COUNTRY GUIDE

Last updated:
July 31, 2025
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Hire software developers in

Mexico

: 2026 guide

A short guide to building a dedicated offshore team in Mexico

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At a glance

Why companies hire software developers in

Mexico

One honest caveat

Mexico

tech salaries: 2026 guide to rates by role and level

Monthly USD salary ranges by role and seniority
Role Junior Mid-level Senior
Full-stack Developer $2,200–$3,000 $3,800–$5,200 $5,500–$7,500
Back-end Developer $2,000–$2,800 $3,800–$5,000 $5,500–$7,200
Front-end Developer $1,800–$2,500 $3,200–$4,800 $4,800–$6,800
DevOps / Cloud Engineer $2,500–$3,200 $4,200–$5,800 $6,500–$9,000

(Monthly USD, Western-facing B2B/contract rates)

Anastasiia Chernenka

Anastasiia Chernenka

Head of Recruitment

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Employment conditions overview

Payroll cycle

Employees in Mexico can be compensated on a weekly, bi-weekly, or monthly basis, but this frequency must be specified in their employment contract. Bank transfers are the recommended method for payment as cash transactions face strict regulations. Electronically issued payslips, known as CFDIs, are mandatory. Moreover, payroll documentation in Mexico needs to be retained for a duration of 5 years.

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Employer taxes

36.1 – 44.73%

Overtime pay

Overtime work beyond the standard shift is compensated as per the terms set in the employment contract or collective agreements. Employees can work up to 3 overtime hours daily, but not for more than 3 consecutive days. Some managerial positions may be exempt from overtime pay and its restrictions.

Overtime compensation is governed by two primary factors: the cumulative number of overtime hours in a week and the number of hours worked post a regular shift on a given day.

  • For the week, the initial nine overtime hours are compensated at twice the regular salary rate. Subsequent hours are compensated at thrice the rate.
  • On a daily basis, the initial three hours post the standard shift are paid at double the rate. Any additional hour after this is paid at triple the rate, irrespective of the total weekly overtime hours.

Paid leave

In Mexico, the employment contract stipulates that employees receive a minimum of 12 days of paid holiday annually. After completing a year of service, they are entitled to an additional two days of holiday each year. Once an employee reaches 5 years of service, they earn two more days every five years, as illustrated in the subsequent table. If leave remains unused, it can be carried forward for up to 6 months.

Additionally, for each day of vacation taken, employees should receive a 25% bonus on their daily wage as a vacation premium.

Sick leave

Compensation for sick leave is provided by Social Security (IMSS). Qualified employees can receive up to 52 weeks of sick leave, paid at 60% of their standard wage, upon verification by medical authorities affiliated with IMSS. In cases of work-related injuries, the employee receives full compensation, amounting to 100% of their regular salary.

Public and provincial holidays

There are 7 public holidays in Mexico

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Public holidays

Notice period

While Mexico doesn't have a set statutory minimum notice period, federal labor regulations require companies to give written notice to the employee within 30 days once they become aware of any misconduct. This notice must specify the reasons for dismissal. If not provided, the labor board is responsible for issuing a termination notification. Typically, a courtesy notice of two weeks is extended in situations of 'termination without cause' or when an employee resigns.

13th Month Bonus

In Mexico, employers are required to pay a 13th-month salary, known as Aguinaldo, which must be disbursed by December 20th. The Aguinaldo is determined based on 15 workdays of pay, factored over a 365-day year, with an additional allowance included.

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