Salaries are normally paid in cash on the last workday of the week – or with the employee’s prior consent, an employer may pay wages by check, direct deposit, transfers, or through any other electronic means.
Children under 15 are prohibited from working, and teenagers age 15 and older may work no more than six hours a day.
Social Security consists of 3 components: IMSS which is healthcare; INFONAVIT a housing assistance program; and, retirement pension.
Social security is to be provided to all workers and is to commence on the first day of work.
A tourist who employees a person cannot enroll as they have no CURP number which is akin to a US SSN or a Canadian SIN. Their only option is to enroll through a third party.
If an employee refuses to be enrolled or refuses to provide information for enrollment such as their CURP number, they cannot be hired.
Social Security has an additional cost to the employer of about 30% of their wage.
IMSS payment is paid monthly. INFONAVIT and pension contributions are paid every 2 months.
For those who lack a knowledge of Spanish or who are not familiar with this program they are best to hire a professional to establish their social security account, to enroll employee/s and to administer the payments. If needed, I have a professional who is very capable to provide this service. Please email me.
Aguinaldo pay applies to workers, whether they are rank-and-file (example: bank teller, cashier. assembly line worker, cleaning staff, host/hostess), permanent, unionized, hired for work for a specific time, temporary, commission agents, insurance agents, salespeople and other similar workers. This labor benefit applies to all workers who provide their services in a subordinate manner to an employer whose employment relationship is governed by Article 87 of the Federal Labor Law.
Payment is to be made before December 20 of each year. Aguinaldo is considered part of a peron’s pay. If a person works part of the year even if they quit or die they receive Aguinaldo based on per cent of year worked. A person hired for a fee is not entitled to Aguinaldo.
For workers hired as salespeople, commercial or insurance agents, commissioned and other similar workers, the daily salary for the payment of the bonus is calculated taking into account the average of the income received in the last year of work or the length of work if the year has not been completed.
Aguinaldo pay: weekly income divided by 7 = daily rate
Daily rate x 15 days = Aguinaldo
Example: employee earns 1400 pesos per week. Daily rate = 1400 / 7 = 200. Aguinaldo = 200 x 15 = 3000 pesos
Vacation pay as per Articulo 76 and 78 of the LEY FEDERAL DEL TRABAJO is to be provided to workers including those that provide seasonal and intermittent services in proportion to the number of workdays in the year either before the vacation or before the year’s end if no vacation was taken. The vacation pay must equal the required number of vacation days of salary plus 25% of the amount (vacation premium) as per Articulo 80 of the LEY FEDERAL DEL TRABAJO. If the employee so decides, their vacation days may be distributed according to their wishes and needs. And, Articulo 81 states that employees must take their vacation days within six months of their anniversary.
To calculate the amount of vacation pay use the amount earned in a week divided by 7 to determine the daily rate. Multiply that times the number of vacation days x 1.25 (that is the 25% premium).
Example: employee earns 1400 pesos in a week, divided by 7 = daily rate of 200 pesos. Vacation days after year 1 is 12 days. Therefore, 12 x 200 = 2400 pesos x 25% extra for premium = 2400 x 1.25 = 3000 pesos.
Year 1 = 12 days Year 2 = 14 days Year 3 = 16 days Year 4 = 18 days Year 5 = 20 days
Year 6 to 10 = 22 days Year 11 to 15 = 24 days Year 16 to 20 = 26 days
Statutory Holiday / Sunday / Christmas Pay
If an employee is required to work on one of the Official Government holidays, they receive regular payment for the day plus double time for hours worked as per Articulo 74 of the LEY FEDERAL DEL TRABAJO.
Jan 1 New Year’s Day
First Monday of February* Constitution Day
Third Monday of March* Benito Juárez’ Birthday
May 1 Labor Day
Sep 16 Independence Day
Third Monday of November* Revolution Day
Dec 25 Christmas Day
Federal Election Day, once every 6 years.
*These 3 days are established by Mexican law and may be changed to tie in with a weekend.
Sunday Pay: If an employee is required to work on a Sunday, pay + 25% is required. If that employee has worked the other six days of the week, the employee is entitled to overtime pay as well as the 25% premium.
