Table of Contents
Employer of Record (EOR) services in Mexico are now a core hiring solution for international companies that want to employ local talent without setting up a Mexican legal entity. With complex labour law, mandatory profit sharing (PTU), IMSS and INFONAVIT contributions, and strict termination rules, choosing the right Employer of Record in Mexico is a compliance-critical decision – not just an operational one.
Mexico isn’t just another country on an expansion list. It is the United States’ largest trading partner, home to more than 130 million people, and increasingly the default nearshoring destination for companies that want timezone alignment and skilled local talent. However, Mexico’s 2021 outsourcing reform fundamentally changed how foreign companies can hire, and many “best EOR” guides still gloss over the details that actually matter in practice.
This guide compares the top Employer of Record providers in Mexico for 2026 using Employsome’s independent, data-driven scoring framework. We analyse real-world pricing, payroll execution, IMSS and PTU compliance, termination handling, and local HR delivery to rank the Top 10 EORs in Mexico based on how they actually perform in-country – not marketing claims.
Employsome is 100% independent and not owned by or affiliated with any Employer of Record provider. All scores are based on verified operational data and a weighted model that prioritises local execution in Mexico over global branding.
For companies hiring across multiple countries, our global Employer of Record comparison shows how Mexico compares to other major EOR markets.
Quick Verdict: Best Employer of Record in Mexico
Ø price p.m.
4.5/5
4.8/5
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3.6/5
4.7/5
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3.4/5
4.5/5
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4.2/5
4.4/5
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4.1/5
4.4/5
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4.2/5
4.2/5
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4.1/5
4.0/5
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3.8/5
3.9/5
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4.0/5
3.8/5
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4.3/5
3.8/5
Why Trust Our Mexican EOR Comparison
100% independent. Employsome isn’t owned by, invested in, or affiliated with any EOR provider. We highlight what works, what doesn’t, and where providers cut corners – because the only way to make a smart decision is to see the full picture, not just the sales deck.
Scoring built for Mexico’s reality. Every provider is evaluated using our dual-layer scoring model: global EOR capabilities plus on-the-ground Mexico performance. We assess entity ownership, REPSE compliance status, IMSS and INFONAVIT execution, aguinaldo and vacation premium handling, severance practices, and how providers actually navigate the 2021 outsourcing reform – not just how they describe it on their website.
Verified Mexico EOR data. We independently validate each provider’s Mexican setup: owned entity versus local partner model, Federal Labor Law compliance, payroll accuracy, statutory contributions, home office allowance under NOM-037, and onboarding timelines for both Mexican nationals and foreign workers requiring immigration support. If a provider can’t substantiate their compliance claims, it shows up in our scores.
Built by people who’ve operated EORs – including in Latin America. Employsome was founded by people who’ve managed cross-border payroll and hiring across complex markets. We’ve seen where providers excel in Mexico and where the gaps appear: partner models without clear REPSE status, severance reserves that don’t match Mexican law, “48-hour onboarding” promises that quietly become 3-week delays. Our mission is to bring transparency to a market where the 2021 reform eliminated the gray areas but not all the gray-area operators.
In-Depth Reviews: Top Employer of Record Providers in Mexico
Deel is one of the world’s leading Employer of Record providers and remains a top choice for hiring in Mexico. With its enterprise-grade software platform and a strong owned-entity infrastructure across most of the countries it serves, Deel offers a reliable and scalable way to employ talent compliantly. In Mexico, Deel supports compliant payroll, benefits administration, and local labour law requirements, making it a solid option for companies of any size that want a tech-first, globally consistent EOR solution.
Global
Ø Fee per Employee per Month, First Year
- Best tech platform
- Most chosen provider
✓ Global Coverage & Services (5.0/5): Deel provides EOR services in 150+ countries, operating through 120+ wholly owned legal entities (including Germany, UK, Spain, Australia, Canada, India, and UAE). Services include compliant employment contracts, payroll, statutory filings, terminations, country-specific benefits, immigration support, background checks, equipment provisioning via Deel IT, equity & stock option administration, and access to 200+ in-house legal experts covering local employment law.
✓ Pricing & Transparency (4.1/5): Public EOR pricing starts at USD 599 per employee/month (discounted to USD 499 in the first year in some markets). Contractor management is USD 49/month, and Deel HRIS is free. Security deposits of 1–3 months of gross salary apply in most countries. FX fees are borne by the transacting party. Optional add-ons (Deel Engage, Deel IT, time tracking) increase total cost as teams scale.
