🇲🇽 Best Employer of Record Mexico

Most EOR providers charge $599 per employee per month, which has become the standard rate. You'll find budget options like Columbus at $179/month or Skuad at $199/month, though Skuad uses third-party partners instead of their own legal entity. Don't forget that statutory benefits (IMSS, INFONAVIT) add another 25-32% of gross salary, but that's unavoidable whether you use an EOR or set up your own entity.

You're looking at 1-2 weeks from signing with an EOR to having your employee onboarded. That's lightning fast compared to setting up your own Mexican entity, which takes 2-4 months and costs $15,000-$25,000. The speed depends on how quickly you can get employment contracts signed and the employee's documentation sorted.

Mexico's 2021 outsourcing reform pretty much killed traditional staff augmentation, but legitimate EOR services are still legal. The key is that your EOR must have a real legal entity in Mexico with REPSE registration.

Some providers like Skuad operate through undisclosed third-party partners, which creates compliance risks you don't want to mess with.

Yes, PTU is mandatory if your company is profitable. Employees get a share of profits equal to 10% of taxable income, distributed based on salary and days worked. Your EOR should handle the calculations and payments, but you'll need to provide financial information. It's due by May 30th each year, so don't forget to budget for it.

Mexico doesn't have at-will employment, so you can't just fire someone without cause. Termination for cause requires solid documentation. Without cause, you're paying severance of 3 months' salary plus 20 days per year worked, plus any accrued benefits. Your EOR should handle the process, but expect it to be more expensive and complex than the US.

Every employee gets at least 15 days' salary as a Christmas bonus, paid by December 20th. It's calculated based on their daily salary rate, and if they worked less than a full year, it's prorated. Your EOR will handle the calculation and payment, but make sure you budget for this extra month of payroll expenses in December.

Yes, but your employment contract needs to specify the work location, and different states have varying local tax obligations. Most EORs can handle employees across Mexico, though some focus on major cities like Mexico City, Guadalajara, and Monterrey. Just make sure your EOR has experience with the specific state where your employee will work.

Mexican law requires at least 6 days of vacation after the first year, increasing to 8 days after the second year, then 2 additional days every 5 years. It's pretty stingy compared to other countries. Employees also get a 25% vacation premium on top of their regular pay when they take time off.