Mexico's new regulations on digital platform work have now been in force for over a month. The legislation extends certain rights to digital platform workers based on their monthly net income. New rules have recently been published that determine how employers should calculate that income. We examine them below.
The so-called ‘Disposiciones' (or ‘Provisions') were published in the Official Gazette on 27 June 2025 and entered into force on 1 July 2025. Issued by the Ministry of Labour and Social Welfare (STPS), the aim of the Provisions is to determine the calculation of the net income of digital platform workers (‘workers') within the new Mexican framework. We previously wrote about this here.
Net monthly income is a significant metric under the new Mexican system. Workers will be classified as employees (and so receive full employment protections) if they provide personal, remunerated and subordinated services through a digital platform, so long as they earn a net monthly income from their work equivalent to at least the minimum wage in force in Mexico City (currently MXN 8,364 or USD 418 per month), regardless of the time effectively worked. Workers who earn less than one minimum (monthly) wage will be considered independent workers. In this article, we examine what the Provisions mean for the calculation of a workers' net monthly income, including the important role played by the so-called ‘exclusion factors'.
Key definitions
Important to understanding the content and scope of the Provisions are the following:
- Gross monthly income: The total income generated by the worker for tasks, services or work performed, prizes and incentives or any similar figure granted by the employer (not including tips), before any type of exclusion factor is applied.
- Monthly net income: The total amount earned by the worker, with the relevant exclusions applied.
- Base salary for contribution: The monthly net income of the worker, between the days of the calendar month, on which the employer and employee social security contributions will be calculated.
Exclusion factors
To calculate the monthly net income of employees, the relevant exclusion factor must be applied to the monthly gross income. This is a percentage based on the type of physical work tool the worker uses to perform their job. The aim is to reflect net income more fairly, considering the investment by workers in their own tools.
The percentages applied (and the corresponding categories) are set out in the table below. It includes the percentages that will apply as part of an initial transition period and thereafter.
| Category | Work tool | Transitional maximum exclusion factors | Standard maximum exclusion factor |
|---|---|---|---|
| A | Motorised vehicles with four or more wheels, internal combustion, electric or similar. | 60% | 36% |
| B | Two-wheeled motor vehicles with internal combustion, electric or similar. | 50% | 30% |
| C | Non-motorised transport or transport without means of transport. | 15% | 12% |
These percentages are subtracted from the gross monthly income to calculate the net monthly income, which is then used to determine obligations like social security contributions.
During the first three months of implementation of the Provisions, higher exclusion percentages temporarily apply. These are reflected in the third column of the above table. This transitional phase allows for a gradual adaptation to the new rules, and the percentages will revert to the standard ones after this period, unless extended by the authorities. The STPS may not extend the transitional phase beyond 1 January 2026.
The application of exclusion factors will be the responsibility of the employer, who must retain documentation proving their correct determination and, where appropriate, submit it to the competent authority.
Social security contributions
Workers who, after applying the exclusion factors, generate a net monthly income equivalent to at least one monthly minimum wage in Mexico City will be subject to insurance through the Mexican Social Security Institute (IMSS) and must cover the relevant contributions. Workers who earn less than this amount will be classified as independent workers, but digital platforms must still register them with the IMSS to ensure coverage for occupational risks during the time effectively worked
Takeaway for employers
Mexico's new framework is a significant development in the global regulation of digital platform work. With the Provisions, platform operators will now be able to calculate the net monthly income of their workers and therefore understand their employment classification for the purposes of the new framework. As this will have an impact on the employment protections and social security obligations that apply, it is important that platforms fully understand the new calculation method, including how to correctly apply the relevant exclusion factors.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
