Mexico Net Salary Calculator
Calculate your net salary after ISR, IMSS, INFONAVIT and other deductions in Mexico for the 2025 fiscal year.
Notes:
- This calculator provides estimates and should not be used for official tax declarations.
- The calculation uses projected tax rates and tables for Mexico in 2025.
- Personal deductions such as mortgage credits, medical or educational expenses are not included.
- Results may vary according to additional specific benefits from each employer.
- For 2025, the minimum wage in Mexico is estimated at $375 MXN daily in the general zone and $584 MXN in the Northern Border Free Zone.
How We Calculate Your Net Salary in Mexico
ISR Rates for 2025
Income Tax (ISR) in Mexico is calculated using a progressive rate system based on your taxable income. For the 2025 fiscal year, the estimated monthly ISR rates are:
| Monthly Income | Fixed Fee | Rate for Excess |
|---|---|---|
| $0.01 - $746.04 | $0.00 | 1.92% |
| $746.05 - $6,332.05 | $14.32 | 6.40% |
| $6,332.06 - $11,128.01 | $371.83 | 10.88% |
| $11,128.02 - $12,935.82 | $893.63 | 16.00% |
| $12,935.83 - $15,487.71 | $1,182.88 | 17.92% |
| $15,487.72 - $31,236.49 | $1,640.18 | 21.36% |
| $31,236.50 - $49,333.01 | $5,004.12 | 23.52% |
| $49,333.02 - $147,999.02 | $9,236.89 | 30.00% |
| $147,999.03 - $298,285.09 | $38,671.22 | 32.00% |
| $298,285.10 and above | $86,482.86 | 35.00% |
These rates are adjusted annually for inflation and are projected for 2025.
IMSS Contributions
Contributions to the Mexican Social Security Institute (IMSS) are mandatory and cover medical services, pensions, and other social security benefits. The employee's portion is calculated approximately as follows:
| Concept | Rate | Calculation Base |
|---|---|---|
| Illness and Maternity | 0.40% | Base Contribution Salary (SBC) |
| Benefits in kind | 0.625% | Differential (SBC - 3 UMAs) |
| Disability and Life | 0.625% | SBC (limited to 25 UMAs) |
| Unemployment and Old Age | 1.125% | SBC (limited to 25 UMAs) |
The total employee contribution to IMSS is typically approximately 2.775% of salary, although it may vary depending on income level and contribution limit.
Note: UMA means Measurement and Update Unit, which for 2025 is estimated at approximately $112.20 MXN daily.
INFONAVIT Contributions
The National Workers' Housing Fund Institute (INFONAVIT) provides housing financing for Mexican workers.
The INFONAVIT contribution is 5% of the base contribution salary and is paid entirely by the employer, so it does not directly affect your net salary. However, if you have an INFONAVIT loan, additional deductions will be made from your salary to pay that loan.
Minimum Wage in Mexico for 2025
For 2025, it is projected that the minimum wage in Mexico will continue its trend of significant increases. Based on current administration policies and economic projections, it is estimated that:
| Zone | Daily Minimum Wage 2025 (Estimated) | Monthly Minimum Wage 2025 (Estimated) |
|---|---|---|
| General Zone | $375.00 MXN | $11,250.00 MXN |
| Northern Border Free Zone | $584.00 MXN | $17,520.00 MXN |
These figures represent a projected increase of approximately 18-20% compared to 2024 values, maintaining the policy of recovering the purchasing power of the minimum wage.
The Northern Border Free Zone includes municipalities that border the United States, covering parts of the states of Baja California, Sonora, Chihuahua, Coahuila, Nuevo León and Tamaulipas.
