Payroll and HR in Mexico

The International HR & Payroll Company
That Speaks Your Language

At IRIS FMP, we’re able to simplify Mexican payroll and HR. 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:  

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) 5:55 AM

Currency

Mexican peso (MXN)

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.

Looking to expand your business to Mexico? With its stable economy predicted to be the 5^th 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 FMP come in.

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

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.

• 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)