Guide to Mexico Payroll Rules (Nómina & NOM-035)
Mexico payroll compliance (nómina) requires employers to follow federal labor laws, statutory payroll deductions, and workplace regulations such as NOM-035, which addresses psychosocial risk factors and employee wellbeing.
Guide to Mexico Payroll Rules (Nómina & NOM-035) explains how employers can stay compliant with Mexican payroll laws, mandatory deductions, reporting obligations, and workplace risk regulations.
Who This Guide Is For
- Companies running payroll in Mexico
- HR and payroll teams managing Mexican employees
- Global organizations expanding operations into Mexico
Compliance at a Glance: Mexico payroll compliance involves correct nómina calculations, statutory contributions (IMSS, INFONAVIT, ISR), timely reporting to authorities, and adherence to NOM-035 workplace wellbeing standards.
What Is Mexico Payroll Compliance (Nómina)?
- Accurate calculation of employee wages and benefits
- Statutory payroll deductions and employer contributions
- Compliance with Mexican labor and tax regulations
- Timely payroll reporting and record keeping
Mandatory Payroll Deductions and Contributions in Mexico
- Income tax withholding (ISR)
- Social security contributions (IMSS)
- Housing fund contributions (INFONAVIT)
- Retirement savings contributions (AFORE)
Key Authorities Regulating Payroll in Mexico
- SAT – Tax administration and payroll tax compliance
- IMSS – Social security contributions
- INFONAVIT – Housing fund obligations
- STPS – Labor standards and workplace regulations
What Is NOM-035?
- Mexican regulation focused on psychosocial risk prevention
- Applies to workplaces of different sizes
- Requires identification and mitigation of workplace stress factors
- Mandates documentation and employee awareness
Employer Responsibilities Under NOM-035
- Identify psychosocial risk factors
- Implement preventive measures
- Maintain documentation and evidence
- Train employees and managers
Common Payroll Compliance Risks in Mexico
- Incorrect statutory deductions
- Late payroll tax remittances
- Failure to document NOM-035 compliance
- Inconsistent payroll records
How Payroll Software Helps with Mexico Compliance
- Automates statutory deductions and contributions
- Ensures compliance with Mexican payroll rules
- Maintains audit-ready payroll and compliance records
- Reduces risk of penalties and inspections
FAQs
What is nómina in Mexico payroll?
Nómina refers to payroll processing in Mexico, including wage calculation, statutory deductions, and employer contributions.
What is NOM-035 and who must comply?
NOM-035 is a Mexican regulation requiring employers to identify and prevent psychosocial workplace risks. It applies to organizations of varying sizes.
What are mandatory payroll deductions in Mexico?
Mandatory deductions include ISR, IMSS contributions, INFONAVIT payments, and retirement savings contributions.
What penalties apply for payroll non-compliance in Mexico?
Penalties may include fines, inspections, and sanctions from Mexican authorities.
How can employers ensure payroll compliance in Mexico?
Employers can ensure compliance by using payroll software, staying updated on regulations, and maintaining proper documentation.