Employer of Record (EOR) Mexico: Hire, Manage, and Pay Talent Seamlessly

Expand into Mexico without dealing with IMSS registration or entity setup. We help you hire quickly while staying aligned with the Federal Labor Law.

Process payroll in Mexico with accuracy and full tax compliance. We handle every statutory deduction so payments stay consistent and error-free.

Payroll Management

Stay compliant with Mexico’s evolving labor and social security regulations. We handle the complexity so your team stays protected.

Compliance Assurance

Provide benefits that meet Mexico’s legal standards and employee expectations. We manage everything from statutory perks to optional add-ons.

Benefits Administration

With Tarmack acting as the legal employer, global HR leaders can scale nearshore teams in Mexico quickly. <a href='https://www.tarmack.com/get-started'>Book a demo now</a> to learn more.

Global Hiring and Onboarding

Employer of Record (EOR) Solutions in Mexico

Benefits of Employer of Record (EOR) in Mexico

1. Employee Services

2. Contractor Services

3. Corporate & Regulatory Services

Employer of Record Mexico Pricing Structure

Key elements of employment contracts

Types of employment contracts

Digital Platform Reform

Employment Contracts

Before an employee’s first day, several mandatory steps must be completed to ensure compliance with Mexican labor regulations. The process is designed to protect both the employer and the employee, and it is essential for foreign companies to understand these steps thoroughly.

Legal requirements (before day 1)

All employees in Mexico are entitled to the following benefits:

Mandatory benefits

First-day onboarding checklist

Employee Onboarding

Applicants may obtain a temporary (up to 4 years) or permanent resident visa, as well as a work permit, to work and live in Mexico. The necessary work visa requirements include a copy of migration documents, an invitation from a valid public or private institution or company in Mexico, proof of finances, employment, education and necessary skills, and evidence of a relationship with a Mexican citizen.

Work Visa:

A business visa permits up to a 30-day stay and is valid for 180 days. The requirements for a Mexican business visa include a letter of invitation from a public or private institution, a letter from the applicant's company affirming they will cover all expenses, evidence of sufficient funds, the purpose of the trip, a duly completed Multiple Migratory Form (FMM), and travel evidence.

Business Visa

Visa

Mexico offers several types of work permits, each tailored to different employment scenarios:

Types of Work Permits

Application process

Compliance and renewal

Work Permits

Minimum Wages

The cycle in Mexico can be weekly, bi-weekly or monthly. Employees are usually paid on the 15th of the month as well as the last day of the month.

Payroll Cycle

Employers are required to pay a mandatory Christmas (also called Aguinaldo) to be paid to all employees. This bonus must be paid by 20 December. According to Mexican laws, the bonus amount must be at least a 15-day wage. It can be negotiated to be a higher rate.

Annual Bonus

Social security covers public health and life insurance in Mexico. However, most employers choose to provide their employees with private health insurance.

Health Benefits

Working Hours and Overtime

Sick Leave

Parental Leave

Annual Leaves

Some dates may vary based on official notifications and traditional calendars.

Public Holidays (for the Calendar year 2024)

Public Holidays (for the Calendar year 2025)

Leaves

What are Social Security Contributions?

How are social security contributions calculated in Mexico?

For example, in the Retiro, Cesantía y Vejez sub-account, employers contribute 5.15%, employees 1.12%, and the government 0.22%. These rates are updated yearly.

Who pays the social security contributions?

What are the rate adjustments for 2025?

Importance and compliance

Social Security Contributions in Mexico 2025

The 2025 ISR brackets for individuals are as follows:

2025 ISR Rates and Brackets

How ISR Is calculated

Common errors to avoid

Impact of no bracket adjustment

Personal Income Tax Rates 2025

Required legal registrations for employers

Ongoing compliance obligations

Employer pension responsibilities

Statutory employment requirements

Payroll standards for employers

Banking requirements related to payroll

Mexico Payroll Compliance

Top Skills in Demand

The probation or trial period can be from 30 days to 180 days. The period is higher for executive positions.

Probation

Termination

Employers can only terminate the agreement on just causes such as -

If the employee is dismissed with reasonable cause, the employee must receive an additional three months' salary as severance pay. For employees who have worked for 15 years or more, 20 days' pay per year worked must also be additionally given.

Severance Pay

Compliance obligations 1. Employees must:

Employees vs Independent Contractors

An Employer of Record (EOR), also known as a Global PEO in Mexico, enables US-based companies to hire employees and contractors in Mexico without the need to set up a local legal entity. By partnering with an EOR, you can onboard, manage, and pay talent seamlessly, ensuring compliance with Mexican labor laws while focusing on your core business goals.

Global PEO

Start Hiring Today

An employer of record (EOR) in Mexico is a third-party company that legally employs workers on behalf of a client company, allowing the client to hire in Mexico without setting up a local legal entity. The EOR handles all employment compliance, payroll, and statutory benefits, ensuring your business operates within local regulations.

What is an employer of record (EOR) in Mexico?

Tarmack is a leading Employer of Record in Mexico, helping companies hire, onboard, and manage employees compliantly without setting up a local entity. It handles payroll, taxes, social security, and statutory benefits, ensuring full legal compliance. Tarmack offers a transparent flat pricing of USD 199 per employee per month.

What is the cost of an employer of record in Mexico?

Frequently Asked Questions

The United Mexican States, commonly known as Mexico, is situated in the southern region of North America. The primary business sectors of the country include services, manufacturing, and commercial energy production. The country has a good number of workers skilled in various sectors making it a good destination for expanding business. EOR services help potential employers with employment management and ensure legal compliance.

Employment Norms in Mexico

The Federal Labor Law and the Social Security Law primarily formulate the employment laws in Mexico.

Employer of Record (EOR) Mexico: Hire, Manage, and Pay Talent Seamlessly

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