Employer cost in Mexico at different salaries
| Salary level | Gross salary | Employer SSC | Mandatory non-tax payments | Total employer cost |
|---|---|---|---|---|
| 67% of AW | 147,138 MXN | 12.4% | 12.7% | 184,140 MXN |
| 100% of AW | 219,608 MXN | 10.8% | 13.4% | 272,845 MXN |
| 167% of AW | 366,746 MXN | 9.5% | 13.4% | 450,922 MXN |
Worked example
The OECD average wage in Mexico for 2025 is 219,608 MXN (about $21,239 in US-dollar purchasing power). On top of that salary the employer pays social security contributions of 10.8%, or 23,758 MXN. On top of social security, employers must also make 13.4% in mandatory non-tax payments (mandatory retirement savings and housing fund), which the OECD reports separately from taxes but which are a real cost of employment. That brings the statutory total to 272,845 MXN a year (22,737 MXN a month), or 131 MXN per hour at 2,080 hours. In 2024 the rate at the average wage was 10.8%, so it was essentially unchanged. The employer rate falls from 10.8% at the average wage to 9.5% at 167% of it, a sign that contributions are capped above a ceiling, so high earners cost proportionally less.
Mexico ranks #27 of 38 OECD countries for employer contributions at the average wage (OECD average: 16.6%).
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.
Related
Frequently asked questions
How much does an employee cost in Mexico?
At the OECD average wage of 219,608 MXN, about 272,845 MXN a year including 10.8% employer social security (2025).
What are employer social security contributions in Mexico?
About 10.8% of gross pay at the average wage, 12.4% at 67% and 9.5% at 167% of it (OECD model).