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Payroll in Mexico
Payroll in Mexico runs in MXN on a typically semi-monthly; statutory timing depends on worker category cycle, with statutory employer contributions and aguinaldo of at least 15 days of pay, plus a 25% vacation premium; profit sharing may apply. Gracemark operates it end-to-end, humans, not tickets.
Currency
MXN, Mexican peso
Payroll cycle
Typically semi-monthly; statutory timing depends on worker category
Working week
Up to 48 hours for a daytime schedule; many professional teams use 40 hours
Minimum wage
2026 general zone: MXN 315.04/day; Northern Border Free Zone: MXN 440.87/day
13th-month
Aguinaldo of at least 15 days of pay, plus a 25% vacation premium; profit sharing may apply
Employer cost
Model approximately 19.75%–29.45% of salary before EOR fees; exact cost varies by salary base, state payroll tax, risk class and benefits
Probation
Usually up to 30 days; longer periods may apply to managerial or specialized roles when documented
Notice period
Cause and documentation matter; unjustified dismissal can create substantial severance and accrued-benefit exposure
Two ways to run payroll in Mexico
Own-entity payroll
For long-term presence in Mexico. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on North America time.
EOR-run payroll
No entity in Mexico? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in 1–2 weeks (eor), no local incorporation.
Compliance essentials in Mexico
- Termination requires statutory severance (3 months + 20 days/yr), at-will doesn't exist
- Mandatory profit sharing (PTU) of 10% of pre-tax profit
- 2021 outsourcing reform (REPSE) sharply restricts personnel subcontracting
- Aguinaldo (Christmas bonus) and vacation premium are non-negotiable
- Strong nearshore/timezone fit with the US
Get a payroll quote for Mexico
Send your headcount and salary band. We reply with employer burden, net-to-gross, and setup timeline, no sales scripts.
Deeper guide
Hiring guide: Mexico →
Employ without entity
EOR services →
All countries
Global payroll overview →