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Minimum wage in Mexico

Mexico Payroll

Statutory benefits in Mexico

Other employee benefits in Mexico

Compliant, seamless payroll and benefits in Mexico and beyond

Payroll in Mexico

Managing payroll in Mexico involves much more than paying salaries—it requires a solid understanding of minimum wage laws, tax obligations, mandatory benefits, and additional perks that can help retain top talent.

In this guide, we will cover all the essential aspects of payroll in Mexico, including the minimum wage, statutory benefits, social security, and more, to help you navigate the complexities of managing payroll in compliance with local regulations.

Minimum wage in Mexico

The minimum wage in Mexico is reviewed annually to reflect cost-of-living and economic conditions, following an agreement between the government, business leaders, and labour representatives.

As of 2026, the minimum wage is:

General zone (most of the country): MXN 315.04 per day, which is MXN 9,451.20 per month (315.04 × 30).
Northern Border Free Zone (ZLFN): MXN 440.87 per day, which is MXN 13,226.10 per month (440.87 × 30).

It’s important to note that minimum wages can vary by region (general zone vs. northern border zone) and also by type of work, since Mexico maintains professional minimum wages for certain occupations. Employers must apply the correct rate based on where the employee performs the work and the applicable job category to avoid penalties and remain compliant with Mexican labour laws.

Mexico

In Mexico, employers are required to contribute to several social programs and taxes as part of their payroll obligations. These contributions are calculated as a percentage of the employee’s salary and must be paid regularly. The main components include:

Social security contributions (IMSS): Employers contribute to programs covering health insurance, pensions, disability, and maternity benefits.
INFONAVIT: A housing fund contribution that allows employees to access affordable housing loans.
State payroll taxes: These taxes vary by state but generally range from 1% to 3% of the employee’s salary.

As an employer, you must ensure these payments are made on time, as non-compliance can result in significant fines and penalties.

Payroll structure in Mexico

The payroll structure in Mexico depends on the type of employment and the company’s operational needs. The most common payroll schedules include:

Bi-weekly payroll: Popular for salaried employees, especially in office-based roles.
Monthly payroll: Often used for managerial or executive positions.

Employers must establish a consistent payroll schedule and communicate it clearly to employees.

Payroll deductions in Mexico

Employers in Mexico are responsible for withholding and remitting specific deductions from employees’ salaries. These include:

Income tax (ISR): A progressive tax based on the employee’s income level.
Social security contributions: Employees contribute a small percentage of their salary to health and pension programs.
Union fees: Applicable if the employee is part of a union.

Employers must provide employees with detailed CFDI payroll receipts, which document gross pay, deductions, and net pay, ensuring transparency and compliance with Mexican tax laws.

Statutory benefits in Mexico

Statutory benefits in Mexico are mandated by law and are essential to employee compensation. These benefits are regulated by the Social Security Law and administered through the Mexican Institute for Social Security (IMSS). Registering employees with the IMSS shifts certain risks and obligations from employers to the government.

Key benefits regulated by IMSS

Workplace injury insurance: This covers medical expenses and compensation for employees who suffer work-related injuries or illnesses.
Health and maternity insurance: Employees gain access to healthcare services and financial support during maternity leave.
Pension contributions: Contributions to the pension system help employees build retirement savings.

By registering employees with the IMSS and contributing to these programs, employers ensure workers receive vital protections while mitigating their own financial and legal risks.

Mandatory employee benefits in Mexico

Some benefits are required by law, including:

Christmas Bonus (Aguinaldo): Employers must provide a yearly bonus equivalent to at least 15 days of the employee’s salary, paid by December 20.
Paid vacation: Employees are entitled to at least 12 days of paid leave after their first year of employment, with additional days for each subsequent year.
Profit sharing (PTU): Companies must share a portion of their profits with employees annually.

Other employee benefits in Mexico

In addition to statutory benefits, many companies in Mexico offer extra perks to attract and retain employees. These benefits may be mandatory or optional depending on the company’s policies.

