Effortlessly handle payroll, compliance, and benefits for your team in Mexico with our comprehensive Employer of Record (EOR) service.
Our solutions in Mexico are designed to streamline every aspect of employment management, making your operations as efficient as possible.
Effortlessly handle payroll, compliance, and benefits for your team in Mexico with our comprehensive Employer of Record (EOR) service.
Our solutions in Mexico are designed to streamline every aspect of employment management, making your operations as efficient as possible.
Hiring in Mexico means navigating the Ley Federal del Trabajo (Federal Labor Law), registering employees with IMSS and INFONAVIT, and managing progressive ISR income-tax withholding--all without needing to set up a local entity. As your Employer of Record, Glints legally employs your team on your behalf, handling employment compliance, payroll, and benefits administration so you can focus on building and managing your team smoothly in Mexico.
In Mexico, an indefinite-term contract is the default, while fixed-term or project-based contracts are permitted only where the nature of the work justifies it. A written employment agreement in Spanish is legally required, and the absence of a written contract is presumed against the employer under the Federal Labor Law.
A probationary period (periodo a prueba) is generally capped at 30 days, extending to up to 180 days for managerial, directive, or specialized technical roles--allowing both parties to evaluate the employment fit before it becomes indefinite.
Salaries in Mexico are commonly paid bi-weekly (quincena) or monthly in Mexican Pesos, with mandatory ISR personal income tax withheld at progressive rates from roughly 1.92% up to 35%.
Employers must register staff with IMSS (social security), contribute 5% of base salary to the INFONAVIT housing fund, and pay into the SAR retirement system, plus a state payroll tax of roughly 1-4%. Combined employer on-costs typically add around 30-40% on top of base salary.
The standard day-shift work week is capped at 48 hours. Employees are entitled to statutory public holidays (dias de descanso obligatorio) and must be paid a premium for work performed on those days.
Under the 2023 "Vacaciones Dignas" reform, employees receive 12 paid vacation days after one year of service, rising by 2 days each year to 20, plus a vacation premium of at least 25% of wages for those days.
Mexican law provides several types of protected leave, including maternity leave of 12 weeks and paternity leave of 5 days, supporting a balanced and family-oriented work environment.
Sick leave is administered through IMSS: after a doctor issues an incapacity certificate, IMSS pays a percentage of the employee's wage from the fourth day of illness, reflecting Mexico's social-security-backed worker welfare.
Mexico does not recognize at-will employment. An employer may dismiss without severance only for a statutory just cause listed in the Federal Labor Law, and must deliver a written notice of dismissal detailing the conduct and dates, or the termination is deemed unjustified.
Are you ready to enhance your team management in Mexico? Explore how our comprehensive EOR and PEO services can simplify your workforce operations, ensuring both efficiency and adherence to local regulations.
Learn more about the benefits of partnering with Glints for your EOR and PEO needs in Mexico!