Benchmarking Employee Benefits in Mexico for 2019

benchmarking employee benefits in Mexico

Learn more about benchmarking employee benefits in Mexico from this market guide designed to help employers learn the fundamentals of offering employee benefits in the country. Topics include mandatory, and common, supplementary employee benefits. Standard benefit design and costs are included as well.

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Mandatory Benefits in Mexico

Benefit laws are determined on the federal level only. There are no state laws that require compliance. Mexican social security benefits are provisions employees must receive when beginning a new job. They are independent of the financial remuneration or wage, and they are given if an employee works for a legal entity, a natural person, or in subordinate employment (e.g. there is a schedule for starting and ending the workday). Such benefits are established by the Federal Labor Law (LFT), and it is compulsory for the employer to provide them.

Mexico’s Salary Levels and Employee Benefits

Salary levels in Mexico are much lower than in other parts of the world. This fact makes it even more important for companies to create benefit packages that help recruit and retain valuable employees. The numbers in this guide help put it in perspective.

The Labor Observatory of the National Employment System in Mexico publishes the average wages per activity area. Also, according to the figures from the second quarter of 2017 by the National Survey on Jobs and Employment (ENOE, abbreviation in Spanish), the monthly average income of professionals in Mexico is 11,294 MxP. Five out of the ten knowledge areas are above the national level.

If you have further questions about benchmarking employee benefits in Mexico please contact us and we will put you in touch with Intertec.