Cost of Living in Mexico by City (2025)
The cost of living and salary levels vary significantly between different regions of Mexico:
Salary Outlook in Mexico 2025
Understanding where your salary stands compared to national averages can help you in your financial planning:
Average Salaries by Industry
| Industry | Average Monthly Salary (2025 Projected) |
|---|---|
| Technology and Information Technology | $35,000 - $45,000 MXN |
| Financial Services and Banking | $30,000 - $40,000 MXN |
| Pharmaceutical and Biotechnology | $28,000 - $38,000 MXN |
| Automotive and Advanced Manufacturing | $25,000 - $35,000 MXN |
| Mining and Extractive Industries | $22,000 - $35,000 MXN |
| Professional Services and Consulting | $22,000 - $32,000 MXN |
| Construction | $18,000 - $28,000 MXN |
| Education | $15,000 - $25,000 MXN |
| Retail | $12,000 - $18,000 MXN |
| Tourism and Hospitality | $11,000 - $20,000 MXN |
Step-by-Step Guide to Calculate Your Net Salary in Mexico
Understanding how your net salary is calculated will help you better plan your personal finances. Here we explain the complete process:
Step 1: Determine the Base Contribution Salary (SBC)
The SBC includes all fixed earnings you receive, such as:
- Base salary
- Fixed bonuses
- Commissions
- Vacation premium (prorated)
- Christmas bonus (prorated)
Formula: SBC = Monthly salary + (Christmas bonus / 12) + (Vacation premium / 12)
Step 2: Calculate ISR (Income Tax)
To calculate the monthly ISR:
- Identify your income range in the monthly ISR table
- Subtract the lower limit from your taxable income
- Multiply that excess by the corresponding percentage
- Add the fixed fee for that range
Formula: ISR = Fixed fee + [(Monthly salary - Lower limit) × Applicable percentage]
Example: For a monthly salary of $18,000 MXN (which falls in the range of $15,487.72 - $31,236.49):
ISR = $1,640.18 + [($18,000 - $15,487.72) × 21.36%] = $2,177.21 MXN
Step 3: Calculate IMSS Contributions
The worker's contribution to IMSS is divided into four components:
- Medical benefits: 0.40% of SBC
- Excess benefits in kind: 0.625% on the difference (SBC - 3 UMAs)
- Disability and life: 0.625% of SBC (maximum 25 UMAs)
- Unemployment and old age: 1.125% of SBC (maximum 25 UMAs)
Approximate formula for a simplified calculation: IMSS ≈ 2.775% of SBC
Example: For an SBC of $18,000 MXN:
IMSS = $18,000 × 2.775% = $499.50 MXN
Step 4: Calculate Net Salary
Once all deductions are calculated, you get your net salary:
Formula: Net Salary = Gross Salary - ISR - IMSS - Other deductions
Example: For a gross salary of $18,000 MXN:
Net Salary = $18,000 - $2,177.21 (ISR) - $499.50 (IMSS) = $15,323.29 MXN
Step 5: Consider Additional Benefits
Some benefits improve your total annual compensation:
- Christmas bonus: Minimum 15 days of salary per year by law
- Vacation premium: Minimum 25% of salary corresponding to vacation days
- Profit sharing (PTU): Participation in company profits
- Food vouchers: Common non-taxable benefit (up to a certain limit)
Evolution of Minimum Wage in Mexico (2019-2025)
The policy of minimum wage recovery has been a priority in recent years. Observe how it has evolved:
| Year | General Zone (Daily) | Northern Border Zone (Daily) | Annual Increase |
|---|---|---|---|
| 2019 | $102.68 MXN | $176.72 MXN | 16.2% |
| 2020 | $123.22 MXN | $185.56 MXN | 20.0% |
| 2021 | $141.70 MXN | $213.39 MXN | 15.0% |
| 2022 | $172.87 MXN | $260.34 MXN | 22.0% |
| 2023 | $207.44 MXN | $312.41 MXN | 20.0% |
| 2024 | $248.93 MXN | $374.89 MXN | 20.0% |
| 2025 (Projected) | $375.00 MXN | $584.00 MXN | 18-20% (estimated) |
This trend of significant increases is part of a national policy to recover workers' purchasing power and reduce economic inequality in Mexico.
Purchasing Power of Salaries in Mexico 2025
To better understand what your salary means in practical terms, here are some examples of the cost of living in Mexico for 2025:
Monthly Basic Expenses (Family of 4)
- Rent (2-bedroom apartment, mid-range area): $8,000 - $15,000 MXN
- Food and groceries: $6,000 - $10,000 MXN
- Utilities (electricity, water, gas, internet): $2,000 - $3,500 MXN
- Transportation: $2,000 - $4,000 MXN
- Basic education (public school): $500 - $2,000 MXN
- Health (basic private insurance): $1,500 - $3,000 MXN
- Approximate total: $20,000 - $37,500 MXN
Salaries and Purchasing Power
- Monthly minimum wage (general zone): $11,250 MXN
- Monthly minimum wage (northern border): $17,520 MXN
- Average professional salary: $22,000 - $30,000 MXN
- Salary considered "middle class": $30,000 - $70,000 MXN
- High salary (top 5%): >$80,000 MXN
Note: It is estimated that approximately 60% of Mexican households have monthly incomes below $20,000 MXN.
Frequently Asked Questions about Salaries in Mexico 2025
What will be the minimum wage in Mexico for 2025?
For 2025, the minimum wage in Mexico is projected to be approximately $375.00 MXN daily ($11,250 MXN monthly) in the general zone and $584.00 MXN daily ($17,520 MXN monthly) in the Northern Border Free Zone. This represents an estimated increase of 18-20% compared to 2024, following the government policy of recovering the purchasing power of the minimum wage.