Optional employee benefits in Mexico

To remain competitive, many companies in Mexico offer additional perks on top of mandatory benefits, such as:

Supplemental health insurance: While IMSS offers basic health care, many companies in Mexico provide supplemental health insurance, especially for higher-level positions. Partnering with private insurers, employers give employees access to private hospitals, faster care, and additional benefits like dental, vision, mental health services, and serious illness coverage.
Internet allowance: Common for remote or hybrid workers, this helps cover connectivity costs.
Cell phone allowance: Provided for employees who use their phones for work-related tasks.
Meal vouchers: Many companies offer a monthly meal allowance, typically around 2,600 MXN, through prepaid cards.
Wellness and fitness programs: These may include gym memberships or wellness stipends to promote employee health.
Computer allowance: Often provided for employees who need specialized equipment for remote work.

Offering these benefits not only boosts employee satisfaction but also helps companies stand out in a competitive job market.

Payroll in Mexico is tightly regulated, and compliance is essential to avoid penalties and legal disputes. Employers must pay at least the minimum wage, contribute to social programs on time, provide detailed payroll receipts and ensure employees receive their statutory and agreed-upon benefits. Failing to meet these obligations can result in fines, audits, or reputational damage.

Managing payroll in Mexico requires a clear understanding of local labour laws, tax regulations, and employee benefits. By ensuring compliance with statutory requirements and offering additional perks, employers can build a motivated and loyal workforce. Whether you are new to the Mexican market or looking to refine your payroll processes, understanding these guidelines will help you manage payroll smoothly and effectively.

Compliant, seamless payroll and benefits in Mexico and beyond

Getting payroll and benefits right is not just a legal issue. Every country also has its own customs, norms, and expectations about employee compensation. And if your operations aren’t in line with your workers’ expectations, they may not stick around for long.

Thankfully, we know what we’re doing. When you work with CXC to engage workers in Mexico, we’ll handle everything from tax withholding to employee bonuses on your behalf.

FAQ's

How does payroll work in Mexico?

Mexico payroll is commonly processed on a weekly, fortnightly, or semi-monthly basis, depending on the employee category and employer practice, provided payment frequency complies with the Federal Labour Law (LFT). Every payroll cycle triggers a set of obligations that go beyond simply transferring wages.

Here is what happens each pay period:

Gross pay is calculated based on the employee’s agreed basic salary in Mexico, plus any variable components such as commissions, bonuses, or overtime.

ISR (income tax) is withheld from the employee’s gross pay using a progressive tax table set by the SAT (Servicio de Administración Tributaria), Mexico’s federal tax authority.

A CFDI nómina is issued for each employee, a mandatory digital payroll receipt that must be stamped and validated by the SAT before the payment is considered legally complete.

Social security contributions are calculated based on the employee’s Salario Base de Cotización (SBC) and reported to IMSS (Instituto Mexicano del Seguro Social).

Beyond the pay cycle itself, employers have ongoing reporting and payment deadlines. ISR withholdings are remitted to the SAT by the 17th of the following month. IMSS contributions are also due monthly, by the 17th. INFONAVIT (housing fund) and SAR (retirement) contributions follow a bimonthly schedule.

The key thing to understand: Payroll in Mexico is a real-time reporting system. The SAT cross-checks every CFDI nómina against IMSS records and tax filings. Discrepancies trigger automatic flags, and penalties accumulate from the day a deadline is missed.

Employers should also ensure payroll records are retained in accordance with applicable tax and labour recordkeeping requirements. For companies hiring in Mexico, having reliable payroll processes and local expertise in place can help ensure employees are paid accurately, reporting obligations are met, and compliance risks are kept to a minimum.

How do you set up payroll in Mexico?

Setting up payroll in Mexico requires registering with three separate government bodies before you can process a single payment. You cannot skip or sequence these registrations; all three must be active before any employee starts work.

