Employer of Record in Mexico

A gateway to Latin American expansion without legal complexity. Our EOR hires, pays, and supports tech operations across Mexico.

MediaMath
BBG
Pebble Post
Black Beacon
Natify
Adoppler
Rubicon Project
Pluto TV
Savveo
Trusted Insight
Traveling Spoon

Launch and scale in Mexico

Choose GEOR as your Employer of Record in Mexico:

  • Hire from a vetted network of 40,000+ software engineers and AI specialists.
  • Start in under 7 days without opening a Mexican company.
  • Payroll, contributions, and benefits managed by in-country HR and finance experts.
  • Trusted by global teams building scalable tech infrastructure across Mexico.
  • Transparent pricing, clean terms, and the freedom to exit when it makes sense.

Mexico

North America’s strategic tech gateway

A nearshore bridge between the U.S. and LATAM, Mexico drives IT and BPO teams.

Skilled workforce with cultural alignment

A growing pool of bilingual professionals accustomed to international business culture.

Employment law rooted in protection

Defined rules for contracts, benefits, and exits, supporting lasting growth.

Economy

Ranked 60th globally for ease of doing business, with a GDP of MX$25.3 trillion.

Language

Spanish (English common in IT)

Currency

MX$ (Mex$, $)

IT salaries range

MX$300k–1.1m/year

Regional focus and salary benchmarks

Major technology hubs Key focus areas Avg. software developer salary
Mexico City FinTech, AI, Enterprise Software MX$497k/year
Guadalajara Cloud Computing, IoT, SaaS MX$463k/year
Monterrey Manufacturing Tech, HealthTech, Data Engineering MX$444k/year
Querétaro Aerospace, Automotive Software, Cybersecurity MX$417k/year
Tijuana Nearshore Development, E-commerce, Mobile Apps MX$398k/year

Note: Estimates reflect base pay plus 15-day aguinaldo, are approximate, and may vary based on experience, education, and specific employer.

Who you can hire

Languages
Python, JavaScript, Java, Go, Rust, TypeScript.
Platforms
AWS, Google Cloud, Azure, Kubernetes, Terraform.
Data
SQL, Snowflake, Apache Kafka,
dbt (Data Build Tool), TensorFlow, PyTorch
AI
PyTorch, TensorFlow, Hugging Face, LangChain,
Apache Spark,
OpenAI API
Frameworks
React, Angular, Next.js.
Cybersecurity
Zero Trust Architecture
OWASP Standards
SIEM Solutions
SOC 2 Compliance
Blockchain
Solidity, Web3.js, Truffle, Hardhat.
Soft skills
Communication, problem-solving, adaptability, teamwork, critical thinking, time management, client-focused mindset, conflict resolution, cross-cultural competence.
Already have someone you want to onboard in Mexico?
We help you hire them the right way.

Tech work regulations in Mexico

What companies need to know about contracts, benefits, and labor obligations in the technology sector.

Mexican labor laws

Ley Federal del Trabajo (LFT)

