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Labor Laws in Mexico

  • Annual Leave: Minimum 12 days
  • Maternity Leave: 12 weeks
  • Public Holidays: 13
  • Workweek: 48 hours per week.

Income Tax in Mexico

The individual tax rates on ordinary income are progressive and range from 0% to 35% for both residents and non-residents.

Value Added Tax (VAT) in Mexico

The standard VAT rate in Mexico is 16%.

Social Security in Mexico

Employer contributions for social security and other related contributions (e.g., housing and retirement) are mandatory, with rates ranging from 15% to 25%, depending on the salary structure of the group of employees.

Employed individuals also are required to make social security contributions, with the amount based on the individual’s salary.

Employee contributions to the Mexican Social Security Institute are withheld at source.

Work Visas Mexico

Here is a summary of the different visa categories for visitors and residents in Mexico:

Visitors Without Authorization to Perform Remunerated Activities:

  • Not allowed to work for pay in Mexico.
  • Visitors With Authorization to Perform Remunerated Activities:
    • Allows foreigners to stay up to 180 days.
    • Permits remuneration for activities carried out in Mexico.
    • Application must be submitted through the National Immigration Institute (INM) in Mexico.

Temporary Resident Category:

  • Applies to stays longer than 180 days but less than four years.
  • The application can be processed at a Mexican consulate or embassy if not performing remunerated activities.
  • For remunerated activities, approval must come directly from the INM in Mexico. Status is renewable for an additional three years. Temporary residents can apply for the same status as family members. Applications for family members can be processed at a consulate or the INM in Mexico.

Permanent Resident Category:

  • For indefinite stays in Mexico. Permanent residents can work and receive remuneration. Eligible for family reunification status under certain regulations and rules.

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