The three registrations you need when running payroll in Mexico

Register with the SAT (RFC). The SAT is Mexico’s federal tax authority. You need a Registro Federal de Contribuyentes (RFC) number to withhold income tax, issue CFDI payroll receipts, and file monthly and annual returns. Without an RFC, no payroll system can function.
Register with IMSS. The IMSS registration gives you a Registro Patronal (employer number). Employee registrations, salary modifications, and terminations must be reported to IMSS within the legally prescribed timeframes.
Register with INFONAVIT. INFONAVIT manages Mexico’s national housing fund. Your INFONAVIT registration follows the same pathway as your IMSS registration. Once active, you are required to pay housing fund contributions of 5% of each employee’s integrated salary on a bimonthly basis.

What comes next?

Once your registrations are in place:

Set up a payroll system that is certified to issue CFDI 4.0 compliant payroll receipts (CFDI de Nómina).

Obtain an e.Firma (electronic signature) and a CSD (Certificado de Sello Digital) from the SAT to digitally sign payroll documents.

Draft compliant employment contracts under the Federal Labour Law.

One thing many companies miss: the state payroll tax (ISN) rate varies depending on where your employees are based. Rates range from 1% to 4% across Mexico’s 32 states, so the state where each employee works affects your total employer cost.

Setting up payroll in Mexico takes planning, especially for companies entering the market for the first time. Because payroll involves multiple government agencies, tax registrations, and reporting requirements, it is important to complete all registrations before your first hire starts work.

If you are hiring employees across different states, remember that employer costs can vary depending on location due to differences in payroll tax rates. Understanding these costs early can help you budget more accurately and avoid surprises as your team grows.

Can a foreign company run payroll in Mexico without a local entity?

A foreign company generally cannot directly employ workers and operate payroll in Mexico without either establishing a local legal entity or engaging an Employer of Record (EOR) that acts as the local employer of record. Mexico’s tax and labour authorities require that the legal employer be formally registered in the country before any employee can be hired or paid.

This is important to keep in mind because all of the payroll obligations in Mexico, including RFC registration, IMSS enrolment, INFONAVIT contributions, and CFDI issuance, are tied to a legally recognised employer. A foreign company operating without that structure has no way to fulfil those obligations, which means any employees it pays are effectively working without legal coverage.

Your two main options to run payroll in Mexico compliantly

Set up a local entity
Incorporating a Mexican subsidiary (most commonly an S.A. de C.V. or S. de R.L. de C.V.) gives you full operational control. It also means going through the full registration process with SAT, IMSS, INFONAVIT, and state authorities, plus ongoing compliance management. This route makes sense if you are building a large, permanent team in Mexico.
Use an Employer of Record (EOR)
An EOR is a locally registered entity that employs workers on your behalf. The EOR handles all payroll processing, tax withholding, CFDI issuance, and statutory contributions. You direct the day-to-day work of the employee; the EOR manages the legal employment relationship. This is the faster route for companies testing the market, hiring a small team, or needing to get someone started quickly without the overhead of entity setup.

Worth knowing: Using an EOR does not mean you lose control of who you hire or how they work. It means you have a compliant structure in place so that your team in Mexico is covered from day one.

Before hiring employees in Mexico, employers should assess whether they require a long-term operational presence or a faster route to market entry. Establishing a local entity provides direct control over employment, payroll, and corporate operations, but involves ongoing tax, labour, corporate governance, and social security compliance obligations. An EOR can provide a compliant hiring solution where speed, flexibility, and reduced administrative burden are priorities.

The right approach depends on your hiring plans, budget, and growth strategy. Taking the time to evaluate both options upfront can help you choose a structure that supports your business today and scales with your workforce in the future.

How much does it cost to run payroll in Mexico?

Running payroll in Mexico typically costs employers between 30% and 45% on top of an employee’s basic salary in Mexico once you factor in all statutory contributions and mandatory benefits. The exact figure depends on the employee’s salary level, the state where they work, and your company’s industry risk classification with IMSS.

