Find an Employer of Record in Mexico for Rapid Business Expansion

Finding an employer of record (EOR) in Mexico will allow you to quickly hire qualified local staff, as the employer of record will oversee hiring, firing, and managing the payroll of the employee, while leaving you in full control of their workload. That can be particularly attractive to companies that want to enter the market on a limited-scale or shorter-term basis, or who simply wish to avoid having to go through company formation in Mexico.

With a gross domestic product (GDP) of $2.62 trillion (USD), Mexico is the second-biggest economy in Latin America and one of the largest recipients of foreign direct investment (FDI) in the region. Furthermore, the North American country has been an attractive location for international companies in various sectors, due to its strategic geographic location between the United States and Latin America.

Read on to understand how contracting an employer of record could save you valuable time and money, whether you only need payroll outsourcing in Mexico, or if you need a comprehensive service including all aspects of the recruitment and employee maintenance process.

Key advantages of working with an Employer of Record in Mexico

Employees working in an office after being recruited by and Employer of Record in Mexico
An employer of record in Mexico will help with hiring

Hiring local staff through an employer of record in Mexico will avoid the pressure of going through a company incorporation process when developing commercial activities for a short period of time and will assist you with time-consuming HR tasks. This includes recruiting, hiring, firing, managing employee payroll, and paying all taxes and social benefits to local employees, ensuring your business is fully compliant with local regulations at all times.

Moreover, with a broad knowledge of labor and tax regulations, an employer of record in Mexico will hire the most suitable and qualified personnel for your company and ensure all employee contracts comply with current legislation. Some of the main benefits of working with an employer of record in Mexico include:

Employee management: An employer of record will be capable of recruiting the most suitable and adequate employees for your organization based on your needs and resources.

Legal advice and representation: Any claim related to your company’s employees will be directed to the employer of record, who is capable of representing your business and resolving many legal issues that you may encounter in relation to employees.

Time-saving: Working with an employer of record in Mexico saves you from having to deal with bureaucratic processes and reduces administrative obligations.

Migration advice: An employer of record will guide you through the local migration system and will oversee the process of acquiring business visas or residency permits for foreign employees if needed.

Basic employee benefits in Mexico

When hiring staff in Mexico, it is essential to be aware of social benefits that must be paid to employees in addition to the regular salary, such as:

Christmas Bonus: According to federal labor law, employees in Mexico are entitled to receive 15 days of pay once a year at Christmas, no later than December 20th.

Mexico city
Be aware of Mexico’s employee benefits when hiring staff

Sunday Premium: All employees are entitled to receive an additional 25 percent of their salary on Sundays worked.

Weekly rest day: Workers in Mexico have the right to rest one day for every six working days.

Medical care: Employees must have access to medical care in case of illness or maternity.

Vacations: The employee has the right to a vacation after a minimum of one year of service. In accordance with Mexican law, six days will be granted the first year of work and two days will be added each consecutive year until a maximum of 12 days of vacation is reached. After that, two days will be added every five years.

Biz Latin Hub can be your employer of record in Mexico

At Biz Latin Hub, we offer a full portfolio of customized back-office services, including high-quality recruitment services, accounting, and tax advisory. Our team of multilingual specialists is equipped to assist you with payroll and human resource administration requirements. Contact us now for more information on how we can help you find the best personnel to ensure the success of your business expansion in Mexico.

Learn more about our team and expert authors.

Infographic: Biz Latin Hub services
Our services offered at Biz Latin Hub

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