Country fileMXMXNVerified 2026-10-02
MX 
Employer of Record in Mexico: what one employee really costs
Mexico, Latin America. One software engineer at $36,000 gross per year, priced through 12 providers with a published fee, on the ECB reference rates of 30 Oct 2026. Change the salary and headcount below.
- Employer on-cost
- +30.9%
- statutory charges on top of gross
- All-in per month
- $4,126 – $4,626
- salary + charges + published fee, cheapest to dearest listed provider
Hiring one software engineer in Mexico at $36,000 gross a year costs about $927 a month in statutory employer charges (+30.9%), plus an EOR fee of $199 to $699 per month depending on the provider: $4,126 to $4,626 all-in, before deposits, FX margins and add-ons. Prices checked 2 Oct–3 Nov 2026.
Disclosure Some provider links on this page are affiliate links: if you become a customer after clicking, the provider may pay us a referral fee. It never changes the price you pay, and it never changes the numbers on this page, which come from official sources and are dated. How we are paid
Cost engine · preset to Mexico
Price your own hire, line by line.
employee inatgross / year
≈ MXN 680,678 gross / year · MXN at ECB reference rate, 30 Oct 2026
| Per employee | Rate | Per month |
|---|---|---|
| Gross salary | $3,000 | |
| IMSS — Sickness & maternity, fixed quota (cuota fija) | flat | $38 |
| IMSS — Sickness & maternity, excess quota (cuota adicional) | 1.10% | $28 |
| IMSS — Medical expenses for pensioners | 1.05% | $33 |
| IMSS — Sickness & maternity, cash benefits (en dinero) | 0.70% | $22 |
| IMSS — Disability & life insurance | 1.75% | $55 |
| IMSS — Daycare & social benefits | 1% | $31 |
| IMSS — Retirement (Retiro) | 2% | $63 |
| IMSS — Old-age & unemployment-in-old-age (Cesantia y Vejez, CEAV) | 7.51% | $237 |
| IMSS — Occupational risk insurance (prima de riesgo) | 0.54% | $17 |
| INFONAVIT — Housing fund contribution | 5% | $157 |
| State payroll tax (impuesto sobre nominas) | 3% | $94 |
| Aguinaldo (13th-month bonus) | flat | $125 |
| Vacation premium (prima vacacional) | 0.82% | $25 |
| Employer on-cost | +30.9% | $927 |
| Cost of employment, before EOR fee | $3,927 |
RemoFirstLowest total
$4,126/ month · 1 employee
- Fee / mo
- from $199
- Per year
- $49,507
- Fee share
- 4.8%
Checked 3 Nov 2026
Get a RemoFirst quotePapaya Global
$4,426/ month · 1 employee
- Fee / mo
- from $499
- Per year
- $53,107
- Fee share
- 11.3%
Checked 3 Nov 2026
Get a Papaya quoteDeel
$4,526/ month · 1 employee
- Fee / mo
- from $599
- Per year
- $54,307
- Fee share
- 13.2%
Checked 3 Nov 2026
Get a Deel quoteEmployer charges from official sources; provider fees are list prices on the dates shown; deposits, FX margins and add-ons are not included. Not legal or tax advice. Methodology
14 providers, one scenario, all-in totals.
| Provider | EOR fee / employee / mo | All-in / mo, 1 hire | Countries | Checked | Quote |
|---|---|---|---|---|---|
| RemoFirst | from $199 | $4,126 | 185+ | 3 Nov 2026 | Get a quote from RemoFirst· $4,126/mo |
| Rivermate | from $349 | $4,276 | 180+ | 3 Nov 2026 | Get a quote from Rivermate· $4,276/mo |
| Pebl | from $399 | $4,326 | 185+ | 3 Nov 2026 | Get a quote from Pebl· $4,326/mo |
| Playroll | from $399 | $4,326 | 180+ | 3 Nov 2026 | Get a quote from Playroll· $4,326/mo |
| Multiplier | from $499 $459 billed annually | $4,426 | 150+ | 3 Nov 2026 | Get a quote from Multiplier· $4,426/mo |
| Papaya Global | from $499 | $4,426 | 160+ | 3 Nov 2026 | Get a quote from Papaya Global· $4,426/mo |
| Borderless AI | $579 | $4,506 | — | 3 Nov 2026 | Get a quote from Borderless AI· $4,506/mo |
| Atlas HXM | from $599 | $4,526 | 160+ | 3 Nov 2026 | Get a quote from Atlas HXM· $4,526/mo |
| Deel | from $599 | $4,526 | 130+ | 3 Nov 2026 | Get a quote from Deel· $4,526/mo |
| G-P | from $599 | $4,526 | 180+ | 3 Nov 2026 | Get a quote from G-P· $4,526/mo |
| Remote | from $599 | $4,526 | 90+ | 3 Nov 2026 | Get a quote from Remote· $4,526/mo |
| Oyster | $699 | $4,626 | 120+ | 3 Nov 2026 | Get a quote from Oyster· $4,626/mo |
| Rippling | Quote only | — | — | 3 Nov 2026 | Get a quote from Rippling |
| Safeguard Global | Quote only | — | 187+ | 3 Nov 2026 | Get a quote from Safeguard Global |
Deposit, FX and contract terms: open a provider's name for its file, or see every provider's terms side by side.