Minimum wage and overtime
MX$248.93/day (2025). Overtime: 2x pay for the first 9 hours/week, 3x beyond that.
Aguinaldo (year-end bonus)
At least 15 days of base pay, paid by December 20—even for partial-year employees.
Written contracts
Mandatory. Must define pay, duties, hours, probation, benefits, and termination.
Worker classification
Employees (empleados) work under company control, with set hours and tools. Independent contractors (contratistas independientes) operate autonomously, serve multiple clients, and are paid per project.
Equal opportunity
Hire, pay, and promotion must not discriminate. Larger companies may require inclusion policies.
Workplace safety
Employers must ensure safe conditions under NOM-030-STPS (Servicios preventivos de seguridad y salud en el trabajo – Funciones y actividades) and related standards.
Mexican IT benefits and leave
Mandatory
Vacation
12 paid days after one year, increasing with tenure. Many IT firms offer 15–20 days from year one to stay competitive globally.
Sick leave
Paid via IMSS (Instituto Mexicano del Seguro Social) from day 4 with a doctor’s note. Some employers cover earlier days or offer top-up pay.
Parental leave
6 weeks pre- and post-birth for mothers; 5 days for fathers. Longer leave is rare but may be offered in tech.
Pension contributions
Employers contribute 5–6.15% to IMSS retirement accounts, based on employee tier.
Optional
Private health insurance
Common in IT for faster access to care beyond IMSS.
Performance bonuses
Used to reward milestones or annual targets.
Remote work support
Stipends for internet or co-working spaces are typical in remote setups.
Professional development
Budgets for courses or conferences help attract and retain top staff.
Foreign worker regulations in Mexico
Patrón ante el INM registration
Employers must be authorized as a constancia de empleador with the Instituto Nacional de Migración (INM) to sponsor foreign workers.
Eligible visa type
Foreign employees typically apply for a Residente Temporal con permiso para trabajar (Temporary Resident with work permit), issued for up to 1 year, renewable annually.
Work permit scope
The permit is employer- and position-specific. Any job change requires a new application.
Contract
A signed contrato laboral is mandatory and must be submitted during the visa process. It must include job title, compensation details, responsibilities, work location, and termination terms.
Salary and job category
The offered role must match an approved occupation and meet local wage norms. No official salary minimum, but underpayment can lead to rejection of the permit.
Social security registration
Employers must enroll foreign workers in the IMSS upon arrival.
Notification duties
Employers must report any changes in employment (termination, change of role, address) to INM within 5 business days.
Mexican remote work policies
Teletrabajo
Remote work qualifies as teletrabajo if done offsite over 40% of the time and must be formalized in a written contract.
Expense reimbursement
Employers must cover part of electricity, internet, and equipment costs for teletrabajo roles. Terms must be detailed in the contract.
Health and safety
Under NOM-037-STPS-2023, issued by the Secretaría del Trabajo y Previsión Social, employers must assess risks, provide ergonomic guidance, and offer occupational health support.
Remote contractors
Freelancers must register with the Servicio de Administración Tributaria (SAT), issue digital invoices (CFDI), and manage their own tax.
Mexico’s data and IP laws

Federal Law on the Protection of Personal Data Held by Private Parties (LFPDPPP)

Personal data
LFPDPPP governs private-sector data use. Employers must ensure consent, transparency, and secure access to employee data.
Privacy notice and ARCO rights
Employers must issue an aviso de privacidad, explaining how employee data is collected and used. Workers may exercise ARCO rights; oversight is provided by INAI (Instituto Nacional de Transparencia, Acceso a la Información y Protección de Datos Personales).
Confidentiality and IP
Tech contracts typically include non-disclosure and intellectual property clauses—ensuring company ownership of code and proprietary work.
Non-compete clauses
Legally allowed if reasonable in scope, duration (6–12 months), and geography. Must not block the employee’s right to work.
Remote compliance
Remote staff must follow internal cybersecurity and data handling policies, especially when working across borders.
Work termination in Mexico
Grounds for dismissal
Termination must be for just cause under labor law (e.g. misconduct or restructuring) and properly documented. Unionized workplaces may require prior consultation.
Severance pay
If no cause is proven, severance includes: 3 months’ salary, 20 days’ pay per year of service, accrued benefits (vacation, bonuses, aguinaldo)
Notice requirements
Advance notice is not mandatory. Immediate termination is legal, but unjustified dismissal triggers full severance. Written documentation is advised.
Legal protections
Dismissal based on pregnancy, illness, union status, or discrimination is prohibited and subject to legal penalties.
Justified vs. unjustified
Only documented cause exempts the employer from full severance.
Mexican tax structure in tech
Federal income tax (Impuesto Sobre la Renta - ISR)
Employers withhold 1.92%–35% of ISR from employee income each month.
Employer contributions
Companies contribute 25–30% of gross pay to IMSS, which covers healthcare, pensions (SAR), housing (INFONAVIT), workplace risk, and childcare.
Employee deductions
Employees contribute 2.5–4% of monthly earnings to IMSS and pension funds. Employers handle these deductions at payroll.
Freelancer taxation
Freelancers manage ISR independently. IVA stands at 16%, and IMSS enrollment remains optional.
Equity compensation
Employees pay income tax when exercising equity. Some startups offer phantom shares or profit-sharing to manage tax impact.
VAT
IVA applies to SaaS and contractor services, but not to direct salaries.
Regional rules
Mexico uses a national income tax code, but states apply separate payroll levies that must be calculated and paid locally.

