Mexico combines nearshore time zones with a deep professional talent pool, and a labor system that was tightened sharply by the 2021 outsourcing reform. Employer costs are moderate, but profit-sharing and the reform's rules catch first-time employers out.
Employment is governed by the Federal Labor Law: written contracts, IMSS registration from day one, and no at-will termination. Since the 2021 reform, staffing-agency arrangements for core business are banned; you either employ people properly or work with a registered specialized provider. EOR through TGTC is the compliant path without an entity.
Around MX$279 per day in the general zone as of 2025*, higher in the northern border zone. Reviewed annually.
Biweekly payroll is the norm. The Aguinaldo (year-end bonus) of at least 15 days' salary is due by December 20, and vacation pay carries a 25% premium.
Around 8-10 mandatory public holidays*, with additional customary dates many employers observe.
IMSS registration precedes the first day. Probation and initial-training periods run 30-180 days depending on the role. A TGTC hire typically starts within days.
The employer burden lands around a third of gross salary once social security, housing, retirement, and state payroll taxes are combined.
The Aguinaldo is a legal minimum of 15 days' salary each December. Separately, PTU obliges companies to distribute 10% of taxable profit among employees each year, capped per employee since 2021. Both belong in your cost model from the first offer.
Employees pay progressive income tax up to 35%* plus a small IMSS share, withheld through payroll.
12 working days from the first year (the 2023 vacaciones dignas reform), growing with tenure, plus the 25% vacation premium on top of vacation pay.
12 weeks at full pay (6 before and 6 after birth), funded through IMSS.
5 working days paid. Reform proposals to extend this recur; check current law at hire time.
Sick leave is paid through IMSS with a medical certificate at 60% from the fourth day. Risk-of-pregnancy and adoption leaves also exist.
There is no at-will dismissal. Termination requires a legally justified cause notified in writing; resignation requires no notice from the employee.
Unjustified dismissal owes constitutional severance: 3 months' salary plus 20 days per year of service, plus a seniority premium of 12 days per year (capped at twice the minimum wage).
30 days standard, up to 180 days for management and specialized roles.
Since the 2021 reform, disguised employment and unregistered outsourcing carry joint liability and tax consequences. A contractor on your schedule with only your revenue is an employee in the law's eyes.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant local contract, IMSS registration, Aguinaldo, PTU, and payroll - handled. One invoice, flat $399/month.