How much does an employee really cost beyond their salary?

It depends on your benefits, your occupational risk premium, and your state's payroll tax. The items that usually weigh the most are the employer IMSS contribution, INFONAVIT, aguinaldo, and vacation premium.

Why am I asked for the payroll tax instead of it being calculated?

Because it's a state-level tax and each state has its own rate. Check it for your state and enter it manually.

Is the employee's INFONAVIT loan included?

No. Only the employer contribution (5%) is included. A loan's repayment is a deduction from the employee's salary, not an additional cost to the company.

Does this cost include training or work equipment?

No: it focuses on the legally required costs (salary, IMSS-INFONAVIT contributions, benefits) that apply to any employee. Additional costs like training, equipment, or role-specific software are outside this scope and should be added separately for your case.

How Much Does an Employee Cost in Mexico?

Mexico · Employment

How much does it really cost to hire someone in Mexico? Enter the gross salary and estimate the full monthly labor cost: Christmas bonus (aguinaldo), vacation premium, employer IMSS contributions, INFONAVIT, and payroll tax.

How is it calculated?

Monthly cost = gross salary + monthly aguinaldo provision + vacation premium provision + employer IMSS contribution + employer INFONAVIT contribution (5% of the SBC) + payroll tax. The IMSS contribution and INFONAVIT contribution are calculated on an Integrated Daily Wage (SDI) estimated from the salary, aguinaldo, vacation, and vacation premium — the same engine used by the Integrated Daily Wage and IMSS Contributions calculators. Payroll tax varies by state, so you always enter it yourself; this calculator doesn't assume a rate. Vacation days themselves aren't counted as an extra cost (they're paid time off already included in the monthly salary) — what is a real additional cost is the vacation premium.

Examples

Gross salary of 15,000, 3% payroll tax
Estimated monthly cost: 21,268.45 (141.79% of the gross salary) — 6,268.45 in additional cost over the salary.

What an employee's cost is made up of

Item	Who pays it	Notes
Gross salary	Employer	Agreed in the contract
Aguinaldo and vacation premium	Employer	Provisioned every month
Employer IMSS contribution	Employer	On the SDI; includes occupational risk, retirement, and childcare
INFONAVIT	Employer	5% of the SDI
Payroll tax	Employer	Set by each state: you enter it yourself

Calculation example

For a gross salary of 15,000 and a 3% payroll tax: aguinaldo provisioned 616.44, vacation premium 123.29, employer IMSS contribution 4,292.17, INFONAVIT 786.55. The estimated monthly cost is 21,268.45, or 141.8% of the salary. Illustrative figures.

Break down the IMSS portion with the IMSS contributions calculator and the contribution base with the integrated daily wage calculator. From the employee's side, check net salary.

Sources

IMSS (Mexican Social Security Institute) / Social Security Law — current employer-employee contribution rates — in effect since January 2026 · reviewed on September 25, 2026
Official Gazette of the Federation (DOF) — pension system reform decree (employer Unemployment & Old Age transitional table, 2023-2030) — in effect since January 2026 · reviewed on September 25, 2026
INFONAVIT — employer contribution to the National Workers' Housing Fund — in effect since January 1997
Social Security Law, Art. 84 — integration of the contribution base salary — in effect since January 2021 · reviewed on September 27, 2026

Frequently asked questions

Related calculators

Mexico IMSS Contributions Calculator

Mexico Integrated Daily Wage (SDI) Calculator

Mexico Net Salary Calculator