Running a Business in Mexico in 2025: Your Guide to Staying Compliant If you’re running a business in Mexico in 2025, staying compliant with the country’s evolving labor laws is not just important—it’s essential. 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 operations. Let’s get started.
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 |
Why Compliance Matters in Mexico?
Mexico’s labor laws are designed to protect workers’ rights, improve workplace conditions and fair treatment for all employees. From minimum wage increases to digital worker protections, employers must be proactive in adapting to new regulations. Failure to comply can lead to big penalties, legal trouble or even business closure.
- Minimum Wage Increases in 2025
CONASAMI has approved a new minimum wage structure as of January 1, 2025.
- Northern Border Region: MXN $419.88/day
- Rest of Mexico: MXN $278.80/day
What to Do:
Update your payroll to reflect these changes. Make sure payslips show compliance with the new rates and update any benefits tied to salary bases.
Pro Tip: Use payroll software that auto adjusts to regulatory changes to save time and reduce errors.
- Unit of Measurement (UMA) Adjustments
UMA (Unidad de Medida y Actualización) is used to calculate fines, fees and benefits. Here’s what’s new for 2025:
- Daily UMA: MXN $113.14
- Monthly UMA: MXN $3,439.46
- Annual UMA: MXN $41,273.52
Why This Matters: Many labor-related penalties are calculated based on this. Keep your financial records updated to avoid surprises during audits.
- Mandatory Employee Profit Sharing
By law, employers must share 10% of taxable profits with employees by May 31, 2025. This applies to all workers, including part-time and temporary staff.
Action Steps:
- Calculate your profits correctly.
- Pay on time to avoid penalties.
- Keep detailed records to prove compliance if audited.
Did You Know? Hiring a tax advisor can help with profit sharing calculations.
- New Workplace Regulations – The Ley Silla (Chair Law)
Mexico’s Ley Silla (Chair Law) as of June 2025 requires employers to provide chairs with backrests and allow seated breaks to employees.
Key Points:
- Don’t have employees stand for long periods.
- Include ergonomic measures to improve workplace safety.
Penalties for Non-Compliance: Fines from 250 to 2,500 UMA.
- Digital Platform Worker Rights
A new law now classifies gig workers (e.g. Uber, Rappi) as full employees. This means they’re entitled to:
- IMSS benefits.
- Profit sharing and overtime.
- Health and workplace safety.
You: Reclassify app-based workers and comply to avoid legal risks.
- Labor Law Reforms
Several reforms are being discussed:
- Reduce workweek from 48 to 40 hours.
- Add paid vacation days.
- Strengthen equal pay.
Teleworking for parents. - Stay ahead: Follow these proposals closely.
- Employer Recordkeeping & Compliance Audits
Keep your employment records organized for compliance. You’ll need:
- Employee contracts and agreements.
- Payroll and tax records.
- Attendance logs and working hour reports.
Best Practices:
- Do internal audits regularly.
- Train your HR team on compliance updates.
- Keep digital copies of all employee documents.
Frequently Asked Questions about Running a Business in Mexico
1. How often do Mexico’s labor laws change?
Mexico changes its labor laws often to benefit workers. Stay up to date and adjust accordingly.
2. What happens if I don’t comply?
Non-compliance will get you fined, sued or shut down. Be proactive.
3. Do part-time employees get profit sharing?
Yes, all employees including part-time and temporary workers get a proportional share.
4. Are independent contractors affected by new labor laws?
Only employees are affected but misclassifying workers can get you in trouble.
5. How do I prepare for compliance audits?
Keep records, audit regularly and consult with experts.