What is the cost of salaries in Mexico?

In Mexico, besides the gross salary, you need to consider the costs of social contributions and the labor liabilities tied to workers’ rights when figuring out payroll expenses.

In simple terms, we can say that the total cost of an employee’s payroll in Mexico consists of the Gross Salary plus the Contributions that the Employer must pay for Social Security and State Taxes. Additionally, labor liabilities should be considered, which consist of Mandatory Labor Benefits and the cost of Settlement with Compensation in case of dismissal or contract termination. In the following table, we illustrate the total cost of an employee’s payroll for different Gross Monthly Salary amounts. This only illustrates the monthly payroll expense; mandatory benefits will need to be considered separately.

Salaries in Mexico 2024

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