Guide · Mexico
Mexico EOR Cost: What It Costs to Employ Someone in Mexico (2026)
Guide · Updated 31 October 2026
An employee in Mexico costs the employer salary plus IMSS social security, retirement contributions, 5% to the INFONAVIT housing fund, a state payroll tax, and the year-end bonus (aguinaldo) and vacation premium the law requires. For an employee in Mexico City on MXN 30,000 a month in their first year, that comes to about MXN 39,960 a month, or MXN 479,500 a year, before benefits and the EOR service fee. The share on top of salary is higher at lower salaries, and it rises each year until 2030 as retirement contributions increase. Here is how each line is worked out.
Last reviewed in October 2026 against IMSS, INEGI, CONASAMI and SAT sources. General information, not legal or tax advice.
The parts of a Mexico EOR bill
Salary. Agreed in pesos and paid at least every 15 days. It must be at least the minimum wage for the zone and the occupation.
Statutory employer costs. IMSS social security, retirement contributions, INFONAVIT and the state payroll tax, plus accruals for the aguinaldo and the vacation premium. These are passed through at cost.
Profit sharing (PTU). Employees share 10% of the employer’s taxable profit, within legal caps. Whether and how much is due depends on the employer’s results, so it is shown separately.
Benefits and other costs. Common benefits for professional roles, telework costs for people who work mainly from home, and any overtime.
The EOR service fee. The provider’s charge for employing and paying the person, shown as its own line, plus any deposit.
The employee’s own IMSS share and income tax come out of their pay. They reduce take-home pay, not your cost.
The integrated daily salary (SBC)
IMSS and INFONAVIT contributions are not calculated on the monthly salary but on the integrated daily salary, the salario base de cotización (SBC). It adds to the daily salary the benefits the employee is entitled to, such as the aguinaldo and the vacation premium, and some regular benefits. In the first year, with the statutory 15 days of aguinaldo and 12 days of vacation at a 25% premium, the SBC is the daily salary multiplied by about 1.0493. It rises as vacation entitlement grows.
Many amounts are set in UMAs, the unit of measure used instead of the minimum wage. From 1 February 2026 the UMA is MXN 117.31 a day, or MXN 3,566.22 a month. The SBC is capped at 25 UMAs a day. Source: INEGI, 2026 UMA.
Employer contributions in 2026
| Contribution | Employer rate | Employee rate | Base |
|---|---|---|---|
| Sickness and maternity, fixed fee | 20.40% | None | 1 UMA a day |
| Sickness and maternity, excess | 1.10% | 0.40% | SBC above 3 UMAs |
| Cash benefits | 0.70% | 0.25% | SBC |
| Medical care for pensioners | 1.05% | 0.375% | SBC |
| Disability and life | 1.75% | 0.625% | SBC |
| Childcare and social benefits | 1.00% | None | SBC |
| Work risk | From 0.5% to 15%, by risk class | None | SBC; 0.54355% for many new office employers |
| Retirement (SAR) | 2.00% | None | SBC |
| Old age and severance in old age (cesantía y vejez) | 3.150% to 7.513%, by salary | 1.125% | SBC; the employer rate rises each year until 2030 |
| INFONAVIT housing fund | 5.00% | None | SBC |
| State payroll tax (ISN) | About 2% to 4.25%; 4% in Mexico City | None | Total payroll, as each state defines it |
Sources: IMSS, employer contributions (SUA); INEGI, 2026 UMA. Retirement and INFONAVIT contributions are paid every two months; the other IMSS contributions monthly.
Aguinaldo, vacation premium and PTU
| Item | The rule | How to budget |
|---|---|---|
| Aguinaldo | At least 15 days’ salary, paid by 20 December; pro rata for part of a year | Accrue 15 days’ salary over 12 months |
| Vacation premium | At least 25% of the pay for vacation days; 12 days in the first year, rising with service | Accrue the premium over the year |
| PTU | 10% of the employer’s taxable profit, shared among employees; each share is capped at the greater of three months’ salary or the average of the last three years | Shown separately, because it depends on the employer’s profit |
Worked examples
Monthly figures in pesos for a full-time employee in Mexico City in their first year of service, with the statutory 15 days of aguinaldo and 12 days of vacation, a work-risk premium of 0.54355% and 2026 rates. Contributions use an average month of 30.4 days. The examples exclude PTU, benefits, telework costs and the EOR service fee.
| Monthly salary | IMSS and retirement | INFONAVIT | State payroll tax | Aguinaldo and vacation premium | Employer cost per month | Employer cost per year |
|---|---|---|---|---|---|---|
| MXN 15,000 | MXN 3,107 | MXN 797 | MXN 630 | MXN 750 | MXN 20,284 | MXN 243,414 |
| MXN 30,000 | MXN 5,604 | MXN 1,595 | MXN 1,260 | MXN 1,500 | MXN 39,959 | MXN 479,509 |
| MXN 60,000 | MXN 10,598 | MXN 3,190 | MXN 2,520 | MXN 3,000 | MXN 79,308 | MXN 951,700 |
At MXN 30,000 a month, the employee’s own IMSS share is about MXN 842 a month and income tax about MXN 4,520, both withheld from pay. In another state, replace the 4% payroll tax with that state’s rate. To try your own figures, use the Mexico employer cost calculator; its results can differ slightly because it uses its own assumptions about the state and the working days.
