Business
Mexico — Business: Payroll
Employer IMSS contributions in Mexico run approximately 20-35%+ of the Salario Base de Cotización (SBC, an integrated salary figure, not just base pay), capped at 25 UMA/day (MXN 2,932.75/day in 2026, based on the 2026 UMA of MXN 117.31). Employee IMSS contributions are roughly 2.78%. Total employer cost typically adds 30-40% on top of base salary once IMSS, INFONAVIT (housing fund, 5%), SAR (retirement savings), state payroll tax, and mandatory benefits (Aguinaldo, vacation premium) are included. A common and heavily penalized compliance error is calculating contributions on base salary alone instead of the full integrated SBC — this causes systematic underpayment and audit exposure.
VerifiedGovernment / official sourceIMSS (Instituto Mexicano del Seguro Social)Last reviewed: 2026-07-19
Key facts
- Employer IMSS contributions: ~20-35%+ of SBC (integrated salary), capped at 25 UMA/day (MXN 2,932.75/day in 2026).
- Employee IMSS contribution: ~2.78%.
- Total employer on-cost: 30-40% above base salary (IMSS + INFONAVIT 5% + SAR + state payroll tax + Aguinaldo/vacation premium).
- Common critical error: computing contributions on base salary only instead of the full integrated SBC.
Costs
- Employer IMSS contribution: ~20-35%+ of SBC
- Employee IMSS contribution: ~2.78%
- Total employer on-cost above base salary: 30-40%
- SBC contribution cap: MXN 2,932.75/day (25 UMA)
Common mistakes
- Calculating IMSS contributions on base salary alone instead of the full integrated SBC — the most common and heavily penalized payroll compliance error.