Let’s start by understanding the difference between take home pay and gross pay . To calculate the gross salary in Mexico , it is necessary to know that it is the one that a company offers you before taxes are reduced and, the net salary, is the one that you receive in its entirety after the reduction of said taxes.
It is important that during a job interview you are very clear about these definitions so as not to get confused. Because on many occasions, employers seek to agree a gross salary with you and when you receive your first salary you could have the unpleasant surprise of seeing the amount you expected significantly reduced.
For this reason we have created this article so that you know, step by step how to calculate the net salary in Mexico .
Net salary calculator in Mexico
Since we know that calculating your net salary can be very complicated, especially since calculating ISR withholdings is somewhat cumbersome, we will recommend a calculator that does it for you.
It is important that you know that your net salary can also be reduced if your company has the following services or if you have used any of them:
- Savings bank.
- union dues.
- Infonavit credits.
- Personal loans.
Enter the net salary calculator and find out what is the real amount of salary that you will receive with your work.
How to calculate net salary in Mexico step by step
There are different types of contracts in Mexico , but to give the most common example we will help you calculate the net salary in Mexico 2021 of a payroll worker .
One of the essential factors for a worker’s payroll is paying the IMSS fee and the withholding of ISR or Income Tax.
1. Deduct the IMSS quota from the gross salary, that is, from the social security.
2. You must also subtract the ISR withholding.
What is ISR and how to calculate it
All natural and legal persons must pay Income Tax for the amount of income they receive.
But the ISR percentage varies according to the amount of income you receive.
They range from .9% to 35% of income per month . The calculation of this tax is carried out using the lower and upper limit table in which the indicated rates are assigned.
To find out which are the tables with which you can calculate the ISR, you can consult directly on the official SAT page.
How to calculate IMSS fees for net salary
Because the percentage of payment for social security in Mexico varies depending on the salary you receive, the Mexican Institute of Social Security has put an online calculator in which you can obtain the rate that you must pay.