Same salary and statutory charges in every row; only the fee segment changes.
What Mexico adds on top of the salary, and where each rate comes from.
Rates apply to the base named in each line; capped lines stop growing above the ceiling.
| Line | Employer rate | Base & ceiling | Source |
|---|---|---|---|
| IMSS — Sickness & maternity, fixed quota (cuota fija)Fixed amount per employee, independent of salary | MXN 8,735 / yr | Fixed amount per employee 20.40% of one UMA per day, paid for every employee regardless of salary (LSS Art. 106 / Decreto DOF 16-12-2020). Modelled as a flat amount: 0.2040 x the 2026 daily UMA of MXN 117.31 x 365 = MXN 8,734.90 per year. This percentage is supported by a secondary source citing the law; the JS-rendered IMSS and DOF percentage pages were not directly retrievable when checked. | IDC Online2026-10-10 |
| IMSS — Sickness & maternity, excess quota (cuota adicional) | 1.10% | Slice of gross salary × 1.049315 between MXN 128,454 and MXN 1,070,454 / yr 1.10% employer share on the part of the contribution base (SBC) above three times the daily UMA (the first 3 UMA are covered by the fixed quota), up to the general 25-UMA/day ceiling. Modelled exactly as a band: 3 x UMA 117.31 x 365 = MXN 128,454.45 to 25 x UMA x 365 = MXN 1,070,453.75 per year. Secondary source (see cuota fija note). Base: the SBC, not the gross salary. LSS Art. 27 builds the SBC from every payment for the work, including "gratificaciones" and "primas" (Ley del Seguro Social, Camara de Diputados, texto vigente, last reform DOF 15-01-2026, read 2026-10-02), so the 15-day aguinaldo and the first-year vacation premium (25% of 12 days) enter it. Integration factor: (365 + 15 + 12 x 0.25) / 365 = 383/365 = 1.049315, applied to gross before the floor and the 25-UMA cap. This is the legal minimum: richer benefits (more aguinaldo days, a longer vacation, taxable vouchers) raise the SBC further, so the cost is at least this. | IDC Online2026-09-02 |
| IMSS — Medical expenses for pensioners | 1.05% | Gross salary × 1.049315 , capped at MXN 1,070,454 / yr 1.05% employer share of the salario base de cotizacion (SBC), capped at 25 UMA/day. Secondary source (see cuota fija note). Base: the SBC, at least gross x 1.049315 (LSS Art. 27, see the excedente note). | IDC Online2026-09-02 |
| IMSS — Sickness & maternity, cash benefits (en dinero) | 0.70% | Gross salary × 1.049315 , capped at MXN 1,070,454 / yr 0.70% employer share of the SBC, capped at 25 UMA/day. Secondary source (see cuota fija note). Base: the SBC, at least gross x 1.049315 (LSS Art. 27, see the excedente note). | IDC Online2026-09-02 |
| IMSS — Disability & life insurance | 1.75% | Gross salary × 1.049315 , capped at MXN 1,070,454 / yr 1.75% employer share of the SBC, capped at 25 UMA/day. Secondary source (see cuota fija note). Base: the SBC, at least gross x 1.049315 (LSS Art. 27, see the excedente note). | IDC Online2026-09-02 |
| IMSS — Daycare & social benefits | 1% | Gross salary × 1.049315 , capped at MXN 1,070,454 / yr 1.00% employer share of the SBC, capped at 25 UMA/day. Secondary source (see cuota fija note). Base: the SBC, at least gross x 1.049315 (LSS Art. 27, see the excedente note). | IDC Online2026-09-02 |
| IMSS — Retirement (Retiro) | 2% | Gross salary × 1.049315 , capped at MXN 1,070,454 / yr 2.00% employer share of the SBC, capped at 25 UMA/day. Also confirmed independently by PwC Tax Summaries ("2% on the base salary of the employee is paid by the employer for the concept of retirement"). Secondary source. Base: the SBC, at least gross x 1.049315 (LSS Art. 27, see the excedente note). | IDC Online2026-09-02 |