Other costs to plan for
- Benefits. Grocery vouchers, a savings fund and major medical insurance are common for professional roles. Some benefits increase the SBC.
- Telework. Where the person works from home more than 40% of the time, the employer provides equipment and pays a share of internet and electricity costs.
- Overtime. Paid at double time within the weekly limit and triple time above it. The weekly limit falls from 48 hours in 2026 to 40 hours in 2030.
- Ending employment. Earned pay and benefits are always due. Dismissal without a justified cause adds three months’ salary, the seniority premium of 12 days’ salary per year of service (with the salary capped at twice the minimum wage) and, in some cases, 20 days’ salary per year.
- Rate changes. The minimum wage changes each January, the UMA each February, and the employer’s cesantía rate each January until 2030.
How to read an EOR quote for Mexico
Ask to see the cost for a full year, not only a month: the salary, the SBC used for contributions, each IMSS and retirement line, INFONAVIT, the payroll tax rate for the state where the person works, the aguinaldo and vacation premium, and the benefits you plan to offer. A good quote also shows how PTU is treated, the service fee as its own line, one-time items separately, any deposit and when it is returned, and the exchange rate used if you pay in another currency.
NNRoad does not publish a standard price for Mexico. We first review the role and the working arrangement, because not every arrangement can be supported under the subcontracting rules. Then we send a written proposal that shows:
- the full employment cost, line by line, for a full year
- NNRoad’s service fee and any one-time item, listed separately
- any deposit and when it is returned
- the working calendar for invoices and paydays
EOR or your own Mexican company?
A Mexican company needs incorporation before a notary or public broker, a tax ID and e.signature from SAT, a bank account, registration with IMSS, INFONAVIT and the state payroll tax office, monthly tax filings and its own payroll. That makes sense for a long-term team, or when you sell and invoice in Mexico. For one or a few employees, where the arrangement passes review, an employer of record avoids running a company. See how to start a business in Mexico or the steps to hiring in Mexico.
Questions about Mexico EOR cost
How much does an employer of record cost in Mexico?
You pay the employment cost at cost plus the EOR service fee. The employment cost is the salary, IMSS and retirement contributions, INFONAVIT, state payroll tax, the aguinaldo and vacation premium, any PTU and agreed benefits. NNRoad quotes each hire after reviewing the role, with every line shown.
How much does an employee cost on top of salary in Mexico?
For a first-year employee in Mexico City, statutory costs add about 32% to 35% to salary at the salaries in our examples, before benefits and PTU. The share depends on the salary, the state and the work-risk class, and the retirement contribution rises each year until 2030.
What is the SBC in Mexico?
The salario base de cotización is the integrated daily salary used for IMSS and INFONAVIT contributions. It adds benefits such as the aguinaldo and vacation premium to the daily salary and is capped at 25 UMAs a day.
What is the minimum wage in Mexico in 2026?
MXN 315.04 a day, and MXN 440.87 a day in the northern border free zone, from 1 January 2026. Some occupations have higher professional minimum wages.
Do I have to pay PTU through an employer of record?
PTU is a share of the employer’s taxable profit. We explain in the proposal how PTU is handled for your employee and show it separately from the regular monthly cost.
Can I pay a Mexican employee in dollars?
Salary is agreed and paid in pesos. You can fund payroll in another currency; the proposal shows the exchange rate used.
Want the numbers for your own hire?
Send us the role, the salary and the state, and we will reply with our view on the route and a line-by-line annual estimate.
Related
How NNRoad reviews, employs and pays your Mexico hire.
An employer checklist for foreign companies.
Official sources: Federal Labour Law (LFT), Chamber of Deputies; STPS, REPSE register of specialised services; DOF, 2026 working-hours reform; CONASAMI, 2026 minimum wages; PROFEDET, vacation entitlement; PROFEDET, resignation and dismissal; INEGI, 2026 UMA; IMSS, employer contributions (SUA); SAT, 2026 Annex 8 tax tables; DOF, 2026 employment subsidy decree; INM, visa for a job offer; DOF, NOM-037-STPS-2023 on telework. Also: the Social Security Law, the INFONAVIT Law, the Income Tax Law and the 2021 subcontracting reform (DOF, 23 April 2021). State payroll tax rates are set by each state. Reviewed October 2026; general information, not legal or tax advice.