Here is a breakdown of what drives that cost:

Cost Component	Who Pays?	Approximate Rate
IMSS social security contributions	Employer + Employee (employer remits both)	20% to 35%+ of integrated salary
INFONAVIT housing fund	Employer only	5% of integrated salary
SAR/AFORE retirement	Employer + Employee	~6.5% of integrated salary combined
State payroll tax (ISN)	Employer only	1% to 4% depending on state
Mandatory benefits (Aguinaldo, vacation premium, PTU)	Employer only	Varies; typically, 8% to 12% of annual salary

Why the range is wide?

The IMSS contribution rate is not fixed. It varies based on your workplace risk classification, which IMSS assigns based on your industry. A low-risk office environment pays less than a manufacturing operation. Salary level also matters. Contributions are calculated based on the employee’s Salario Base de Cotización (SBC), which incorporates not only base salary, but also certain recurring employment benefits and remuneration elements required under social security rules.

A practical example: an employee earning MXN 25,000 per month in gross basic salary in Mexico could cost the employer MXN 32,500 to MXN 36,000 per month all-in, depending on location and risk class.

If you are using an EOR or outsourced payroll provider, add their service fee on top of the statutory costs. That fee typically covers payroll processing, CFDI issuance, compliance management, and reporting.

When budgeting for hiring in Mexico, employers should consider the total employment cost rather than salary alone. Employer costs include statutory contributions, mandatory benefits, and payroll taxes, which can significantly increase the total cost of employment. Building these costs into your workforce budget from the start will give you a more accurate picture of your hiring investment.

If you are comparing locations, keep in mind that employer costs can vary depending on the state where the employee works and the nature of your business. Understanding the full cost of employment upfront can help you make better hiring decisions and avoid unexpected expenses as your team grows.

What payroll taxes and contributions must employers pay in Mexico?

Employers running payroll in Mexico are responsible for several distinct taxes and contributions, each paid to a different authority on a different schedule. Understanding who you pay, what you pay, and when is essential to staying compliant.

Federal obligations when managing payroll in Mexico

ISR (Impuesto Sobre la Renta) – Income Tax
The employer withholds ISR from each employee’s gross pay every cycle using a progressive tax table. The withheld amount is remitted to the SAT by the 17th of the following month.

The employer is legally responsible for calculating, withholding, and remitting the correct amount, even if the employee is paid the right net figure.

IMSS contributions
IMSS contributions cover healthcare, disability, maternity, life insurance, retirement, and workplace risk insurance. Both employer and employee contribute, but the employer calculates and remits both portions.

General IMSS contributions (health, disability, life, occupational risk) are due monthly by the 17th. Retirement (SAR) contributions follow a bimonthly schedule.

INFONAVIT contributions
Employers pay 5% of each employee’s integrated salary into the INFONAVIT housing fund. This is an employer-only cost; it cannot be deducted from the employee’s wages. INFONAVIT contributions are reported and paid bimonthly.

SAR/AFORE retirement savings
Separate from the IMSS retirement branch, employers also contribute to each employee’s individual AFORE pension account. This is part of the bimonthly IMSS/SAR filing.

State-level obligations in Mexico

ISN (Impuesto Sobre Nómina) – State Payroll Tax
Each of Mexico’s 32 states levies its own payroll tax on the total wages paid to employees registered in that state. Rates range from 1% to 4%. This is an employer-only cost, paid monthly to the relevant state tax authority.

Annual obligation in Mexico

PTU (Participación de los Trabajadores en las Utilidades) – Profit Sharing
Employers must distribute 10% of annual taxable profits to eligible employees by 31 May each year. Employees need at least 60 days of service in the year to qualify. Since the 2021 labour reform, individual PTU payments are capped at the higher of three months’ salary or the average PTU received by the employee during the previous three years, in accordance with the Federal Labour Law. PTU is calculated and paid annually, not per payroll cycle.

