As foreign companies continue to seek solutions to the Trump administration tariffs in the United States, many look to Mexico and other parts of Latin America for it’s manufacturing needs. The region is already well-known for the value it brings to the manufacturing sector including lower salaries, operational costs and geographic advantages, but what do the compensation packages look like in the industry, and more specifically, what do these packages look like for executive level talent? As more and more companies look to Mexico for its manufacturing needs, the topic about salary levels and their compensation will be sure to come up. In this blog, we’ll dive into some of the benefits that go along with executive positions.
One thing to note as we breakdown the total compensation package for executive talent in manufacturing is although salaries are lower than in the USA, the salaries are not significantly lower at this level, specifically for the bilingual professionals. Add on the extensive benefits that manufacturing executives are accustomed to and total compensation can get quite high by industry standards. For example, positions such as General Managers, Plant Directors and VP of Operations could have starting salaries of $90,000 USD/annually, but could reach levels of $220,000 USD/annually, depending on the sector of manufacturing and size of the plant. However, the goal of this article is not to focus on the salary level of each position, but rather focus on the benefits that can be expected for some of these positions.
Below we have outlined two primary lists. The first is a list of statutory benefits required in Mexico. The second is a list of supplemental or additional benefits some of the executive level talent is accustomed to in their current roles. Beyond the legal and supplemental benefits, we’ve outlined some of the additional performance bonuses and perks that could come with a full compensation package.
Legal Benefits (Statutory Benefits)
Executives, like all employees in Mexico, receive statutory benefits mandated by labor law, including:
- Aguinaldo: 15+ days of annual Christmas bonus pay
- IMSS: Social security coverage (though executives often supplement this privately)
- Paid vacation: 12 days minimum after one year, increasing over time
- Vacation premium: 25% extra pay during vacation
- Profit sharing (PTU): A percentage of the company’s profits is distributed annually
Supplemental Benefits
For executives, companies usually go well beyond the legal minimums. A competitive package might include:
- Private health insurance: Often with full family coverage and access to top-tier hospitals
- Company car or car allowance: Especially for Plant Directors or regional executives
- Gas and toll vouchers
- Meal cards or pantry vouchers
- Savings fund (Fondo de Ahorro):
- Life and disability insurance
- Stock options (multinational firms)
Performance Bonuses
- Quarterly and Annual performance-based bonuses will range significantly depending on the manufacturing sector, however, many firms will offer performance bonuses starting at 10% of the salary. KPIs are usually tied to productivity metrics, EBITDA, plant efficiency, safety compliance, and team leadership.
Other Perks
Some additional benefits used to attract executive talent in Mexico include:
- Housing allowance or paid relocation—especially for expat or out-of-state hires
- Education support for children (international schools or tuition stipends)
- Flexible work arrangements or hybrid schedules
- Professional development programs (executive coaching, MBAs, certifications)
Final Thoughts
While the opportunity for manufacturing companies to conduct business in Mexico is appealing, it’s also important companies understand the dynamics and depth of the compensation that exists for executives. In addition, the competition for this executive talent will further enhance these salaries and compensation packages for candidates within these sectors.
For more information about executive compensation packages or for general questions on executive recruitment, we encourage you to contact our team at Ventes Mexico today!