✓ Payment & Contract Terms (4.5/5): Deel offers month-to-month EOR contract flexibility with no long-term minimum commitment. Deposits are required in many countries and typically refunded within 60 days after contract termination. Payments are processed via regulated PSPs in multiple currencies. Deel Shield provides contractor misclassification protection covering up to USD 25,000 in legal costs per contractor.
✓ Customer Experience & Support (4.3/5): Deel provides 24/7 in-house chat support, with a 4.8/5 Trustpilot rating across 7,000+ reviews. Dedicated customer success managers are assigned to larger accounts. Payroll and compliance guidance is supported by Deel AI, with onboarding completed in 2–3 business days in many countries. Support is efficient but less white-glove for very small teams.
✓ Platform & Integrations (4.8/5): Deel offers a modern, self-service global HR platform with 120+ native integrations (including Workday, BambooHR, Personio, Greenhouse, QuickBooks, Xero, NetSuite, Slack, and Microsoft Teams). Supports bi-directional HRIS syncing, open API, Zapier automation, and can function as a standalone global HRIS with onboarding, PTO, documents, org charts, and compliance monitoring.
4.5/5
✓ Entity Ownership (5.0/5): Deel operates through a wholly-owned Mexican legal entity, ensuring direct compliance with SAT, IMSS, and INFONAVIT requirements without third-party partner risk.
✓ Onboarding Speed (5.0/5): Average onboarding time in Mexico is 2 days with Deel, one of the fastest in the market. Employment contracts are auto-generated with compliant salary, benefits, and data protection clauses.
✓ On-Site HR Support (4.5/5): Strong local HR and payroll presence in Mexico with dedicated onboarding managers. Support available for employment, payroll, and compliance matters with escalation pathways.
✓ Visa & Work Permit Support (4.3/5): Deel Immigration supports visa and work permit applications in Mexico, including verification of work authorization status and digital document storage for audit readiness.
✓ In-Country Compliance (5.0/5): Full compliance with Mexico’s Federal Labor Law, 2021 outsourcing reform, REPSE registration requirements, IMSS social security, INFONAVIT housing fund, SAR retirement savings, and PTU profit-sharing obligations. Real-time compliance alerts via Deel Compliance Hub.
✓ Local Add-Ons (4.8/5): Mexico-specific benefits administration supported, including statutory benefits (aguinaldo, vacation premium), alongside equity tooling, expense management, equipment provisioning, and immigration support via the Deel platform.
4.8/5
Fast onboarding in as little as 2 days: Automated contract generation and background checks significantly accelerate employment setup compared to other providers.
Best-in-class software platform: Highly automated workflows, document storage, customizable dashboards, integrations payroll accuracy monitoring, and employee self-service tools.
Lack of personalization with less human touch: Deel has an automation-first model.
Not specialized in Mexico immigration: Deel supports simple immigration cases but competitors with local legal teams may offer more support for edge cases.
Deel is best suited for companies hiring in Mexico that want a fast, tech-first EOR solution without building local infrastructure. It works particularly well for startups and SMBs that value speed, automated onboarding, and a self-service platform, while still maintaining strong compliance with Mexican labour and payroll requirements. With Mexico’s more complex employment framework and Deel’s streamlined workflows, the combination is well suited for hiring engineers, corporate roles, and remote professionals who need to be onboarded quickly and paid compliantly. If your priority is efficiency, automation, and global consistency rather than white-glove local service, Deel is a strong fit for scaling in Mexico.
Prodensa is a local Mexican EOR provider that offers services to a very large customer base. So even though it is not a global EOR, they are a large HR organization. Prodensa strengths are customized support by Mexican experts.
Local
Ø fee per employee per month, first year
✓ Global Coverage & Services (2.5/5): Strong, highly reliable EOR and HR execution in Mexico, with additional services such as payroll outsourcing, entity setup, tax advisory, labour relations, and shelter programs. Coverage is strictly Mexico-focused, with no meaningful global EOR footprint.
✓ Pricing & Transparency (3.5/5): Pricing reflects the depth of local compliance, labour relations expertise, and enterprise-grade service delivery. However, pricing is quote-based and typically higher than tech-first EORs, especially for small teams.
✓ Payment & Contract Terms (3.8/5): Traditional, well-structured service agreements aligned with long-term employment and industrial operations. Less flexible for short-term or highly dynamic hiring models.
