As of March 2024, the estimated population of Mexico is 128,455,567.
The currency in Mexico is the Mexican Peso (MXN). The currency symbol is $.
In Mexico, permanent employment contracts are those concluded for an indefinite duration. Employment contracts that don't explicitly state the duration are considered to be valid for an indefinite duration. Permanent employees or those who are hired for more than 180 days can be subject to probation.
In Mexico, employment conditions must be set in writing when there is no governing collective agreement. Each party has to retain a copy of the agreement. An employment agreement must include the following minimum information: Nationality, sex, marital status, age, tax ID, national registration code, and address of both employee and employer Employment duration Job description Work schedule Pay rate and payment schedule Employer-provided training Other terms and conditions of employment including days off and vacations The lack of such document does not deprive the worker of the rights that derive from the labor standards and the services provided, since the employer will be charged with the lack of this formality.
Mexico's Federal Labor Law does not distinguish temporary and fixed-term/specific-purpose employment. Such contracts may only be established when the nature of the work demands it or when its purpose is to temporarily replace a worker. The duration of the contract must be explicitly stated in the employment contract and cannot exceed one year. In April of 2021, the Mexican Federal Government amended several provisions of the Federal Labor Law. The goal of these amendments was to generally prohibit employer subcontracting or "outsourcing," which the law defines as "when a natural or legal person provides or makes available their own workers for the benefit of another."
The Federal Labor Law of Mexico identifies 2 periods at the beginning of an employment relationship that can be considered a "probationary" period. First is the trial period, which is designed to verify that the employee possesses both the necessary qualifications and competencies to perform the work. This stage typically lasts 30 days, as that is the maximum amount of time allowed by law for an employer to determine whether the employee meets the necessary criteria or qualifications. After this period, the employer is barred from terminating the employee on these grounds. The second period is considered a training period and typically lasts 3 months (or 90 days). This period can be extended to 180 days in the case of a managerial employee, director, or other senior management position within a company.
Employees may work at most 6 days in any given week. Working hours must not exceed 8 hours per day and 48 hours per week. Working hours during the night shift cannot exceed 7 hours per shift. The working day of minors under 16 cannot exceed 6 hours a day and should be divided into periods not exceeding 3 hours. The federal government is gradually reducing the standard workweek from 48 to 40 hours by 2030. In 2026, the standard workweek remains 48 hours.
2026
2027
Employees with more than 1 year of service are entitled to 12 working days of annual leave, which will increase by 2 working days, up to 20, for each subsequent year of employment. As of the sixth year, the vacation period will increase by 2 days for every 5 days of services. Minors under the age of 18 years are entitled to 18 days of annual leave. Employers cannot pay compensation in lieu of annual leave, and the leave must be taken within 6 months of the end of the service year. Employees whose contract is terminated before the end of the year of service will be entitled to remuneration for the annual leave not taken, proportionate to the duration of service during the year.
The employer is fully responsible for paying the first three days of sick leave. From the fourth day, the Social Security Institute pays either: 60% of the employee’s salary if leave is due to a non-work related illness or accident 100% of the employee’s salary if sick leave is due to a work-related illness or accident Benefits are paid for up to 52 weeks.
Maternity leave is fully paid through the Social Security Institute and for 12 weeks or 84 days (42 days before and 42 days after delivery). Women are also entitled to six weeks of paid leave for adoption. To avail herself of cash benefits, a worker must have contributed for at least 30 weeks during the 12 months preceding the date when payment is due to begin. If the child was born with a disability or needing hospital care, leave may be extended with 50% of the worker's salary for a period not exceeding 60 days.
In Mexico, employees are entitled to 5 working days of paid paternity leave upon the birth of their child or in case of adoption of an infant.
In Mexico, there are no minimum notice period requirements. In cases where employment is being rescinded due to the worker's actions (or lack thereof), Mexico's Labor Law dictates that notice must be given to the employee personally and in writing at the time of dismissal or within five working days. It must state the conduct that led to termination and the date at which said acts were committed. In cases where the employee is terminating employment due to circumstances related to the employer or workplace, the worker may withdraw from employment within the 30 days following the cause of withdrawal. In such cases, the worker retains the right to receive damages from the employer.
