If you work or have worked in Mexico's formal sector, there are benefits attached to your employment that affect your financial situation. This section explains what they are.
Many workers in Mexico's formal sector receive benefits they do not fully understand. Contributions to IMSS, INFONAVIT, and AFORE are deducted from wages or paid by employers, but what they actually mean for your health coverage, housing options, and retirement is not always explained.
This section does not tell you what to do with these benefits. It explains what they are and how they work, so that you can understand your own situation more clearly.
IMSS is Mexico's main social security institution for private sector workers. When you have formal employment, your employer registers you with IMSS and makes contributions on your behalf. This registration gives you access to medical care, disability coverage, maternity benefits, and other protections. Understanding what your IMSS number is, how to verify your registration is active, and what services you are entitled to use is the starting point for understanding your formal benefits.
INFONAVIT manages a housing fund that formal workers accumulate over the course of their employment. Each time you receive a formal paycheck, a percentage goes into your INFONAVIT account. Over time, this balance grows and can be used in different ways depending on your situation and the rules in effect at the time. This module explains what the fund is, how contributions work, and how to find out what is in your account. It does not advise on whether or how to use it.
AFORE stands for Administradora de Fondos para el Retiro. Every formal worker in Mexico has an AFORE account where retirement contributions accumulate. A portion of each paycheck goes into this account, and it is managed by a private fund administrator. Understanding which AFORE manages your account, how to check your balance, and what the difference between fund administrators means are all things this module covers. We do not recommend switching or choosing any specific administrator.
A formal pay slip in Mexico contains a lot of information that is not always obvious. It shows your gross salary, the deductions made for IMSS, INFONAVIT, AFORE, and income tax (ISR), and your net pay. Understanding each line helps you verify that contributions are being made correctly and gives you a clearer picture of what your employment actually costs and what it provides. This module walks through a typical pay slip line by line.
Many workers in Mexico move between formal and informal employment across their careers. This module explains what changes financially when you move from informal to formal work, and vice versa. It covers how social security coverage is affected, what happens to AFORE contributions during gaps in formal employment, and how informal income is treated differently for purposes of things like credit applications. This is informational only and does not constitute tax or legal advice.
Formal workers in Mexico pay income tax (ISR) through their employer. This module explains what the tax is, how the brackets work, and what the annual declaration process looks like for employees. It is explanatory only.
If you have ever received a digital receipt for a purchase or service in Mexico, you have seen a CFDI. This module explains what digital invoicing is, why it matters for formal workers, and how it relates to tax records and deductions.
The rest of our educational materials cover money basics, remittances, savings, and more.