Employer of Record (EOR) in Mexico
Want to hire in Mexico without the trouble of setting up a company? Try Native Teams' Employer of Record (EOR) services and ensure full compliance with local labour laws without the costs of setting up a legal entity.
How does an EOR in Mexico work?
For businesses, an Employer of Record simplifies the process of hiring in Mexico without needing to establish a local entity. We handle the onboarding of employees, ensuring all legal and compliance requirements are met. Our services include payroll processing, tax deductions, and benefits administration, allowing companies to focus on their core operations while we manage employment responsibilities.
Who can use EOR services in Mexico?
Companies of all sizes can use our EOR services to expand into Mexico without the difficulties of setting up a local entity. Whether you’re a startup or an established multinational, we simplify the end-to-end employment cycle, allowing you to hire local talent without dealing with complicated employment regulations.
We handle their payroll, taxes, social security contributions, employee benefits, and much more, so that your employees feel fully supported and motivated throughout their employment with you.
Features of Native Teams EOR services in Mexico
Employment status
Hire employees in Mexico with full compliance. Our EOR service provides local employment status and contracts aligned with Mexican labour laws, so that you or your employees don’t have to face any legal issues.
HR administration and documentation
Our all-in-one dashboard simplifies HR tasks for your business. It gives you a clear view of every process and detail, while safely storing all important documents in one place—easy to access with just one click.
Global payroll
Manage payroll effortlessly with our global solution and country-adjusted payroll calculator, ensuring accurate salaries, taxes, and benefits in 85+ countries, including Mexico. Our system handles tax deductions, social security contributions, and seamless payments.
Benefits
We make sure your employees in Mexico get all the essential benefits they need—like healthcare, social security, and pension plans—to keep them happy and satisfied at work. You can also choose to offer extra perks like gym memberships, wellness packages, and more.
Dive deeper into Mexico’s labour laws and regulations with our hiring guide
What legal requirements exist for employment in Mexico
Employment contract
A written employment contract is mandatory to define the key terms and conditions of employment. This ensures clarity on job roles, responsibilities, salaries, etc.
Minimum wage
Employers in Mexico must adhere to minimum wage regulations, which vary by region and industry. Regular adjustments are made to ensure fair compensation in accordance with the country’s economic conditions.
Tax identification number
Every employee must be registered with the Mexican tax authorities and possess a unique Tax Identification Number (Registro Federal de Contribuyentes - RFC). This number is essential for financial and taxation purposes.
Social security contributions
Employers are responsible for withholding and submitting social security contributions to the Mexican Social Security Institute (IMSS). These contributions cover healthcare, pensions, and other employee benefits.
Income taxes
Employers must withhold progressive income taxes from employee salaries and remit them to the tax authorities. Tax rates vary based on income level and must be calculated in compliance with Mexican tax laws.
Other employment laws
Employers must comply with local employment regulations, including provisions on working hours, overtime pay, termination policies, severance payments, and employee protections.
Please note that employment laws in Mexico vary by job category and individual circumstances and are subject to change.
Why choose Native Teams as your Mexico Employer of Record?
Expanding your business or hiring in Mexico can get complicated with all the legal and admin work. Native Teams makes it easy by acting as your Employer of Record (EOR), ensuring full compliance with local labour laws. With our proven approach, we've already supported many businesses in growing globally.
From employment contracts and payroll to taxes and mandatory benefits—we handle it all. Our expert team and all-in-one platform take care of the hard stuff, so you can stay focused on growing your business.
``What is an Employer of Record?
An Employer of Record (EOR) is a service that helps companies hire employees in another country without setting up a local legal entity. The EOR handles all employment-related tasks, such as contracts, payroll, taxes, and benefits, so businesses can be confident their team is well taken care of and focus on growing globally.
What are the costs of using an Employer of Record in Mexico?
Costs can vary based on the EOR provider, the size of your team and the scope of services required. These costs are typically lower than the expenses associated with setting up a local entity, making EOR services a cost-effective solution for businesses expanding into Mexico.
We offer a transparent and flexible pricing structure, based on your unique needs, so that you only pay for what you use. For more details about our EOR pricing, please visit our pricing page.
What is the difference between PEO and EOR?
A Professional Employer Organisation (PEO) and an Employer of Record (EOR) both manage employment responsibilities, but with key differences.
A PEO works through a co-employment model—your company stays the legal employer and keeps control over daily work, while the PEO handles HR functions like payroll, benefits, and compliance. To use PEO services, your company must have a legal entity in the country where the employees are based.
An EOR, on the other hand, becomes the legal employer on your behalf. It takes full responsibility for the employee, including contracts, taxes, legal compliance, and liabilities—no local entity needed.
What are the responsibilities of an Employer of Record (EOR)?
The main responsibilities of an EOR include managing the full legal employment lifecycle for employees, such as handling contracts, payroll, tax withholdings, benefits, social security contributions, and offboarding.
Additionally, the EOR ensures compliance with local labour laws, including employee protections, minimum wage regulations, and working hours. Native Teams also handles HR administration and employee documentation and ensures that all employment practices comply with Mexican legislation.
Is using an Employer of Record in Mexico legal?
Yes, using an Employer of Record (EOR) in Mexico is fully legal and widely used by international businesses to ensure compliance with local labour laws. In fact, ensuring legal compliance is one of the key responsibilities of an EOR. EOR services are especially beneficial for foreign companies looking to expand into Mexico without establishing a legal entity.
Why should I use EOR instead of opening my own company or an office in Mexico?
Setting up a company or office in Mexico takes a lot of time, money, and paperwork. Using an EOR is a faster and more cost-effective option. It lets you expand into the Mexican market much faster and lets you hire employees in Mexico without needing to open a local entity. You also save on legal, tax, and HR costs that come with running a company.
An EOR takes care of all your admin work in compliance with the Mexican labour laws. Plus, you have the flexibility to grow or reduce your team as needed, without long-term commitments.
How many people can I employ in Mexico?
There is no specific limit to the number of employees a business can hire through an EOR in Mexico. Whether you need to hire a single employee or an entire team, Native Teams can support your workforce expansion needs easily in over 85 countries, including Mexico.