Pay Periods in Mexico: Payroll Rules & Cycles

What Are Pay Periods in Mexico

Pay periods in Mexico define how often employees must be paid and how payroll obligations are calculated and reported. They are not an internal HR choice. Pay periods are regulated by labor law and directly affect wage payment timing, tax withholding, social security, and payroll reporting.

• Legal basis under the Federal Labor Law (LFT)
  The Federal Labor Law requires wages to be paid regularly and on time. The law links pay periods to minimum payment frequency and prohibits delayed or irregular wage payments.
  
  

• Why pay periods are a compliance issue, not a preference
  Pay periods determine ISR tables, social security calculations, CFDI reporting, and payment deadlines. Choosing an incorrect pay period leads to underpayment, incorrect withholding, and audit exposure.
  
  

• Who the rule applies to (all employees in Mexico)
  Pay period rules apply to all employees in Mexico, regardless of nationality, contract type, or employer location. There are no exemptions for foreign companies or remote roles.
  
  

In Mexico, pay periods are a legal framework tied to payroll compliance. Getting them wrong affects wages, taxes, and labor risk at the same time.

Mandatory Pay Frequency for Manual and Non-Manual Workers

Mexican labor law distinguishes between manual and non-manual work when setting pay frequency rules. This classification directly affects how often wages must be paid. Misclassifying the role or applying a uniform pay cycle across all employees is a common compliance error.

• Weekly payment requirement for manual workers
  Employees performing manual or physical work must be paid at least once every week. This rule exists to protect workers who depend on frequent wage access for basic living expenses.
  
  

• Maximum 7-day interval rule
  For manual workers, wages cannot be paid later than seven days after they are earned. Any payment schedule exceeding this limit is a violation, even if the employee agrees.
  
  

• Bi-weekly maximum (15 days) for non-manual workers
  Administrative, professional, technical, and managerial employees may be paid every fifteen days. Monthly pay cycles are allowed only when they still respect this maximum interval structure in practice.
  
  

• Why classification of work matters for payroll timing
  Classification is based on the nature of the work, not the job title. Applying a bi-weekly or monthly cycle to a role that qualifies as manual work creates immediate labor risk.
  
  

In Mexico, pay frequency follows the work performed. Incorrect classification directly leads to late wage violations and employee claims.

Common Pay Periods Used in Mexico

Mexico allows several pay period structures, but they must always respect legal maximum intervals between payments. 

While employers may choose among compliant options, some pay periods are far more common due to how they align with labor law, tax calculations, and payroll administration.

1. Weekly Pay Periods in Mexico

Weekly pay periods are commonly used in roles where labor is operational, physical, or hourly in nature. This structure aligns closely with wage protection rules under Mexican labor law and reduces the risk of late payment violations. While compliant, weekly payroll also increases operational workload and reporting frequency.

• Typical industries using weekly payroll
  Weekly pay is widely used in manufacturing, construction, logistics, retail operations, agriculture, and other labor-intensive sectors. These roles often qualify as manual work, making weekly payment the safest legal option.
  
  

• Compliance advantages and risks
  Weekly payroll aligns with the seven-day maximum payment rule and reduces exposure to wage timing claims. The main risk arises when employers delay payments or inconsistently process payroll due to higher frequency.
  
  

• Impact on deductions and payroll processing
  Tax withholding and social security contributions must be calculated every week using weekly ISR tables. This increases calculation volume and requires precise payroll controls.
  
  

• Operational considerations
  Weekly payroll demands more administrative effort, frequent data collection, and tighter payroll deadlines. Errors repeat faster and can compound quickly if not corrected immediately.
  
  

Weekly pay periods are compliance-friendly for manual roles but operationally demanding. Employers must balance legal protection with payroll execution capacity.

2. Bi-Weekly Pay Periods (Every 14 or 15 Days)

Bi-weekly pay periods are the most widely used payroll structure in Mexico for non-manual employees. This model fits cleanly within labor law limits, aligns with tax and social security calculations, and balances employee cash flow with employer administrative efficiency.

