Hiring guide · Americas
How to hire in Mexico
To hire in Mexico you need an entity registered with IMSS and SAT, or an Employer of Record that holds those registrations. Employer cost commonly runs 25–35% above salary once IMSS, INFONAVIT, aguinaldo and the vacation premium are included, with semi-monthly payroll.
- Currency
- MXN
- Payroll cycle
- Semi-monthly
- Employer cost
- ~25–35% loaded
- Notice
- No notice; severance on dismissal
The talent market in Mexico
Mexico is the leading nearshore market for US companies: full time-zone overlap, a large bilingual engineering and support workforce in Mexico City, Guadalajara and Monterrey, and USMCA-driven investment in manufacturing technology.
The 2021 outsourcing reform banned the subcontracting of personnel for a company's core activities and tightened specialised-services registration, so any hiring structure has to be checked against those rules rather than assumed from pre-reform practice.
Salary benchmarks in Mexico
Indicative annual gross base salary in MXN for common roles. Treat these as planning ranges — actual offers move with city, seniority, sector and equity mix, and we model a live benchmark before you go to offer.
| Role | Annual gross base |
|---|---|
| Software engineer (mid) | MXN 700,000 – 1,100,000 |
| Senior software engineer | MXN 1,100,000 – 1,700,000 |
| Account executive (SaaS) | MXN 700,000 – 1,300,000 incl. variable |
| Customer support specialist | MXN 250,000 – 420,000 |
Employment rules and payroll in Mexico
The statutory framework any offer has to sit inside — hours, leave, notice and the contributions that turn salary into fully loaded cost.
Working week
48 hours maximum; 40 over five days is common for office roles
Probation
Up to 30 days, or 180 for management and specialist roles
Notice period
None; termination without just cause triggers statutory severance
Paid leave
12 days after one year rising with service, plus a 25% vacation premium
Public holidays
Around 8 statutory days
Payroll cycle
Semi-monthly, on the 15th and month-end
Employer contributions
IMSS, INFONAVIT 5%, state payroll tax, plus aguinaldo and PTU profit sharing
Contractor, EOR employee or your own entity?
Three ways to engage someone in Mexico. The right one depends on how permanent the role is, how much direction you give, and how much local risk you want to carry.
Contractor
Fastest to start and simplest to end. Suitable for genuinely independent, project-scoped work where the person controls how and when they deliver, invoices you, and works for other clients. No statutory benefits, no notice period, no severance.
Employee via EOR
The right structure for a full-time role with fixed hours, managerial direction and exclusivity. A licensed in-country partner is the legal employer, so the person gets a compliant contract, statutory benefits and local payroll — without you opening an entity.
Your own entity
Worth it once headcount, permanence and local revenue justify the incorporation, tax registration, statutory filings and local directorship. Most companies reach that point somewhere between 15 and 30 employees in a single country.
Misclassification risk in Mexico
Engaging a full-time worker as an honorarios contractor is a well-recognised pattern that IMSS and labour courts unwind. Reclassification brings back IMSS and INFONAVIT contributions with surcharges, aguinaldo, vacation premium, profit sharing and constitutional severance of three months' salary plus twenty days per year of service.
Work permits and right to work
Foreign nationals need a temporary resident visa with permission to work, sponsored by an employer holding an INM employer registration. Processing typically takes four to eight weeks including consular appointment and post-arrival exchange of the visa for a resident card.
Hire in Mexico without an entity
TalentStores orchestrates Employer of Record employment in Mexico through licensed in-country partners, with cost modelled before you extend an offer.
Explore Employer of Record- Fully loaded cost modelled before offer
- Licensed partner matched, not assumed
- One contract, one consolidated bill
Hiring in Mexico: frequently asked questions
Can we hire in Mexico without a local entity?
Yes, using an Employer of Record structured to comply with the 2021 outsourcing reform. The partner is the legal employer registered with IMSS and SAT; personnel subcontracting for another company's core business remains prohibited, so the structure must be set up correctly.
What is aguinaldo and PTU?
Aguinaldo is a mandatory Christmas bonus of at least 15 days' salary, payable by 20 December. PTU is statutory profit sharing of 10% of taxable profit distributed to employees, capped at three months' salary or the average of the last three years.
How does severance work in Mexico?
There is no notice period. Dismissal without just cause entitles the employee to three months' salary plus twenty days per year of service, a seniority premium of twelve days per year capped at twice the minimum wage, and accrued benefits.
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Get the Mexico Hiring Cost Guide
A country brief covering fully loaded employment cost in MXN, salary benchmarks by role, statutory contributions, leave and notice rules, and a sample offer breakdown for Mexico.