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Global hiring costs

Employer cost of hiring in Mexico

Quick answer: The OECD average wage in Mexico for 2025 is 219,608 MXN (about $21,239 in US-dollar purchasing power). On top of that salary the employer pays social security contributions of 10.8%, or 23,758 MXN. Mexico ranks #27 of 38 OECD countries for employer contributions at the average wage (OECD average: 16.6%).

Prefilled with the Mexico average wage. Enter any salary in MXN.

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Where do these numbers come from?

Checked Oct 23, 2026. OECD Taxing Wages 2026 puts Germany’s 2025 average wage at €66,700 with employer social security at 20.86% of gross. €66,700 + 20.86% (€13,917) = €80,617, the total this calculator shows. Our automated tests repeat this comparison against OECD’s published net pay at 100% and 167% of the average wage for all 38 OECD countries.

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Employer cost in Mexico at different salaries

Salary levelGross salaryEmployer SSCMandatory non-tax paymentsTotal employer cost
67% of AW147,138 MXN12.4%12.7%184,140 MXN
100% of AW219,608 MXN10.8%13.4%272,845 MXN
167% of AW366,746 MXN9.5%13.4%450,922 MXN

Worked example

The OECD average wage in Mexico for 2025 is 219,608 MXN (about $21,239 in US-dollar purchasing power). On top of that salary the employer pays social security contributions of 10.8%, or 23,758 MXN. On top of social security, employers must also make 13.4% in mandatory non-tax payments (mandatory retirement savings and housing fund), which the OECD reports separately from taxes but which are a real cost of employment. That brings the statutory total to 272,845 MXN a year (22,737 MXN a month), or 131 MXN per hour at 2,080 hours. In 2024 the rate at the average wage was 10.8%, so it was essentially unchanged. The employer rate falls from 10.8% at the average wage to 9.5% at 167% of it, a sign that contributions are capped above a ceiling, so high earners cost proportionally less.

Mexico ranks #27 of 38 OECD countries for employer contributions at the average wage (OECD average: 16.6%).

Sources: OECD Taxing Wages 2026, comparative indicators (single worker, no children; average wage as defined by the OECD for each country) and OECD, Non-tax compulsory payments as an additional burden on labour income in 2025 (Tables 5 and 6) for mandatory pension and insurance payments that are not classed as taxes, such as Australian superannuation. Model estimates: voluntary benefits, local caps and sector-specific schemes are not included.

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Frequently asked questions

How much does an employee cost in Mexico?

At the OECD average wage of 219,608 MXN, about 272,845 MXN a year including 10.8% employer social security (2025).

What are employer social security contributions in Mexico?

About 10.8% of gross pay at the average wage, 12.4% at 67% and 9.5% at 167% of it (OECD model).