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Employer of Record (EOR) in Mexico

What you'll learn

  • Country Introduction
  • Employment Terms
  • Minimum Wage and Working Hours
  • Statutory Leave Laws
  • Termination Process
  • Additional Information
Mexico Introduction

Mexico is a country in North America bordered by the United States, Guatemala, and Belize. It has the world's 15th-largest economy by GDP and ranks 5th in the world for natural biodiversity. Mexico’s large economy and population, cultural influence, and steady democratization make Mexico an ideal place to hire remote workers, including workers who are digital nomads.

Employment Terms

The minimum wage in Mexico is MXN 207.44 per day, and the standard workweek is 48 hours at 9 hours per day (Monday-Saturday). Overtime work is paid between 200%-300%. Learn more about employment benefits in Mexico.

Understanding Mexican payroll tax laws will help ensure your company is meeting its legal corporate tax obligations, and avoid potential financial penalties with the Mexican tax authorities.

Types of Leave

Parental Leave

Pregnant employees can take up to 12 weeks of paid maternity leave, of which 6 weeks are normally taken before the birth and 6 weeks after. This pay for this leave is split between the employer and social security. Fathers can take 5 working days of paid paternity leave for the birth or adoption of a child.

Sick Leave

Employees can take up to 52 weeks of paid sick leave at 60% of their regular salary.

Paid Leave

There are 8 public holidays in Mexico, and employees are entitled to a minimum of 12 days of paid time off each year, plus 2 days for year worked at the company. After 4 years at a company, 2 additional days are added every 5 years.

Termination Process


There is no at-will employment in Mexico, so employers cannot terminate employment contracts without just cause. Just cause includes fraud, negligence, harassment, and other work offenses.

Notice Period

There is no statutory notice period in Mexico, but Mexican law states that in many circumstances the employer has to provide notice in writing explaining the reasons for dismissal within 30 days of being aware about the misconduct.

Severance Pay

In Mexico, terminating an employee without reasonable cause requires severance. The severance payment should comprise three times the regular monthly salary figure plus for those employees with more than 15 years’ service an additional 20 days’ pay for every year of service thereafter.

Additional Information

It is mandatory to pay out a 13th-month salary bonus in Mexico called the “aguinaldo”. It’s paid out in December of each year and equals 15 working days of wages, plus an allowance.

Mexican Peso (MXN)
Capital City:
Mexico City
127.5 Million
Cost of Living Rank:
VAT (Valued Added Tax):
Employer TaxES

★  26.54% - Social Security

★  5.15% - Retirement

★  5% - National Housing Fund

Get Started in 3 Steps


Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.


Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.


Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
Best Pricing
Available in 180+ countries
How Remofirst employs in Mexico

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Mexico get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Mexico are paid on time in Mexican Peso (MXN). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Mexico, they can speak with our customer support team to get answers from our team of experts.