Guide to employing in Mexico

The Mexican labour market operates within the framework of Mexico’s labour laws, which include the Federal Labour Law (Ley Federal del Trabajo) and local regulations. These laws aim to protect the rights of both employers and employees. To navigate this landscape successfully, employers must follow specific protocols when employing individuals, such as providing written contracts that include a probationary period, defining working hours and ensuring compliance with minimum wage requirements set by the Mexican government based on location and occupation. Additionally, these laws cover aspects such as paid leave and termination procedures.

Complying with the provisions outlined in the Federal Labor Law is crucial for establishing a business operation while ensuring compliance in Mexico. You can establish your business without complications by aligning your hiring practices with these regulations.

Trusted Employer of Record providers in Mexico, such as XPANDIUM, can offer guidance to help you navigate the complexities of Mexico's labour laws and facilitate your business expansion.

The following information is a basic guideline for employing full or part-time in Mexico, and the salary calculator can quickly help you understand the basic costs of a mid-range salary.

Mexico celebrates a total of 10 public holidays throughout the year. One notable celebration is the "Día de los Muertos" (Day of the Dead), on 1 and 2 November; even though it’s not officially recognised as an official public holiday, it is widely observed in many regions.

Additionally, certain holidays may be observed on a different day if they fall on a weekend to create a long weekend for employees to enjoy.

To obtain information about Mexico’s public holidays, it is advisable to consult official government sources and local authorities who announce them annually. As an Employer of Record (EOR) in Mexico, XPANDIUM stays current with these details to ensure compliance for your workforce during these periods.

The following is a list of important Public Holidays in Mexico:

When your company hires employees in Mexico, attractive perks and benefits can help you attract and retain top talent. While there aren’t any benefits specified by Mexican labour laws, XPANDIUM’s personalised approach allows you to create a customised benefits plan that aligns with your company.

In addition to salaries, employees can enjoy non-salary benefits that promote a healthy work-life balance and encourage favourable working conditions.  XPANDIUM’s EOR services in Mexico make it easy to manage these benefits without any complications. These voluntary, non-salary benefits may include:

·        Internet allowance

·        Cell phone allowance

·        Meal vouchers are provided by the Employer through a card (usually around 2600 MXN per month)

·        Wellness/fitness allowance

·        Computer allowance

By partnering with XPANDIUM as your Employer of Record service provider in Mexico, you can provide benefits packages that resonate with your workforce.

Creating a tailored benefits package for your employees becomes a quick and seamless process with XPANDIUM. As your employer of record service provider in Mexico, our meticulous approach will ensure a seamless benefit-planning process:

1.     Determining the annual amount you want to offer employees – this amount can be divided into 12 instalments and integrated into the regular payroll.

2.     Select the specific benefit items your company would like to offer its employees – this may include voluntary benefits such as medical insurance, additional paid time off and flexible work schedules.

3.     Creating internal policies that will outline the details of the benefits plan -These policies must be formally and thoroughly communicated to relevant employees and integrated with the monthly payroll.

4.     Ensuring employees have accurately completed benefit statements – specifying preferred benefits and respective amounts. These statements must be completed, signed and provided to the Mexican Employer of Record for processing.

5.     Side agreements - If you decide on select group benefits, XPANDIUM’s experienced advisors will guide you through planning and signing any additional agreements that align with employment contracts.

Employers have the below options to terminate an employment contract in Mexico:

Expanding your business into a new country is a time-consuming process requiring meticulous planning. XPANDIUM’s employer of record services in Mexico streamlines the expansion process and ensures a smooth transition for your business.

Our EOR solution handles employment responsibilities such as payroll, work permits, employment contracts and taxation for your Mexican workforce while guaranteeing compliance with local regulations.

Collaborating with an EOR such as XPANDIUM simplifies the intricacies of establishing a presence in a new country, effectively freeing you from navigating legal complexities and localised challenges.  Our innovative approach to EOR services will accelerate your expansion and help you establish connections that align with your business’s unique requirements.

 Take the complexity out of hiring employees in Mexico, and contact XPANDIUM for a tailored solution.

When hiring employees in Mexico, it is essential to establish a payroll management system based on the local regulations governing employee salaries. Understanding the intricacies of Mexico’s payroll setup will be crucial for your business operations.

An experienced EOR, such as XPANDIUM, can handle your global payroll in Mexico.

Here is how XPANDIUM compliantly process your employee payroll:

1.     Collect Employee Information – As part of our payroll setup, we will gather all employee and tax-related information required.

2.     Calculate Gross Pay - Determine compensation based on either hours worked or upon salaries.

3.     Calculate Net Pay - Subtract taxes and deductions from the pay to determine the final amount.

4.     Pay Your Workers – XPANDIUM will process the payroll and ensure salary payments are made.

5.     File Taxes - Fulfil your tax obligations, including social security contributions.

Partner with XPANDIUM and experience the benefits of our expert payroll services in Mexico.