Mexico: Pay and benefits

Original and updating authors: Mónica Schiaffino and Estefania Rueda Garcia, Littler

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Summary

• The amount that employers pay employees must be "rewarding" and take into account the quantity and quality of the employee's work. (See Pay - general)
• White-collar workers must be paid fortnightly and blue-collar workers must be paid weekly. (See Payment of wages)
• Save for certain exceptions, such as deductions authorised by law, employers must not make deductions from employees' pay. (See Deductions)
• Pay discrimination is specifically prohibited and women and men working in the same position, under the same schedule and at the same level of efficiency, must be compensated with equal pay. (See Equal pay)
• There are two statutory general minimum wage rates, plus higher minimum wage rates for each of around 70 specific, generally skilled, occupations. (See Statutory minimum wages)
• Employers are obliged to make mandatory pension contributions in respect of employees as part of their contributions to the Mexican Social Security Institute. (See Pensions)
• Employers must deduct income tax and social security payments due from employees' pay and pass them on to the tax authorities. (See Income tax and social security)
• Employees who have made social security contributions for at least four weeks prior to sickness absence are entitled to sickness benefit paid directly by the Mexican Social Security Institute. (See Sick pay)
• Employees may provide employees with benefits in kind. (See Benefits in kind)