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Global Expansion Guide

Mexico

Manage and pay your employees easily with BIPO in Mexico and 170+ other markets. Build your international teams today with our global Employer of Record service!

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Currency

Mexican Peso (MXN)

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Language

Spanish

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Capital

Mexico City

Employer of Record Mexico

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Mexico

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  • Employer of Record
  • Mexico

Employer of Record Mexico

Embark on your business expansion in Mexico with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Mexican market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

Employment Contract

  • Employment in Mexico is regulated by Federal Labour Law.
  • Any employment contract in Mexico must be formalized through a written form and signed by the employer and the employee, which includes below contents:
  1. Employee information（nationality，gender，age，marriage status）
  2. Employment duration
  3. Job description and work location the employee provided services
  4. Salary and benefits, terms and pay dates
  5. Training reference
  6. Leave entitlements
  7. Other working conditions
  8. Information of Collective Bargaining Agreements

Employees may enter into a Collective Bargaining Agreement (CBA), which contains the general terms of employment for all employees covered by the CBA.

Contract Type Specifications 
Specific Project Contract Contract exists and is valid while completing a specific project detailed in the contract. 
Specific Time Contract Contract is valid through a term of time. Conditions are very specific: temporarily replacing an employee / seasonal work. 
Indefinite Term / Open ended Contract Contract has no specific ending term. When there is no written contract, it is understood that the contract is open ended. Might have a probation period. Considered permanent employee. 
Initial Training Contract Used for employees whom the company wishes to train or acquire skills under the guidance of the employer to carry out the activities that will be required of them in the future. The maximum term of the labour relationship is three months, extending up to six months for employees in management, director or specialized technical positions. 

Statutory Contributions

*UMA for 2025 is 113.14 Mexican pesos (MXN) per day.

**BLS: Base listed salary

Item  Detail  Employer Contribution  Employee Contribution
Social Security (IMSS) Work Risk Insurance According to risk level –
Disease And Maternity Insurance Fixed rate: UMA*20.4% Additional rate: 1.10%; Survivor’s Pension: BLS*1.05%; Cash benefits: BLS*0.70% Fixed rate: – Additional rate: 0.4%; Survivor’s Pension: BLS*0.375%; Cash benefits: BLS*0.25%
Disablement And Life Insurance BLS*1.75% BLS*0.625%
Nursery And Social Benefits) BLS*1% –
Retirement and Old Age Impediment (ROAI) Retirement (SAR) BLS*2% –
Old Age Impediment BLS*(between 3.15% and 6.42%) BLS*1.125%
Housing Fund (INFONAVIT) Housing benefits BLS*5% -, (Unless the employee has a mortgage)

Minimum Wage

Effective 1st of January 2025, the minimum wage rates of Mexico are set as follows:

Region MXN / day 
Northern Border states (Baja California, Sonora, Chihuahua, Coahuila, Nuevo Leon, and Tamaulipas) 419.88
The rest of the country 278.80

Public Holidays

The National Public Holidays in Mexico in 2025 are shown as follows. Please refer to the announcement of the Mexican government.

Holiday Name Holiday Name – Local Language  Type  Date 
New Year’s Day Año Nuevo National holiday 1/1/2025
Constitution Day Día de la Constitución National holiday 2/3/2025
Birth Day of Benito Juarez Día de Benito Juárez National holiday 3/17/2025
Maundy Thursday Jueves Santo * Observed holiday 4/17/2025
Good Friday Viernes Santo * Observed holiday 4/18/2025
Labour Day Día del Trabajo National holiday 5/1/2025
Anniversary of the Battle of Puebla Batallade Puebla * Observed holiday 5/5/2025
Nationwide Election of Judges and Magistrates Elección Nacional de Jueces y Magistrados National holiday 6/1/2025 (2025 only)
Mexican Independence Day Día de la Independencia National holiday 9/16/2025
Day of the Race Día de la Raza National holiday 10/12/2025
All Souls’ Day Día de losMuertos * Observed holiday 11/2/2025
Revolution Day Día de la Revolución National holiday 11/17/2025
Lady of Guadalupe Day Día de la Virgen de Guadalupe * Observed holiday 12/12/2025
Christmas Day Día de Navidad National holiday 12/25/2025

Working Hours

Normal Working Hours

  • Normal working hours of ordinary employees: 9am to 6pm from Mondays to Fridays
  • Normal working hours of shift employees are shown as follows:
Shift  Max. working hours / week  Spread of Hours  Max. working hours / shift 
Day Shift 48 hours 6am to 8 pm 8 hours
Mixed Shift 45 hours Limited to 3.5 hours of the night shift part 7.5 hours
Night Shift 42 hours 8pm to 6am 7 hours

Rest Time

  • Lunchtime: At least 30 minutes, counted in working hours
  • At least 1 rest day per week, Sundays typically.

Night Work

  • The night working hours are between 8:00 pm one day and 6:00 am the next day.

Overtime

  • Any hours worked in excess of standard working hours are considered overtime.
  • Overtime should be performed only for extraordinary reasons, should not be used frequently.
  • Employers may be fined if overtime exceeds three (3) hours per day and more than three times per week.
  • The first 9-hour overtime is double pay, from the 10th hour, overtime is paid three times the normal hourly rate.
  • Working on a rest day (usually Sunday) is paid 1.25 times the normal rate as the Sunday premium.

Other Regulations

  • Payroll records must be kept for at least 5 years.
  • The minimum age to work in Mexico is 15 years old.

Probationary Period

For permanent employees, the probation period is usually 90 days but may vary by the nature of the work and the terms agreed in the employment contract. In some cases, the probationary period can be set up to 180 days.

Leave

Statutory leave in Mexico includes:

Type  Applicable to  Details 
Paid Annual Leave All Employees 12-32 days (according to service length), employees are entitled to 25% vacation premium.
Sick Leave All Employees 52 weeks（First 3 days are unpaid, then paid 60% of the salary from the 4th day）
Pregnancy and Maternity Leave Female Employees 12 weeks（Pre-natal leave: 6 weeks, post-natal leave:6 weeks）
Paternity Leave Male Employees 5 days（Paid by the employer）
Adoption Leave All Employees 6 weeks (Paid by IMSS)
Breastfeeding Time Female Employees with children ≤ 6 months 1 hour/day (twice per day, 30 minutes per each, or off-duty one hour early）
Care Leave for Sick Children Employees with children with cancer and under 16 years of age 28 days (No more than 364 days within 3 years)

Termination and Compensation

Termination Notice

  • No legal notice period required.
  • In practice, many employees will give a week or two of notice.
  • Employers should explain the reason for the termination to the employees during their probationary periods. After the probationary period is completed, the employees must be given a warning letter together with PIP by the employers. Employers are not required to provide employees with handover time.
  • Proving a just cause is the responsibility of the employer, therefore keeping records and evidence is strongly recommended.

Compensation

Items  Severance
Constitutional Indemnification 90 days of wages
Payment in lieu of Reinstatement 20 days of wages per year of service
Seniority Bonus 12 days of wages per year of service

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation:
    The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management:
    We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Singaporean regulations.
  • Contributions and Taxes:
    Our expertise in managing local social security requirements ensures your business complies with in-country financial obligations.
  • Compliance with Minimum Wage and Working Hours:
    We guarantee that your employment practices adhere to the Mexican minimum wage and working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management:
    Implement and manage leave policies that comply with Mexico’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance:
    Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services:
    Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in Mexico

Unlock your growth potential with BIPO’s Employer of Record service in Mexico. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance. From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

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Frequently Asked Questions

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees. 

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from: 

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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