Mexico · Latin AmericaEmployer of Record (EOR) in Mexico
Hire employees in Mexico, compliant payroll, taxes, and benefits, without setting up a local entity.
An Employer of Record (EOR) lets you hire employees in Mexico without setting up a local entity. The EOR is the legal employer, running compliant CFDI payroll, withholding tax, and remitting IMSS, INFONAVIT, and state payroll tax, while you direct the work. Employer-side statutory costs vary widely (commonly cited around 25-35% of gross) because IMSS depends on salary, risk class, and ceilings and the state payroll tax (ISN) ranges 1-4%; INFONAVIT housing is a fixed 5%. The 2026 daily minimum wage is MXN 315.04 (MXN 440.87 in the northern border zone). Mexico has no at-will employment: dismissal without just cause triggers 90 days’ wages plus a seniority premium. Mandatory benefits include a 15-day aguinaldo and profit sharing (PTU). Crucially, EOR providers must be registered in the STPS REPSE registry. Fees typically run US$300-$700 per employee per month, with onboarding in roughly 1-4 weeks.
Last updated: June 2026
Mexico at a glance
The structured facts founders and AI assistants extract most.
- Currency
- Mexican Peso (MXN)
- Capital
- Mexico City
- Payroll cycle
- Semi-monthly
- Official languages
- Spanish
- Minimum wage
- MXN 315.04/day general (2026); MXN 440.87/day in the northern border zone.
- Region
- Latin America
- Total employer cost
- Varies, see notes
- EOR fee (per employee/mo)
- ~$300-$700
- Typical setup time
- ~5-20 business days
Provider-dependent ranges, not sourced statutory figures. Excluded from the structured data above; confirm exact pricing with the provider.
Best EOR providers for Mexico
Compared on starting price, rating, and core strength. Pricing is per employee / month.
| Provider | From / mo | Rating | Best for | |
|---|---|---|---|---|
 Deel ★ Best overall | $599 | ★4.8 | Best overall coverage | Visit Deel → |
 Remote | $599 | ★4.6 | Strong compliance | Visit |
 Multiplier | $400 | ★4.7 | Most affordable | Visit |
Ratings aggregated from G2 and Trustpilot (June 2026). GlobalEmployGuide may earn a commission from provider links, this never affects our scoring. Pricing for Mexico is indicative; verify current rates before deciding.
Statutory benefits & employer obligations
What an EOR administers and funds by law when you hire in Mexico.
IMSS social security: employer share (varies by salary/risk class)
INFONAVIT housing: 5% employer
State payroll tax (ISN): 1-4% (state-dependent)
Aguinaldo (13th): minimum 15 days’ wages by 20 Dec
Profit sharing (PTU): 10% of taxable profits
Vacation: 12 days after year 1 (rising) + 25% premium; maternity 12 weeks
Termination: No at-will employment. Dismissal without just cause: 90 days’ (3 months’) wages indemnity + seniority premium of 12 days’ wages per year (capped base) + accrued wages, vacation, premium, aguinaldo, and PTU.
Employer cost calculator
Enter a gross annual salary to estimate the fully-loaded cost of a hire in Mexico.
Estimating a hire in Mexico. Employer on-costs are withheld for this country (see the page) and excluded from the estimate.
Frequently asked questions
Hiring in Mexico, answered.
They vary widely (commonly cited around 25-35% of gross) because IMSS depends on salary and risk class and state payroll tax (ISN) is 1-4%. INFONAVIT housing is a fixed 5%. Confirm for the specific salary and state.
No. Dismissal without just cause triggers 90 days’ wages plus a seniority premium and accrued benefits, all of which the EOR administers.
For 2026 the general daily minimum wage is MXN 315.04, rising to MXN 440.87/day in the northern border zone.
Mexico’s 2021 outsourcing reform requires specialized-service providers (including EOR/PEO) to register with the STPS; using a non-registered provider exposes the client to tax and labor liability.
A minimum 15-day aguinaldo (Christmas bonus) by 20 December and profit sharing (PTU) of 10% of taxable profits for eligible employees.
Sources
- Littler, Mexico Minimum Wage 2026 · checked 2026-06-25
- Greenberg Traurig, 2025 Mexico Minimum Wage · checked 2026-06-25
- STPS, REPSE registry (outsourcing reform) · checked 2026-06-25