Updated on
Take-home pay on MX$12,000 gross in 2026
Reviewed by Radif Partners
The MX$11,492.66 limit: one extra peso costs MX$536
On MX$12,000 gross a month in 2026 you keep MX$10,742 net: MX$947 of ISR with no subsidy at all and MX$311 of IMSS employee contributions. The decree published in the Official Gazette on 31 December 2025 sets the employment subsidy as a single amount, MX$535.65 a month, for any monthly income up to MX$11,492.66. There is no taper: one peso above the limit and the whole subsidy is gone. At MX$11,492.66 take-home pay is MX$10,841; at MX$12,000, five hundred pesos more in gross pay, it drops to MX$10,742. Earning more costs MX$98 a month. This cliff explains many payslips that look wrong after a modest pay review, and it is the figure to bring to any negotiation between eleven and thirteen thousand pesos. Payroll teams rarely flag it, because the software applies the decree correctly: the loss is legal, it is simply badly designed.
Net pay per month
MX$10,742
Effective deduction rate: 10.5 %
| Gross monthly salary | MX$12,000 |
|---|---|
| ISR from the tariff | − MX$947 |
| Employment subsidy | + MX$0 |
| Employee IMSS contributions | − MX$311 |
| Net monthly salary | MX$10,742 |
| Marginal ISR rate | 10.88 % |
- Contribution base (SBC): MX$419.73 a day (integration factor 1.0493). Annex 8 RMF 2026 tariffs; UMA in force February to December 2026.
Where the lost take-home pay comes back
Net pay only overtakes the MX$11,493 level once gross reaches MX$12,115. Until then part of any raise simply replaces the lost subsidy. If an offer lands in this band, ask for enough to clear it or for tax-exempt benefits such as grocery vouchers within their limits. The simulator shows how much of each raise you keep.
A raise near the subsidy limit
What the raise adds to net pay
MX$154
| Net before | MX$10,416 |
| Net after | MX$10,570 |
| Share of the raise you keep | 19 % |
MX$12,000 gross by pay period
| Period | Gross | ISR | IMSS | Net |
|---|---|---|---|---|
| Monthly | MX$12,000 | MX$947 | MX$311 | MX$10,742 |
| Per quincena | MX$6,000 | MX$473 | MX$156 | MX$5,371 |
| Weekly | MX$2,763 | MX$218 | MX$72 | MX$2,474 |
| Yearly (12 months, no aguinaldo) | MX$144,000 | MX$11,359 | MX$3,735 | MX$128,905 |
Figures use the monthly tariff in Annex 8 of the 2026 RMF, the 2026 employment subsidy and IMSS employee contributions, for a first-year employee (integration factor with 12 vacation days) outside the northern border zone. Estimate only: your payslip is what counts.
Frequently asked questions
I got a raise and my net pay went down. Why?
You probably crossed the MX$11,492.66 monthly limit. Up to that figure the employment subsidy takes MX$535.65 off your ISR; one peso above it, the subsidy disappears. At MX$12,000 you take home MX$10,742, MX$98 less than at MX$11,493. Ask whether part of the raise can come as exempt benefits.
How much ISR do I pay on 12,000 pesos a month?
MX$947 a month under the 2026 monthly tariff in Annex 8: the fixed fee of MX$420.95 plus 10.88% of the excess over MX$7,168.52. Because you are above the subsidy limit, nothing is deducted and the full amount is withheld. Below the limit you would pay far less.
Does the employment subsidy phase out gradually?
No. Since 2024 the subsidy replaced the old stepped table with a flat amount: 15.02% of the monthly UMA in 2026. It applies in full up to MX$11,492.66 of income and stops entirely as soon as income goes over that limit.
Related calculators and guides
Sources
Written by Radif Partners
Publisher of calculators and practical guides · ISR, IMSS and Mexican labour-law benefits
Updated on · Editorial policy · Contact
Rates 2026, checked on