• Legal acceptance of bi-weekly payroll
  Mexican labor law allows non-manual employees to be paid every fifteen days. Bi-weekly payroll complies with this rule as long as the maximum interval between payments is not exceeded.
  
  

• Difference between 14-day and 15-day cycles
  A 14-day cycle pays employees every two weeks on a rolling schedule, while a 15-day cycle follows fixed calendar dates. Both are legal, but they affect payroll timing, month-end reporting, and annual payment counts differently.
  
  

• Why bi-weekly is the most common structure
  Bi-weekly payroll offers predictable income for employees, manageable payroll workload for employers, and straightforward alignment with ISR withholding tables and IMSS reporting.
  
  

• Alignment with labor law requirements
  This structure stays within the legal maximum payment interval, supports accurate tax calculations, and reduces wage timing disputes when applied consistently.
  
  

Bi-weekly payroll is the safest and most practical option for most non-manual roles in Mexico when implemented with consistent timing and accurate calculations.

3. Semi-Monthly (Quincenal) Pay Periods

Semi-monthly, or quincenal, payroll is a common pay structure in Mexico, especially in corporate and administrative environments. Under this model, employees are paid twice per month on fixed calendar dates. While legally accepted, quincenal payroll must be managed carefully to avoid timing and calculation errors.

• Definition of quincenal payroll
  Quincenal payroll divides the month into two fixed pay periods. Employees are paid for work performed during each half of the month rather than on a rolling weekly cycle.
  
  

• Typical payment dates (15th and last day of the month)
  Most employers pay on the 15th and the last calendar day of the month. These dates are predictable for employees and commonly used across Mexico.
  
  

• Difference between semi-monthly and bi-weekly
  Semi-monthly payroll follows fixed dates, resulting in 24 pay periods per year. Bi-weekly payroll follows a rolling cycle and results in 26 pay periods. This difference affects annual salary proration, deductions, and benefit calculations.
  
  

• Common employer mistakes with quincenal payroll
  Errors include misaligning pay periods with days worked, applying incorrect ISR tables, or delaying payment when months have fewer days. These mistakes often lead to wage timing violations.
  
  

Quincenal payroll is compliant when executed correctly. Fixed dates simplify planning, but precision is required to avoid calculation and payment timing issues.

4. Monthly Pay Periods in Mexico

Monthly payroll is permitted in Mexico only under specific conditions and is subject to close scrutiny. While some employers prefer monthly cycles for administrative simplicity, this structure carries higher compliance risk and must still respect legal wage timing rules.

• When monthly payroll is allowed
  Monthly pay may be used for non-manual employees when wage access and payment timing still comply with the Federal Labor Law. Employers must ensure employees are not effectively waiting longer than the legally allowed interval for earned wages.
  
  

• Typical roles using monthly pay
  Monthly payroll is usually limited to senior management, executives, directors, and highly compensated professional roles where compensation structure and cash flow expectations differ from operational staff.
  
  

• Legal risks if applied incorrectly
  Applying monthly payroll to roles that qualify as manual or operational work violates wage frequency rules. Even for non-manual roles, delayed or uneven payment timing can trigger wage claims and penalties.
  
  

• Why monthly payroll is less common
  Monthly cycles increase risk of non-compliance, complicate ISR and social security calculations, and concentrate payroll errors into larger amounts. Most employers prefer bi-weekly or quincenal cycles for safer compliance.
  
  

In Mexico, monthly payroll is the exception, not the norm. Employers must confirm role classification and payment timing carefully before adopting this structure.

Choosing a Pay Period and Employment Contracts

In Mexico, the pay period is not just a payroll setting. It is a contractual term that must be clearly defined and applied consistently. Any mismatch between what the contract states and how payroll is actually run creates legal exposure for the employer.

• Requirement to specify pay period in employment agreements
  Employment contracts must clearly state the pay frequency, such as weekly, bi-weekly, quincenal, or monthly. Missing or vague pay period clauses are interpreted in favor of the employee.
  
