Global payroll in Mexico

Only 499 EUR per employee per month

We currently do not offer any services in this country.
We're sorry for the inconvenience...

Rivermate's global payroll solution helps companies hire remote employees in Mexico . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our global payroll solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Mexico.

1. Grow your team in Mexico with Rivermate as your global payroll provider

Payroll, benefits, taxes, and compliance can be difficult to manage in , particularly if you don't have established local relationships. You can hire employees in effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Introduction to global payroll in Mexico

If you are interested in hiring a remote team in Mexico, or even just individual remote employees in Mexico, then you have come to the right place!

Rivermate is an Employer of Record (EOR) that offers Mexico payroll solutions. As a Mexico payroll provider, we will cover everything from salary, benefits, employer-to-employee contributions, and especially payroll compliance in Mexico. We are confident Rivermate’s payroll solutions Mexico will help you grow as a business—because now, you won’t have to worry about your payroll solutions Mexico. We take care of everything payroll!

With Rivermate, you can run Mexico payroll services in just one click—regardless of currency, benefits, insurance, and your local labor laws. Everything is automated. Our priority is for you to focus on your company’s strategy and growth.

Our Rivermate Global Payroll services are made especially for startups and scaleups. We know that startups try to be extra prudent when it comes to choosing a payroll provider, so it is our mission at Rivermate to be your most reliable and cheapest payroll provider option. So if you’re looking for global payroll providers for small businesses, look no further and book a call with us now!

3. How to set up global payroll in Mexico

The first step in setting up payroll in Mexico is to register your company with a notary public and the National Registry of Foreign Investment. The Federal Taxpayers Registry will then issue you a tax identification card.

You will not be able to pay your employees until you have registered with Mexican Social Security and obtained tax registration in the country. In 2017, Mexico implemented new Mexican Tax Revenue regulations requiring all employees' net pay to be received in official Mexican banks and paid in pesos. As a result, before making payments to employees or the government in Mexico, you must first open bank accounts in Mexico.

4. Taxation rules for global payroll in Mexico

Mexico has a progressive income tax that can reach 35% depending on an employee's salary.

Employees' retirement savings accounts are established by the country's Administrator of Retirement Funds (AFORE). All employees are eligible to create an AFORE account, which includes three subaccounts. Employers contribute between 2% and 5%, depending on the subaccount selected by the employee.

Employees must be registered for social security and insurance on the day they are hired, or face significant penalties. Employers must also deduct income tax contributions from employees' paychecks and submit them to the Mexican government on a monthly basis.

5. Payroll options for companies in Mexico

Companies that wish to expand their operations globally have four different payroll options in Mexico. These payroll options are:

1. Internal Payroll. This payroll option is applicable for already established companies in Mexico. It includes devoting an entire Human Resources staff to running the company's payroll procedures.

2. Remote Payroll. Smaller firms may lack the capacity to handle their own payroll, but they may add their workers to the parent company's payroll. This action, on the other hand, requires considerable thinking. You must guarantee that you follow the rules and laws of each nation.

Working with a local outsourcing firm is one method to retain money in the local economy, but you'll still need to study all of the local rules and regulations, since you'll be held responsible.

3. Mexico payroll outsourcing: Outsourcing your payroll to an Employer of Record in Mexico, such as Rivermate, is another alternative for Andorra payroll outsourcing. We can manage all aspects of your payroll, including compliance. Send us a note and we'll get back to you as soon as possible!

6. Payroll compliance Mexico

It is the obligation of the employer to ensure that all payroll-related transactions are properly documented and recorded. All salaries and compensation payments must adhere to the local minimum wage as well as other applicable laws and regulations.

Rivermate's payroll services in Mexico can assist you in staying in compliance with the country's ever-changing payroll rules. We provide an all-inclusive solution that covers everything from compliance and reporting to salary payments.)

7. How to manage payroll in Mexico

Companies that have a business presence in Mexico have different ways of managing payroll. However, most of the options you have for running payroll in Mexico are either expensive or require establishing a subsidiary in Mexico. The cheapest, most efficient, and most reliable payroll processing system in Mexico is by outsourcing payroll to Employers of Record (EOR) in Mexico. Rivermate is one of those Employers of Record.

At Rivermate, we offer you the most efficient, most compliant, and cheapest HR and Payroll Management services in Mexico. We do this by taking care of your payroll-related needs, such as keeping track of your employees’ financial records, including incentives, gross and net salary, and payslips, all the while staying compliant with the labor laws in Mexico. Because we do your online payroll management for you, you can have absolute focus on your business’ strategy and growth.

Rivermate is all about growth through collaboration and we achieve this by offering the most reliable yet cheapest services for managing payroll for small businesses in Mexico.

8. Entitlement and termination terms in Mexico

Although no formal process is required, it is encouraged that the termination be formalized before the conciliation and arbitration court.

9. Compensation in Mexico

The minimum wage is 141.70 MXN per day. However, the minimum wage in the Free Economic Zone of the Northern Border is different and is set at 213.39 MXM per day.

10. Working hours and overtime in Mexico

In general, office jobs operate from 8:00 a.m. to 6:00 p.m., although working hours have increased in recent years and frequently extend until 7:00 p.m. or later. It's worth noting that in Mexico, lunch breaks range from one hour for regular workers to three hours for executives. With the advent of the modern working era, the cultural tradition of a "Siesta" became extinct.

11. Employee benefits in Mexico

The Mexican Social Security Institute (Instituto Mexicano del Seguro Social, IMSS), a federal agency in Mexico, requires all workers to have access to public health care. However, given some of the drawbacks of the public health care system, such as long wait periods to visit a doctor or specialist, a scarcity of physicians, a lack of flexibility, and so on, many companies provide their workers supplementary private medical insurance.

As part of their employment compensation, several businesses provide their workers with a private insurance plan. Despite the fact that fewer than 3% of Mexicans have private medical insurance, private medical services account for 52% of overall medical expenditures in the nation. Private insurance is often chosen since it covers more costly procedures.

Because the statutory benefits in Mexico are very generous, companies seldom provide many extra perks. Flexible work hours are a typical perk, and job sharing and telecommuting opportunities are often provided. Employers may provide extra advantages such as supplementary contributions to retirement savings, reallocation allowances for foreigners, and Life Insurance on occasion.

12. Why choose Rivermate as your global payroll provider in Mexico

Establishing an entity in to hire a team takes time, money, and effort. The labor law in has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in via our Employer of Record (EOR) / PEO solution.

A woman relaxing and drinking coffee
Hire anyone, anywhere
Ready to get started?
Get started