Employer of Record in Mexico
Onboard, pay and manage employees in Mexico without opening a local entity. We assume the legal risks and keep you 100% compliant with local labor law — you keep full operational control.
What is an EOR in Mexico?
An Employer of Record is a third party that legally employs your workers in Mexico on your behalf. Europortage becomes the legal employer — handling contracts, mandatory benefits, tax withholdings and terminations — while you direct your team's day-to-day work.
- Locally compliant employment contracts, drafted and signed in Mexico
- Mandatory benefits and social contributions administered
- Payroll, taxes and filings handled by local experts
- Compliant terminations and severance managed end-to-end
When to use an EOR in Mexico
Hire without the cost and delay of opening a company in Mexico.
Onboard your candidates in days, not months.
Labor law in Mexico is complex — we carry the risk for you.
Build a local team before committing to a legal structure.
What an employee really costs in Mexico
Expect total employer costs of roughly 30% on top of base salary.
| Employer contribution | Rate |
|---|---|
| IMSS — social security | 20% – 23% |
| INFONAVIT — housing fund | 5% |
| SAR — retirement | 2% |
| State payroll tax (ISN) | 2% – 4% by state |
| Mandatory benefit | Amount |
|---|---|
| Aguinaldo (year-end bonus) | 15+ days of salary |
| Vacation | 12+ days from year one, +25% premium |
| Profit sharing (PTU) | Mandatory when applicable |
| CBA benefits | Variable |
Salary, contributions and our fee consolidated. Ask us for an exact estimate for your role.
Everything you need to know before hiring
A practical guide to labor law in Mexico — maintained by our local experts.
Payroll, wages and taxes
Payroll is commonly bi-weekly in Mexican pesos. Employers contribute to IMSS (20–23%), INFONAVIT (5%) and SAR (2%), plus the state payroll tax (ISN, 2–4%). Employees pay IMSS (2.75–6.3%) and progressive ISR from 1.92% to 35%.
Handled by Europortage
Every calculation follows current law and official rates — monitored continuously by our local team, so your payroll is always right.
Working hours and overtime
Standard work week of 48 hours (day shift). Overtime is limited and paid at 200%/300% rates as regulated by the FLT.
Handled by Europortage
Working-time rules, overtime premiums and time-tracking obligations are applied automatically in every payroll cycle.
Mandatory and common benefits
Mandatory: Aguinaldo of at least 15 days of salary in December, vacation from the first year with a 25% vacation premium, and PTU profit-sharing when applicable.
Handled by Europortage
We administer every mandatory benefit and help you build a competitive package for the local market.
Vacation, holidays and leave
Mexican law grants paid vacation from year one (12+ days after the 2023 reform), plus public holidays, 12 weeks of maternity leave and 5 days of paternity leave.
Handled by Europortage
Leave balances, public holidays and statutory licenses are tracked for you — nothing slips through.
Notice and severance
Termination without cause triggers statutory severance: 3 months of salary plus 20 days per year of service, along with accrued benefits. Documentation is critical to avoid disputes.
Handled by Europortage
Terminations are the riskiest moment in LATAM employment. Our legal team runs the entire process cleanly for both sides.
This guide is provided for context only. When hiring through Europortage's EOR service, all payroll, taxes, contributions, contracts and compliance are handled directly by our team.
EOR vs. entity setup vs. contractors
Employer of Record
Hire fast and stay 100% compliant, without opening a company.
- Fast onboarding through our local structure
- Very low risk — compliance carried by Europortage
- Payroll, benefits and taxes included
- Best for hiring fast and testing the market
Entity setup
Your own company in Mexico, with full control and full responsibility.
- Slow to start — registration, banking, tax setup
- Medium risk — compliance carried by you
- Best for large permanent operations
Independent contractor
Fast to start, but risky if the relationship looks like employment.
- Quick to engage
- High risk — misclassification penalties
- Best for short, truly independent projects
Hiring in Mexico, answered
What are my options to hire workers in Mexico?
Three routes: hiring contractors (fast but with reclassification risk), opening a local entity (months of setup and ongoing costs), or using an EOR like Europortage — the fastest compliant option.
How much does it cost to employ someone in Mexico?
Plan for roughly 30% in employer contributions (IMSS, INFONAVIT, SAR, ISN) on top of gross salary, plus Aguinaldo and vacation premium.
What does "Employer of Record" mean in Mexico?
Europortage (or our vetted local partner) becomes the legal employer of your talent in Mexico: contracts, payroll, contributions and filings run under our responsibility, while you manage the day-to-day work.
Do employees get all their rights under an EOR?
Yes — employees hired through Europortage receive the complete set of statutory rights in Mexico: registered contract, mandatory bonuses, paid vacation, social security coverage and severance protections.