Social security
in Mexico.

SALARY PAYMENT IN Mexican Peso (MXN, $)

CONTRACT LANGUAGES Spanish / English

PAYROLL TAX 36.69% – 43.72%

PAYROLL CYCLE Bi-weekly

TIME TO HIRE 12 hours

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Mexico

Social security in Mexico – Overview

Mexico’s social security program is considered developed, offering healthcare, a pension program, unemployment, and more. Both employees and employers much contribute to social security, with each contribution a percentage of the employee’s gross salary at each pay period. Read below for details about Mexico’s social security program.

What does the social security system in Mexico cover?

Social security in Mexico ensures workers have access to health care and it guarantees their incomes in case of sickness or maternity/paternity leave.

What are the mandatory contributions for employees to social security in Mexico?

Employees contribute approximately 5% of their salaries to social security and retirement funds.

What are the mandatory contributions for employers to social security in Mexico?

Employers contribute approximately 25% of the employees’ salaries to fund for social security, housing, and retirement.

How do mandatory contributions compare to the surrounding countries?

In the US, social security contributions are much less and are around 6%. However, much less national social security is offered in the US. In Guatemala the contribution to social security is around 12%.

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Your business can easily hire employees in Mexico without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

How much do employers need to contribute to social security in Mexico?

Employers in Mexico contribute around 25% of their employee’s salaries to social security.

What situations does social security cover for employees in Mexico?

Social security in Mexico ensures workers have access to health care and it guarantees their incomes in case of sickness or maternity/paternity leave.

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