  

• Consistency between contract and payroll practice
  The pay period used in payroll must exactly match what is written in the contract. Paying employees on a different cycle than agreed is treated as a breach of contract and wage payment rules.
  
  

• Risks of undocumented or changing pay cycles
  Changing pay periods without a formal contract amendment is not permitted. Undocumented changes often result in claims for late wages, underpayment, or unpaid differences.
  
  

• Impact on employee claims
  Employees may file claims for wage violations, interest, and penalties if pay timing does not align with contractual and legal requirements. The burden of proof rests with the employer.
  
  

In Mexico, pay periods must be defined, documented, and followed precisely. When contracts and payroll fall out of alignment, employers face immediate labor risk.

Pay Dates, Weekends, and Public Holidays

Mexican labor law prioritizes timely wage payment over administrative convenience. When a scheduled pay date falls on a weekend or public holiday, employers must adjust payment timing to ensure employees receive wages without delay. Failure to do so is treated as a wage violation.

• Rules when pay date falls on a non-business day
  If a pay date falls on a weekend or mandatory public holiday, wages must be paid in advance. Employers cannot postpone payment to the next business day.
  
  

• Requirement to advance payment
  Payment must be made on the last working day before the scheduled date. This applies regardless of payroll frequency, bank processing timelines, or internal approval workflows.
  
  

• Common compliance failures
  Employers often delay payment due to banking closures, payroll vendor cutoffs, or global payroll calendars. These reasons are not accepted as legal justifications under Mexican law.
  
  

• Best practices for payroll calendars
  Employers should maintain a payroll calendar that accounts for weekends, holidays, bank closures, and processing lead times. Advance planning is essential to avoid repeated late-payment violations.
  
  

In Mexico, pay dates are strict legal deadlines. When a scheduled date is not a business day, the obligation moves earlier, not later.

Payroll Reporting and Pay Period Alignment (CFDI)

In Mexico, payroll compliance does not end with paying wages on time. Each payment must be reported electronically through a CFDI payroll receipt that accurately reflects the pay period used. Any mismatch between payroll practice and CFDI data is treated as a reporting error with tax and labor consequences.

• Requirement to reflect correct pay period in CFDI payroll receipts
  Each CFDI de Nómina must clearly state the exact start and end dates of the pay period covered. These dates must match the actual payroll cycle used for wage calculation and payment.
  
  

• Importance of accurate period dates
  Period dates determine how ISR, social security, and benefits are calculated and validated. Incorrect dates can distort withholding calculations and trigger discrepancies during reviews.
  
  

• Consequences of mismatched payroll data
  When CFDIs do not align with payroll timing or contract terms, authorities may treat payments as incorrectly reported. This can lead to rejected deductions, recalculations, and penalties.
  
  

• Audit exposure
  Tax and social security authorities cross-check CFDI data against payroll frequency and payment records. Repeated inconsistencies increase audit risk and retroactive assessments.
  
  

In Mexico, CFDI payroll receipts are legal records. Pay period accuracy is essential to ensure payroll, tax, and labor compliance remain aligned.

Common Payroll Pay Period Mistakes in Mexico

Pay period errors are among the most frequent payroll compliance issues in Mexico. These mistakes often stem from applying global payroll standards without adapting them to Mexican labor law. Even when wages are paid in full, incorrect timing can still result in violations.

• Using monthly payroll for roles that require weekly or bi-weekly
  Applying monthly payroll to manual or operational roles violates legal pay frequency limits. This mistake commonly leads to late wage claims, penalties, and forced payroll restructuring.
  
  

• Confusing bi-weekly and semi-monthly cycles
  Treating bi-weekly and quincenal payroll as interchangeable causes misaligned pay dates, incorrect ISR calculations, and errors in annual salary proration and benefit accruals.
  
  

• Missing or late payments
  Delays caused by banking cutoffs, internal approvals, or payroll vendors are not accepted excuses. Any late payment is treated as a wage violation regardless of intent.
  
  

• Inconsistent payroll calendars
  Changing pay dates month to month or failing to adjust for weekends and holidays creates repeated compliance failures and weakens the employer’s legal position in disputes.
  