Employers in Mexico must manage obligations across multiple agencies, including SAT, IMSS, INFONAVIT, state tax authorities, and labour authorities, each with separate reporting requirements and payment deadlines. Missing a filing or payment can lead to penalties, interest charges, and additional administrative work.

A good payroll process should include a clear compliance calendar, accurate employee records, and regular reviews of payroll calculations. Staying organised throughout the year is often the simplest way to avoid costly mistakes and keep your payroll operation running smoothly.

What mandatory employee benefits are required by law in Mexico?

Employee benefits in Mexico are set by the Federal Labour Law (LFT) and apply to all employees, regardless of company size, industry, or whether the employer is a Mexican or foreign company. These are not optional perks; they are legal minimums that every employer must provide.

Statutory benefits every employer in Mexico must provide

Aguinaldo (Christmas Bonus)
Employees are entitled to a minimum of 15 days’ salary as an annual Christmas bonus, paid no later than 20 December each year. Employees who have not completed a full year receive a prorated amount based on their days worked.

Vacation days
After completing one year of service, employees are entitled to a minimum of 12 days of paid annual leave. This increases progressively with each year of service. As of 2023, Mexico updated its minimum vacation entitlement, raising the starting point from 6 days to 12 days after one year.

Vacation Premium (Prima Vacacional)
On top of regular pay during vacation, employees receive a vacation premium of at least 25% of their daily salary for each vacation day taken. For example, an employee earning MXN 500 per day would receive MXN 625 per vacation day, consisting of normal salary plus the statutory 25% vacation premium.

PTU (Profit Sharing)
Employers must distribute 10% of annual taxable profits among eligible employees by 31 May. Employees with at least 60 days of service in the year qualify. Individual PTU payments remain subject to the statutory cap introduced by the 2021 labour reform.

IMSS Social Security Coverage
All employees must be registered with IMSS from their first day of work. IMSS provides healthcare, maternity coverage, disability insurance, life insurance, and retirement benefits.

Maternity and paternity leave
Female employees are entitled to 12 weeks of paid maternity leave (6 weeks before and 6 weeks after birth), covered by IMSS. Male employees are entitled to 5 days of paid paternity leave, covered by the employer.

Important to note: Many employers in Mexico offer benefits above these minimums to attract talent, including private health insurance, food vouchers (vales de despensa), and savings funds (fondo de ahorro). These are not legally required but are common in professional sectors and affect your total employee benefits Mexico package.

Mandatory benefits are a core part of the total cost of employing someone in Mexico and should be factored into workforce planning from the start. Employers who budget only for base salary often underestimate the true cost of hiring and may face unexpected expenses throughout the year.

Beyond compliance, benefits can also play an important role in attracting and retaining talent. While the statutory minimums provide a baseline, many employers choose to offer additional benefits to remain competitive in the market. Understanding both the legal requirements and market expectations can help you build a stronger employee value proposition while avoiding compliance issues.

What is the minimum wage in Mexico?

The minimum wage in Mexico is MXN 315.04 per day for most of the country, effective 1 January 2026. Workers in the Northern Border Free Zone (Zona Libre de la Frontera Norte, ZLFN) receive a higher rate of MXN 440.87 per day, also effective from 1 January 2026.

These figures were set by CONASAMI, the National Minimum Wage Commission, on 3 December 2025. The general rate represents a 13% increase from the 2025 figure of MXN 278.80, made up of a 6.5% inflation-based adjustment and an additional MXN 17.01 Independent Recovery Amount (MIR). The border zone rate increased by 5%.

What this means in monthly terms?

Zone	Daily Minimum Wage (2026)	Approximate Monthly Equivalent
General (most of Mexico)	MXN 315.04	MXN 9,451
Northern Border Free Zone	MXN 440.87	MXN 13,226

The monthly equivalent is calculated over 30 days. In practice, most professional roles pay well above the minimum wage in Mexico, but the minimum wage matters for two reasons beyond entry-level pay.

Why the minimum wage matters for all employers in Mexico:

It sets the floor for the Salario Base de Cotización (SBC); no employee’s SBC can be reported to IMSS below the applicable minimum wage.