Severance benefits are paid if an employee is dismissed due to the business's inability to afford the operation, bankruptcy of the employer, or any other unforeseen circumstances unrelated to the employer. The amount of severance benefits paid is as follows: Fixed-term contract of less than one year - wages for half the time of services rendered Fixed-term contract of more than one year - six months of wages for the first year and 20 days for each of the following years Employment for an indefinite term - 20 days of salary for each year of service and 3 months' of wages If the contract is terminated due to physical or mental disability from a non-professional risk - one month's salary plus an additional 12 days of salary for each year of service up to twice the general minimum wage applicable to the workplace If the contract is terminated due to a reduction of staff caused by the implementation of new machinery or methods of work - four months of salary, plus 20 days for each year of service
For a full pension, a worker must have attained 65 years of age with at least 1,250 weeks of contributions. If the insured employee has reached the required number of years but not the weeks of contributions, they may withdraw the balance of their individual account or continue to contribute to cover the weeks needed to get a pension. Various factors determine the amount of the old-age pension. The basis is the guaranteed pension, which corresponds to a minimum wage updated annually according to the National Index of Consumer Prices. Pensioners also receive family allowances for dependents - 15% for a spouse, 10% for each child under 16 years, and 10% for each dependent parent if the pensioner has no wife or children. In 2024, Mexico created the Welfare Pension Fund (Fondo de Pensiones para el Bienestar) to guarantee that pensioners 65 and older receive 100% of their last monthly salary. In 2025, Mexico created the Women's Welfare Pension which guarantees women between 63 and 64 residing in Mexico a bimestral benefit.
Survivors benefit is provided to the survivors if the insured worker was a pensioner or had at least 150 weeks of contributions by the time of death, and the death must not be the result of an occupational injury. A funeral grant is provided with at least 12 weeks of contributions in the last nine months. The amount paid to a widow or permanently and totally disabled widower is 50% of the projected or actual old-age pension. 20% is given to each eligible child (30% if a full orphan). Benefits are paid by the employer in case of death due to work-related accidents or diseases. The amount paid to a widow or financially dependent widower is 40% of the permanent disability pension the deceased would have been entitled to. 20% is given to each eligible child (30% to a full orphan).
The Institute of Social Security provides benefits for disabled insured persons. To be eligible for disability benefits, the insured must have paid at least 250 weeks of contributions. For more than 75% disability, 150 weeks of contributions are sufficient. The amount of disability pension is equal to a basic amount of 35% of the average salary corresponding to the last 500 weeks of contributions prior to the disability or 250 weeks of contribution. Pension, including benefits for family and assistance grants, may not exceed the average salary that served as the basis for setting the pension amount. In case of disability due to work accidents or diseases, benefits are paid by the employer. In the case of permanent partial incapacity (decrease in permanent working capacity of more than 50%), the disabled worker will receive a monthly amount depending on the degree of disability at a percentage of full pension. If the assessed degree of disability is 26% to 50%, the employee is entitled to either a percentage of the full pension paid according to the assessed degree of disability or a lump sum of five years of pension. In the event of disability lower than 25%, a lump sum equal to five years of pension is provided.
Residents of Mexico are subject to income tax on their worldwide income, regardless of their nationality. Tax rates vary from 1.92% to 35%. Non-residents are only taxed on income originating in Mexico, and rates vary from 15% to 30%.
The following types of visas are available in Mexico:
Foreign nationals planning to work in Mexico for more than 180 days (six months) must obtain a visitor visa with permission to work. A temporary residence visa allows foreign employees to stay in Mexico for up to four years and a permanent residence visa permits staying in the country indefinitely. Individuals working for and receiving a salary from a foreign company in Mexico for less than 180 days may do so with a visitor visa with permission to work. The following documents must be submitted when applying for this visa: Passport with valid photocopies of the pages Application form Passport size photo Consular fees Letter of employment Current temporary resident or temporary resident student card
