MEXICO PEO & EOR
Hire in Mexico without
a local entity today
As a Global PEO & EOR service provider, we pride ourselves on our global reach, in-country knowledge, and ability to swiftly and efficiently mobilize workers around the world. Our robust PEO/EOR covers everything from global HR, payroll, compliance, in-country support, immigration, visas, and more.
Get started and hire in Mexico today with Gibson Watts Global.
DID YOU KNOW
- Mexico is home to 35 UNESCO World Heritage Sites, more than any other country in the Americas.
- Mexico City was built atop the ruins of the ancient Aztec city of Tenochtitlan, which stood on an island in Lake Texcoco. Over time, the city has sunk significantly due to groundwater extraction—some areas sink up to 10-12 cm per year.
- The National Autonomous University of Mexico (UNAM), founded in 1551, is the oldest university in North America, older than Harvard.
Forget software,
this is expansion
with a human touch
Mexico EOR Services
A gateway into Latin America’s largest Spanish-speaking economy
Mexico offers access to a large, youthful talent pool, a diversified export-oriented industrial base, and strategic proximity to the U.S. and Latin American markets. However, employer obligations under labor law, social security, regional minimum wages, profit-sharing (PTU), and visa/immigration regimes are complex. With Gibson Watts Global as your Employer of Record in Mexico, you can rely on local expertise to manage payroll, compliance, contracts, benefit administration, and legal risk – freeing you to scale operations.
Working in Mexico
Financial Year Dates
Mexico’s fiscal / tax year runs 1 January to 31 December for both individuals and companies.
Minimum Wage
Effective 1 January 2025, the general daily minimum wage across most of Mexico is MXN 278.80 per day.
In the Northern Border Free Zone, the daily minimum wage is MXN 419.88 per day.
Standard working hours
The standard legal workweek is 48 hours, commonly 8 hours per day over 6 days.
Overtime
Overtime is permitted but regulated:
- Up to 3 extra hours/day, with an overall cap.
- Overtime pay: 200% (double) of base pay for the first overtime hours; beyond that, up to 300% (triple) in some conditions.
Work on Sundays or rest days triggers premium rates; employees must receive a weekly rest day.
Holiday Allowance
Under recent reform (effective 1 January 2023), employees are entitled to 12 working days of paid vacation after one year of service (rather than the previous 6).
Sick Leave
Employees registered with IMSS (Mexican Social Security Institute) are eligible for medical and sick leave benefits under statutory conditions.
Medical certification is required; benefits may begin after a waiting period.
Maternity & Paternity Leave
Statutory maternity leave and associated benefits are provided via social security (IMSS).
Paternity leave is less generous under federal law; many employers supplement it.
Public Holidays
Mexico observes national public holidays (e.g. New Year’s, Constitution Day, Benito Juárez’s Birthday, Labour Day, Independence Day, Revolution Day, Christmas) along with regional holidays.
Social Contributions
Employee contributions (IMSS, retirement, disability etc.): Contribution rates include approx. 2.00% for retirement, and 3.15% for disability/survivor benefits on covered salary.
Employer contributions: ± 5.15% toward retirement benefits; plus other contributions to health, risk insurance, etc.
Contributions are computed up to a salary ceiling: the maximum base is 25 times the monthly minimum wage in Mexico City.
Income Tax
Mexico applies progressive personal income tax (ISR) for residents. Marginal rates in 2025 range (low to high) approximately 1.92% to 35% depending on income bracket.
Health Care
Formal employees are covered via IMSS, which provides health, maternity, disability, and hospital services. Employers must enroll staff in IMSS.
Private health insurance is often offered by employers for faster access or higher quality, particularly for expatriates and senior roles.
Visas
Foreign nationals: must secure appropriate work visa / residence permit to legally be employed in Mexico. Employers or EORs usually sponsor the permit process.
Visa / permit types depend on nationality, role, salary level, and location (federal vs state).
13th salary?
Mexico does not have a 13th salary by name. However, there is a mandatory year-end bonus (aguinaldo) equal to at least 15 days’ wages, which must be paid before December 20.
Cultural Information
Mexico is a land of deep cultural diversity and rich tradition. Its heritage blends Indigenous civilizations (Maya, Aztec, Zapotec, Mixtec and many others) with Spanish influences, creating a unique social and artistic fabric.
Family is central in Mexican society – extended families often live nearby or share strong intergenerational bonds. Hospitality is a core value: guests are welcomed warmly with food and generosity. Festivals and religious celebrations (e.g. Día de los Muertos, Semana Santa, Guelaguetza in Oaxaca) are woven into daily life and often bring entire communities together.