Mexico Employee Cost Calculator
See the true cost of employing someone in Mexico — gross salary plus an estimated 30.0% in employer social contributions.
Cost of an employee in Mexico
Employer contribution breakdown
| Contribution | Rate | Annual amount |
|---|---|---|
| IMSS social security (typical) | 20.00% | — |
| INFONAVIT housing fund | 5.00% | — |
| SAR retirement savings | 2.00% | — |
| State payroll tax (typical) | 3.00% | — |
| Total employer contributions | 30.0% | — |
Employer costs in Mexico
In Mexico, employer contributions typically run about 30% on top of base salary — IMSS social security, the INFONAVIT housing fund, SAR retirement savings and a state payroll tax.
- IMSS is the largest block and is highly variable (calculated on the integrated salary and the job's risk class).
- Employers also pay INFONAVIT (housing, 5%), SAR (retirement, ~2%) and a state payroll tax of roughly 2–3%.
- Total employer contributions commonly fall in the 25%–40% range depending on salary and risk class.
IMSS is computed on an integrated salary (base plus benefits) using UMA-linked brackets, so the real rate varies widely. Mandatory Aguinaldo and vacation premium add further annual cost. Use it for budgeting, not payroll.
Hire and pay in Mexico
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Frequently asked questions
On top of gross salary, an employer pays statutory social-security contributions — around 30.0% in Mexico. The total employer cost is the gross salary plus those employer contributions. It does not include optional benefits, equipment, or recruitment costs.
Employers must pay mandatory social-security and payroll charges on top of the gross salary the employee sees. These fund pensions, healthcare, unemployment, and similar schemes, and they are a real, recurring cost of employment.
In most countries several contributions are calculated only up to a maximum income base, so the effective employer rate is lower for high salaries. Treat this calculator as a budgeting estimate rather than exact payroll.
Many companies use an Employer of Record (EOR) to hire compliantly in Mexico without opening a local subsidiary. The EOR is the legal employer and handles payroll, contributions, and compliance for a monthly fee.