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Mexico – Employment Terms and Conditions

Working Hours in Mexico

The standard working week in Mexico is 48 hours, with a maximum of 8 hours per day. However, the law also allows for flexible working hours and part-time employment. Employees are entitled to at least one rest day per week and a minimum of 30 minutes of rest for every 6 hours of work.

Employment Rights and Benefits in Mexico

Paid Vacation and Sick Leave

Employees in Mexico are entitled to at least 6 days of paid vacation after one year of continuous service, and this entitlement increases to 8 days after two years and 10 days after five years. In addition, workers are entitled to paid sick leave, which is calculated on the basis of the length of service and the number of hours worked. For example, employees with less than one year of service are entitled to 5 days of paid sick leave, while those with more than one year of service are entitled to 20 days of paid sick leave.

Social Security Benefits

All employees in Mexico are required to contribute to the social security system, which provides benefits such as retirement pensions, disability pensions, and healthcare. Both employers and employees make contributions to the system, with the employee contribution rate at 6.5% of their salary. The social security system also provides benefits for maternity and paternity leave.

Maternity and Paternity Leave


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Expectant mothers in Mexico are entitled to 12 weeks of maternity leave, with the first 6 weeks being paid at their full salary. Fathers are entitled to 5 days of paternity leave, which must be taken within the first 5 days after the birth of the child. In addition, parents who adopt a child are entitled to adoption leave, which is calculated on the basis of the length of service and the number of hours worked.

Severance Pay

Employees who are terminated without just cause are entitled to receive severance pay, which is calculated on the basis of the length of service and the last salary earned. For example, employees with less than one year of service are entitled to 12 days’ pay, while those with more than 20 years of service are entitled to 90 days’ pay.

Pensions

All employees in Mexico are required to contribute to the social security system, which provides retirement pensions upon reaching the retirement age. The retirement age in Mexico is currently 65 years old for men and 60 years old for women, but it is scheduled to increase to 68 years old for both genders by 2050. The amount of pension received depends on the amount of contributions made during the employee’s working years.

Types of Pensions for Expats in Mexico

Expats who are working in Mexico are required to contribute to the social security system and are entitled to the same benefits as Mexican citizens, including retirement pensions. However, expats who are not planning to retire in Mexico may be eligible for a lump sum payment of their contributions to the social security system.

In conclusion, workers in Mexico are entitled to a range of employment rights and benefits, including paid vacation and sick leave, social security benefits, and severance pay. Expats who are working in Mexico are also required to contribute to the social security system and receive retirement pensions upon reaching the retirement age. It is important for both employers and employees to understand these employment terms and conditions to ensure that workers are being treated fairly and in accordance with the law.


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