It affects the calculation of mandatory benefits such as the Aguinaldo and vacation premium for employees at or near the minimum.

It is updated annually, which means your SBC figures for minimum-wage workers must be reviewed at the start of each year.

Mexico has increased its minimum wage significantly over the past seven years, rising from MXN 102.68 per day in 2019 to MXN 315.04 in 2026.

Employers should also review salary structures that are indexed to the minimum wage, as annual increases may indirectly affect compensation schemes, internal salary bands, and certain payroll-related calculations.

Companies hiring in Mexico should budget for continued annual increases.

Companies hiring in Mexico should monitor annual CONASAMI resolutions and assess the potential impact of future increases on labour costs and workforce planning.

Even if you are hiring for professional or highly skilled roles that pay well above the minimum wage in Mexico, increases or changes in minimum wage can still affect your payroll costs and compliance obligations.

Because the rate is reviewed annually, employers should monitor updates closely and review employee compensation structures, payroll calculations, and social security reporting requirements at the start of each year.

For businesses hiring in Mexico, keeping track of minimum wage changes is an important part of workforce planning and budgeting for future growth.

What is the Salario Base de Cotización in Mexico and how is it calculated?

The Salario Base de Cotización (SBC) is the integrated daily salary figure registered with IMSS and used as the basis for calculating all social security contributions, including IMSS, INFONAVIT, and SAR. It is not the same as the employee’s basic salary in Mexico; it is higher, because it includes the proportional daily value of certain mandatory benefits.

Why SBC is higher than base salary?

Mexican law requires employers to “integrate” specific statutory benefits into the SBC calculation. The result is a daily salary figure that reflects total compensation, not just the agreed monthly wage.

The standard integration formula is:

SBC = Daily Salary x Integration Factor

The integration factor accounts for the proportional daily value of the Aguinaldo (15 days minimum), vacation premium (25% of at least 12 vacation days), and any other recurring benefits that form part of the employee’s ordinary compensation. For employees receiving only the statutory minimum benefits applicable in 2026, the integration factor should be calculated using the employee’s actual statutory vacation entitlement and seniority, as the factor may vary depending on length of service following the Vacaciones Dignas reform.

Example:

Employee monthly salary: MXN 20,000.

Daily salary: MXN 20,000 / 30 = MXN 666.67.

SBC (using factor of 1.0452): MXN 696.80 per day.

This SBC figure is what gets reported to IMSS and used to calculate all employer and employee contributions.

When SBC must be updated?

Employers are legally required to recalculate and update SBC whenever:

The minimum wage changes (mandatory review each January).

The employee receives a salary increase.

Statutory benefits increase (e.g. additional vacation days with seniority).

Variable income components change the employee’s integrated compensation

Failure to report an accurate SBC may be treated by IMSS as underreporting of salary (subcotización), potentially resulting in retroactive contribution assessments, surcharges, fines, and audit findings.This results in retroactive adjustments, surcharges, and penalties. The SBC also has a maximum cap of 25 UMA per day (MXN 2,932.75 per day in 2026, based on the 2026 UMA value of MXN 117.31), above which contributions are not calculated.

The SBC is one of the most important figures in Mexican payroll because it directly affects employer costs and social security contributions. While many companies focus on an employee’s gross salary, payroll obligations are often calculated using the SBC instead.

Understanding how the SBC works can help employers budget more accurately, avoid reporting mistakes, and ensure contributions are calculated correctly throughout the employee lifecycle.

What is a CFDI nómina and why is it required for payroll in Mexico?

A CFDI nómina (Comprobante Fiscal Digital por Internet de nómina) is a mandatory digital payroll receipt that every employer in Mexico must issue to each employee for every salary payment made. It is not an internal document or an optional record; it is the legal proof, validated by the SAT, that a salary payment occurred and was correctly reported.

Without a valid CFDI nómina, a salary payment is considered non-compliant under Mexican tax law, even if the employee received the correct net amount and all taxes were withheld accurately.

