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Mexico

Global Employment Solutions & PEO in Mexico

Omnipresent makes it fast and easy to employ remote talent in Mexico. We take care of payroll, compliance, taxes, and admin so you can focus on growing your business.

Mexico

Omnipresent Employment Rating

Capital City
Mexico City
Currency
Mexican peso ($, MXN)
Language
Spanish
Payroll Frequency
Fortnightly
Population

How do Omnipresent Global Employment Solutions Work?

Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Mexico. Traditional methods of establishing global employment and subsidiaries in Mexico typically take months and can incur heavy costs. Omnipresent's global employment solutions and PEO services is helping hundreds of organisations onboard new employees in Mexico in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process.

  • Your company conducts the hiring and candidate selection process in Mexico.
  • Omnipresent hires the selected candidate through our local professional employment organisation in Mexico.
  • We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in Mexico.
  • The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation as your full-time employee.

Curious to learn more?

Employer Costs in Mexico

Employer costs include Social Security, Federal/State Tax, and Christmas Bonus. Use the OmniCalculator to estimate costs, or contact us for further information.

Employee Income Taxes in Mexico

The rate of personal taxation varies depending on the income tax bracket the individual belongs to. This ranges between 1.92% - 35%.

Employee Social Contributions in Mexico

Employee contributions include Retirement, Mexican Institute of Social Security (IMSS) Medical Benefits, and IMSS Sickness and Maternity Benefits. This list is non-exhaustive, please contact us for further information.

Working Hours in Mexico

Working hours are 48 hours per week on day shift, 42 on night shift and 45 for mixed (swing) shift. Overtime is capped and compensated.

Holidays & Vacation in Mexico

Please note that the below information covers national holidays and should be used for informative purposes only and not as a guarantee for payroll purposes. While we strive to offer you accurate information, public holidays are subject to frequent changes and can be dependent on regional differences. Should you need more detailed information on public holidays, please consult the government pages of the state and/or the local municipality of your employee.

  • Saturday, Jan 01, 2022 - New Year's Day (Año Nuevo)
  • Saturday, Feb 05, 2022 - Constitution Day (Día de la Constitución)
  • Monday, Feb 07, 2022 - Constitution Day (day off) (Día de la Constitución (día libre))
  • Monday, Mar 21, 2022 - Benito Juárez's birthday (Natalicio de Benito Juárez)
  • Monday, Mar 21, 2022 - Benito Juárez's birthday (day off) (Natalicio de Benito Juárez (día libre))
  • Thursday, Apr 14, 2022 - Maundy Thursday (Jueves Santo)
  • Friday, Apr 15, 2022 - Good Friday (Viernes Santo)
  • Sunday, May 01, 2022 - Labour Day (Día del trabajador)
  • Friday, Sep 16, 2022 - Independence Day (Día de la Independencia)
  • Wednesday, Nov 02, 2022 - All Souls' Day (Día de los Difuntos)
  • Sunday, Nov 20, 2022 - Revolution Day (Día de la Revolución)
  • Monday, Nov 21, 2022 - Revolution Day (day off) (Día de la Revolución (día libre))
  • Monday, Dec 12, 2022 - Day of the Virgin of Guadalupe (Día de la Virgen de Guadalupe)
  • Sunday, Dec 25, 2022 - Christmas Day (Navidad)

Sick Leave Entitlement in Mexico

Employees are entitled to paid time off in the case of illness or injury, whether or not such illness or injury was work-related or not. The Mexican Social Security Institute will provide a subsidy equal to 60% of total salary starting on the 4th day of the illness and up to a 52-week period, which can be extended for another 26 weeks.

Parental Leave in Mexico

Maternity leave: 12 weeks paid maternity leave. IMSS pays at a rate of 100% of the employees' salary however, this is capped at 25x the general minimum wage.

Paternity leave: 5 days of paid leave Parental leave: Not mandatory

Annual Leave Entitlement in Mexico

Minimum annual leave in Mexico is based on seniority and ranges between 6 days to 14 days + an additional 2 days per 5 years of service when employee's seniority is 10 years or above.

Severance Pay Entitlement in Mexico

Severance depends on the cause of termination. Below is a breakdown for indefinite contracts. Severance also applies to fixed term contracts, but is calculated differently on a case by case basis and can be higher than the below.

Voluntary resignation 

Seniority premium (after 15 years service): 12 days’ salary for each year employed.

Termination with cause

Seniority premium (after 15 years service): 12 days’ salary for each year employed.

Termination without cause 

3 month’s salary, plus 20 days for each year in the company, plus a seniority premium of 12 days per year of service. The employee will also receive back salary from the date of dismissal to the day that the employer complies with the Labor Board’s decision.

Termination in Mexico

In Mexico there is no prescribed process for terminating an employee for cause, but it is important to notify the employee of the specific reasons.

Termination without a justified cause would be seen as an unjustified dismissal, and statutory severance would be paid to the employee. 

In the case of unjustified dismissal, the employee is entitled to demand at the proper Conciliation and Arbitration Board either to be reinstated or indemnified in an amount equal to 3 months’ salary, plus lost wages.

Estimate employment costs with OmniCalculator

Global Employment Cost Calculator

Get an estimate of the employment costs for hiring in Mexico.

United Kingdom

GBP 60,000 annual salary

Base Salary
Employer's Costs (Estimate)
VAT
Average Monthly Employer Cost *

* These employer costs are subject to frequent updates, and can depend on a variety of employee variables. They are only a ballpark estimate, and the actual figure may be above or below the quoted amount based on a number of variables. These estimates represent a monthly average each year. In some cases, contribution maximums will lead to payments earlier in the year being larger, before being reduced once max is hit. If a 13th and 14th month are applicable, these have been pro-rated into the gross salaries.

Expertise at your fingertips

Book your free consultation with one of our experts to see how easy it can be to employ in .

Employ the Best Talent, Anywhere in the World

Grow Your Global Team

The benefits of growing a global team and finding the best talent anywhere in the world are endless. It's important to note that labour laws and regulations in Mexico are strict with penalties for non-compliance. Let our team take care of the details such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We're here to help you every step of the way.

Our clients rate us over 4.7 out of 5.
Want to see why?

Source: Trustpilot and G2 reviews in November 2022