To budget a Mexico team for 2027, plan on base salary plus at least half a month of aguinaldo (about 4.2% of annual base), a vacation premium, IMSS social security and profit sharing, and three cost changes that land in 2027: the legal workweek drops from 48 to 46 hours on January 1, 2027, the employer retirement contribution (CEAV) keeps rising every year until it reaches 11.875% of covered salary in 2030, and the minimum wage and UMA reset in January and February. For a developer at the Talentosy Salary Index median of $55,500 MXN a month (≈ $3,050 USD), salary, aguinaldo and vacation premium alone come to $699,300 MXN (≈ $38,150 USD) a year before social security.
What does Mexico payroll cost beyond base salary?
Mexico payroll costs beyond base salary are set by law and cannot be negotiated away for employees on payroll. The Federal Labor Law (LFT) and the Social Security Law fix the floor:
- Aguinaldo: at least 15 days of salary, paid before December 20 (LFT art. 87). That is half a month, or about 4.2% of annual base.
- Vacation and vacation premium: 12 paid days in year one, rising with tenure, plus a premium of at least 25% on those days (arts. 76 and 80). In year one the premium equals 3 days of salary, about 0.8% of annual base.
- PTU (profit sharing): paid within 60 days after the annual tax payment deadline (art. 122), which for most corporations means late May.
- IMSS, Infonavit and retirement: employer contributions calculated on each employee's registered salary; the IMSS breakdown is in IMSS, aguinaldo and payroll costs.
What changes in Mexico payroll in 2027?
Three Mexico payroll changes hit 2027 budgets, and all of them raise cost per productive hour:
- 46-hour workweek (January 1, 2027). The labor reform published in the Diario Oficial on May 1, 2026 cuts the weekly maximum to 46 hours in 2027, 44 in 2028, 42 in 2029 and 40 in 2030, with no pay cuts allowed. The detail is in Mexico's 40-hour work week.
- Higher CEAV contributions (every January). The 2020 pension reform phases in the employer contribution for retirement, severance in old age and old age (CEAV) year by year until 2030. The final table in article 168 of the Social Security Law ranges from 3.150% at minimum wage to 11.875% for salaries above 4 UMA; the employee share stays at 1.125%.
- New minimum wage and UMA. The minimum wage is $315.04 MXN a day in 2026 (≈ $17 USD), per CONASAMI, and the 2027 rate is usually announced in December and takes effect January 1. The UMA, the unit used for tax caps and fines, is $117.31 MXN a day until January 31, 2027, and INEGI updates it from February 1.
How much does the 46-hour week add to hourly cost?
The 46-hour week raises the cost of each scheduled hour by 4.3% in 2027, because the same monthly salary now buys fewer hours. At the Talentosy Salary Index national median of $34,500 MXN a month (≈ $1,900 USD), the cost per hour goes from $167.71 MXN at 48 hours to $175.00 MXN at 46 hours (≈ $9.15 to $9.55 USD). By 2030, at 40 hours, the increase reaches 20%.
The real budget question is coverage. Teams that run 48-hour shifts today (customer support, operations, plants) either redesign schedules, pay overtime or add headcount. Overtime is paid at double time up to the weekly cap set in the reform, and above it at triple time, so it is the most expensive of the three options.
What does a 2027 budget look like for two common roles?
A 2027 budget for a Mexico hire starts from market salary. Using Talentosy Salary Index medians (active listings as of October 13, 2026) for a software developer and a junior-to-mid customer support agent:
| Annual line item | Software developer | Customer support |
|---|---|---|
| Monthly salary (median) | $55,500 MXN (≈ $3,050 USD) | $21,250 MXN (≈ $1,150 USD) |
| Base salary × 12 | $666,000 MXN (≈ $36,350 USD) | $255,000 MXN (≈ $13,900 USD) |
| Aguinaldo (15 days) | $27,750 MXN (≈ $1,500 USD) | $10,625 MXN (≈ $600 USD) |
| Vacation premium, year 1 (25% of 12 days) | $5,550 MXN (≈ $300 USD) | $2,125 MXN (≈ $100 USD) |
| Subtotal before social security and PTU | $699,300 MXN (≈ $38,150 USD) | $267,750 MXN (≈ $14,600 USD) |
USD figures use 18.33 MXN/USD (ECB reference rate via Frankfurter, October 13, 2026). Social security comes on top. For the developer, daily salary is $1,850 MXN, about 16 times the UMA, so the top CEAV bracket applies and rises every year to 11.875% in 2030. The full loaded-cost range and the comparison with US salaries are in the cost of hiring a developer in Mexico vs the US.
What is the Mexico payroll calendar for 2027?
The Mexico payroll calendar has a few fixed dates that should be in any 2027 cash-flow plan:
| When | Obligation | Source |
|---|---|---|
| January 1 | New minimum wage; 46-hour weekly cap; new CEAV rate | CONASAMI; DOF May 1, 2026; LSS |
| February 1 | New UMA value (tax caps, fines) | INEGI |
| Late May (most corporations) | PTU payment, 60 days after the annual tax deadline | LFT art. 122 |
| Each work anniversary | Vacation granted within six months, with premium | LFT arts. 76, 80, 81 |
| Before December 20 | Aguinaldo, at least 15 days | LFT art. 87 |
Missing these dates has a price. Violating the vacation rules of article 76 carries fines of 50 to 250 UMA under LFT article 994, or $5,865.50 to $29,327.50 MXN (≈ $300 to $1,600 USD) at the 2026 UMA, per violation. Registration and contribution rules are on the IMSS employer portal.
How should US companies plan Mexico headcount for 2027?
US companies planning Mexico headcount for 2027 should budget in pesos, lock the hiring month and decide the employment model before the requisition opens:
- Budget in MXN, report in USD. Salaries are set and paid in pesos; currency moves change the USD cost, not the legal obligations.
- Time the start date. A hire in October owes a prorated aguinaldo in December; a hire in January carries the full year of aguinaldo and the new 46-hour schedule from day one.
- Pick the employment route. Without a Mexican entity, an employer of record or a recruiter-plus-EOR setup carries payroll compliance; see how to hire in Mexico without an entity and the broader Mexico labor laws for US employers.
- Plan time to hire. A Q1 start needs the search to open in Q4; benchmarks are in time to hire in Mexico.
Talentosy runs searches for US companies hiring in Mexico, from salary benchmarking to shortlist. See recruitment services, city-level hiring in Guadalajara or Monterrey, and salary benchmarks in Mexico salary data.
Frequently asked questions
How much should a US company add to salary for Mexico payroll costs?
Mandatory benefits alone add about 5% to annual base salary in year one: roughly 4.2% for the 15-day aguinaldo and 0.8% for the vacation premium. IMSS, Infonavit, retirement contributions and PTU come on top.
When is the aguinaldo due in Mexico?
The aguinaldo is due before December 20 each year and equals at least 15 days of salary; employees who joined mid-year get a prorated amount. In 2026 the 20th is a Sunday, so the practical deadline is December 19.
Does Mexico's 46-hour week allow employers to cut salaries?
No. The May 2026 reform reduces the weekly maximum to 46 hours on January 1, 2027 and prohibits reducing salary or benefits to offset the shorter week.
How much will employer retirement contributions rise in Mexico?
The employer CEAV contribution rises every year until 2030, when it reaches 11.875% of covered salary for employees earning above 4 UMA, under article 168 of the Social Security Law.
