Tech worker classification in Mexico
Employees and self-employed professionals in Mexico
Correctly classifying employees and self-employed professionals is essential for companies operating in Mexico. Misclassification can lead to retroactive tax liabilities, penalties from SAT, and full employer obligations under IMSS.
Employees (Trabajadores subordinados)
Definition
Hired under a formal employment contract governed by the Federal Labor Law (Ley Federal del Trabajo), either indefinite or fixed-term. Covered by all national employment protections.
Key rights and benefits
- Statutory paid vacation and public holidays
- Social security through IMSS and SAR pension contributions
- Annual bonus (aguinaldo) and profit sharing (PTU)
- Paid parental leave, sick leave, and workplace protections
- Termination rights and severance if applicable
Work structure
Employees perform duties under company direction, using employer tools, within set schedules or targets. This relationship involves economic dependence and legal subordination.
Common roles
Software Engineers, Backend Developers, Product Designers, QA Analysts, HR or Finance Ops
Self-employed professionals (Prestadores de servicios independientes)
Definition
Registered as individuals with tax status under SAT, working independently without subordination. Usually operate under civil or commercial agreements, not employment law.
Tax registration
Must register with SAT and issue digital invoices (CFDI). Responsible for paying ISR (income tax), IVA (VAT, if applicable), and optional social security via IMSS voluntary regime.
Work structure
Contractors operate on flexible terms, using their own tools and setting their own hours. No direct supervision or integration into company hierarchy.
Common roles
Freelance Developers, Data Consultants, UI Contractors, Interim CTOs, DevOps Experts
Legal caution
If a contractor behaves like an employee—fixed hours, direct oversight, or exclusive commitment—they risk reclassification. This can trigger audits, retroactive contributions, and formal employment obligations enforced by SAT and IMSS.