Running a Business in Mexico: If you’re running a business in Mexico in 2025, staying compliant with the country’s evolving labor laws and employer regulations is crucial. Whether you’re a local entrepreneur or an international company operating in Mexico, understanding the latest compliance updates will help you avoid fines and maintain smooth business operations.
Mexico’s labor laws continue to evolve, focusing on workers’ rights, social benefits, workplace conditions, and digital worker protections. Employers must be aware of new minimum wage adjustments, social security requirements, teleworking regulations, and mandatory workplace provisions. This guide breaks down the essential compliance rules every business owner must follow in 2025.
Running a Business in Mexico
| Compliance Rule | Key Details |
|---|---|
| Minimum Wage Increase | MXN $419.88/day (Northern Border), MXN $278.80/day (Rest of Mexico) |
| Unit of Measurement (UMA) Adjustment | Daily: MXN $113.14, Monthly: MXN $3,439.46, Annual: MXN $41,273.52 |
| Profit-Sharing Obligations | 10% of taxable income must be shared with employees by May 31, 2025 |
| Ley Silla (Chair Law) | Employers must provide seats for workers and allow breaks (Effective June 2025) |
| Digital Platform Worker Rights | Gig workers (Uber, Rappi, etc.) entitled to social security, benefits, and profit sharing |
| New Labor Law Proposals | Potential workweek reduction, equal pay mandates, and telework benefits |
| Social Security & IMSS Contributions | Mandatory registration of all employees, including digital workers, with IMSS (Mexican Social Security Institute) |
| Recordkeeping & Due Diligence | Maintain contracts, payroll records, attendance logs, and benefit receipts |
Operating a business in Mexico in 2025 requires careful attention to new labor laws and compliance updates. From minimum wage increases and worker benefits to digital platform regulations and workplace safety measures, employers must stay proactive to avoid penalties and ensure legal compliance.
By understanding and implementing these new employer obligations, businesses can maintain compliance, protect employees’ rights, and create a fair and legally sound workplace.
1. Minimum Wage Increases in 2025
The National Commission on Minimum Wages (CONASAMI) approved an increase in minimum wages effective January 1, 2025.
New Minimum Wages:
- Free Zone of the Northern Border: MXN $419.88 per day
- Rest of the Country: MXN $278.80 per day
What Employers Must Do:
- Adjust payroll systems accordingly.
- Ensure salary structures reflect the updated minimum wage.
- Provide clear payslips indicating compliance with new rates.
- Adjust benefit calculations linked to salary base.
2. Unit of Measurement (UMA) Adjustments
The UMA (Unidad de Medida y Actualización), used to determine fines, government fees, and benefits, has been updated:
- Daily UMA: MXN $113.14
- Monthly UMA: MXN $3,439.46
- Annual UMA: MXN $41,273.52
Why This Matters: Many labor fines and penalties are calculated based on the UMA, so businesses must update their financial and compliance records accordingly.
3. Mandatory Employee Profit Sharing (PTU)
Employers must distribute 10% of taxable profits to employees by May 31, 2025. Failure to comply may result in fines.
Action Steps for Employers:
- Ensure accurate profit calculations.
- Distribute the mandatory profit-sharing payments on time.
- Keep detailed records to show compliance in case of inspections.
- Consider hiring tax advisors to properly allocate funds.
4. New Workplace Regulations – Ley Silla (Chair Law)
Mexico passed the Ley Silla (Chair Law) in December 2024, requiring employers to:
- Provide seats with backrests for employees.
- Allow workers periodic seated breaks.
- Include health and ergonomic measures in workplace regulations.
- Avoid prolonged standing for extended shifts.
Compliance Deadline: June 2025. Employers failing to comply risk fines between 250-2,500 times the UMA.
5. Digital Platform Worker Rights
A major labor reform now grants full employee status to gig workers on digital platforms like Uber, Rappi, and Didi.
New Rights for Digital Platform Workers:
- Social security benefits (IMSS enrollment required).
- Profit-sharing entitlements.
- Health & workplace safety measures.
- Union rights & protection against discrimination.
- Overtime pay for extended work hours.
Employer Responsibility: Companies must classify app-based workers as full employees and ensure compliance to avoid legal risks.
6. Proposed Labor Law Reforms – What to Expect Next?
Several new labor law proposals are under discussion, including:
- Workweek reduction from 48 to 40 hours.
- Additional paid vacation days.
- Stronger equal pay enforcement.
- Mandatory teleworking benefits for parents.
- More substantial retirement savings contributions by employers.
Employers should monitor these potential changes to prepare for compliance adjustments in 2025 and beyond.
7. Employer Recordkeeping & Compliance Audits
Maintaining organized, up-to-date employment records is crucial for compliance.
Required Documents for Employers:
- Employee contracts and agreements.
- Payroll and tax records.
- Attendance logs and working hour reports.
- Proof of benefits and salary adjustments.
- Compliance audits and workplace safety documentation.
Best Practices:
- Conduct internal audits regularly.
- Train HR teams on compliance updates.
- Keep a digital record of all employee documentation for easy access.
- Consult legal experts on evolving labor laws.
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FAQs On Running a Business in Mexico
1. How often do Mexico’s labor laws change?
Mexico frequently updates labor laws to strengthen workers’ rights, so employers must stay informed and adjust policies as needed.
2. What happens if a business fails to comply with these regulations?
Non-compliance can result in fines, lawsuits, or even business closures. Employers should prioritize proactive compliance.
3. Do part-time employees qualify for profit-sharing?
Yes, all employees, including part-time and temporary workers, are entitled to a proportional share of company profits.
4. Are independent contractors affected by the new labor laws?
Only employees are affected by labor law updates, but misclassifying independent contractors as freelancers instead of employees may result in legal consequences.
5. How can companies prepare for compliance audits?
Keep detailed employment records, payroll documents, and internal compliance reports to ensure smooth inspections by labor authorities.
