Payroll and HR in Mexico

Local Information

Local Time (LIVE):12:59 AM
Local Currency:$1 = MX$18.77
Business Language(s):Spanish, English
Tax Year Dates:1st January – 31st December

 

Looking to expand your business to Mexico? With its stable economy predicted to be the 5th largest in the world by 2020 and its large market, it’s the ideal place to grow your business. There are more free trade agreements here than any other country in the world, with retail, manufacturing and housing being the 3 most important business sectors. The majority of jobs are in the capital, Mexico City, which is the base for most international companies.

However, expansion doesn’t come without its complications. Ensuring your payroll and HR remains compliant with Mexican legislation and employment law is vital, and it can be confusing to get it right, especially when you’re dealing with the important day to day. That’s where FMP Global come in.

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Details correct at time of publication. You should not rely on these details without first seeking professional international advice.

Employer Must-Dos

In Mexico, the following reports must be submitted to strict deadlines:

  • Advance corporate tax
  • Annual tax return
  • VAT Returns

Payroll in Mexico

What tax considerations are there?

Corporate tax should be considered, as well as employees’ income tax, which is based on a number of factors. Residents are subject to income tax on global income regardless of nationality. Employees must also make social security contributions based on their salary.

HR in Mexico

What are the regular working hours in Mexico?

The legal length of a work week in Mexico is dependent on the type of shift employees work. It is typical for a day shift worker to work between 6am and 8.00pm for eight hours. For a night shift worker, it is typical to work between 8.00pm and 6.00am for 7.5 hours. Employees will be legally entitled to a minimum of six days’ holiday after a year of working for you.

Termination

In Mexico, there has to be a legally permitted cause of termination. If an employee is considered to have a ‘lack of integrity’ with their work, this can be a cause for dismissal under Mexican Labor Law where ‘integrity at work’ is mandatory. This entails work being done with care and attention, at the right time, place and in the correct manner.

Find Out More About International Payroll

Download our free guide to international payroll to find out further considerations and implications of international payroll.

Download Our Guide

FMP’s Mexican Payroll and HR Solutions

Whether you’re looking for payroll and HR services in Mexico City, Quadalajara or Puebla, FMP Global’s specialist international teams are here to help. Our payroll and HR specialists will guide you through all areas of payroll and HR, to help you get on with what you do best. Our services include:

  • Employment Contracts
  • Payroll Processing
  • Handling of payments (salaries)
  • Annual declarations (lodging, apprenticeship & training taxes for concerned companies)
  • Relations with social bodies
  • Regulatory Compliance
  • Tax and Labor Law Consulting
  • Assisting in payroll audit (or payroll department audit)
  • Handling of confidential payroll
  • Assistance in company restructuring plan
  • Assistance in implementation of procedures
  • Assistance with start-up (in link with lawyers)

Stay Compliant - Payroll and HR Services in Mexico

FMP Global are here to help with HR and payroll every step of the way through your international expansion. Speak to one of our team today and see how we can help keep your business compliant.

Start your International Expansion Today