México
Knowledge Base

Frequently asked question, important data and information on EOR.

General information

$ 6310 MXN per month. The free trade zones close to the USD border have a higher minimum wage of $ 9372.30 MXN per month.

Labor Law

Laws that regulate Labor Relationship

• Political Constitution of the United Mexican States (Constitución Política de los Estados Unidos Mexicanos – CPEUM)
• Federal Labor Law (Ley Federal del Trabajo – LFT)
• Income Tax Law (Ley de Impuestos sobre la Renta – LISR)
• Social Security Law (Ley del Seguro Social – LSS)

Onboarding guide

Requirements for a labor contract

• Name, nationality, age, gender, marital status, Unique Population Registration Code (CURP), Federal Taxpayers Registry (RFC) Employee’s and employer’s address
• Contract term
• Job description
• The place where the work will be performed
• Working hours
• Salary
• Payment date
• Training conditions
• Other working conditions, such as rest days, vacations and other agreements

Article 25, Federal Labor Law

Pre-hire Medical exam

Not mandatory

Types of contracts

• Indefinite
• Contract for specific work or time Article 37 LFT
• Recruitment for initial training Article 39 B, LFT
• Trial Period Contract Article 39 A, LFT
• Contract for work relationship by season Article 39, LFT

Probation Period

The probation period in Mexico for permanent employees is 30 days, however most employment relations observe an extended probation period of 90 days (only contractual agreement, labor code prevails). For some positions like Managers and high trust employees (e.g. treasurers) a probation period of up to 180 days can be negotiated.

Are offer letters mandatory in the country?

Not Mandatory

Are digital signatures in labor contracts valid?

Permitted but wet signature necessary for full compliance

Mandatory onboarding documents

•Tax ID (RFC)
•ID number (CURP)
•Social security number (IMSS)
•Voting card number (INE)
•Proof of address
•Bank certificate
•Housing fund withholding statement

Statutory benefits

Annual Bonus

According to Article 87 of the Federal Labor Law, employees are entitled to an annual Christmas bonus, which must be paid before December twentieth, equivalent to at least fifteen days of salary.
Those who have not completed one year of service, regardless of whether or not they are working on the date of payment of the Christmas bonus, will be entitled to be paid the proportional part of the bonus, according to the time they have worked, regardless of the time worked.

Additional bonus

Doesn’t Apply

Leaves (medical, maternity, paternity, etc.)

Disability due to a work accident: The worker receives 100% of their salary from the IMSS, starting from day one up to 52 weeks (the limit may be less, depending on an IMSS medical assessment).
Maternity Leave: The worker receives 100% of her salary, paid by the IMSS. According to Article 170 of the Federal Labor Law, they will enjoy a six-week break before and six weeks after childbirth. At the express request of the worker, with the prior written authorization of the physician of the corresponding social security institution or, as the case may be, of the health service provided by the employer, taking into account the opinion of the employer and the nature of the work performed, up to four of the six weeks of rest before delivery may be transferred to after delivery. If the children were born with any type of disability or require hospital medical attention, the leave may be up to eight weeks after the birth, upon presentation of the corresponding medical certificate. If authorization from private physicians is presented, such authorization must contain the name and number of the professional license of the issuer, the date, and the medical condition of the worker.
Paternity leave: According to Article 132 of the Federal Labor Law, paternity leave of five working days with pay is granted to male workers for the birth of their children and likewise in the case of the adoption of an infant.
• Marriage leave: There aren’t any law requirements on marriage leave, but the employer can negotiate the number of days off with the employee.

Annual Leave (days per year)

Employees are entitled to not less than 12 working days’ increasing by two working days each year of seniority as follows:
• 1 year: 12 days
• 2 years: 14 days
• 3 years: 16 days
• 4 years: 18 days
• 5 years: 20 days
• 6 to 10 years: 22 days
• 11 to 15 years: 24 days

How do vacation days expire?

