The following HR information is used in conjunction with the Understand Mexico average wage calculation table as seen on the state pages in the investment guide. See the Average Wage Formula for more information.
Working days represent the total number of days per year an employee works in the factory. The Mexican work week is 48 hours.
Mexican employees are paid using their base salary as though they had worked a 7 day (56 hour) week even though they actually work 48 hours. This system is referred to as "paid Sundays"
Paid holidays are the employee's base salary multiplied by the number of days of paid holidays.
Paid vacation days are the employee's base salary multiplied by the number of paid vacation days.
Mexico has a mandatory "vacation bonus." The bonus is 27% of the base salary for every day of paid vacation.
Mexico has a mandatory "Christmas bonus." The bonus is 30 days of base salary.
Mexico has a mandatory profit sharing system that is usually equal to around 8 days of the employee's base salary.
Life insurance is an optional fringe benefit, but one that is frequently provided by the employer.
More info to come.
Day care is an optional fringe benefit, but one that is frequently provided by the employer.
The social security tax is 19% of the total cash benefits provided to the employee.
The state tax is 5% of the total cash benefits provided to the employee.
Mexico requires employers to contribute to the state housing fund.
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