Aguinaldo (Christmas Payment): Aguinaldo is considered a regular part of an employee’s wages. It is not a bonus and is required by law to be paid to all employees as per Article 87 of the LEY FEDERAL DEL TRABAJO. Payment is to be made before December 20th although many pay a week or more earlier. The Aguinaldo amount to be paid is what an employee would earn over a 15-day period which is half of a typical month.
The easiest calculation is the amount earned in a week divided by 7 to determine the daily rate. Multiply that times 15 days.
Example: employee earns 700 pesos in a week, divided by 7 = daily rate of 100 pesos. Aguinaldo is 100 x 15 = 1500 pesos. If the employee worked only part of the year, pro-rate this payment. This is to be paid in cash or with the prior consent of the worker by bank deposit, debit cards, check, transfers or other electronic means. It is not to be paid in merchandise, vouchers, tokens or any other form intended to substitute currency.
Hours and Premium Pay
The work week must not exceed:
48 hours for day shifts 42 hours for night shifts 45 hours for mixed shifts
The work week consists of six work days. However, the daily or weekly distribution of hours may be agreed so that employees have all, or part of, Saturday and Sunday as regular days off.
Employees required to work on Sundays (as a regular work day) are entitled to an additional bonus amounting to an extra 25% of their usual daily wages. However, if Sunday is employe’s day off and he / she is required to work on a Sunday, then employee is entitled to an additional 225% on top of his normal salary (200% for working on his day off (Art. 73 LFT) and 25% for working on a Sunday (Art. 71 II LFT).
An employee may only be required to work overtime in exceptional circumstances.
For a change in work schedule the employee must be in agreement with the adjustments (Art. 59 II LFT and Art. 70 LFT expressly state that the employer and the employee can adjust the work schedule and the employer and the employee together establish the weekly day off), and the work hours must not be excessive
Employees are paid:
Double their usual wages for the first nine hours of overtime per week.
Three times their usual wages for each subsequent hour of overtime per week.
Employees are entitled to at least one full day of rest after six days of work. If employees agree to work on their day off, they receive triple their wages for that day. In addition, employees are entitled to a rest break of at least 30 minutes during a working day. If the rest break given to an employee is less than 30 minutes long or the employee is not entitled to leave the work facilities to rest, then that rest break must be determined as time actually worked and remunerated. As noted below under maternity right, a special rule applies regarding working mothers, who must have two additional daily breaks of 30 minutes each when breastfeeding.
Employees must obtain a certificate from the IMSS in the case of illness or injury (FLL and Social Security Law of 1997). Of course, they are to be provided IMSS by the employer.
Once a certificate has been obtained from the IMSS the entitlement to sick leave varies, depending on the type of illness and degree of incapacity. The IMSS decides whether sick leave is to be granted, as well as the amount to be paid to employees during the illness or injury. The IMSS pays this amount directly to the employees.
Pregnancy, Nursing Mothers, Adoption
A women when pregnant must not work night shifts in industrial plants that have a hazardous work environment; work after 10:00 pm in commercial or service establishments; work overtime; carry out any work that could endanger their health or that of their child. This includes work involving the use of considerable force (for example, lifting or pushing) and standing for long periods of time.
Pregnant employees are entitled to six weeks statutory maternity leave before and six weeks after giving birth. During maternity leave, the IMSS pays the employee’s registered salary. If the employee’s salary is above the cap registered salary (25 times the minimum daily wage), then the employer pays the difference between that amount and the employee’s total wage. Pregnant employees, subject to prior medical approval and authorization from the employer and IMSS, may transfer up to 4 weeks of the six weeks, which are supposed to be enjoyed prior to childbirth, to the moment after the birth.
During the nursing period, the new mother is entitled to two additional 30-minute rest periods every day to feed the child, in an adequate and hygienic place set aside by the employer. This provision is available to the mother for up to 6 months following the birth.
When returning from maternity leave, the employee is entitled to be reinstated, provided that not more than one year has passed since the date of childbirth.
Fathers are entitled to five days of paternity leave in the event of a child’s birth.
There are no rights for employees in cases of surrogacy in Mexico.
Female employees that adopt a child are entitled to take adoption leave of six weeks when they take placement of a child.
Fathers that adopt a child are entitled to five days’ leave when they take placement of a child.
Trial / Probationary Employment
These may be a maximum of 180 days for management, technical or specialized professional positions and up to 100 days for technical roles. Employees at lower levels may be offered a 30-day probationary period.