Where direct hiring creates delays

Building engineering teams in Mexico requires navigating legal, tax, and admin processes best handled locally.

Worker misclassification

Bringing contractors as employees can lead to audits, retroactive social charges, and fines under Mexican labor law.

Payroll tax variation by state

Local payroll levies must be declared and paid separately. Missing this can result in fines and audit exposure.

Termination procedures

Layoffs and dismissals in Mexico must follow legal procedure. Formal records and legal consistency are essential.

Salary benchmarking

Pay must match local market standards. Below-market pay can impact retention, tax liability, and visa approval for foreign hires.

Recruitment bandwidth

Without local recruiters, companies risk delays in hiring vetted talent and managing compliant onboarding processes.

Data protection compliance

Employee data must be handled under LFPDPPP: employers must obtain consent, restrict access, and ensure data security.

Mexico-smart Employer of Record

Hire and support your engineers with full legal accuracy and hands-on local guidance.

  • Full-service employment, handled with care
    We run payroll and benefits in Mexico, aligned with national legal requirements.
  • Maintaining your product flow
    From contracts to exits, we manage HR so your operations stay on track.
  • Trusted nearshore engineering talent
    Work with top-tier developers, software architects, and AI specialists who operate across time zones.
  • Reliable engineers with low churn
    We support long-term engagement—teams that stay, grow, and contribute beyond the brief.
  • Scalable hiring for global teams
    One role, full expansion—no need to switch providers or re-navigate jurisdictions.
  • Immigration support for hybrid teams
    An Employer of Record infrastructure handles foreign worker sponsorship and INM registration.

Impact-driven and trusted across LATAM

Why global teams scale with GEOR in Mexico.

96%
reduction in hiring time.
40%
savings in onboarding and operational costs.
4x
faster entry into the Mexican market.
92%
employee retention rate.

What EOR in Mexico covers

Our smart Employer of Record brings clarity and control to your presence in Mexico.

Software teams onboarding

Lawful onboarding process including work eligibility checks, signed contract, IMSS enrollment, and SAT registration.

Salaries and contributions

Precise monthly payroll with automated filings for ISR, IMSS, SAR, and INFONAVIT contributions.

Complete employee support

Ongoing HR support for correct worker classification, clear entitlements, and consistent documentation under LFT and IMSS regulations.

Benefits and perks

Tailored for Mexico’s tech workforce:

  • Private health insurance options (e.g., AXA, GNP, MetLife)
  • Employer contributions to SAR (retirement) and Caja de ahorro (voluntary savings plans)
  • Statutory leave: vacation, sick leave, maternity and paternity
  • Optional life and disability coverage
  • Support for home internet, coworking, and wellness expenses
  • Learning budgets and performance-based bonuses

Pricing

Transparent Employer of Record pricing for global teams in Mexico.

  • Access to an exclusive talent pool
  • Onboarding within 7 days
  • Payroll and tax management
  • Built-in security and compliance
  • IP and invention rights protection
  • Workforce management platform

Add-ons:
Recruitment, Visa services, Premium benefits and Dedicated HR team

Employer of Record
$499

per employee/ month.

 

A basic EOR package with flexible service add-ons.

Developer pay across Mexico

Use these experience-based benchmarks to budget for junior to senior roles across key cities.

Region Junior IT Mid–level IT Senior IT
Mexico City MX$330k MX$490k MX$640k
Guadalajara MX$310k MX$470k MX$620k
Monterrey MX$295k MX$445k MX$595k
Querétaro MX$280k MX$430k MX$580k
Tijuana MX$270k MX$410k MX$550k
Puebla / León MX$260k MX$390k MX$530k
Mérida / Cancún MX$250k MX$380k MX$510k
Chihuahua / Hermosillo MX$245k MX$370k MX$500k

Note: Estimates include standard base salary + 15-day aguinaldo bonus. Employer of Record costs are not included.

A no-brainer
for Mexico hiring

Work with a strategic Employer of Record partner and get top-tier engineers. Set up a new hire in a week—without red tape, delays, or legal headaches.

