Mexico Employment Guide

Mexico Employment Guide

Mexico is in North America, bordering Guatemala, Belize (south), the US (north), the Gulf of Mexico (east) and the Pacific (west). It has ~130 million people; Spanish is official, and Mexico City is the capital. As Latin America’s 2nd largest economy, its key sectors include manufacturing (notably export-oriented), oil, mining, tourism and agriculture. Labor laws (per Ley Federal del Trabajo) protect wages, hours, leave and social security. Standard workweek: 48 hours (overtime needs extra pay). Salaries are usually monthly (avg. MXN 15,000 pre-tax). Laws cover paid leave and protect temp/contract workers, balancing interests for a fair, flexible labor market.

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Currency

Mexican Peso (MXN, $)

Capital

Mexico City

Official language

Spanish

Salary Cycle

Monthly

Our Employment Guide in Mexico

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Understanding Paid Time Off in Mexico

For full-time employees on a standard five-day work week, Mexican labor law guarantees a minimum of 12 days of paid time off (PTO) annually. This entitlement progressively increases by two days every five years of service. After the initial five years, employees accrue 14 days, eventually reaching a maximum of 20 days. With continued tenure, the benefit can extend further, capping at 32 days after significant long-term service. This structure rewards employee loyalty and supports long-term career sustainability.

Navigating Public Holidays

Mexico observes a combination of national and regional public holidays, providing employees with paid leave on these designated days. There are seven mandatory national holidays celebrated across the country, complemented by one additional regional holiday specific to an employee's locality.

National Public Holidays in Mexico

  1. New Year's Day (January 1st)
  2. Constitution Day (first Monday of February)
  3. Benito Juárez's Birthday (third Monday of March)
  4. Labor Day (May 1st)
  5. Independence Day (September 16th)
  6. Revolution Day (third Monday of November)
  7. Christmas Day (December 25th)

For international companies like SailGlobal, accurately managing these entitlements is crucial for compliance and maintaining positive employee relations in Mexico.

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