Business · Employer of record
Employer of record in Mexico
Employing someone in Mexico through an employer of record: social security and housing fund on top of salary, the minimum wage, holiday and holiday bonus, the Christmas bonus, profit sharing, dismissal pay and the move to a 40-hour week.
Checked on 16 October 2026. The headline rules for a standard employee, from official sources where they opened and law firm, PwC or specialist publisher guides where they didn't; each line names its source. Sectors, collective agreements and contracts can change them. This is general information, not legal advice.
Know this first
- Employment isn't at will: a dismissal without a written, justified reason can cost 3 months' pay and more.
- The working week is shrinking each year from 2027, and the detailed law changes are still to come.
Sources: Ley Federal del Trabajo (Cámara de Diputados), as amended to May 2026
Employing someone in Mexico
- Employer costs on top of salary
- Social security (IMSS) is split across several branches, plus 5% to the housing fund (INFONAVIT) and a state payroll tax (4% in Mexico City). The IMSS ceiling is 25 times the UMA (MXN 117.31 a day from 1 February 2026), according to a trade rate table. We didn't find an official all-in rate. PwC Worldwide Tax Summaries, Mexico, August 2026, El Contribuyente, IMSS rates 2026, INEGI, UMA 2026
- Minimum wage
- MXN 315.04 a day from 1 January 2026, or MXN 440.87 in the northern border zone. EY Mexico, minimum wages 2026
- Holiday
- At least 12 working days after the first year, rising by 2 a year to 20, then by 2 every 5 years, with a holiday bonus of at least 25% of holiday pay. 7 public holidays every year, plus some that fall less often. Ley Federal del Trabajo (Cámara de Diputados), as amended to May 2026
- Working hours
- 48 hours a week in 2026, falling to 46 in 2027, 44 in 2028, 42 in 2029 and 40 in 2030 under the March 2026 constitutional reform. Ley Federal del Trabajo (Cámara de Diputados), as amended to May 2026, Holland & Knight, March 2026
- Probation
- Up to 30 days, or up to 180 for management and specialist roles, on open-ended contracts or ones over 180 days. Ley Federal del Trabajo (Cámara de Diputados), as amended to May 2026
- Notice from the employer
- No notice period, but a dismissal must be explained in writing, or it's presumed unjustified. Ley Federal del Trabajo (Cámara de Diputados), as amended to May 2026
- Severance
- For an unjustified dismissal, the employee can choose reinstatement or 3 months' pay, plus back pay within limits, and 20 days per year of service where the employer is excused from reinstating them. A seniority premium of 12 days per year also applies, on pay capped at twice the minimum wage. Ley Federal del Trabajo (Cámara de Diputados), as amended to May 2026, IDC Online, seniority premium
- Extra pay the law requires
- A Christmas bonus (aguinaldo) of at least 15 days' pay before 20 December; the holiday bonus above; and profit sharing (PTU) of 10% of taxable profit, capped at 3 months' pay or the last 3 years' average. Ley Federal del Trabajo (Cámara de Diputados), as amended to May 2026, SAT, profit sharing
- Contract
- Working conditions must be in writing where there's no collective agreement. Ley Federal del Trabajo (Cámara de Diputados), as amended to May 2026
- Payroll and tax
- Paid at least every 15 days (weekly for manual work). The employer withholds income tax (ISR). Ley Federal del Trabajo (Cámara de Diputados), as amended to May 2026, PwC Worldwide Tax Summaries, Mexico, tax administration
- Sick pay
- Social security pays 60% of registered pay from the fourth day. PROFEDET, sick pay
Providers and what they say about Mexico
What each provider's own website says about Mexico, in order of its published starting price. None of them publishes a separate price for Mexico; the starting prices are worldwide or regional (Papaya quotes EUR 650 in Europe), and what you pay is set by quote.
| Provider | Covers Mexico? | What it says | Starting price a month | |
|---|---|---|---|---|
| Skuad | Yes, on its own site | Listed in its coverage list | From USD 199 | Go to Skuad |
| Pebl (formerly Velocity Global) | Yes, on its own site | - | USD 399 | Go to Pebl (formerly Velocity Global) |
| Multiplier | Yes, on its own site | Says it uses its own entities everywhere | From USD 459 (annual), USD 499 monthly | Go to Multiplier |
| Deel | Yes, on its own site | Says it has its own entity | From USD 599 | Go to Deel |
| Remote | Yes, on its own site | - | From USD 599 | Go to Remote |
| G-P (Globalization Partners) | Has its own page for it | - | From USD 599 | Go to G-P (Globalization Partners) |
| Atlas HXM | Yes, on its own site | - | From USD 599 | Go to Atlas HXM |
| Papaya Global | Has its own page for it | - | From USD 650 (EUR 650 in Europe) | Go to Papaya Global |
| Oyster | Yes, on its own site | Says it uses its own entity | From USD 699 | Go to Oyster |
| Rippling | Not stated | Says 80 countries, with no list | Quote only | Go to Rippling |
Coverage is each company's own claim, from its country pages and coverage lists; we haven't checked how each one employs there. Ask whether it uses its own company or a partner in Mexico.
Other countries
Employer costs, leave, notice, severance and the catches, with the providers that cover each one.
United KingdomIrelandGermanyFranceNetherlandsSwedenSwitzerlandBelgiumSpainPortugalItalyPolandRomaniaCanadaAustraliaSingaporeJapanIndiaPhilippinesSouth AfricaBrazilColombiaChileArgentina
All 25 countries side by side: employer cost at your salary, holiday, notice and redundancy pay