Client Feedback

Daniel Urmañn
Founder
Diib

The team’s professionalism and technical expertise were unmatched. They met our intricate needs with tailored solutions, guaranteeing reliability and efficiency, while modern technology was expertly incorporated into our systems.

Maxi Schellhas
Director General
Randstad, Argentina

GEOR’s team is a mastermind of innovation! Their cutting-edge solutions revolutionized our analytics, providing valuable insights and improving our decision-making.

Joe Purtle
Chief Operations Officer
Doka USA

The team demonstrated unmatched expertise and dedication, seamlessly integrating innovative technology with our advanced platforms to enhance overall performance.

Victor Fei
Victor Fei
Founder & CEO
Ormi Labs, Inc.

We’ve been really impressed with the temporary labor services they’ve offered. Thanks to them, we were able to secure contracts with top blockchain developers and DEFI projects.

Stephen Smith
Stephen Smith
Co-Founder and CEO
NOCD

Everything was smooth, each week was full pipeline in order to conduct interviews non-stop. We are very grateful to the team that worked with us, and we wish the same results in other projects.

Rob Brearley
Rob Brearley
CEO
ShopWired

GEOR is a cohesive software team that truly understood our idea, provided realistic timelines, and offered innovative suggestions for our software development project. Their work quality and responsiveness were topnotch, and I would highly recommend them to others.

What makes our EOR different

A closer look at how we deliver clarity, compliance, and long-term value in Mexico.

Pros
Cons
Velocity Global
Global scale. Legal templates. Visa experience.
Slow starts. High price tag. Zero insight into software development.
Skuad
Fast setup through automation. Works for generic roles.
No real HR presence in Mexico. No help finding candidates.
Boundless
Clean documentation. Fair pricing.
No infrastructure. No recruiters. No way to scale a tech team.
GEOR
Tech-first Employer of Record with people on the ground. Engineers in 7 days.
Ideal for tech companies; less suited to traditional industries.

Your tech capability
in Mexico

Navigate Mexico’s hiring terrain remotely with our flexible EOR model.
An Employer of Record in Mexico lets you recruit, manage, and scale your business presence in full alignment with local law. Support your developers with healthcare, paid leave, and workplace perks. While they build, we handle payroll, contracts, and reporting.

GEOR

Get velocity.

Unlock Mexico’s developer market.

FAQs

What is an Employer of Record in Mexico?

An Employer of Record (EOR) legally hires and manages your workforce in Mexico. We handle payroll, taxes, and labor obligations without requiring you to open a local company.

What are the key advantages of using an EOR in Mexico?

You can hire faster, avoid entity setup, and reduce legal risk. Employer of Record centralizes payroll, benefits, and legal operations.

How does an Employer of Record ensure legal alignment in Mexico?

We handle contracts, worker classification, ensuring filings are aligned with Mexican labor law and national fiscal rules.

How quickly can IT specialists be onboarded in Mexico?

With localized processes and pre-built workflows, we typically onboard a software workforce in 7 business days—including IMSS registration and payroll setup.

Can you handle remote developers based in Mexico?

Yes. Our Employer of Record supports remote, hybrid, and on-site software engineering teams. We ensure their employment conditions meet national labor, tax, and safety requirements.

Can an Employer of Record support both employees and contractors?

Yes. We employ full-time staff under Mexican law and support freelancers through compliant structures registered with SAT.

What employee benefits does an Employer of Record offer in Mexico?

We provide public and private health coverage, paid vacation, retirement contributions and optional wellness perks, all aligned with national labor law and tech-sector standards.

How does an Employer of Record manage payroll taxes across Mexico?

We manage payroll filings, statutory deductions, social security, housing funds, and pension contributions. Local payroll obligations are handled according to state-level rules.

Which industries may rely on GEOR’s services in Mexico?

We work with startups and scaleups in SaaS, AI, FinTech, E-commerce and MedTech, focusing on those expanding nearshore to support their U.S.-based teams.

What challenges does an Employer of Record solve for IT companies expanding to Mexico?

An Employer of Record eliminates legal roadblocks, gives you access to qualified candidates, handles employment administration, and removes the need for local infrastructure.