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.
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
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.
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.
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.
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.
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.
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.
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.
| 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
