Mexico

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Congratulations on your decision to hire employees in Mexico! With its rapidly growing economy and skilled workforce, Mexico stands as a dynamic hub for business expansion in Latin America. The country's strategic geographic location — a bridge between North and South America — and its participation in key trade agreements make it an attractive destination for international businesses. Plane simplifies the hiring process for you by offering automated tax document collection, payroll, benefits administration, and more, while ensuring compliance and maximum efficiency. Still, hiring in a new country can pose certain challenges, so we’ve put together the following guide on how to navigate the process of hiring in Mexico.

Currency

MXN

 Onboarding

2.5 to 4 weeks

Employer Cost

38%

Pay Frequency

Semi-monthly

Public Holidays

9+

5 Considerations Before Hiring in Mexico

As an employer in Mexico, it is important to have a comprehensive employment contract that outlines the terms and conditions of the employment relationship. The contract should include need-to-know info on compensation, benefits, vacation time, and sick leave policies. Before onboarding a new employee in Mexico, take a moment to consider the following:

Does your employee have the right to work in Mexico?

You must check that your employee has the right to work in Mexico. Employees must either be Mexican citizens or foreign nationals with visas that have the proper work authorization. In Mexico, employers typically sponsor work permits and visas for foreign nationals.

Plane Recommendation

Plane helps you conduct a Right to Work verification check for any employees before you onboard them, and we can help you determine if you need to assist your new hire in obtaining any work permits or visas.

Will there be a probationary period? If so, for how long?
Terminated employees are entitled to substantial severance pay
How does vacation work in Mexico?
What additional benefits do you have to provide?

Getting Started with Hiring in Mexico

Employment Contract

In Mexico, employment contracts are crucial for defining the terms and conditions of employment between an employer and an employee. Employment contracts must comply with Mexican labor law and any applicable collective bargaining agreements.

Employers may use three types of employment contracts:

  • Indefinite Contracts: The most common type of contract, it doesn't have a specified end date and offers job security to the employee.

  • Fixed-Term Contracts: Used for temporary, short-term work, such as a task or project or to substitute for an employee. No limits on duration or renewal, as the length is determined by the nature of the work.

  • Seasonal Contracts: For a fixed period or season, or intermittent work.

Any changes to the employment contract, including salary increases or decreases, must be mutually agreed upon via a signed letter and addendum.

Hire Calculator

Get an instant, free estimate of how much it will cost to employ your next hire, including taxes.

Once you have sorted out the details mentioned above, you can add the employee to the Plane platform. We provide a step-by-step workflow that shows what tasks need to be completed, as well as real-time updates and notifications. This way, you can stay on top of the hiring process at all times. With Plane, you can confidently hire, knowing that you have a powerful platform at your disposal to manage the entire process from start to finish. Here are the instructions for adding a new employee to the platform:

How to hire and onboard an employee

Plane offers a guided process for administrators and managers to hire and onboard their new employees.

Hiring an employee in a new country can be a complex process, but with the right guidance and resources, it can be a smooth and successful transition. At Plane, we're committed to helping you navigate this process step-by-step. We'll keep you informed and up-to-date with the latest regulations and employment laws.

Frequently Asked Questions

Here are answers to some common questions about hiring employees outside of the US with Plane:

What is the relationship between my company and Plane?

Pilot Platform Inc (Plane) provides the product and service by helping you manage HR, payroll, and statutory requirements. Plane has its own entities and partners that are the EOR/legal employer where the employee is legally hired in the country. Plane and our partner do not manage the performance of the employees since we do not monitor or work directly with them.

Can Plane withhold taxes for non-cash compensation (e.g. stocks, options)?
Will I be able to pay a bonus, commission, or any other additional payments?
Can Plane guarantee the employee’s start date?