  

In Mexico, payroll timing is as important as payroll amount. Small pay period mistakes quickly escalate into labor claims, audits, and financial exposure.

Consequences of Non-Compliance With Pay Period Rules

Failing to comply with pay period rules in Mexico creates immediate legal exposure. Even when wages are eventually paid in full, late or irregular payment is treated as a labor violation with both financial and operational consequences.

• Employee claims and labor inspections
  Employees may file wage claims for late or irregular payments. Labor authorities can initiate inspections, requiring employers to prove compliance with pay frequency and payment timing rules.
  
  

• Back pay exposure
  Non-compliance can trigger back pay obligations, including wage differences, interest, and adjustments if incorrect pay periods resulted in underpayment or delayed access to earned wages.
  
  

• Fines and penalties
  Authorities may impose administrative fines for wage payment violations. Repeated or systemic failures increase penalty amounts and attract closer regulatory scrutiny.
  
  

• Reputational and operational risk
  Late payments damage employee trust, increase turnover, and disrupt operations. For foreign employers, repeated payroll violations can also impact business continuity and expansion plans.
  
  

In Mexico, pay period violations are treated as wage protection failures. The cost of non-compliance often exceeds the effort required to structure payroll correctly from the start.

How Pay Period Compliance Is Managed Through an EOR

Mexico requires payroll timing to be managed by a single, legally accountable employer. Pay period compliance cannot be delegated informally or split across entities.

An Employer of Record structure exists to ensure pay cycles, reporting, and timing are handled in line with Mexican labor law.

• Requirement for a single legal employer in Mexico
  Mexican law does not recognize shared or co-employer payroll responsibility. One registered entity must control pay periods, wage payments, and reporting, and assume full legal liability for timing compliance.
  
  

• How HRM ensures compliant pay cycles
  Human Resources Mexico establishes pay periods that align with role classification, contract terms, and legal frequency limits. Payroll is structured from onboarding to avoid late payment or misclassification risk.
  
  

• Payroll calendar management
  HRM manages payroll calendars that account for weekends, public holidays, bank cutoffs, and CFDI deadlines. Payments are advanced when required to prevent timing violations.
  
  

• Risk mitigation for foreign companies
  By centralizing payroll responsibility under a compliant local employer, foreign companies avoid wage claims, inspection findings, CFDI mismatches, and penalties tied to incorrect pay period management.
  
  

In Mexico, pay period compliance depends on who is legally responsible, not which system is used. An EOR model aligns payroll timing, contracts, and reporting under one accountable employer.

FAQs

Are employers allowed to choose any pay period in Mexico?

No. Pay periods are regulated by the Federal Labor Law. Employers may choose only from legally permitted pay frequencies and must respect maximum intervals between payments. Company preference, global payroll policy, or employee agreement cannot override Mexican pay period rules.

Can employees be paid monthly in Mexico?

Monthly payroll is allowed only for non-manual roles and only if payment timing still complies with legal limits. Applying monthly pay to manual or operational roles is a violation and can trigger wage claims, inspections, and penalties.

What happens if a pay date falls on a weekend or public holiday?

Wages must be paid in advance. Employers cannot delay payment to the next business day. Late payment due to bank closures or payroll processing issues is still treated as a labor law violation.

Do pay periods need to match CFDI payroll receipts?

Yes. The pay period stated in the CFDI de Nómina must exactly match the actual payroll period used. Mismatches can result in rejected deductions, recalculated taxes, penalties, and audit exposure with Servicio de Administración Tributaria.

Can an employer change the pay period after hiring?

Not unilaterally. Changing a pay period requires a formal contract amendment and must still comply with legal limits. Undocumented or informal changes often result in employee claims for late or incorrect wage payments.

How does an Employer of Record help with pay period compliance?

An Employer of Record like Human Resources Mexico acts as the single legal employer, sets compliant pay cycles, manages payroll calendars, and ensures payments, CFDIs, and reporting align with Mexican labor and tax law.