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.
2.5 to 4 weeks
5 Considerations Before Hiring in Mexico
Getting Started with Hiring in Mexico
Employer Tax Rates
- 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.
Payroll Timelines and Dates
- New Year’s Day
- Mexican Constitution Day
- Benito Juarez Day
- Holy Thursday*
- Good Friday*
- Labor Day
- Independence Day
- Revolution Day
Health Insurance Benefits
Maternity / Paternity / Parental Leave
Employment / Termination
- 90 days of the employee’s regular salary.
- 20 days per year of service, prorated if necessary for employees with less than one year of service (i.e., if an employee works for six months, only 10 days of severance pay is due).
- Payment of accrued benefits, including proportional 13th month salary, unused vacation days, and vacation premiums.
- Seniority premiums of 12 days per year of service if the employee has worked at least 15 years for the employer.
Tell us about your employee.
Enter details about your hire to get an estimated employment cost, including taxes.
Annual cost of employment*
*rates for: February 2, 2024
How to hire and onboard an employee
Plane offers a guided process for administrators and managers to hire and onboard their new employees...Learn more