Mexican Employer Rates and Thresholds 2026

Mexican employers pay IMSS social security in several branches, mostly on the employee's integrated daily salary (salario base de cotización) up to 25 times the UMA, plus Infonavit housing contributions and a state payroll tax.

The CEAV rate depends on the salary band and rises every year to 2030; the 2026 rate for salaries above 4 UMA is shown. The workplace risk premium shown is the average for a new class I employer, such as most office businesses. Profit sharing (PTU) is extra.

Employer costs for a full year in Mexico City at 2026 rates, including the aguinaldo and vacation premium:

• Maximum 8 hours a day for day shifts. The May 2026 reform cuts the maximum week from 48 hours (2026) to 46 (2027), 44 (2028), 42 (2029) and 40 hours (2030), with no reduction in pay.
• 12 days after the first year, increasing by 2 days a year to 20 days in year five, then by 2 days every five years.
• At least 15 days' salary, paid before 20 December (pro rata for partial years).

• Working conditions must be set out in writing, in at least two copies, where no collective agreement applies. Employment is open-ended unless expressly agreed otherwise; a fixed term is allowed only where the nature of the work requires it, to replace another worker temporarily, or in other cases set by law.
• In open-ended contracts, or contracts of more than 180 days, a probation period of up to 30 days can be agreed, extendable to up to 180 days for management and administrative roles or specialised technical or professional work. The employee receives full salary, social security and benefits during probation.
• An employee dismissed without proven cause can choose reinstatement or three months' salary, plus back pay of up to 12 months if the employer loses the case. Where the employer is exempt from reinstating, including employees with less than a year's service and trusted (confianza) staff, it also owes 20 days' salary per year of service. A seniority premium of 12 days' salary per year applies on any dismissal.
• Supplying one's own workers to benefit another business (personnel subcontracting) is prohibited. Only specialised services or works that are not part of the client's corporate purpose or main economic activity may be subcontracted, by providers registered with the Ministry of Labour (STPS) in the public register (REPSE), renewed every three years.

Changes to these rates and rules, newest first. Every country is covered in our law changes tracker.

• From 1 January 2027: Mexico's maximum working week falls to 46 hours. Second step of the reform cutting the week from 48 hours (2026) to 40 hours by 2030, with no reduction in pay.
• From 1 May 2026: Reform to cut the working week to 40 hours by 2030. The maximum week steps down from 48 hours (2026) to 46, 44, 42 and 40 hours (2030). Overtime is paid at 100% extra up to a weekly limit that rises from 9 to 12 hours, and 200% beyond it.