Edomex Grants 100% Tax Break for Hiring Domestic Workers

The State of Mexico Congress approved a 100% subsidy on the Tax on Payments for Remuneration of Personal Work for those who hire domestic workers. This measure, included in the 2025 fiscal package, aims to encourage the formalization of domestic work and to provide protection to a vulnerable sector of the population.

"This initiative seeks to promote the formalization of employment and offer protection to domestic workers, who often face inequality, discrimination, or exclusion," said a representative of the State Congress. The law specifically targets domestic workers, defined under the Federal Labor Law as individuals who, for remuneration, carry out cleaning, care, or other household tasks.

As of the end of 2024, there were 383,942 individuals working in paid domestic labor in the State of Mexico, according to INEGI. Of these, 355,123 were women and 28,819 were men. This subsidy will help shift informal domestic work into the formal sector, which is crucial for ensuring fair labor conditions, social security, and legal rights for domestic workers.

The subsidy for domestic worker employment is part of a broader fiscal package that also includes incentives for hiring other vulnerable groups. These include single mothers heading households, elderly individuals aged 60 or older, recent graduates, first-time job seekers, people from indigenous communities, individuals released under the state's amnesty law, and repatriated Mexicans.