What a CFDI nómina contains?

Each CFDI nómina is an XML file that records:

The employee’s full name, RFC (tax ID), and postal code.

Gross salary, all deductions, and net pay.

ISR withheld, IMSS contributions, and any other deductions.

The employer’s RFC and digital signature.

A unique fiscal folio assigned by the SAT.

The document must be stamped by a PAC (Proveedor Autorizado de Certificación), an SAT-approved certification provider, before it holds legal value. A PDF version can be provided to the employee, but only the stamped XML file is legally valid.

Why this matters operationally?

The SAT uses CFDI nómina data to cross-check employer filings in real time. Every CFDI is matched against IMSS records and monthly ISR returns. If the figures do not align, the SAT flags the discrepancy automatically.

Three things that make CFDI compliance harder than it looks:

Timing: CFDIs must be issued at the time of payment, not after. Delayed issuance is non-compliant

Data accuracy: CFDI 4.0 (the current mandatory version) requires that employee data exactly match SAT records; a mismatched postal code or RFC will cause the document to be rejected

System requirements: you need an RFC, an e. Firma, a CSD certificate, and a SAT-certified payroll platform to issue CFDIs; payroll cannot be processed through standard accounting software alone

Employers should monitor SAT updates and technical guidance regularly, as CFDI validation requirements, catalogues, and payroll reporting specifications may be amended periodically and can affect payroll compliance obligations. CFDI compliance is often one of the biggest challenges for companies unfamiliar with Mexican payroll requirements. Because payroll reporting is closely integrated with the country’s tax system, employers need the right processes and technology in place from the start.

Investing in a compliant payroll setup can help reduce administrative headaches, improve recordkeeping, and ensure employee payments are properly documented and recognised by the relevant authorities.

How does CXC help companies avoid payroll errors and penalties in Mexico?

CXC helps companies run compliant payroll in Mexico by acting as the employer of record or outsourced payroll partner, handling every obligation that sits between you and the Mexican tax and social security authorities.

Here is what that looks like in practice:

What CXC manages on your behalf?

Payroll processing and CFDI issuance

We process payroll on your chosen cycle, calculate gross pay, apply ISR withholding using the correct SAT tax tables, and issue fully validated CFDI nómina receipts for every employee, every pay period. Every document is stamped through a PAC-certified system and matched to SAT records before submission.

IMSS, INFONAVIT, and SAR contributions

We calculate each employee’s Salario Base de Cotización, register all contributions correctly, and remit payments to IMSS, INFONAVIT, and SAR on the required deadlines. We also manage SBC recalculations whenever salaries change, or the annual minimum wage update requires a review.

Tax filings and state obligations

Monthly ISR filings, bimonthly IMSS and INFONAVIT reports, annual employee tax declarations, and state payroll tax (ISN) payments are all managed within our compliance calendar. Nothing falls through the gaps.

Ongoing compliance monitoring

Mexican payroll rules change. The 2025 INFONAVIT reform changed how employers handle deductions during employee absences. The January 2026 CFDI update added new validation codes. We track these changes and update our processes before they affect your payroll.

Why this matters?

The most common payroll errors we see from companies new to Mexico are:

Incorrect SBC calculation (underreporting to IMSS).

Missing or late CFDI nómina issuance.

Incorrect integration of benefits into the contribution base.

Missed state payroll tax registrations for employees in multiple states.

PTU miscalculations at year-end.

Each of these carries financial penalties that accumulate with inflation-adjusted surcharges from the day the error occurs. IMSS, SAT, and INFONAVIT do not offer grace periods.

Whether you manage payroll internally or work with a specialist provider, having the right expertise and processes in place can help reduce compliance risks, avoid costly mistakes, and give your team more time to focus on growing the business.

With CXC, you have a team that knows Mexico payroll from the inside, so your people get paid correctly and your business stays on the right side of every authority that is watching.

Talk to our team about managing your Mexico payroll.

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