Free tool
Mexico Employee Cost Calculator
The statutory employer burden in Mexico typically runs 1.30 to 1.40 times base salary once social security, housing, retirement, payroll tax and statutory bonuses are counted. The calculator below models a fuller basket, adding benefits above the statutory minimum and either an Employer of Record fee or your own entity overhead, so its multiple is higher on purpose. Model your role, then compare the two routes.
Estimated total annual cost per employee
$50,967
1.70× base salary · $4,247 per month · $50,967 per year for 1 person
| Base salary | $30,000 |
| IMSS social security | $6,000 |
| INFONAVIT housing | $1,500 |
| SAR retirement | $600 |
| State payroll tax | $900 |
| Aguinaldo (15 days) | $1,233 |
| Vacation premium | $247 |
| Profit sharing accrual | $900 |
| Additional benefits | $2,400 |
| EOR fees | $7,188 |
Employment solution versus your own entity
- EOR, per employee / year
- $50,967
- Own entity, per employee / year
- $88,779
- Approximate breakeven headcount
- 7 employees
Below the breakeven headcount an employment solution is usually cheaper because entity overhead is fixed. Above it, an owned entity usually wins on cost, though speed, control, permanence and risk should also drive the decision.
Operator detail, free
Get the full cost model for your roles and your city
We rebuild this estimate with the real IMSS risk class, state payroll tax and market benefits for the roles you are hiring, and a specialist reviews it with you.
- Line by line burden model per role, in MXN and USD
- State by state comparison of your shortlist cities
- EOR versus own entity breakeven at your headcount
- Current salary bands so your offers land
Put this estimate to work for your Mexico team.
Planning a company workforce? Bring the roles, locations and current arrangement together to review total cost and the support your operation needs.
Using this number to decide? Starting a Mexico operation · Improving a team you already have
Ask what this number means for your Mexico hire
Send the question the estimate raises: which employment route to use, what the number looks like in your city, or what changes at your headcount. A Mexico specialist answers in writing on your actual roles and locations.
Planning estimate only. Send us the actual roles and locations and we return the same model built on your salaries, IMSS risk class and benefit design.
What goes into these numbers
- · Employer IMSS contributions are modeled at approximately 20% of salary. The true rate depends on the integrated daily salary and the employer's occupational risk class (Ley del Seguro Social; IMSS).
- · INFONAVIT housing contribution: 5% of the integrated daily salary.
- · SAR retirement contribution: 2% of the integrated daily salary.
- · State payroll tax (impuesto sobre nóminas) varies by state, typically 1% to 4%; the default shown is 3%.
- · Aguinaldo: statutory minimum of 15 days of salary (Ley Federal del Trabajo, art. 87).
- · Vacation premium: 25% of vacation pay, modeled on 12 vacation days, the statutory first-year minimum since the 2023 reform (LFT arts. 76 and 80).
- · PTU profit sharing: accrued at 3% of salary as a planning proxy where PTU applies; statutory PTU is 10% of taxable profit with a cap of three months' salary or the average of the last three years, whichever is more favorable (LFT art. 127).
- · Own-entity overhead is your input, defaulted to USD 45,000 per year for accounting, tax filings, legal, payroll administration, HR support, banking and compliance for a small entity. Incorporation, office, and management time are not included.
- · The 1.30 to 1.40 range quoted above covers statutory employer contributions and statutory bonuses only. The total shown in the table also includes the benefits you entered and either the Employer of Record fee or entity overhead, which is why the multiple on your result is higher.
- · Sources: Ley Federal del Trabajo (Cámara de Diputados), Ley del Seguro Social, IMSS, INFONAVIT, SAT and state finance ministries.
This is a planning estimate. Send us the roles and locations and a Mexico specialist returns the same model built on your actual salaries, risk class, state and benefits.
Answers
Frequently asked questions
The questions buyers ask us before they commit. If yours is not here, send it and a Mexico specialist answers it directly.
Ask a Mexico SpecialistWhat does it really cost to employ someone in Mexico?+
Plan on roughly 1.30 to 1.40 times base salary for the statutory employer burden alone: IMSS, INFONAVIT, SAR, state payroll tax, aguinaldo, vacation premium and profit sharing. That range does not include benefits above the statutory minimum, such as private medical insurance and grocery vouchers, and it does not include an Employer of Record fee or the overhead of running your own entity. The calculator below starts with a benefits and partner package already switched on, so the multiple it shows is higher than 1.30 to 1.40. Those are two different baskets, not two different answers.
Which employer contributions are mandatory?+
IMSS social security across several branches, INFONAVIT housing at 5 percent of integrated salary, SAR retirement at 2 percent and state payroll tax that typically ranges from 1 to 4 percent depending on the state.
Are aguinaldo and vacation premium extra costs?+
Yes. The 15-day minimum aguinaldo and the 25 percent vacation premium are statutory cash costs on top of base salary, and they also increase the integrated daily salary used to calculate social security.
How much does an Employer of Record add?+
EOR pricing is usually a flat monthly fee per employee or a percentage of payroll. This calculator lets you model either, so you can compare EOR against the cost of opening and running your own Mexican entity.
Is this calculator a quote?+
No. It is a planning estimate based on typical statutory rates. Actual cost depends on the state, the IMSS risk class of the role, the benefits package and the integrated daily salary. We will model your exact scenario on request.
Want this priced on your actual roles?
Send the roles, locations and headcount. A Mexico specialist returns a fully loaded cost per role in USD, the employment route that fits, whether an entity or an Employer of Record is cheaper for your case, and what it costs to run.