There are 6 months to take or enjoy the vacations, starting from the date on which the year of service is completed, in the event that the 6 months are completed and the vacations have not been enjoyed, the period of one year indicated in article 516 begins to start, in which this right must be demanded.

Official Holidays

• 1 Jan, New Year’s Day
• 5 Feb, Constitution Day
• 6 Feb, Constitution Day Holiday
• 20 Mar, Benito Juarez Day
• 1 May, Labor Day
• 16 Sep, Independence Day
• 20 Nov, Revolution Day
• 25 Dec, Christmas Day

Working on holidays and Sundays

Paid at 100% extra on top of the regular wage. Paid at 25% extra for hours worked on Sundays.

Number of Working hours

8 hours a day, 48 hours a week.

• Day shifts: 8 hours a day, 48 hours a week (between 6 am and 8 pm).
• Night shifts: 7 hours a day, 42 hours a week (between 8 pm and 6 am).
• Mixed shifts: 7.5 hours a day, 45 hours a week.

Articles 60 and 61, Federal Labor Law

Overtime

Paid at 100% extra on top of the regular wage. Overtime is permitted up to 9 hours a week and must be authorized in written (email or paper).

Social Security (what does it cover)

• Medical, surgical, pharmaceutical, and hospital services
• Occupational risk
• Sickness and maternity
• Disability and death
• Retirement and currently working elders
• Daycare and social services

Payroll

Salary payment currency

Mexcian pesos (MXN)

Can salary be paid in a different currency other than the local currency?

No

Payment frequency

Bi-weekly, employees are generally paid on the 15th and the last day of each month. Monthly and weekly are also permitted however rare for white collar professionals.

VAT percentage

16.00%

Income Tax

Income tax is paid to SAT (Servicio de Administración Tributaria), which is Mexico’s Federal Tax Collection department. It is an annual tax between 0% and 35% https://taxsummaries.pwc.com/mexico/individual/taxes-on-personal-income

Tax Payer Identification Number

Federal Taxpayer Registration – RFC (Registro Federal de Contribuyentes)

Offboarding

Voluntary resignation

The employee may resign at any time, for any reason. It is encouraged to have the employee use a standardized format to express their resignation and sign it with wet signature and their fingerprint to prove authenticity.

Contract termination

According to Article 53 of the Federal Labor Law, the following are causes for termination of employment relationships:
• Mutual consent of the parties;
• The death of the worker;
• The termination of the work or expiration of the term or investment of the capital, in accordance with Articles 36, 37 and 38; III. Articles 36, 37 and 38;
• The physical or mental incapacity or manifest inability of the employee, which makes it impossible for him/her to
• The physical or mental incapacity or manifest inability of the worker, which makes it impossible to render the work; and
• The cases referred to in article 434.

Additionally, all grounds of justified dismissal laid out in article 47 of the labor code (see “justified dismissal”)

