EOR Onboarding: How to Ensure a Smooth Transition
Hiring the right talent is vital for any business's success, but the process of onboarding employees can often be a complex and time-consuming affair. Employer of...
EOR Partners in Mexico
Employ in Mexico
Welcome to EOR Partners’ Mexico page. Mexico, with its dynamic economy and strategic location, offers numerous opportunities for businesses looking to expand globally. As one of the largest economies in Latin America, Mexico provides a favorable environment for international businesses.
About the Country of Mexico
Mexico is the 15th largest economy in the world and the second-largest economy in Latin America. It has a diverse industrial base, with key sectors including automotive, aerospace, electronics, and manufacturing. Mexico is also a major exporter, benefiting from trade agreements like the USMCA (United States-Mexico-Canada Agreement), which enhance its access to North American markets.
127.5 Million
Population
Peso
Currency
1.466 Trillion
Global Domestic Product
Why Choose Mexico For Global Expansion?
Mexico is an attractive destination for global expansion due to its strategic geographic location, which provides easy access to both North and South American markets. The country boasts a skilled and cost-effective labor force, making it an ideal hub for manufacturing and industrial activities. Additionally, Mexico's numerous free trade agreements with over 50 countries offer businesses a competitive advantage in accessing global markets.
Employment Landscape
Mexico's employment laws are designed to protect workers' rights and ensure fair treatment. Employment contracts can be permanent or temporary, with specific regulations governing each type. Employers must comply with statutory requirements related to wages, working hours, and conditions of employment.
Our Services in Mexico
EOR Partners provides comprehensive services in Mexico, including payroll management, employee benefits administration, and compliance with local labor laws. We also offer support for obtaining work visas and residence permits for international employees. Our services are tailored to meet the specific needs of businesses, ensuring a smooth and compliant operation in Mexico.
Employment Benefits in Mexico
Health Insurance: Employers must provide health insurance coverage through the Mexican Social Security Institute (IMSS).
Retirement Plans: Both employers and employees contribute to the Retirement Savings System (SAR), a mandatory retirement savings scheme.
Profit Sharing: Employees are entitled to a share of the company's profits, typically distributed annually.
Annual Leave
Employees in Mexico are entitled to six days of paid annual leave after one year of service, with the leave entitlement increasing by two days for every additional year of service, up to a maximum of 12 days. After four years, employees receive an additional two days of leave for every five years of service.
Sick Leave
Employees are entitled to paid sick leave, with compensation provided by the IMSS. The amount and duration of sick leave depend on the nature of the illness and the employee’s medical certification.
Additional Benefits
- Meal Vouchers: Many employers provide meal vouchers as part of the benefits package.
- Transportation Allowance: Some companies offer allowances for commuting expenses.
- Training and Development: Employers often invest in training programs to enhance employees’ skills and career growth.
Work Hours and Breaks
The standard workweek in Mexico is 48 hours, typically spread over six days. Employees are entitled to a rest period of at least 24 consecutive hours per week, usually on Sundays. Breaks during the workday are also mandated, with the specifics depending on the length of the workday.
Salary Tax Table
| Taxable Base | Tax Liability | Excess of Taxable Base | Tax Rate |
|---|---|---|---|
| 0 - 7,735 | 0 | 0 | 1.92 |
| 7,735.01 - 65,651.07 | 148.57 | 7,735 | 6.4 |
| 65,651.08 - 115,375.90 | 3,760.01 | 65,651.07 | 10.88 |
| 115,375.91 - 134,119.41 | 9,075.31 | 115,375.90 | 16 |
| 134,119.42 - 160,577.65 | 12,925.85 | 134,119.41 | 17.92 |
| 160,577.66 - 323,862.00 | 18,151.10 | 160,577.65 | 21.36 |
| 323,862.01 - 510,451.00 | 55,919.54 | 323,862.00 | 23.52 |
| 510,451.01 - 974,535.03 | 135,366.32 | 510,451.00 | 30 |
| Over 974,535.03 | 274,872.83 | 974,535.03 | 32 |
*All figures based on local currency
EOR Performance Metrics: What to Measure and How
Hi. Looking at having an EOR partnership in Zimbabwe . Do you have oppurtunities thee and what are the requirements ?
EOR Compliance Audits: Ensuring Legal Compliance
The business world is ever-evolving, continually introducing new complexities. One of these complexities is navigating the murky waters of legal compliance. At EOR...
EOR Implementation: Key Steps and Best Practices
Today, companies worldwide seek flexibility, scalability, and cost-effectiveness when expanding their operations, whether domestically or internationally. One strategy...
The Importance of Customized EOR Solutions
In today's dynamic business landscape, companies are constantly seeking ways to streamline their operations and expand their global presence. As organizations strive to...
EOR vs PEO: Which is the Right Choice for Your Business?
Business expansion, both domestically and internationally, is a thrilling prospect. It presents new markets, customers, and revenue streams. However, it's essential to...
Avoiding Common Pitfalls When Choosing an EOR Partner
As businesses grow and seek to expand globally, they often rely on the expertise of Employer of Record (EOR) service providers. Selecting the right EOR partner can help...
EOR Contract Negotiation: Best Practices
The successful operation of a business involves numerous intricate components, with each one playing a vital role in the overall picture. One such critical aspect is...
Making the Final Decision: Choosing the Best EOR Provider for Your Business
Employer of Record (EOR) services have become an indispensable part of modern business strategies, especially for companies expanding their horizons internationally....
How to Choose the Right EOR for Your Business
In today's global marketplace, more businesses are looking towards international expansion to tap into new growth opportunities. However, managing international...