A MX$600,000 salary costs a Mexican employer about MX$773,653 a year, which is 28.9% on top of base pay once IMSS, Infonavit, state payroll tax and the statutory aguinaldo are counted.
Mexico is the market where a single blended percentage is least useful. There is no one employer rate to quote: IMSS alone is a set of separate branches with different bases, some charged against salary and some against the UMA, and the payroll tax on top is set by the state rather than the federation. What follows is the breakdown, and the two variables that move it most.
Total add-on at MX$600k
28.9%
including 15 days of aguinaldo
2026 UMA
MX$117.31/day
indexes several IMSS branches
State payroll tax
1% to 4%
set by state, 3% used here
Price a hire with your own state rate and risk class.
Open the Mexico employer-cost calculatorWhere the money goes on MX$600,000
| Employer charge | Set by | Amount |
|---|---|---|
| IMSS, all branches combined | Federal, several bases | MX$97,996 |
| Infonavit housing fund | 5% of contribution base | MX$30,000 |
| State payroll tax (ISN) | State, 3% assumed | MX$18,000 |
| Riesgos de trabajo | Risk class, 0.5% office | MX$3,000 |
| Aguinaldo, 15 days | Ley Federal del Trabajo | MX$24,658 |
PayMetric's own modelled figures from the Mexico employer-cost engine at 2026 rates and the 2026 UMA. The IMSS total covers the sickness and maternity fixed quota and excess, cash benefits, pensioners' medical cover, disability and life, retirement, CEAV and childcare.
The rate drifts down, but gently
The IMSS contribution base caps at 25 UMA, so the social security branches stop growing at around MX$1,069,866 of annual salary. Infonavit and the state payroll tax keep scaling, which is why Mexico's decline with salary is milder than Vietnam's or Japan's.
| Salary | Statutory | As % of pay | Aguinaldo | Total cost | On top |
|---|---|---|---|---|---|
| MX$300,000 | MX$78,157 | 26.1% | MX$12,329 | MX$390,486 | 30.2% |
| MX$600,000 | MX$148,996 | 24.8% | MX$24,658 | MX$773,653 | 28.9% |
| MX$1,200,000 | MX$263,849 | 22.0% | MX$49,315 | MX$1,513,164 | 26.1% |
Two decisions that move the number before you hire
Which state the employment sits in. Impuesto sobre nómina is state-set and runs roughly 1% to 4%. On MX$600,000 that spread is about MX$18,000 a year, and for a fully remote team the entity location is often a genuine choice rather than a given.
Whether aguinaldo is 15 days or 30. Fifteen is the legal minimum. Thirty is common in technology hiring, and the difference is roughly another four percentage points of total cost. Decide it deliberately and write it into the offer, because candidates compare it.
Model a Mexican hire
Set your state payroll tax rate, your riesgos de trabajo class and the aguinaldo days you intend to pay, then add equipment and recruitment separately.
Open the Mexico Employer Cost CalculatorMonthly briefing
Get our monthly salary and market update
Salary movements, contractor rate changes, tax updates, and new tools. Sent once a month, no noise.
No spam. Unsubscribe any time. GDPR-compliant.
Frequently asked questions
What does a MX$600,000 salary cost an employer in Mexico?
About MX$773,653 a year, or 28.9% on top of salary. That breaks into MX$97,996 of IMSS social security branches, MX$30,000 of Infonavit housing fund at 5%, MX$3,000 of riesgos de trabajo at an office rate of 0.5%, MX$18,000 of state payroll tax at 3%, and MX$24,658 of aguinaldo for the statutory 15 days.
Why is there no single Mexican employer contribution rate?
Because IMSS is not one charge. It is a set of separate branches, each with its own rate and its own base: a fixed quota and an excess charge for sickness and maternity, benefits in cash, pensioners' medical cover, disability and life, retirement, unemployment in old age (CEAV) and childcare. Several are calculated on the salario base de cotización and several reference the UMA rather than salary, which is why the effective percentage drifts as pay changes rather than staying fixed.
What is the UMA and why does it matter to payroll?
The Unidad de Medida y Actualización is the indexation unit that replaced the minimum wage as the reference for many contributions and caps. INEGI set it at MXN 117.31 a day for 2026, which is MXN 3,566.22 a month. Several IMSS branches are charged on the portion of salary above three UMA, and the contribution base itself caps at 25 UMA, so the UMA update each February changes employer cost even when nobody's salary has moved.
Does the state I hire in change the cost?
Yes. Impuesto sobre nómina is a state tax, not a federal one, and it generally runs between about 1% and 4% depending on the state. These figures use 3%. Hiring in a state at the top of that range rather than the bottom is worth roughly two percentage points of total employer cost, which is a real consideration if your team is remote and the entity location is genuinely flexible.
Is aguinaldo really only 15 days?
Fifteen days is the statutory floor set by the Ley Federal del Trabajo, payable before 20 December. Many employers pay 30 days as a matter of market practice, particularly in technology, and any amount above the minimum is contractual. Doubling the aguinaldo adds roughly another 4% to total employer cost, so it is worth being explicit about which you are offering.
Where does the contribution base cap?
The salario base de cotización is capped at 25 UMA, which is about MX$1,069,866 a year at the 2026 UMA. Above that, the IMSS branches stop growing, which is why the effective employer rate falls from 26.1% at MX$300,000 to 22.0% at MX$1,200,000. Infonavit and state payroll tax behave differently, so the decline is gentler than in markets like Vietnam or Japan.
What about PTU, the profit share?
Profit sharing is a separate statutory obligation, generally 10% of taxable profit distributed to employees, with a cap of three months' salary or the average of the last three years' PTU, whichever is better for the employee. It is not a payroll percentage and does not appear in these figures, because it depends on company profit rather than on the individual hire. It is covered in its own article linked below.
How does Mexico compare with other nearshore and offshore markets?
Mexico's 24.8% of statutory employer contributions at MX$600,000 sits close to Vietnam (23.5%), above Japan (15.7%) and the Philippines (6.2%), and below Sweden (31.4%) and Brazil (34.8%). For US companies the more relevant comparison is often against a domestic hire, where the employer's FICA and unemployment load is far lighter but base salaries are several times higher.
General information only. Rates are the 2026 figures used by PayMetric's Mexico employer-cost engine, including the UMA published by INEGI for 2026. State payroll tax and risk class vary, so set both to your own situation. Check current official guidance and take professional advice before a decision affecting your payroll, tax or employment position.