As an employer of record in Latin America, we know the ins and outs of payroll and human resources (HR) in various countries. Labour and employment laws differ from country to country, so trying to navigate the legalities as you break into the market can be difficult. Luckily, we’re here to help.

If you’re looking to recruit employees in Mexico for your business, you’ll need to operate and manage immigration, recruitment and other HR tasks, which can be difficult to navigate. By outsourcing your HR and payroll, you can focus on the day-to-day running of your business, and leave everything else up to the experts. As a legal employer of record in Latin America, we can help you break into the market, and help you with all the steps along the way.


Things to Consider

In recent years, Mexico has become one of the most desirable places to do business in Latin America. Paired with the low unemployment rate, it’s a great market to break into if you operate overseas. To comply with labour and employment legislation, it might be worth seeking out an employer of record such as us here at Payroll Worldwide to ensure you’re covering all legal ground. Employment law in Mexico is designed to ensure that foreign workers don’t take jobs at the expense of Mexican workers, so outsourcing your employment is a great way to break into the market.

Payroll is incredibly important, especially in countries like Mexico where most employees like to be paid in cash. Our employer of record services can help you with payroll, tax and insurance, and can make sure employers are adhering to laws in terms of social security and employee rights.



Although the minimum wage in Mexico is currently quite low, it’s on the increase. Last year, it was raised by 20% to 123.22 pesos (£4.30) per day, which affects around 11 million Mexicans. Wages can be paid weekly, biweekly or monthly, depending on the terms of the employment contract. Employees usually receive bonuses on their 13th month of employment, although it can sometimes be paid on the 14th month.

Mexicans also work some of the longest hours in Latin America. The longest they can legally work is 48 hours per week and can be spread over 6 days (8 hours a day). If you’re looking to break into the Mexican market, understanding the culture and usual working environments can help you build rapport with your staff, and understand the various incentives and laws to help treat your staff fairly.

Holiday days and sick leave also differ in Mexico, as employees are entitled to six working days off per year, which increases over time. There are a total of seven public holidays in Mexico, and if employees decide to work these days, they are entitled to 300% of their normal wage, increasing to 325% on a Sunday.


How We Can Help

If you are unfamiliar with the local payroll procedure and employment laws in Mexico, it can be difficult to navigate and understand. Here at Payroll Worldwide, we are an employer of record (EOR) service dedicated to helping businesses break into the Latin American market, operating all HR functions such as payroll, immigration and recruitment. 

To find out more about payroll in Mexico, please fill out our online form. We’ll be happy to assist you in any way that we can.