Payroll in Mexico
Get your Mexican payroll's IMSS contributions, aguinaldo, and PTU obligations right from the first payslip, so a routine termination or profit-sharing deadline never turns into a labor claim.
Aguinaldo Deadline
December 20
Tax ID
RFC
Primary Registry
IMSS
Payroll in Mexico: What You Need to Know
IMSS registration is mandatory for every employer in Mexico, and the total employer contribution burden, IMSS's branches plus INFONAVIT's 5% housing fund, commonly runs 25% to 35% of gross salary depending on the employer's occupational risk class and the employee's salary level. Aguinaldo, 15 days' salary minimum under LFT Article 87, is paid before December 20 each year and prorated for employees with under a year of service. Vacation entitlement doubled under the 2023 reform to LFT Article 76, from 6 to 12 working days in year one, rising by 2 days annually to 20 by year five, with the 25% prima vacacional unchanged on top. Unjustified dismissal under LFT Article 50 triggers 3 months' salary, 20 days per year of service, and a prima de antigüedad of 12 days per year capped at twice the minimum wage, on top of any proportional benefits owed. PTU, 10% of taxable profit split by days worked and salary proportion, is paid by May 30 for companies and exempt up to 15 UMAs. REPSE registration is required for any specialized-services provider under the 2021 outsourcing reform, since general labor outsourcing for core business activities is banned.
Key Requirements
IMSS registration mandatory for every employer, with total employer contribution burden, IMSS branches plus INFONAVIT's 5% housing fund, commonly running 25% to 35% of gross salary depending on occupational risk class and salary level
Aguinaldo, 15 days' salary minimum under LFT Article 87, paid before December 20 each year, prorated for employees with under a year of service
Vacation entitlement doubled by the 2023 reform to LFT Article 76, from 6 to 12 working days in year one, rising by 2 days annually to 20 by year five, plus the unchanged 25% prima vacacional
Unjustified dismissal under LFT Article 50 triggering 3 months' salary, 20 days per year of service, and a prima de antigüedad of 12 days per year capped at twice the minimum wage
PTU, 10% of taxable profit split by days worked and salary proportion, paid by May 30 for companies, exempt up to 15 UMAs
REPSE registration required for any specialized-services provider under the 2021 outsourcing reform, since general labor outsourcing for core business activities is banned
Common Challenges
INFONAVIT and IMSS aren't optional benefits, they're a mandatory tax stacked on top of salary
Foreign employers used to lighter payroll-tax models often underestimate the real 25-35% burden IMSS and INFONAVIT add on top of gross salary, distinct from ISR withholding entirely.
PTU is a real annual profit-sharing obligation most foreign employers have never budgeted for
Ten percent of taxable profit must be distributed to employees by May 30, tied directly to the company's own tax return, a genuine surprise for employers with no equivalent obligation at home.
Finiquito and liquidación aren't interchangeable, and mixing them up creates real exposure
Finiquito settles what's owed regardless of why someone left; liquidación adds the full Article 50 severance package specifically for unjustified dismissal. Treating every departure like a simple finiquito risks a labor claim.
How NavviPal Helps
IMSS and INFONAVIT registration and contribution calculation, so the real 25-35% payroll burden is budgeted correctly from day one
Aguinaldo, vacation, and prima vacacional processing on their statutory deadlines and formulas
PTU calculation and distribution timed to the company's own tax filing, so the May 30 deadline is never missed
Article 50 severance calculation and finiquito or liquidación documentation for any termination, unjustified dismissal included
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