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* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.
Mexico boasts a technically skilled labor force, making it an attractive destination for businesses seeking talent with diverse educational backgrounds and expertise. Mexico also exhibits high talent retention rates, leading to the formation of workable teams with long tenures, providing stability and continuity to businesses.
Hiring employees in Mexico can result in significant cost savings, with potential savings of more than 60% on hiring costs for skills of the same quality.
Despite potential language differences, Mexico offers cultural and language compatibility advantages. Learning Spanish and hiring Spanish-speaking employees can foster smoother communication and easier collaboration.
Understanding and respecting Mexican culture is crucial for successful hiring and fostering positive work relationships. The friendly and personal work culture may differ from practices in other countries.
Mexico requires employment contracts, and at-will employment is not permitted. Employers should draft detailed contracts, considering factors such as:
In Mexico, there is a minimum probation period of 30 days. This may be extended for management positions and specialised roles.
The maximum daily work hours are eight for daytime, seven for night shifts, and seven and a half for mixed shifts.
Employees can work up to three extra hours per day, totaling nine hours per week, at double their usual pay. If they exceed nine overtime hours in a week, employers must pay them three times the regular hourly rate for the extra hours.
The minimum wage in Mexico is now 248.93 MXN per day. Along the Northern Border Zone, which borders the US, the minimum wage is higher at MXN 374.89 per day.
In Mexico, a mandatory 13th-month salary payment, known as Aguinaldo, is a standard practice. This bonus payment is required to be disbursed by December 20th. The calculation of Aguinaldo involves 15 working days of salary, along with an additional allowance, taking into account a 365-day year.
In Mexico, the individual income tax rates follow a progressive structure, with rates ranging up to 35%.
In Mexico's retirement system, there's a pension for those 65 and older, a mandatory savings plan, and other private options. If someone retires at 65 after contributing for about 24 years but doesn't have enough savings for the minimum pension, they receive the minimum pension for support.
The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Mexico tailored to your needs.
Employers can't end employment without a valid reason. Unlike in some places, there is no "at-will" employment. The Mexican Federal Labor Law lists specific reasons and procedures for terminating an employee without facing legal consequences. These reasons are outlined below:
In Mexico, there are no mandated minimum notice periods, but according to federal labor law, if a situation warrants, the employer must write a notice to the employee within 30 days of becoming aware of any misconduct.
If an employee is let go without a good reason, they are entitled to severance pay. This pay includes three times their usual monthly salary and an extra 20 days' pay for each year they've worked beyond 15 years. For voluntary resignations or firings with a valid reason, employees with 15 or more years of service get a bonus called a seniority premium. This bonus equals 12 days' pay for each year they've worked.
Mexico has at least seven national holidays each year, and in election years, there are eight. There are also significant observances, which are bank holidays
The statutory benefits in Mexico encompass various facets within the social security system, covering:
At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.
It's important to note, visa support can be complicated and each country has different requirements and legislation. As of August 2024, non-Singapore entities that want to employ an individual in Singapore who is not a Singapore national or permanent resident may no longer use an Employer of Record (EOR) to sponsor that individual for a work permit. Contact our experts for help on how to navigate global employment in Singapore.
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