✓ Customer Experience & Support (4.5/5): High-touch, consultative support with strong local HR, legal, and payroll teams in Mexico. Particularly well suited for complex, regulated, or unionised environments, though the service-led model can feel slower than automation-first platforms.
✓ Platform & Integrations (Not Scored): Prodensa operates as a service-led, Mexico-focused EOR rather than a software-first HR platform. To avoid unfair comparisons with global HRIS providers, platform depth and integrations are intentionally not scored.
3.6/5
✓ Entity Ownership (5.0/5): Prodensa operates through its own Mexican legal entities, providing direct employment, full control, and strong accountability. No partner dependency.
✓ Onboarding Speed (3.8/5): Onboarding is reliable but slower than tech-first EORs, typically taking 5–10 business days due to thorough compliance checks.
✓ On-Site HR Support (5.0/5): Strong on-the-ground HR, payroll, and legal teams in Mexico, with deep experience handling unions, audits, and labour inspections.
✓ Visa & Work Permit Support (4.5/5): Comprehensive immigration support for Mexico, well suited for enterprise relocations and long-term foreign hires.
✓ In-Country Compliance (5.0/5): Excellent compliance handling across Federal Labor Law, IMSS, INFONAVIT, PTU profit sharing, severance rules, and REPSE considerations.
✓ Local Add-Ons (4.8/5): Wide range of Mexico-specific services including payroll outsourcing, accounting, tax advisory, shelter services, and entity setup.
4.7/5
More than 40 years experience: Prodensa has more experience than most other providers and therefore has many in-house experts.
Hands-on support: Dedicated account manager and personalized support in Spanish.
Traditional, non-techy provider: Service first provider that does not have a HRIS system included.
Only in Mexico: Great to work with in Mexico, but if you want to hire globally; not a good fit.
Prodensa is a great choice if you only want to hire a Mexico and are not looking for a global provider. Especially, if you want to hire a larger team in Mexico or need extensive immigration support, Prodensa is a great fit.
Aviada is a Mexico-based payroll and EOR provider that focuses on hands-on delivery, local payroll expertise, and deep familiarity with Mexican labour law and tax requirements. Unlike multi-country EOR providers like Deel, Pebl or Oyster; Aviada does not aim to offer global coverage. Instead, it focuses on getting Mexico right, including IMSS, INFONAVIT, payroll tax, severance calculations, and employment compliance. This makes Aviada a practical option for companies that value local accountability and regulatory accuracy over automation, self-serve tooling, or international scale.
Local
Ø fee per employee per month, first year
- Mexico-only Provider
✓ Global Coverage & Services (2.0/5): Aviada is a Mexico-only EOR provider with strong local payroll and employment execution. It does not offer meaningful coverage outside Mexico and is not suitable for multi-country workforce consolidation.
✓ Pricing & Transparency (3.0/5): Pricing is generally transparent once scoped, with clear cost breakdowns provided during sales discussions. However, no pricing or indicative ranges are published publicly, making upfront comparison harder.
✓ Payment & Contract Terms (4.0/5): Traditional, well-structured Mexican employment contracts with compliant payroll cycles. Works well for stable, long-term hires but offers limited flexibility for short-term or highly dynamic hiring models.
✓ Customer Experience & Support (4.5/5): High-touch, consultative support with strong local knowledge of Mexican labour law and payroll practices. Well-suited for companies that value hands-on guidance over speed or self-service workflows.
✓ Platform & Integrations (Not Rated): Aviada operates as a service-led, Mexico-focused EOR rather than a software-first platform. To avoid unfair comparison with global HRIS-driven providers, platform depth and integrations are not scored.
3.4/5
✓ Entity Ownership (5.0/5): Aviada operates through a dedicated Mexican legal entity and has their head quarter in Mexico.
✓ Onboarding Speed (4.0/5): Employee onboarding in Mexico is typically completed within 5–10 business days once documentation is in place. Timelines are reliable, though less automated than tech-first EOR platforms.
✓ On-Site HR Support (4.7/5): Strong local HR and payroll teams based in Mexico provide hands-on support for employee management, terminations, and labour-related issues. This is a key differentiator versus offshore-only support models.
✓ Visa & Work Permit Support (4.5/5): Immigration support for standard work permit and residency cases. More complex visa support as well.
✓ In-Country Compliance (4.7/5): Solid execution across Mexican labour law, including compliant indefinite contracts, IMSS and INFONAVIT registration, statutory benefits, payroll taxes, and termination handling. Well-positioned for employers prioritising compliance certainty.