How is ISR calculated in Mexico?
ISR (Income Tax) in Mexico is calculated using a progressive rate system. First, identify the range where your monthly income falls in the ISR table. Then apply the formula: ISR = Fixed fee + [(Monthly income - Lower limit of the range) × Percentage on excess]. Rates range from 1.92% for the lowest incomes to 35% for the highest, according to the tables in effect for 2025.
What percentage of my salary goes to IMSS?
As a worker, approximately 2.775% of your Base Contribution Salary (SBC) goes to IMSS. This percentage is divided into: 0.40% for medical benefits, 0.625% for excess benefits in kind, 0.625% for disability and life, and 1.125% for unemployment and old age. The employer contributes a significantly higher percentage, approximately 25-30% additional, but this does not affect your net salary.
What is the Christmas bonus and how is it calculated?
The Christmas bonus is a mandatory benefit in Mexico that consists of an additional annual payment. By law, it must be equivalent to at least 15 days of salary and paid before December 20. To calculate it, divide your daily salary by 365 days and multiply by the days of Christmas bonus offered by your employer (minimum 15). If you worked less than a year, it is calculated proportionally to the time worked. Many companies offer 30 days or more as an additional benefit.
How many vacation days are legally required in Mexico?
Since 2023, with the reform to the Federal Labor Law, workers are entitled to 12 vacation days from the first year of service. This period increases progressively: 14 days in the second year, 16 days in the third year, 18 days in the fourth year, and so on until reaching 20 days from the sixth year. Additionally, a vacation premium of at least 25% must be paid on the salary corresponding to the vacation days.
What is PTU and how does it affect my annual salary?
Profit Sharing (PTU) is a right that requires companies to distribute a percentage of their annual profits among their employees. By law, it corresponds to 10% of the company's taxable profit. Distribution must be made within 60 days following the annual tax declaration. PTU represents an additional annual income that can vary significantly depending on the company's profits and your seniority and salary level, although since 2021 there is a maximum cap of 3 months' salary or the average PTU received in the last 3 years.
What is the difference between gross and net salary in Mexico?
Gross salary is the total amount agreed upon before any deductions, while net salary is what you actually receive after mandatory deductions. In Mexico, the main deductions are ISR (Income Tax) and contributions to IMSS (Mexican Social Security Institute). Depending on your income level, deductions can represent between 10% and 30% of your gross salary.
What are the legal benefits in Mexico?
Legal benefits in Mexico are mandatory benefits that every employer must provide and include: Christmas bonus (15 days minimum), paid vacation (12 days the first year), vacation premium (25% minimum), social security (IMSS), contributions to INFONAVIT (5%), retirement contributions (SAR/AFORE, 2%), weekly rest day, official holidays, and profit sharing (PTU). These benefits are additional to the base salary and are guaranteed by the Federal Labor Law.
What benefits above the legal requirements are common in Mexico?
Many companies in Mexico offer benefits above what the law requires to attract and retain talent. The most common include: food vouchers (typically 4-7% of salary), major medical expense insurance, life insurance, savings fund (company matches employee contributions), additional vacation days, higher Christmas bonus (30 days or more), performance bonuses, complementary pension plans, and school aid for employees' children. These benefits can represent up to an additional 30-40% of the base salary value.
How will inflation affect salaries in Mexico in 2025?
Inflation in Mexico for 2025 is projected to be in the range of 3.5% to 4.5%. Although the minimum wage will increase significantly (estimated 18-20%), general salary increases for already hired employees tend to be lower, typically between 4% and 7% for most companies. This means that for many workers, especially in the middle class, increases will barely compensate for inflation. Sectors with higher talent demand such as technology, finance, and pharmaceuticals will tend to offer more competitive increases to retain key personnel.
Tips to Optimize Your Net Salary in Mexico
There are several legal strategies you can implement to maximize your disposable income:
Personal Deductions to Reduce ISR
- Medical and dental expenses (including insurance)
- Real mortgage interest
- Donations to authorized institutions
- Voluntary contributions to your Afore
- Tuition (from preschool to high school)
- Funeral expenses
- Mandatory school transportation
These deductions can reduce your taxable base when filing your annual tax return, resulting in a tax refund.
Negotiate an Optimized Compensation Package
- Request tax-exempt benefits such as food vouchers
- Consider social welfare plans
- Evaluate benefits such as company car or representation expenses
- Negotiate performance bonuses
- Explore telecommuting options to reduce transportation expenses
- Consider contributions to savings funds with employer matching
A smart combination of salary and benefits can significantly optimize your total net compensation.