All About Offering Employee Benefits in Mexico
Hire and attract the best talent in Mexico with the information you need to offer a competitive benefits package and stay compliant.
Required Benefits in Mexico
Hire and attract the best talent with great employee benefits. If you want to hire in Mexico and want to know what benefits to offer, Justworks EOR can help. Here’s what to consider so you can hire in Mexico successfully.
Social Security
Employees and employers must contribute a minimum amount to social security which varies based on minimum wage. Contributions are withheld from an employee’s salary with supplemental contributions from the employer.
Time Off
Mexican employees are entitled to at least 12 paid days of vacation time for their first year of employment with an additional two days for every year of employment until the sixth year. After six years, employees get two more days every four years. Other statutory leave includes paid holidays, sick leave, maternity and paternity leave, and marriage leave.
Profit Sharing
Employees in Mexico are legally entitled to profit sharing if they work at a company with profits of over $300,000 MXN. Full-time employees and subcontractors with over 60 days of employment are entitled to 10% of company yearly profits. Share of profits must be paid within 60 days after the company of the tax deadline. New businesses are exempt from profit-sharing obligations in their first year.
Offer Competitive Benefits in Mexico
Offering the bare minimum of benefits and compensation may keep your company compliant but isn’t the best approach to hire and retain the best talent in Mexico. These are benefits to consider for a happier and healthier team.
Employer-sponsored Health Benefits
By law, employees must register with the Mexican Social Security Institute (IMSS) for basic healthcare. Employers can also offer supplemental or private health insurance to cover additional healthcare services like dental and vision. Supplemental health insurance enhances existing coverage with more varied care options.
Lifestyle Benefits
Many companies offer the option to work remotely full-time or have a hybrid model. Other lifestyle benefits include offering food vouchers employees can use in grocery stores and restaurants or even catered or on-site lunch. Additional benefits include transportation stipends to help cover public transportation fares, gas, parking fees, taxis, and even car payments.
Financial Planning & Retirement Benefits
In Mexico, some employers provide employees with life insurance. It’s pretty common for employers to pay all or part of the premium. Employers may also offer a savings fund for retirement with employer matching, productivity bonuses, or employer-sponsored loans.
Ready to Offer Benefits in Mexico?
Justworks EOR makes building your global team seamless by helping you get access to benefits that can help you attract top talent in Mexico. Save yourself the time and hassle of international hiring today.