| IMSS — Old-age & unemployment-in-old-age (Cesantia y Vejez, CEAV) | 7.51% | Gross salary × 1.049315 , capped at MXN 1,070,454 / yr Employer CEAV quota is progressive by SBC/UMA ratio under the 2020 pension reform (Decreto DOF 16-12-2020, Art. Segundo Transitorio), rising every year to 2030. 2026 table: 1 SM = 3.150%; 1.01-1.50 UMA = 3.676%; 1.51-2.00 UMA = 4.851%; 2.01-2.50 UMA = 5.556%; 2.51-3.00 UMA = 6.026%; 3.01-3.50 UMA = 6.361%; 3.51-4.00 UMA = 6.613%; 4.01+ UMA = 7.513%. A gross salary above roughly 4.01 UMA (~$171,700 MXN, ~$9,500 USD/year at the 2026 UMA) falls in the top 7.513% bracket -- true for effectively every salary this calculator models, including the $36,000 example. Secondary sources, cross-confirmed. Base: the SBC, at least gross x 1.049315 (LSS Art. 27, see the excedente note). | Manuel Nevarez y Asociados2026-09-02 |
| IMSS — Occupational risk insurance (prima de riesgo)Class I (ordinary/office risk) minimum premium — applies to desk-based roles such as software engineers | 0.54% | Gross salary × 1.049315 , capped at MXN 1,070,454 / yr Employer-only premium set by risk class (LSS Art. 73), ranging roughly 0.5%-15% of the SBC depending on the employer's accident record and industry. Shown here is the Class I minimum premium (0.54355%), the class for low-risk office work, capped at 25 UMA/day. A logistics, manufacturing or field-labor employer would fall into a higher class. Secondary source (specialized payroll firm). Base: the SBC, at least gross x 1.049315 (LSS Art. 27, see the excedente note). | SDV2026-09-02 |
| INFONAVIT — Housing fund contribution | 5% | Gross salary × 1.049315 , capped at MXN 1,070,454 / yr 5.00% employer contribution to the national housing fund on the same SBC used for IMSS, capped at 25 UMA/day. Confirmed on INFONAVIT's own site ("el empleador debe aportar el 5% del salario") and by Ley del INFONAVIT Art. 29-II ("cinco por ciento sobre el salario de los trabajadores a su servicio"; "En lo que corresponde a la integración y cálculo de la base y límite superior salarial para el pago de aportaciones, se aplicará lo contenido en la Ley del Seguro Social", Camara de Diputados, texto vigente, last reform DOF 21-02-2025, read 2026-10-02), independently corroborated by PwC Tax Summaries ("5% ... for the concept of housing must be paid by the employer"). Base: the SBC, at least gross x 1.049315 (LSS Art. 27, see the excedente note). | INFONAVIT2026-09-02 |
| State payroll tax (impuesto sobre nominas)Levied by the state where the employee works; rate set by each state | 3% | Gross salary × 1.049867 Modelled at 3%. Each state sets its own rate (roughly 2-4% of payroll); PwC's Mexico summary (reviewed 6 Aug 2026) cites Mexico City as the example, and Mexico City raised its rate to 4% from 2025 (Codigo Fiscal CDMX art. 158, per CDMX business-chamber sources). The EOR bills the rate of the state where the employee works. Secondary source. Base: all pay for the work, aguinaldo and vacation premium included, as in Mexico City, whose Codigo Fiscal art. 156 lists "Premios, primas, bonos, estímulos e incentivos" and "Gratificaciones y aguinaldos" among the taxed payments (Congreso CDMX copy, last reform published 02-09-2021, read 2026-10-02). Modelled as gross x (1 + 0.5/12 + 0.0082) = 1.049867, the same aguinaldo and vacation-premium extras this page adds below. | PwC Tax Summaries2026-09-02 |
| Aguinaldo (13th-month bonus) | 0.5 months | Added to the annual cost15 days of salary minimum, paid before 20 December (LFT Art. 87: "un aguinaldo anual ... equivalente a quince dias de salario, por lo menos"). Modeled as 15/30 = 0.5 extra month of gross pay. | Ley Federal del Trabajo, Articulo 87 (Orden Juridico Nacional, gob.mx)2026-09-02 |
| Vacation premium (prima vacacional) | 0.82% | Added to the annual cost25% premium on the pay corresponding to vacation days (LFT Art. 80: "prima no menor de veinticinco por ciento sobre los salarios"), on top of the vacation pay itself. First-year minimum is 12 paid vacation days (LFT Art. 76, "vacaciones dignas" reform, in force since 2023). Calc: 12 days x 25% = 3 days' pay equivalent = 3/365 = 0.82% of annual gross. | Ley Federal del Trabajo, Articulos 76 y 80 (Orden Juridico Nacional, gob.mx)2026-09-02 |
