An Employer of Record (EOR) in Mexico is a service that allows businesses to hire employees without establishing a local entity. The EOR manages essential employment tasks, including payroll, tax withholdings, employee benefits, and labor law compliance. This solution enables companies to expand into Mexico quickly and efficiently while ensuring adherence to both federal and state labor regulations.
Employer of Record (EOR) Mexico
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Simple & Compliant Hiring with Globaine's Employer of Record (EOR)
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Globaine takes care of all compliance matters, including payroll, taxes, and legal obligations, while providing seamless hiring processes. Our platform ensures that every aspect of employee management in Mexico is handled efficiently and in full compliance with local regulations.
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Onboard employees in as little as 12 hours.
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The most affordable solution on the market, saving you time and money.
Compliant Contracts
Contracts compliant with Mexican's labor laws.
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in Mexico
An Employer of Record (EOR) is a third-party organization that manages all legal and administrative responsibilities of employing staff on behalf of another company. This includes payroll, tax compliance, employment contracts, benefits administration, and adherence to local labor laws. An EOR allows businesses to hire employees in new countries without establishing a local entity, enabling faster and compliant global expansion.
Choosing an Employer of Record (EOR) in Mexico streamlines compliance with Mexico’s complex labor laws, minimizes administrative overhead, and allows businesses to expand rapidly without establishing a local entity. EOR services in Mexico manage payroll, benefits, tax filings, and employment contracts, ensuring full legal compliance. This enables businesses to focus on growth while efficiently managing employees throughout Mexico.
A written employment contract is required, clearly outlining job roles, salary, benefits, and employment terms according to Mexican labor law.
A contract must be signed before the employee begins work to ensure compliance with Mexican labor regulations.
Salaries must be specified in Mexican pesos (MXN) and include details about any additional allowances or benefits.
Common clauses include confidentiality, non-compete, and dispute resolution, along with mandatory provisions for working hours and termination.
in Mexico
1. What are the key steps in employee onboarding in Mexico?
Employees need to provide their CURP (Unique Population Registry Code), RFC (Tax ID), and bank account details to comply with payroll and tax requirements.
2. When should employees complete pre-hire medical checks in Mexico?
Medical checks are required in certain sectors like construction and healthcare before employment begins.
3. What documents are required for onboarding in Mexico?
The employee must submit their CURP, RFC, identification, and bank details to ensure compliance with local regulations.
4. Why businesses in Mexico need EOR services?
5. How does EOR in Mexico different from other countries?
in Mexico
Salaries in Mexico are split into base salary and various benefits, including social security, vacation pay, and the Christmas bonus (aguinaldo), which is equivalent to at least 15 days of salary.
Remote employees are entitled to benefits, including home office allowances for internet and utilities, depending on the employment contract.
Employers must contribute to IMSS (social security), INFONAVIT (housing fund), and AFORE (retirement fund).
As of 2024, the minimum wage in Mexico is set at 248.93 MXN per day in most regions, while in the Free Zone of the Northern Border, it is 374.89 MXN per day
in Mexico
1. What are the income tax rates in Mexico?
Mexico has a progressive income tax system, with rates ranging from 1.92% to 35%, depending on income levels.
2. How does the tax system apply to non-residents?
Non-residents are taxed only on their Mexican-sourced income, typically at a flat rate of 30%.
3. When should tax returns be submitted?
The fiscal year runs from January 1 to December 31, and individual tax returns are due by April 30. Employers must withhold taxes throughout the year.
4. What social security contributions are required?
Employers must contribute to the Mexican Social Security Institute (IMSS) at a rate of around 15% of the employee’s salary, including pension, health care, and occupational risk insurance.
in Mexico
Employees are entitled to 6 days of paid leave after the first year, increasing by 2 days for every additional year of service up to 12 years.
Employees can start using leave after completing their first year of service.
Maternity leave includes 12 weeks of paid leave, while paternity leave offers 5 paid days. Employers must comply with these entitlements.
Employees are entitled to 7 national holidays, including Independence Day (September 16) and Revolution Day (November 20). Additional holidays may depend on company policy.
in Mexico
1. What benefits are mandatory in Mexico?
Employers must provide statutory benefits like Social Security (IMSS), INFONAVIT contributions, and the Christmas bonus (aguinaldo).
2. How are remote employee allowances structured?
Remote workers may receive allowances for internet and utilities, as specified in their employment contract.
3. When should employers offer retirement savings plans in Mexico?
Employers in Mexico are required to offer retirement savings plans through the Afore system, contributing a minimum of 6.5% of the employee’s salary. These plans should be established at the start of employment to ensure compliance and support employee financial securit
4. What additional benefits are common in Mexico?
Health insurance, life insurance, and performance bonuses are common, helping to attract and retain talent.
TERMINATIONS
in Mexico
Notice periods are typically outlined in the employment contract, often 15 days for voluntary resignation.
Employees may be terminated without notice for misconduct or violation of company policies, in accordance with labor laws.
Severance is calculated as 12 days’ wages for each year of service, plus additional compensation depending on the reason for termination.
Mutual termination agreements can be negotiated, avoiding lengthy legal disputes, with both parties agreeing on the terms.
FAQs
2. What specific cost savings can our company expect by using Globaine's EOR solution compared to setting up a local entity in Mexico?
By using Globaine’s EOR solution, companies can save on the costs associated with entity setup, legal compliance, and ongoing administrative expenses, potentially reducing overall employment costs by 20-30%.
3. How does Globaine guarantee fast onboarding, and what processes are in place to maintain this speed?
Globaine streamlines onboarding by using automated systems and dedicated local teams, allowing for employee onboarding in as little as 24 hours. The process includes pre-verified documentation and digital contract signing.
4. Can Globaine handle complex employment scenarios in Mexico, such as drafting bilingual contracts and managing terminations?
Yes, Globaine specializes in drafting bilingual contracts that comply with Mexican law and effectively manages the termination process to ensure compliance with legal standards, minimizing risk for employers.
6. How Does Employer of Record Work in Mexico?
An Employer of Record (EOR) in Mexico handles employment-related tasks such as payroll, benefits, tax filings, and legal compliance, ensuring businesses adhere to local labor laws. By acting as the legal employer, the EOR makes it possible to hire employees in Mexico without the need for a local entity, simplifying HR processes and accelerating business expansion.
