Compensation design
Separate base salary, variable compensation, allowances, and benefits before calculating integrated salary and statutory items.
Mexico EOR Guide
Hiring in Mexico: IMSS, aguinaldo, PTU, and real employer cost
A Mexico budget must include statutory annual items and social-security administration, not only monthly salary. The work location and compensation mix affect payroll setup and total cost.
Verified snapshot
What changes the hiring plan in Mexico
AguinaldoAt least 15 days of salary, payable before 20 December
Profit sharingPTU may apply, subject to statutory rules and exemptions
Social securityEmployer registration and worker reporting through IMSS
PayrollBiweekly and semimonthly cycles are common market practices
Figures and rules are planning inputs, not a quote or legal opinion. Employee category, location, compensation, immigration status, and later rule changes can alter the result.
Hiring decision
Annual obligations belong in the monthly budget
A low-looking monthly salary comparison can be misleading if aguinaldo, vacation premium, PTU, social security, and local payroll tax are left outside the model.
First hire
Confirm who will register and report the worker with IMSS, operate payroll, issue CFDI payroll receipts, and administer annual obligations.
Contractor proposal
Assess subordination and the actual working arrangement. Invoicing through an individual does not by itself remove employment risk.
Country-specific requirements
The details that deserve separate review
Aguinaldo is a statutory annual payment
Mexico's labour authority states that employees are entitled to an annual aguinaldo of at least 15 days of salary, paid before 20 December. Employees with less than a full year receive the proportional amount.
Accrue this cost during the year instead of treating December payroll as an unexpected spike.
Primary source: STPS β right to aguinaldo
PTU can change the cost picture
Employee profit sharing is a constitutional employment right, with eligibility rules and exemptions. The amount is not a predictable flat percentage of each employee's monthly salary, so a proposal should explain whether and how PTU is handled rather than hiding it in a generic burden rate.
Primary source: STPS β employee profit sharing
IMSS and payroll records require an operating owner
The employer workflow includes social-security reporting and employer-worker contributions. Determine who owns IMSS movements, payroll inputs, payment files, corrections, and employee documents before the first payroll cutoff.
Primary source: IMSS β employer services
Common mistakes
What to catch before onboarding
These issues often change cost, timing, or the correct employing model.
Budgeting only 12 monthly salaries
Treating PTU as a fixed monthly percentage without reviewing eligibility
Leaving variable pay and allowances outside payroll design
Using an independent-contractor form for a subordinated role
Primary sources
Official references used for this guide
Open the current official guidance before making a final employment, payroll, tax, or immigration decision.
- STPS β right to aguinaldo
- STPS β employee profit sharing
- IMSS β employer services
- SAT β employer and payroll information
Reference links checked: 15 September 2026. Farlinko content is general operational information and does not replace case-specific legal, tax, or immigration advice.
Plan the hire
Review the Mexico case before the offer goes out.
Share the work location, role, compensation, worker status, target date, and any immigration dependency. We will identify the employing path and the items that still need local confirmation.