Employer of Record (EOR) Services in Mexico

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

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.

Labor laws

IT benefits and leave

Foreign worker regulations

Remote work policies

Data and IP laws

Work termination

Tax structure in tech

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.

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

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

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

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.

Check other solutions for Mexico

Not every team needs an Employer of Record. For remote ops or gradual growth, we offer smart, flexible alternatives.

IT Payroll in Mexico

Pay remote developers in Mexico without legal setup.