Mexico
Late-night tacos on busy streets, grand old cathedrals, ancient ruins, and some of the best remote talent in all of Latin America. If you want to hire a new team member in Mexico, you’re in the right place. On this page, we’ll teach you how to hire remote talent in Mexico without spending tens of thousands and wasting months on legal red tape.
Country snapshot
CURRENCY
Mexican Peso (MXN)
EMPLOYER TAXES
up to 22.75%
PAYROLL FREQUENCY
Monthly / Bi-Monthly
OFFICIAL LANGUAGE
Spanish
It’s the fastest way to hire globally
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It’s a lot cheaper
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
It’s more flexible for you & your team
Can be less risky than hiring employees
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
Some people want to be employees
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
You might not have as much control over your talent
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
Mexico’s become a popular spot for hiring remote talent—and a popular place for remote workers to live. If you want to hire someone out of Mexico, you’ve got two options: Hire them as an employee, or hire them as a contractor. Here’s what you should know before you make a decision.
Hire talent as contractors
Hire talent as employees
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Mexico than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Mexico.
Employer tax
Sickness & Maternity
Disability & Death
Retirement
Layoff and Retirement Benefits
Work Related Accidents (depends on the state)
Housing Tax
Payroll State Tax (depends on the state)
Paid Time Off (PTO)
Mandatory Vacations:
- 1 year seniority = 6 days
- 2 years seniority = 8 days
- 3 years seniority = 10 days
- 4 years seniority = 12 days
- 5 to 9 years seniority = 14 days
- 10 years or above – additional 2 days per 5 years.
- No Carryover policy
Public Holidays
8 public holidays.
Sick Days
Pay is by social security based on the social security cap called “salario de cotizacion (SBC)”.
Maternity Leave
holidays for maternity leave (42 days before and42 days after birth of baby). Pay is by social security based on the social security cap called “salario decotizacion (SBC).
Paternity Leave
Male employee may take up to two weeks of paid time off following the birth of your baby.
Parental Leave
Parental leave is not mandatory.
Other Leave
None.
Marriage Leave
No Info.
Bereavement Leave
You may take up to 20 calendar days (4 weeks) of full paid time (base salary) following the death of an immediate family member.
Termination Process
No mandatory process is required, however formalization of the termination before the conciliation and arbitration court is suggested.
Notice Period
There are no statutory notice periods for employment contracts in Mexico.
The employer is required to notify the employee in writing of the date and cause of dismissal, or must notify the relevant Conciliation and Arbitration Board no later than five days after the date of termination.
Severance Pay
Voluntary resignation: the employer must pay the employee all benefits that are due. If the employee has 15 years or more of seniority, the employee is entitled to 12 days’ salary for each year employed.
Termination with Cause: The employer must pay the employee all benefits that are due. In addition, 12 days of salary for each year employed.
Termination without Cause:3 month’s salary, 20 days for each year in the company, and a seniority bonus of 12 days per year of service. The employee will also receive back salary from the date of dismissal to the day that the employer complies with the Labor Board’s decision.
Probation Period
Optional, but the common practice is 3 months.
Working Hours
Full time employment is considered 8 hours daily, 40 hours weekly.
Overtime
Employees who earn minimum wage can work up to 9 hours exempt per week. The following 9 hours will be paid at a rate of 200% salary, with any hour beyond that paid at a rate of 300%.
Employees that earn more than the minimum wage are exempt for only 50% of the overtime worked per week up to 5 minimum wages per week. The first 9 hours will be paid at a rate of 200% and the following hours will be paid at a rate of 300%.
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