments via local bank networks to local accounts. Ontop supports local rails so workers receive funds on payday in a single auditable run. No conversion friction.
Multi-Currency And Dynamic Conversion: When paying from other currencies, Ontop shows rates and fees before confirmation. Finance leaders get transparent previews. All conversions logged for audit.
Ontop Wallet And Instant USD Payouts: Workers receive USD via Ontop wallet backed by U.S. bank for fast access. Instant payouts reduce waiting times. Visible on worker dashboard and app. Useful for remote workers or USD preference.
Visa Debit And Worker Perks: Ontop issues Visa cards (physical or virtual) for immediate fund access. Security controls (instant freeze, limits) and perks (cashback, travel benefits, reduced transfer fees).
Buyers search "Mexico payroll mistakes," "how to avoid penalties." Fear-based content drives conversions.
Misclassification (Asimilados a Salarios): High risk of SAT audits if contractors are treated as employees.
Ontop supports payroll for both contractors and employees in Mexico. The platform provides contractor (Prestación de Servicios Profesionales) contract templates and full EOR services for employees so you can choose the structure that fits compliance and operational needs.
Ontop applies local employer contribution rules (typically around 2.5) and sector-specific rates when calculating payroll liabilities. The system presents a clear breakdown of employer charges during payroll preview so you know the total cost before approval.
Yes, mandatory bonus structures like Aguinaldo are common. The standard structure is 15 days of salary, usually paid in Paid by December 20th or prorated across the year. Ontop supports both approaches and reflects proration on employees' payslips and in cost projections.
Employees typically see IMSS deductions around 2.5 and progressive SAT income tax withholding between 1.92 - 35 depending on income bracket and region. Ontop calculates and withholds the correct amounts based on salary, location, and personal circumstances.
Yes, Ontop provides cost previews that include employer contributions, taxes, statutory charges (like Liquidación / Finiquito accruals), and regional variation. Use these previews to budget hires accurately and compare contractor versus employee scenarios.
No. Ontop can operate as your Employer of Record (EOR), handling all legal employer responsibilities and registrations. You avoid the complexity and cost of setting up a local company. Alternatively, if you have an entity, Ontop can serve as your payroll processor.
Common risks include misclassifying employees as contractors, missing SAT payment deadlines, and failing to adhere to Contrato Colectivo de Trabajo rules. Ontop's automation and expert support mitigate these risks.
