How net salary is calculated in Mexico
Your employer withholds two items every month: income tax (ISR) and your employee IMSS contributions. On lower salaries, the employment subsidy reduces ISR.
ISR with the 2026 schedule
For 2026 the SAT updated the monthly schedule in Article 96 of the Income Tax Law for cumulative inflation (factor 1.1321, Annex 8 of the RMF published on December 28, 2025). Find the row your salary falls in, subtract the lower limit, multiply the excess by the row’s rate and add the fixed fee. For example, at $25,000 a month: (25,000 − 17,533.65) × 21.36% + 1,856.84 = $3,451.65 of ISR.
Employment subsidy
Since 2024 the subsidy is a percentage of the UMA reference unit. In 2026 it is worth $535.65 a month for people earning up to $11,492.66, and it can only reduce ISR to zero: it is never paid out in cash.
Employee IMSS contributions
These are based on the integrated daily wage (SBC), which includes the prorated year-end bonus and vacation premium. Employees pay 2.375% of SBC in total (sickness and maternity, disability and life, old age) plus 0.40% on anything above three UMAs. The 2026 daily UMA is $117.31. If you earn exactly the minimum wage, your employer covers your share and no ISR is withheld.
Year-end bonus and vacation
Since the 2023 reform you are entitled to 12 vacation days in your first year, with a minimum 25% vacation premium. The minimum aguinaldo is 15 days’ pay and is ISR-exempt up to 30 UMAs ($3,519.30 in 2026).