Hire in Mexico without an entity.
Mexico’s growing economy, highly skilled workforce, and numerous free trade agreements make it a viable option for many global companies interested in expanding into the country. However, successfully hiring and retaining talent in Mexico requires a deep understanding of the market.
Learn about everything you need to know to hire employees in Mexico
Three reasons to hire Mexican employees
More and more US companies are seeking talent in this area. Do you want to know why you might be interested in this area? Here are 3 reasons!
Why hire remote employees in Mexico?
Late-night tacos on busy streets, grand old cathedrals, ancient ruins, and some of the best remote talent in all of Latin America. If you want to hire a new team member in Mexico, continue reading this article.
Working remotely in Mexico
This country has seen a significant boom in recent years. Want to know how?
Employer of Record in Mexico
Before hiring employees in Mexico, there are a few important things you’ll need to know.
| Overview | |
|---|---|
| Continent | Americas |
| Country | Mexico |
| Capital | Mexico City |
| Time zone | UTC -6 |
| Total Time zones | 4 |
| Working hours per week | 40 |
| Working week | Monday–Friday |
| Typical hours worked | 8 |
| Personal Tax filing deadline | 30th April |
| Financial Year | 1st January to 31st December |
| Date format | dd/mm/yyyy |
| Currency | Mexican Peso (MXN) |
| VAT | the standard rate is 16% |
| EMPLOYERS (% of Gross Salary) | |
|---|---|
| Sickness & Maternity | 2,85% |
| Disability & Death | 1,75% |
| Retirement | 2% |
| Layoff & Retirement Benefits | 3,15% |
| Child Care | 1% |
| Work Related Accidents | 0.5% to 7% |
| Housing Tax | 5% |
| Payroll State Tax | 1.0% to 3% |
| Total Employment Cost | 25,75% |
| Last update | Q1 2023 |
| EMPLOYEES (% of Gross Salary) | |
|---|---|
| Sickness & Maternity | 1,03% |
| Disability & Death | 0,06% |
| Layoff & Retirement Benefits | 1,13% |
| Total Employee Cost | 2,21% |
| Last update | Q1 2023 |
| Payroll | |
|---|---|
| Payroll Cycle | Bi-Weekly 1.75% |
| 13th Salary | 13th and 14th salaries are not required by law, but a common practice. |
Income Tax
| Income Range | Tax Rate |
|---|---|
| Up to 8,952.49 MXN | 1,92% |
| 8,952.50 - 75,984.55 MXN | 6,40% |
| 75,984.56 - 133,536.07 MXN | 10,88% |
| 133,536.08 - 155,229.80 MXN | 16,00% |
| 155,229.81 - 185,852.57 MXN | 17,92% |
| 185,852.57 - 374,837.88 MXN | 21,36% |
| 374,837.89 - 590,795.99 MXN | 23,52% |
| 590,796.00 - 1,127,926.84 MXN | 30,00% |
| 1,127,926.85 - 1,503,902.46 MXN | 32,00% |
| 1,503,902.47 - 4,511,707.37 MXN | 34,00% |
| Over 4,511,707.38 MXN | 35,00% |
| Last update | Q1 2023 |