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| Average worker, 2025 | United States | Mexico |
|---|---|---|
| Average wage (local) | 73,520 USD | 219,608 MXN |
| Average wage (USD PPP) | $73,520 | $21,239 |
| Employer SSC | 8.1% | 10.8% |
| Employee SSC | 7.7% | 1.4% |
| Income tax | 16.7% | 11.8% |
| Tax wedge (% of labour cost) | 30.0% | 21.7% |
What it means for an employer
Hiring at the average wage, an employer in Mexico adds 10.8% on top of gross pay, compared with 8.1% in the United States (OECD model, which counts mandatory contributions such as Social Security, Medicare and federal unemployment tax, but not employer health insurance). That is 2.7 percentage points more. In purchasing-power terms the average Mexico wage is 29% of the US average.
Sources: OECD Taxing Wages 2025, comparative indicators (single worker, no children; average wage as defined by the OECD for each country) and OECD, Non-tax compulsory payments as an additional burden on labour income in 2025 (Tables 5 and 6) for mandatory pension and insurance payments that are not classed as taxes, such as Australian superannuation. Model estimates: voluntary benefits, local caps and sector-specific schemes are not included.
Frequently asked questions
How much does an employee cost in Mexico?
At the OECD average wage of 219,608 USD, about 79,466 USD a year including 8.1% in mandatory employer on-costs (2025).
What are employer contributions in Mexico?
Employer social security is 10.8% of gross pay at the average wage.
Is it more expensive to employ someone in Mexico or the US?
Statutory on-costs are 8.1% of pay in Mexico vs 8.1% in the US at the average wage; salaries differ too, so compare totals in the country comparison tool.
What is not included?
Voluntary benefits such as private health insurance, bonuses, 13th-month pay where it is contractual, equipment and EOR fees. Add them with the optional fields in the calculator.