Table of Contents
Introduction
Key Considerations for Employing in Mexico
Benefits
Employment Contracts
Onboarding
Leaves
Payroll & Taxes
Termination Process
Invoice Schedule
Get Started with Omnipresent
1. Introduction
Hiring employees in Mexico requires compliance with local labor laws, structured termination processes, and extensive payroll documentation. Omnipresent’s Employer of Record (EOR) service helps you hire compliantly while taking care of payroll, benefits, and HR support.
2. Key Considerations for Employing in Mexico
Currency: Mexican Peso (MXN, $)
Language: Spanish
Employer Costs: Average (~36% of salary)
Termination Complexity: Hard
Onboarding Timeline: Approximately 22 calendar days
Payroll Frequency: Fortnightly (semi-monthly)
3. Benefits
Types of Benefits Offered
Mandatory Benefits:
Public healthcare (IMSS)
Retirement (AFORE)
Life insurance
Workers’ compensation
Illness & disability insurance
Vouchers
Supplementary Benefits (via Mapfre):
Private health insurance
Dental & vision coverage
Healthcare
Public healthcare is managed by IMSS and funded via payroll.
Private supplementary healthcare is common and employer-funded.
Retirement
Contributions go to AFORE (Retirement Fund Administrators).
Supplementary retirement is common but not offered by Omnipresent.
4. Employment Contracts
Contract Types
Indefinite-term contracts
Part-time contracts
Fixed-term contracts are strictly regulated and rarely used.
Requirements
Written contracts are mandatory.
Language: Bilingual (Spanish + English; Spanish prevails)
Signature Requirements: Simple electronic signature
Backdating: Not permitted
Contract Customisation
Optional: Unlimited time off, extra-legal sick days
Not allowed: overtime clauses, restrictive covenants, stylistic edits
Probation Period
30 days for general employees
Up to 180 days for executives and specialized roles
Exceptions for employment relationship transfers
5. Onboarding
Timeline
The onboarding process in Mexico typically takes ~22 calendar days, including:
Platform Setup
Right-to-Work Check
Employment Contract Processing
Benefits & Payroll Enrollment
Immigration & Visas
Visa/work permit support may be available under certain conditions
Right-to-Work Verification
Mandatory RTW and medical checks for foreign employees
Employee Transfers from Another EOR
Seniority can be recognized unless full severance was paid
6. Leaves
Leave Entitlements
Annual Leave:
12–20 days for employees with up to 5 years of service
Increases by 2 days every 5 years after that
Vacation Bonus: Additional 25% of salary during vacation
Maternity Leave
42 days before + 42 days after birth
Fully paid by Social Security (100% of salary)
May be extended at 50% pay for 60 days if required
Paternity Leave
5 calendar days paid for childbirth or adoption
Sick Leave
Paid 60% of salary from day 4 for up to 52 weeks, extendable by 26 weeks
Funded by Social Security
Public Holidays (8+ Days)
January 1st
First Monday in February (Feb 5)
Third Monday in March (Mar 21)
May 1st (Labor Day)
September 16th (Independence Day)
Third Monday in November (Nov 20)
December 1st every six years (next in 2024)
December 25th
7. Payroll & Taxes
Payroll Cycle
Frequency: Semi-monthly / Fortnightly
Cut-off Date: 6th of each month
Payment Date: Every two weeks
Compensation
Profit-sharing: 10% of pretax income
Vacation bonus: 25% of vacation pay
Christmas Bonus: 15 days’ salary paid by December 20
Sunday premium: Additional 25% pay
Public holiday pay: Additional premiums apply
Minimum Wage
MXN 172.87/day (as of 2023)
Varies by occupation and region
Hourly Wage
Not supported by Omnipresent
Standard Work Schedule
8 hours/day, 48 hours/week (Monday–Saturday)
Saturday is typically a rest day
Employer Costs
Estimated ~36% of salary. Use the OmniCalculator for exact breakdown.
8. Termination Process
Termination Process
Termination must be for cause per Article 47 of the Federal Labor Law
Examples: Misconduct, policy violation, intoxication at work
Proving just cause is difficult
Omnipresent Policy
Full severance and mutual agreement preferred
Prior consultation with Omnipresent required before initiating termination
No same-day terminations permitted
Severance Pay
Voluntary resignation: Pay due wages and commissions + seniority premium (12 days/year for 15+ years of service, capped at 2x minimum wage)
With cause: Pay due wages and commissions only
Without cause:
3 months’ full salary
20 days/year worked
Accrued benefits + seniority premium
Notice Period
No formal notice period
Must issue a written termination notice within 30 days of discovering cause
9. Invoice Schedule
Initial Fees
Setup Fees: Triggered when terms are signed
Deposit: Due once contract is ready for signature
Initial Salary Prepayment: Invoiced on employment start date
Ongoing Monthly Invoicing
Invoiced monthly in arrears after payroll completion
Invoice includes:
Service fee
Deposit insurance (if applicable)
FX fees (if applicable)
10. Get Started with Omnipresent
We simplify global hiring through compliant payroll, legal contracts, and benefits management. Start your journey toward seamless international employment with Omnipresent.