| Profit sharing (PTU) not in total | — | 10% of the company's adjusted taxable income is distributed among employees (LFT Art. 117-120 sets the obligation; the 10% figure is fixed by the Comision Nacional para la PTU). Per-employee payout is capped at the higher of 3 months' salary or the average PTU received over the last 3 years; not due in a company's first year of operation. Not computable from an individual salary alone, so excluded from the total (in_total: false). Secondary source (PwC Tax Summaries, an approved fallback per project rules). | PwC Tax Summaries2026-09-02 |
| Employer on-cost at $36,000 | +30.9% | $11,119 a year, $927 a month |
EOR or your own entity
Fees scale with headcount. An entity does not.
Opening a Mexican legal entity (S.A. de C.V.) plus employer registration with IMSS and INFONAVIT takes 3-6 months by Oyster's estimate (hiring via EOR takes "as little as 48 hours", it says, against three to six months for a local entity) and 4-5 months for full incorporation by Deel's, versus 2-5 business days through an EOR. When headcount in Mexico is set to grow over several years, compare the amortized cost of a local entity and an in-country payroll provider with per-employee EOR fees; the break-even depends on your own entity and payroll quotes, not on a fixed headcount.
Fees grow with every hire; the charges line is owed under an entity too.
| Headcount | RemoFirst fees / yr | Borderless AI fees / yr | Statutory charges / yr |
|---|---|---|---|
| 1 | $2,388 | $6,948 | $11,119 |
| 3 | $7,164 | $20,844 | $33,358 |
| 5 | $11,940 | $34,740 | $55,597 |
| 10 | $23,880 | $69,480 | $111,194 |
| 20 | $47,760 | $138,960 | $222,388 |
Statutory charges are owed either way; the provider fee is the only line an entity removes, against the cost of incorporating and running local payroll.
Employment terms that move the cost
- Paid leave
- 12 days
- Public holidays
- 7
- 13th month
- Mandatory
- Probation
- up to 6 months
- Notice
- No statutory advance-notice period for dismissal or resignation (Remote's Mexico guide: "employers and employees have no obligation to notify the other party in advance"); unjustified dismissal instead requires severance under LFT Art. 48-50 -- about 3 months' salary plus 20 days' pay per year of service, plus the seniority premium (Art. 162).
- Reviewed
- 2026-10-02
Get a quote for Mexico.
The lowest published total here, next to the two providers searched for most often (the rule). Totals for 1 hire at $36,000. Ask each provider about deposits, FX margins and mandatory add-ons for Mexico: those are the lines that move.
Get a RemoFirst quote· $4,126/mo Get a Papaya quote· $4,426/mo Get a Deel quote· $4,526/mo
Disclosure Some provider links are affiliate links; they never change the numbers on this page. Details
Questions people ask before booking a demo
- How much do mandatory employer costs add to a salary in Mexico?
- IMSS social security, INFONAVIT housing, the state payroll tax, the aguinaldo (13th-month bonus) and the vacation premium together add about 31% on top of gross salary for an office role such as a software engineer earning $36,000/year, before any EOR service fee: 30.9% in the calculator, with the legal minimum benefits, the lowest risk class and a 3% state payroll tax. Richer benefits raise the contribution base and the cost. EOR vendors themselves cite employer on-cost ranges of about 20-30% for Mexico depending on state and salary.
- Is there a salary cap on IMSS and INFONAVIT contributions in Mexico?
- Yes. Most IMSS branches and INFONAVIT are calculated on a base capped at 25 times the daily UMA (about $1,070,454 MXN, roughly $59,000 USD per year at the 2026 UMA value of $117.31 MXN/day). Because that base includes the aguinaldo and the vacation premium, the cap is reached at a gross salary of about $1,020,000 MXN a year, and employer costs stop scaling linearly above it.