Justified Dismissal

According to Article 47 of the Federal Labor Law, the following are causes for termination of the employment relationship, without liability for the employer:
• Deceiving the employee or, as the case may be, the union that had proposed or recommended him/her with false certificates or references in which the employee’s capacity, aptitudes, or faculties that he/she lacks are attributed to him/her. This cause for termination shall cease to have effect after thirty days of rendering services to the employee;
• Incurring the employee, during his/her work, in lack of probity or honesty, in acts of violence, threats, insults, or bad treatment against the employer, his/her family members, or the management or administrative personnel of the company or establishment, or against clients and suppliers of the employer, except when provoked or when acting in self-defense;
• The employee commits any of the acts listed in the preceding section against any of his co-workers if as a consequence of such acts the discipline of the place where the work is performed is disturbed;
• The employee commits, outside the service, against the employer, his family members, or administrative management personnel, any of the acts referred to in Section II, if they are so serious that they make it impossible to comply with the working relationship;
• Intentionally causing material damages to buildings, works, machinery, instruments, raw materials, and other work-related objects during the performance of the work or in connection therewith;
• Causing the worker the damages referred to in the preceding section, provided that they are serious, without malice, but with such negligence that it is the sole cause of the damage;
• Compromising the worker, by his imprudence or inexcusable carelessness, the safety of the establishment or of the persons who are in it;
• The employee commits immoral acts or acts of harassment and/or sexual harassment against any person in the establishment or workplace;
• Revealing trade secrets or disclosing matters of a reserved nature, to the detriment of the company; X. Disclosing the employee’s trade secrets or disclosing matters of a reserved nature, to the detriment of the company;
• Having the worker more than three absences of attendance in a period of thirty days, without permission of the employer or without justified cause; X. Having the worker more than three absences of attendance in a period of thirty days, without permission of the employer or without justified cause;
• The employee disobeys the employer or his representatives, without just cause, as long as the work is contracted;
• Refusal of the employee to adopt the preventive measures or to follow the procedures indicated to avoid accidents or illnesses;
• Attending work in a state of drunkenness or under the influence of any narcotic or enervating drug, unless, in the latter case, there is a medical prescription. Before starting work, the employee shall inform the employer of the fact and present the prescription signed by the physician;
• The enforceable sentence that imposes a prison sentence on the employee, which prevents him/her from fulfilling the working relationship;
• The lack of documents required by the laws and regulations, necessary for the rendering of the service when it is imputable to the worker and that exceeds the period referred to in section IV of article 43; and
• Those analogous to those established in the preceding sections, are equally serious and of similar consequences as far as labor is concerned. The employer who dismisses an employee must give him/her written notice in which he/she clearly states the conduct or conducts that motivate the termination and the date or dates on which they were committed.
The notice must be delivered personally to the employee at the time of dismissal or, alternatively, it must be communicated to the competent Conciliation and Arbitration Board within the following five business days, in which case the employer must provide the employee’s last registered address so that the authority may notify the employee personally.
The statute of limitations to exercise the actions derived from the dismissal will not begin to run until the employee personally receives the notice of termination.
The lack of notice to the employee personally or through the Board, by itself, will determine the unjustified dismissal and, consequently, the nullity of the dismissal.

Unjustified Dismissal

Anything that does not fall under Article 47 of the Federal Labor Law is considered unjustified (See justified dismissal). In this case a severance can be demanded by the worker.

Severance pay

The severance payment corresponds to:

• Accrued annual bonus (ART. 87 LFT)

• Annual leave: 25% of the corresponding vacation amount.

• Back salary from the date of the dismissal through to the date of payment of severance (ART. 33 and 99 LFT)

• A seniority premium, equal to 12 days of salary for each year of service. (ART. 162, 485 and 486 LFT.)

Compensation:

For unjustified dismissal:

• 90 days (3 months) of salary (ART. 49, 50 FRACC. III and 89 LFT.)

• 20 days of salary for each year of services rendered (ART. 49, 50 FRACC. II LFT and 89 LFT)

Minimum Notice Period

There are no minimum notice requirements, however the Federal Labour Code mandates that, if the situation calls for it, the employer must give written notice to the employee within 30 days of becoming aware of the wrongdoing.


Either the written notification explicitly states the reasons for the termination, or the Labor Board must issue a termination notice.

Immigration

Visa process

1. We submit a visa request and an offer letter to the migration office in Mexico (INM).
2. INM assigns a process number (NUT).
3. The candidate finds and books an appointment with any Mexican consulate outside of Mexico (via the SRE platform).
4. The candidate attends the appointment and receives a temporary entry visa to return to Mexico.
5. In Mexico, our lawyers finish the process with the INM.
6. Once the process is finalized the candidate receives their Visa card at the INM offices in Mexico.
7. Lastly, the candidate is registered with social security (CURP) and tax authorities (RFC).

Visa documents

•Passport with a minimum validity of 6 months
•A signed letter of authorization from the Mexican Immigration Office with the NUT number*
•A signed letter of the job offer from the company in Mexico*
•Airline ticket itinerary
•One color passport-size photograph
•One photocopy of the main page of your Passport, National ID, and any former Mexican visa
*Provided by us

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