Mexico
Payroll, tax, and labor-law updates for Mexico.
Mexico's fondo de ahorro: how the savings fund match works and when it is tax-exempt
A fondo de ahorro is a savings fund in which the worker sets aside part of each payslip and the employer deposits the same amount. The Mexico savings fund benefit is one of the country's most common prestaciones…
Niko Nurmentaus
Product Lead
Mexico vacation days after the vacaciones dignas reform: the 12-day minimum and the 25% prima vacacional
Since 1 January 2023, a worker in Mexico earns at least 12 paid vacation days after the first year of service, double the 6 days the law required before. The vacaciones dignas ("decent vacations") reform rewrote Article…
Niko Nurmentaus
Product Lead
Employee or contractor in Mexico: why the label on the contract does not decide it
In Mexico, whether a worker is an employee or an independent contractor is decided by how the work is actually performed, not by what the contract is called. A common arrangement pays workers por honorarios: the worker…
Niko Nurmentaus
Product Lead
Mexico's minimum wage rises every January: what that does to payroll
On 1 January 2026 Mexico's statutory minimum wage rose. The first pay run of the year is the most common place for the mistake that follows: if the payroll configuration still holds December's figure, a worker who…
Niko Nurmentaus
Product Lead
Benefits in Kind in Mexico: How the Structure Decides the Tax
In Mexico, a large share of what an employee actually takes home never shows up as base salary. Much of it is paid as prestaciones (benefits): grocery vouchers, a savings-fund match, private medical insurance, meals,…
Greg Miaskiewicz
CEO & Co-Founder
