Hire in Mexico without an entity.

Employer of record in Mexico

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

Employer of Record in Mexico

Before hiring employees in Mexico, there are a few important things you’ll need to know.

CapitalMexico City
Time zoneUTC -6
Total Time zones4
Working hours per week40
Working weekMonday–Friday
Typical hours worked8
Personal Tax filing deadline30th April
Financial Year1st January to 31st December
Date formatdd/mm/yyyy
CurrencyMexican Peso (MXN)
VATthe standard rate is 16%
EMPLOYERS (% of Gross Salary)
Sickness & Maternity2,85%
Disability & Death1,75%
Layoff & Retirement Benefits3,15%
Child Care1%
Work Related Accidents0.5% to 7%
Housing Tax5%
Payroll State Tax1.0% to 3%
Total Employment Cost25,75%
Last updateQ1 2023
EMPLOYEES (% of Gross Salary)
Sickness & Maternity1,03%
Disability & Death0,06%
Layoff & Retirement Benefits1,13%
Total Employee Cost2,21%
Last updateQ1 2023
Payroll CycleBi-Weekly 1.75%
13th Salary13th and 14th salaries are not required by law, but a common practice.

Income Tax

Income RangeTax Rate
Up to 8,952.49 MXN1,92%
8,952.50 - 75,984.55 MXN6,40%
75,984.56 - 133,536.07 MXN10,88%
133,536.08 - 155,229.80 MXN16,00%
155,229.81 - 185,852.57 MXN17,92%
185,852.57 - 374,837.88 MXN21,36%
374,837.89 - 590,795.99 MXN23,52%
590,796.00 - 1,127,926.84 MXN30,00%
1,127,926.85 - 1,503,902.46 MXN32,00%
1,503,902.47 - 4,511,707.37 MXN34,00%
Over 4,511,707.38 MXN35,00%
Last updateQ1 2023