Mexico flag Mexico: Operating a Business in Mexico

Work conditions in Mexico

The Active Population in Figures

201820192020
Labour Force 56,255,84257,839,04653,978,977

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 64.04%64.35%65.25%
Men activity rate 82.31%82.29%82.38%
Women activity rate 46.89%47.48%49.13%

Source: International Labour Organization, ILOSTAT database

 

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Working Conditions

Legal Weekly Duration
48 hours per week (8 hours per day)
Retirement Age
65 years old
Working Contracts
Employment contracts can be for a specific job assignment or for a fixed period of time. Unless stated otherwise, contracts are for an indefinite period of time.
Labour Laws
Doing Business: Mexico, to obtain a summary of lab or regulations that apply to local enterprises

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Cost of Labour

Minimum Wage
In 2022, the minimum wage was increased by 22%, reaching 172.87 pesos a day.
Average Wage
Annual average gross salary: USD 16,610 in 2021 (OECD)
Social Contributions
Social Security Contributions Paid By Employers: Employers contribute to the social security system (9.934% to 24.434%), the housing fund (5%), and the retirement fund (2%), for a total of about 16.934% to 31.434% of wages. However, these contributions are deducted from the salaries of employees.
Social Security Contributions Paid By Employees: Employees contributes up to 2.727% of their salary for social security system.

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Social Partners

Social Dialogue and Involvement of Social Partners
Mexican labour unions are organised by activity sectors and most are affiliated with the Confederation of Mexican Workers (CTM). They are relatively powerful and originally emerged as institutions of social resistance. As a result, in some cases, the unions resist economic structural reforms that may ultimately serve to benefit the economic development of the country.
Unions
List of Labour Unions in Mexico
Confederation of Mexican Workers (CTM)
Unionisation Rate
13.5% of wage and salary earners in 2014 (OECD)
Labour Regulation Bodies
Ministry of Labour and Social Security
Confederation of Employers of the Mexican Republic

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Latest Update: September 2022