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This content is for informational purposes only. We do not guarantee the accuracy or completeness of this content. It is not legal advice and shall not be relied on as such.

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The United Mexican States is a country in the southern part of North America. Mexico City is the capital and one of the most exciting metropolitan areas of Latin America, attracting many tourists each year. Mexico has a very diverse culture. Its ancient Aztec origins and rich histories of indigenous peoples and traditions make the country a hot tourist spot in Latin America. Mexico’s economy consisting of a large domestic market, rising consumer base, growing skilled labor force and proximity to the United States has attracted foreign investors over the years.

Employment contracts in Mexico may be fixed term, seasonal or for an indefinite period.

The standard work period in Mexico is 48 hours per week and eight hours a day. Overtime work is limited to three hours a day and three times a week, in extraordinary circumstances, for up to nine extra hours per week. Overtime is paid at 100% of the standard rate. If the extra work period exceeds nine hours a week, the pay rate is 200% over the standard rate.

Employees can receive up to 78 weeks of sick leave in Mexico, with up to 52 weeks paid through Mexico’s social security system. To qualify, employees must have made a minimum of four weeks of social security contributions immediately preceding the illness. The payment is 60% of the standard rate after a three-day waiting period.

Female employees in Mexico are entitled to 42 days of maternity leave before childbirth and 42 days after childbirth at 100% of their regular salary, paid by social security. Male employees are entitled to five working days of paid paternity leave.

The minimum wage in Mexico varies according to region and profession. Salary payment intervals are seven days for manual and agricultural workers and 15 days for other workers. Salaries may be set per unit of time, unit of work or per commission. Salaries must be paid in local currency at the employee's regular workplace. Employees are entitled to a Christmas bonus of 15 days of wages and profit sharing.

Employees start with twelve days of paid leave per year in Mexico. This increases with years of service.

In Mexico, the public holidays are:

  • New Year's Day

  • Constitution Day

  • Benito Juárez's Birthday Memorial

  • Labor Day / May Day

  • Independence Day

  • Revolution Day Memorial

  • Christmas Day

Employers often observe several additional customary Mexican holidays even though they are considered work days.

Basic healthcare coverage is provided through Mexico’s social security system.

The labor law in Mexico is designed to promote employment stability. The concept of employment-at-will does not exist and employers must have just cause to dismiss an employee or pay compensation. Compensation for dismissal without cause is three months of the employee's daily aggregate salary, 20 days of the employee's salary for each year of service, and seniority premium of 12 days salary for each year of services (if applicable). Employers may dismiss employees for economic reasons, such as reduction in force, and make redundancy payments to affected employees.

  • Local Laws & Regulations

    We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.

  • Partner with atlas logo

    Partnering with Atlas when expanding into Mexico can dramatically reduce the standard brick and mortar processes of doing business in foreign markets and allow you to focus on what you do best, growing your company! To discover more about how Atlas can simplify your ability to expand globally, please feel free to contact us.

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