Mexico Payroll and
Hiring in Mexico
The International Payroll & HR Service Provider
That Speaks Your Language
At IRIS Global Workforce Management, we’re able to simplify Mexico payroll and the processes around hiring employees in Mexico. As a reliable and trusted global payroll and HR specialist, operating 88 in-country teams, we have the worldly knowledge to ensure your overseas employees are looked after.
Navigating the difficulties associated with global payroll and HR in Mexico can be overwhelming with the assistance of a specialist. During a global expansion, compliance is always urgent and we offer support with any HR or payroll challenges. It can be tricky to understand all of the differing laws, cultures and regulations. We can help your business succeed in Mexico. We offer:
Looking for Payroll and HR Services?
Mexico Payroll & Tax
We help you by removing any obstacles in global payroll and tax – this includes issues related to pay, benefits, and more. Delivered through our payroll and tax support, your business can rest assured that its growing workforce will be paid accurately, on-time, every time.
Hiring in Mexico
Your global employees will need specialists when it comes to legislation and compliance. Rely on our HR services to help you hire and manage employees in Mexico.
Mexican Employment Law Compliance
We will help you to seamlessly and compliantly onboard your organization’s people. As an in-country specialist, we can help with contracts, policies, handbooks and more.
Global Payments Services
Get support with our compliant, global payment services, which are designed to help any business make their cross-border transfers cost-effective.
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Location Data
- Name
Mexico- Region
- Americas (North America)
- Population
- 128932753
- Calling Code
- 52
- Capital
- Mexico City
- Timezone(s)
- UTC-08:00, UTC-07:00, UTC-06:00
- Timezone in Capital
- (america/mexico_city) 3:40 PM
- Currency
- Mexican peso (MXN)
$1 = $19.38 - Main Language
- Spanish(Español)
- Other Business Languages
- Spanish, English
- Tax Year Start
- 1st January
- Tax Year Start
- 31st December
Details correct at time of publication. You should not rely on these details without first seeking professional international advice.
A trusted advisor for global expansion
We support businesses in 135 countries worldwide to reach their expansion goals.
Doing Business in Mexico
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 IRIS comes in.
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 Taxes 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.
Employment Contracts 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 Global Payroll
Download our free guide to find out further considerations and implications of global payroll.
IRIS’s Mexico Payroll and HR Solutions
Whether you’re looking for payroll and HR services in Mexico City, Quadalajara or Puebla, IRIS’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
IRIS is 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.
Frequently asked questions
Learn more about HR and payroll in Mexico with these FAQs.
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Yes. To do business and pay employees in Mexico, you must have a legal entity. Speak to a global expansion specialist about setting up a legal entity in Mexico.
At IRIS, we also advise employers to undertake a tax risk assessment, including reviewing whether you require a permanent establishment in Mexico.
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Mandatory employee benefits in Mexico include:weekly rest day, Sunday premium, legal holidays, maternity leave, PTO, vacation premium, Christmas bonus (Aguinaldo), profit-sharing, social security (including workers’ compensation), and severance pay.
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Yes. Employers in Mexico must pay employees in Mexican pesos through a government-approved Mexican bank. IRIS can streamline this process where we make payments to your employees through our existing resources, so you don’t have to establish your own bank account in Mexico.
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Payment schedule depends on the industry in which you are doing business. Most industries are on a bi-weekly schedule, but some industries are expected to be paid on a shorter or more extended schedule. Our monthly fee covers two payroll processing runs per month.