Hire Employees & Contractors


Compliantly hire your distributed team members in


Person working on laptop

Hiring in


isn't so simple. Borderless can help.

To hire new employees in


, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in


while staying fully compliant with local laws and compliance.

Primary Language



Mexican peso ($, MXN)

Payroll Frequency


Public Holidays

7 days

Employer Taxes


Cost of Living Index

$$ (92 of 140, 2023)

Statutory Leave

12 - 20 days

Sick Leave

Up to 52 weeks

Maternity Leave

12 weeks

Important: Risks of misclassification

In many countries like


, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

The general minimum daily wage is MXN 312.41 for the 432 municipalities that integrate the Economic Free Zone of the Northern Border, and MXN 207.44 for the rest of the country.

Overtime Pay

200% of the hourly rate, the first eight hours of overtime during a week

300% of the hourly rate, overtime hours above the first eight hours

Additional Pay

Mexico has a mandatory 13th month salary, which must be paid by December 20th every year. 

Payroll Cycle

For all Borderless customers, payments will be made in semi-monthly installments by the 15th and 30th of each month.

Employer Costs & Taxes

  • 20.40%:Maternity & Illness (fixed quota)
  • 5%: Housing Fund
  • 3.15%: Seniority Insurance
  • 3%: State Payroll Tax maximum (depends on employee state and gross salary)
  • 2%: Retirement
  • 1.75%: Disability & Life Insurance
  • 1.10%: Maternity & Illness (extra quota)
  • 1.05%: Maternity & Illness (retired medical expenses quota)
  • 1%: Daycare Insurance
  • 0.7%: Maternity & Illness (cash benefits quota)
  • 0.54355%: Labor risk insurance

Employee Costs & Taxes

  • 1.92%: Up to MXN 7,735.00
  • 6.40%: Up to MXN 65,651.07
  • 10.88%: Up to MXN 115,375.90
  • 16%: Up to MXN 134,119.41
  • 17.92%: Up to MXN 160,577.65
  • 21.36%: Up to MXN 323,862.00
  • 23.52%: Up to MXN 510,451.00
  • 30%: Up to MXN 974,535.03
  • 32%: Up to MXN 1,299,380
  • 34%: Up to MXN 3,898,140.12
  • 35%: Over MXN 3,898,140.13

Employment Information

Termination Process

Dismissal can be justified relating to the employee's conduct, while termination can be for economic reasons, employee's incapacity, casualty, or death.

Notice period

Neither employers nor employees have the obligation to notify the other party in advance of a dismissal or resignation.  Notice obligations for employees are not enforced under Mexican law.

Probation Period

Employers can place a probationary period of 30 days if the contact is longer than 180 days.

Severance Details

Employees terminated without cause may claim the following:

  • 90 days of compensation (including employment benefits)
  • 20 days of compensation for each year worked
  • A premium of 12 days compensation, including paid vacation, bonuses, and accrued benefits

Employees terminated without just cause may be reinstated to their former job instead of severance.

Benefits of working in a country abroad

Borderless Benefits Packages in


When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in


Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo