Hire employees in Mexico No entity needed.
Usually, to hire in Mexico, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Mexico also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Mexico quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
All the necessary benefits for Mexico built right in
Deel allows you to provide localized benefits for employees in Mexico within minutes. All in one manageable online dashboard.
- Public Health Insurance
Currency: Mexican Peso (MXN)
Capital: Mexico City
Official language: Spanish
Payroll Cycle: Twice a Month
Paid Time Off
In Mexico, employees are entitled to paid holidays based on the length of the labor relationship:
- 1 year of employment - 6 days' paid leave
- 2 years of employment - 8 days' paid leave
- 3 years of employment - 10 days' paid leave
- 4 years of employment - 12 days' paid leave
- 5+ years of employment - The holiday period will increase by 2 days of paid leave for every 5 years of service.
- New Year’s Day
- Constitution Day
- Benito Juárez's Birthday
- Labor Day
- Independence Day
- Mexican Revolution
- Christmas Eve
- Christmas Day
8 days per year. Additional regional holidays may also apply.
Individual Income Tax
The average for the individual income tax ranges up to 35%, and depends on many variables, such as marital status, level of income, among others.
Approximately, 25% of employee salary.
Employment Contract Details
Employment contracts must be in writing and in Spanish.
The probation period cannot be higher than 3 months, except for managerial positions or specialized technical roles, in which case it cannot exceed 6 months.
Maximum working hours and overtime
Standard working hours are 48 hours per week (Monday‐Saturday), 8 hours per day, plus 30 minutes per day for lunch.
Minimum Wage Requirements
The Minimum Wage is MXN 141.70,00 per day.
Bonus and expense payments
In Mexico, there is a statutory requirement to pay a 13th salary bonus a year. Equivalent to 15 days of minimum wage.
- Maternity leave: 42 calendar days prior to birth, and 42 calendar days after childbirth. Can be extended for a further 60 days on half pay. During maternity leave, employees receive an allowance equal to 100% of the average salaries paid by the state, capped at 25 times the general minimum wage in force in the Federal District
- Paternity leave: employees are entitled to 5 business paid days funded by the employer.
Termination requirements for employees in
Contracts may be terminated by mutual agreement or unilaterally with cause or without cause. In Mexico, severance payment depends on the employee’s length of labor relationship:
- Up to 1 year of employment - 3 months' wages
- For each year of employment - additional 20 days' wages
- Seniority Premium: for each year of employment - 12 days wages with a maximum cap of twice the minimum daily salary
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Deel is the best!!
“Deel is an amazing platform! It's super intuitive and user friendly, plus it runs suuuuper smoothly!! It has great options for paying and withdrawing money, plus it helps you keep super organized with your spending. They also have great support and are super friendly with all the questions you might have :D I would definitely recommend it!!”
A contracting life-changer!
"This has by far the singular tool that made my contracting work amazing. It used to be that contract management and payouts was a nightmare — Deel makes everything so easy especially with its Transferwise integration. Everyone gets paid on time and kept happy. I also contacted their support a couple of times for some small questions and they’ve been nothing short of amazing. If you’re a contractor or someone who hires contractors then definitely give Deel a go."
Great service offering!!
"The Deel platform has been super effective for my team and I and has enabled us to bring on workers globally. The platform allows us to onboard individuals seamlessly and with no issues at all. Highly recommend."
"Great service, amazing customer care, terrific platform, both for the company and for the contractors/employees. Saving everyone's time and money"
Deel is a game-changer for distributed teams
"Deel has been instrumental in helping us both open and operate our EU operations. It's super simple to set up and implement and the support team has been world-class. I can't recommend them enough!"
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"Great app with great customer service, with great attention to details and legal requirements. Looking forward to keep using it!"