Payroll
/
Mexico
Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
MXN $
Employer contributions
~30% (IMSS, INFONAVIT, SAR and state payroll tax)
Minimum wage
MXN 315.04/day (2026) ≈ $530/month
Payment frequency
Bi-weekly (Quincenal)
Calendar
Capital
Mexico City
Timezone
CST (GMT-6)
Short answer: The minimum wage in Mexico in 2026 is MXN 315.04 a day (about MXN 9,582 a month, or $530). A typical full-time salary is around MXN 20,000 a month ($1,106). Professionals paid as contractors through Ontop earn a median of $2,050 a month (803 active contracts, September 2026).
| 2026 figure | Local currency | USD |
|---|---|---|
| Minimum wage, monthly | MXN 9,582 | $530 |
| Minimum wage, hourly | MXN 39.38 | $2.18 |
| Average salary, monthly (approx.) | MXN 20,000 | $1,106 |
| Median contractor pay through Ontop, monthly | n/a | $2,050 |
Minimum wage details: General zone; Northern Border Free Zone (ZLFN: BC, Son, Chih, Coah, NL, Tamps) is 440.87/day = 13,409.80/month. USD figures use exchange rates from 1 October 2026. Updated October 2026.
| Function | Median monthly pay | Active contracts |
|---|---|---|
| Sales | $2,952 | 34 |
| IT and engineering | $2,500 | 75 |
| Operations | $1,572 | 63 |
| Customer service | $1,110 | 30 |
Source: payments companies make to contractors through Ontop, September 2026. This is Ontop's own data, not a market survey, and only functions with 30 or more contracts are shown.
Next step: compare contractor rates in Mexico with other countries or estimate the full cost of an employee.
The number that should shape your decision in Mexico is not the salary. It is the exit. An unjustified dismissal can cost three months of salary plus 20 days for every year worked, and that liability builds quietly from the first day.
Mexico's monthly employer burden looks moderate next to its neighbors, but IMSS filings, bi-weekly payroll and severance exposure add up to a real commitment. For roles you are still testing, or work that is genuinely independent, a contractor relationship is often the better fit.
Plan for about 25% to 35% above gross salary, before any severance. The main items:
A MXN 20,000 monthly salary costs you about MXN 26,000 a month, and that does not include the severance you may owe later.
Independent work in Mexico runs under Prestación de Servicios Profesionales. The professional invoices you for their services and manages their own tax with the SAT. You pay an agreed fee, with no IMSS filing, no aguinaldo and no severance accrual, and no Mexican entity is required.
Companies paying contractors in Mexico through Ontop pay a median of $2,050 a month (the middle half earn between $1,102 and $3,500), across 803 active contracts in September 2026. These are Ontop's own payments, not a market survey. To check a rate before you send an offer, see what contractors cost by country.
Ontop works as contractor of record: a compliant contract (yours or an Ontop template), classification support, and payment into the contractor's Ontop Global Account in USD. Pricing starts at $49 per contractor per month.
If the person works a schedule you set, takes direction from your managers and works only for you, Mexican law treats that as employment, and a services contract will not change it. Hire an employee in that case. If the role is defined by deliverables, read the case for contractors over an EOR.
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~$26,000 MXN
/month
For a gross salary of
$20,000 MXN
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~30% (IMSS, INFONAVIT, SAR and state payroll tax)
Mandatory extras
Aguinaldo
Monthly admin
Week 1-2: Gather -> Week 3: Calc -> Day 15/30: Pay
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~$26,000 MXN
Example gross salary
$20,000 MXN
~$16,500 MXN
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~$6,000 MXN
Employer contributions on that salary
Employer contributions
~30% (IMSS, INFONAVIT, SAR and state payroll tax)
Employee contributions
~2.5% (IMSS)
Total cost above gross
~25% to ~35%
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~$20,000 MXN
Per month
Mexico City
$25,000 - $35,000 MXN
~20
Monterrey
$22,000 - $32,000 MXN
~15
Monthly gross. National average salary per year:
~$240,000 MXN
Minimum wage
MXN 315.04/day (2026) ≈ $530/month
Paid:
Daily
Extra pay
Aguinaldo
15 days of salary
Paid by December 20th
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
1.92 - 35
Tax year:
Calendar
Filing calendar
17th of each month
Social security payments
April 30th (Individuals)
Income tax
February 28th
Employee tax certificate
Constancia de Retenciones
April 30th
Annual return
Declaración Anual
Late payment penalties
Recargos and Multas by SAT/IMSS
Who collects what
SAT
Tax collection
IMSS
Social security and health
STPS
Labor rights and inspections
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Vacaciones
12 working days (Vacaciones Dignas)
Public holidays
7 days
Sick leave
Incapacidad por Enfermedad
60% from day 4 via IMSS
Maternity leave
12 weeks
100% via IMSS
The contracts you can use, and what ending an employment relationship costs.
Permanent
Contrato por tiempo indeterminado
Fixed term
Contrato por tiempo determinado
Independent contractor
Prestación de Servicios Profesionales
Collective agreements
Contrato Colectivo de Trabajo
Ending employment
Liquidación / Finiquito
How it is calculated
3 months salary + 20 days per year worked (if unjustified)
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Misclassification via Asimilados a Salarios / Prestación de Servicios
Risk Level: HIGH
Engaging workers through "Asimilados a Salarios" schemes or Prestación de Servicios contracts to reduce IMSS and INFONAVIT obligations is a top SAT and IMSS audit trigger in Mexico. If the SAT determines that the worker performs subordinate, habitual, and exclusive work for the company, the entire arrangement is reclassified as formal employment (Contrato por Tiempo Indeterminado), triggering full back-payment of Aguinaldo, Vacaciones Dignas, profit-sharing (PTU), and IMSS cuotas with update factors and fines.
IMSS Salary Base (SBC) Under-Declaration
Risk Level: HIGH
Mexico's IMSS audits the Salario Base de Cotización (SBC), which must include all integrated compensation: base salary, commissions, bonuses, productivity premiums, and food vouchers above the exempt threshold. A common error is registering only the base salary and excluding variable pay components, resulting in under-declared SBC. IMSS cross-references payroll data with SAT CFDI payslip records, and discrepancies trigger retroactive cuota adjustments with update factors (actualizaciones) and surcharges (recargos).
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.