* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City
Mexico City

Mexican Pesos (MX$)


CET (GMT -5/6/7/8)

Employment Cost

36.1% – 44.73%

Annual Leave

12 days

In-demand Specialties*
Technical, Software/ It, Graphic Design

The Ultimate Guide to Hiring Employees in Mexico

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Mexico

Employing in Mexico requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Mexico with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Mexico quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

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.


Fundamental Aspects of Employment in Mexico

Mexico requires employment contracts, and at-will employment is not permitted. Employers should draft detailed contracts, considering factors such as:

  • Employee's personal information (name, contact number, etc.)
  • Job details and responsibilities
  • Contract duration (seasonal, project, or indefinite)
  • Salary breakdown and other compensations
  • Working Hours and Vacation Days
  • Termination clause

Probationary Period in Mexico

In Mexico, there is a minimum probation period of 30 days. This may be extended for management positions and specialised roles.

Working hours in Mexico

The maximum daily work hours are eight for daytime, seven for night shifts, and seven and a half for mixed shifts.

Overtime in Mexico

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.

Navigating Key Aspects of Payroll in Mexico

Mexico has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January- 31 December

Fiscal Year in Mexico

1 January- 31 December is the 12-month accounting period that businesses in Mexico use for financial and tax reporting purposes.

Payroll Cycle in Mexico

The payroll cycle in Mexico is usually bi-monthly, with employees being paid on the 15th and the last day of each month.
31.12 MXN p/h

Minimum Wage in Mexico

The minimum wage for employees in Mexico is typically 31.12 MXN per hour, amounting to ~ 5,476.46 MXN per month for a typical 40 hour work week.

Minimum wages and salaries in Mexico

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.

Bonus Payments in Mexico

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.

Comprehensive Overview of Employment Taxes in Mexico

Understanding the tax obligations for both employers and employees is crucial when operating in Mexico's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Mexico.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 36.1% – 44.73% on top of the employee salary in Mexico.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Mexico, the typical estimation for employee payroll contributions cost is around 2.775%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

In Mexico, the individual income tax rates follow a progressive structure, with rates ranging up to 35%.

Tax Rate Income Bracket

Pension in Mexico

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.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Mexico

When it comes to terminating employment in Mexico, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

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:

  • Breach of disobedience or honesty principles
  • Vandalism
  • Revealing company secrets
  • Sexual harassment
  • Refusing to comply with safety procedures
  • False statements about work qualifications
  • Four unexcused absences in 30 days

Notice Period

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.

Severance Pay

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.

Annual Leave Entitlements and Company Policies in Mexico

The annual leave entitlement in Mexico is 12 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Mexico

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

Holiday Date

Paid Time Off in Mexico

Maternity Leave in Mexico

Paternity Leave in Mexico

Sick Leave in Mexico

Parental Leave In Mexico

Mexico's Benefits Built Into Playroll

Competitive benefits package in Mexico

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Mexico's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Mexico

Make your benefits package in Mexico a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Mexico

The statutory benefits in Mexico encompass various facets within the social security system, covering:

  • Disability and Life Insurance
  • Sickness and Maternity Insurance
  • Work Injuries
  • Retirement, Unemployment in Advanced Age and Old Age (CEAV)

Playroll allows you to provide localized benefits for employees in Mexico within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Mexico create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Mexico

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. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Mexico.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!