Hire in Mexico

Mexico, a constitutional federal republic in North America, is bordered by the United States to the north, the Pacific Ocean to the south and west, the Gulf of Mexico to the east, and Guatemala and Belize to the southeast. The economy consists of highly diversified and modern industries with significant amounts of private investment. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports, among others.

It has a dynamic industrial base, vast mineral resources, a wide-ranging service sector, and the world’s largest population of Spanish speakers—about two and a half times that of Spain or Colombia. More than half of the Mexican people live in the center of the country, whereas vast areas of the arid north and the tropical south are sparsely settled. 

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Mexico.

Onboard your talent in Mexico

in 10 minutes

Power icon

Accelerated onboarding

Fast-track your talent onboarding while ensuring 100% compliance with local regulations.

Calculator icon

Net salary calculator

Calculate net salary post deductions and compare it with the salary in other countries instantly.

Reading icon

Guidance & payroll management

Receive process support by an experienced team of experts & pay your talent on time and in their local currency

People icon

Hire in Mexico through an

EOR

Easily onboard your remote talent in Mexico through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.

A quick overview of Mexico

Calendar remove icon
Cost of living index

$ (130 of 139 nations)

Euro icon
Currency

Mexican Pesos (MX$; MXN)

Dollar bill icon
Payroll frequency

Bi-weekly/Monthly

Basic facts

Mexico, a constitutional federal republic in North America, is bordered by the United States to the north, the Pacific Ocean to the south and west, the Gulf of Mexico to the east, and Guatemala and Belize to the southeast. The economy consists of highly diversified and modern industries with significant amounts of private investment. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports, among others.

It has a dynamic industrial base, vast mineral resources, a wide-ranging service sector, and the world’s largest population of Spanish speakers—about two and a half times that of Spain or Colombia. More than half of the Mexican people live in the center of the country, whereas vast areas of the arid north and the tropical south are sparsely settled. 

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Mexico.

Capital

Mexico City

Official language/s

Spanish

People icon
Population

128.45 million (2023 est.)

US dollar icon
VAT - standard rate

16%

The national holidays mentioned below are valid for the year 2025.

January 1New Year’s Day
February 3Constitution DayMovable - The first Monday in February
March 17Benito Juarez DayMovable - The third Monday in March
May 1Labor Day
September 16Independence Day
November 17Revolution DayMovable - The third Monday in November
December 25Christmas Day

The approximate time for sharing the contract with an employee in Mexico is 3 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

  • A seniority bonus is paid to workers who have accumulated over 15 years of service at a rate of 12 days per completed year of service at the time of dismissal. 
  • The employers are to share the profits of the companies with the workers, in accordance with the percentage determined by the National Commission for the Participation of the Workers in the Profits of the Companies.

Mexico`s social security system covers:

  • Work risks (work accident or illness);
  • Diseases and maternity;
  • Disability (a general illness that prevents employees from working);
  • Life (death of the insured);
  • Retirement, unemployment in old age, and old age (pension by age and years of contributions); and
  • Nurseries and social benefits.

The social security system is funded by both employer and employee contributions. An overview of the employer contributions is presented in the table below.

 

Benefit Employer Contribution
Disability and Life Insurance
  • 1.75%
Sickness and Maternity Insurance
  • 20.4 % of the Unidad de Medida y Actualización (UMA)
  • 1.1% of covered earnings exceeding three times the UMA (pensioners’ medical benefits)
  • 1.75% Medical expenses for pensioners and beneficiaries
Work Injuries
  • 0.5-15% (variable rate)
Retirement, Unemployment in Advanced Age and Old Age (CEAV)
  • 2%: Retreat
  • 3.150%: CEAV
Nurseries and Social Benefits
  • 1%
National Housing Fund (INFONAVIT)
  • 5%

Working Hours

The maximum duration of the day is eight hours during the day, seven hours at night, and seven and a half hours for a mixed shift.

 

Overtime

An employee can work up to three hours of overtime per day for up to nine hours per week at double the standard hourly rate. Employers must compensate employees who work more than nine overtime hours at three times their regular hourly rate

Probation Period

The probation period in Mexico for indefinite contracts is as follows:

  • 30 calendar days for non-managerial employees;

  • Up to 180 calendar days for employees in management, executive, or higher positions.

 

Termination Notice Period

There is no statutory minimum notice period in Mexico. However, Federal Labor Law states that should the circumstances dictate, the company must provide the employee with notice in writing within 30 days of knowing about the misconduct. The written notice must explain the grounds for dismissal, or the Labor Board must issue a termination notice.

Working Hours

The maximum duration of the day is eight hours during the day, seven hours at night, and seven and a half hours for a mixed shift.

 

Overtime

An employee can work up to three hours of overtime per day for up to nine hours per week at double the standard hourly rate. Employers must compensate employees who work more than nine overtime hours at three times their regular hourly rate

Probation Period

The probation period in Mexico for indefinite contracts is as follows:

  • 30 calendar days for non-managerial employees;

  • Up to 180 calendar days for employees in management, executive, or higher positions.

 

Termination Notice Period

There is no statutory minimum notice period in Mexico. However, Federal Labor Law states that should the circumstances dictate, the company must provide the employee with notice in writing within 30 days of knowing about the misconduct. The written notice must explain the grounds for dismissal, or the Labor Board must issue a termination notice.

Book a free demo to access this information

Mexico`s social security system covers:

  • Work risks (work accident or illness);
  • Diseases and maternity;
  • Disability (a general illness that prevents employees from working);
  • Life (death of the insured);
  • Retirement, unemployment in old age, and old age (pension by age and years of contributions); and
  • Nurseries and social benefits.

The social security system is funded by both employer and employee contributions. An overview of the employer contributions is presented in the table below.

 

Benefit Employer Contribution
Disability and Life Insurance
  • 1.75%
Sickness and Maternity Insurance
  • 20.4 % of the Unidad de Medida y Actualización (UMA)
  • 1.1% of covered earnings exceeding three times the UMA (pensioners’ medical benefits)
  • 1.75% Medical expenses for pensioners and beneficiaries
Work Injuries
  • 0.5-15% (variable rate)
Retirement, Unemployment in Advanced Age and Old Age (CEAV)
  • 2%: Retreat
  • 3.150%: CEAV
Nurseries and Social Benefits
  • 1%
National Housing Fund (INFONAVIT)
  • 5%