Hiring in Mexico - How To Hire Mexican Employee

What should I know about hiring in Mexico?

Mexico is a country featuring a vast pool of talent, especially in the IT and tech sectors. As much as hiring in the country can be beneficial, it can also impose many challenges, such as navigating through the complex Mexican labour laws.

More specifically, employers need to understand labour regulations such as payroll procedures, tax requirements, employment contracts, and other compliance-related intricacies. In addition to being compliant with labour laws, it’s of great importance to become familiar with the country’s culture, traditions, norms, and business practices to successfully hire and onboard talents.

Why is Mexico a good choice for finding remote employees?

Mexico has a large and very diverse talent pool, with many skilled professionals in various fields, such as software development, marketing, design, and more. Mexico’s tech industry is growing day to day, and so is the number of qualified individuals who are eager to work remotely in international companies.

Aside from the wide talent pool, Mexico also offers many cost advantages, compared to some other countries. As Mexico’s living costs are generally low, employers can easily find a skilled workforce at more affordable rates. Not only does this cut a lot of hiring costs and expenses, but it also allows employers to offer more competitive compensation packages to their Mexican employees.

How can Native Teams help you hire in Mexico

Let Native Teams handle your compliance with Mexican labour laws. Our Employer of Record solutions are designed to help you navigate complex regulations and tackle cultural norms, business practices, and language barriers. When recruiting in Mexico, you can rely on our tax and legal experts for guidance and advice.

Hire your first Mexican employee with Native Teams.

Legal requirements for hiring in Mexico

Minimum wage

The minimum wage in Mexico is determined by the employee’s location. While the national minimum wage is MXN 207.44 per day, the minimum daily wage in the Northern Border Zone is MXN 312.41.

Contributions & taxes

Employer tax

The total employer tax in Mexico can vary from 36.1% to 44.73%.

Corporate tax

The corporate tax in Mexico is 30%.

Employee tax

The total employee cost in Mexico is 2.775%.

Income tax

Mexico imposes progressive income taxes, as follows:

Up to MXN 8,952.49 – 1.92%
From MXN 8,952.50 to MXN 75,984.55 – 6.40%
From MXN 75,984.56 to MXN 133,536.07 – 10.88%
From MXN 133,536.08 to MXN 155,229.81 – 16%
From MXN 155,229.81 to MXN 185,852.57 – 17.92%
From MXN 185,852.58 to MXN 374,837.88 – 21.36%
From MXN 374,837.89 to MXN 590,795.99 – 23.52%
From MXN 590,796.00 to MXN 1,127,926.84 – 30%
From MXN 1,127,926.85 to MXN 1,503,902.46 – 32%
From MXN 1,503,902.47 to MXN 4,511,707.37 – 34%
MXN 4,511,707.38 and above – 35%

To calculate the salary and taxes in Mexico please click here.

Payroll cycle

Mexico has a bi-monthly payroll cycle, where employees are paid on the 15th, and on the last day of the month.

Is there a 13th salary in Mexico?

Employers in Mexico are obligated to pay a 13th salary by December 20th.

Labor rules

Probation period

The probation period in Mexico can be from 30 to 180 days, depending on the role of the employee.

Notice period

Mexican labour laws don’t impose a minimum notice period for employers and employees.

Severance period

According to Mexican labour law, employees are entitled to severance payment that equals three times their regular monthly salary. Employees with more than 15 years of service are entitled to additional 20 days of pay for every year of service.

Working hours

The standard workweek in Mexico consists of a maximum of 48 hours, 8 hours per day (Monday to Saturday).

Leave and benefits

Public holidays

There are 7 public holidays in Mexico:

New Year’s Day
Constitution Day
Benito Juárez’s Day
Labor Day
Independence Day
Revolution Day
Christmas Day

Sick leave

Employees in Mexico are entitled to 52 weeks of paid sick leave at 60% of their regular salary.

Maternity leave & Paternity leave

Pregnant employees in Mexico are entitled to 12 weeks of paid maternity leave at 100% of their average salary. The maternity leave must start 6 weeks before the child’s birth, and end 6 weeks after birth. Male employees are entitled to 5 days of paid paternity leave, at 100% of their average salary too.

Other leave

There are no other statutory additional leaves in Mexico.

What are the minimum vacation days?

Employees in Mexico are entitled to 12 days of paid time off per year, plus additional 2 days for each year of service.

Insurance

Health security & private insurance

Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.

*Native Teams can support you in finding the best private insurance in the country. Contact us, and we will send a comparison of insurance packages and prices.*

Visa

Relocation and work permits

Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.

How long is the visa/work permit process?

2 to 4 weeks depending on the authorities and provided documents.

Which documents do you need?

To apply for a visa/work permit in Mexico, upload the documents from our onboarding list (relocation to log in/pricing).

Why use Native Teams for hiring in Mexico?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

No paperwork: We will handle all the necessary paperwork for you.
Save on taxes: We help you handle your taxes.
No company set up: You can expand your business using our company entitles.
Online onboarding: We’re here to ensure your onboarding process is trouble-free.
No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
Increase your profit: We assist you in growing your business and maximizing your profits.
Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
Local support: We can assist you in understanding and complying with the relevant local laws.