✓ Local Add-Ons (4.2/5): Supports core Mexico-specific benefits and payroll add-ons, including statutory bonuses, expense handling, and local benefits administration. Less breadth than global platforms, but strong for Mexico-only use cases.
4.5/5
Local HR Support: Office in Mexico, Hermosillo that provides support in English and Spanish locally.
Recruiting support: Strong support to find talent in Mexico.
No global coverage: Mexico only support requires you to search a new partner if you want to expand to other countries.
No tech platform: Service heavy requires email communication and excel sheets rather than HRIS system.
Aviada is great for companies that want to only expand into Mexico and are looking for a reliable local partner. Rather than focusing on speed and tech, they focus on compliance and human support.
Oyster HR is a people-first EOR platform that helps companies hire and manage teams in Mexico without the usual legal and administrative complexity. In the Mexican market, Oyster focuses on compliant employment, fair labour practices, and a consistent employee experience, combining a clean, modern HR platform with local payroll and compliance support. It’s particularly popular with remote-first and values-driven companies that want to scale in Mexico while keeping contracts, payroll, and statutory benefits compliant and standardised across countries.
Global
Ø Fee per Employee per Month, First Year
- Great product UI/UX
- Owned entity infrastructure in most markets
✓ Global Coverage & Services (4.0/5): Oyster provides EOR services in 100+ countries, covering employment contracts, payroll processing, statutory filings, expense reimbursements, and offboarding. Service delivery is standardized and compliance-led, with limited flexibility for non-standard setups.
✓ Pricing & Transparency (4.0/5): Flat EOR pricing of USD 699 per employee/month. Pricing is publicly stated and predictable, but high for many emerging markets. FX markup rates are not disclosed and are estimated to reach up to 8%.
✓ Payment & Contract Terms (4.0/5): Invoices are due within 7 days (net). A security deposit of at least one month of total employment cost is required and may be increased if risk levels change. Deposits are held until employment fully ends and all invoices are settled. Late payments accrue 1.5% interest per day.
✓ Customer Experience & Support (4.5/5): Structured onboarding, detailed compliance documentation, and guided workflows. Support quality is consistently high, though onboarding speed can be slower due to strict compliance checks.
✓ Platform & Integrations (4.3/5): Clean, intuitive platform with core HRIS features including time-off, expenses, invoicing, and reporting. Integration depth and workflow automation are more limited than Deel or Remote.
4.2/5
✓ Entity Ownership (4.5/5): Oyster has launched a direct employment model in Mexico, enabling hiring through Oyster’s own local entity for a faster, fully managed experience. This transition to owned-entity model provides stronger compliance foundation.
✓ Onboarding Speed (4.5/5): Oyster can onboard employees in Mexico in as fast as 48 hours with localized contracts and digital signing. Monthly payroll cutoff on the 10th ensures efficient salary management. Automated workflows streamline the onboarding experience.
✓ On-Site HR Support (4.0/5): In-app access to payslips, time off, expenses, and contracts directly within the platform. Local HR expertise available through centralized support, though less hands-on than Mexico-dedicated providers. Support for cultural integration and virtual onboarding workflows.
✓ Visa & Work Permit Support (4.5/5): Visa and immigration support available as add-on services. Assists with work visa and immigration processes for international hires in Mexico. Integrated with global mobility support platform.
✓ In-Country Compliance (4.5/5): Full compliance with Mexican labor laws including Federal Labor Law requirements. Handles IMSS and INFONAVIT contributions, aguinaldo (Christmas bonus), vacation with premium, PTU profit-sharing, and severance obligations. Real-time updates on changing labor laws.
✓ Local Add-Ons (4.5/5): Mexico-specific benefits packages with locally-aligned options. Supports statutory benefits administration alongside optional perks. Expense management, time tracking, and comprehensive HR tools available through platform.
4.4/5
Oyster HR is best suited for companies hiring in Mexico that want a clean, easy-to-use EOR platform to handle core employment, payroll, and compliance requirements. It’s a strong fit for teams that prioritise structured processes and regulatory reliability over deep customisation or white-glove local service. Oyster works particularly well for organisations seeking a balance between software efficiency and practical support without the complexity of enterprise-heavy EOR solutions.
Safeguard Global is known for its compliance-first approach and deep expertise in complex, highly regulated markets, which translates well to Mexico’s strict labour and payroll environment. With decades of experience in global payroll and workforce management, Safeguard Global supports companies that need an enterprise-grade, low-risk solution for hiring and paying employees compliantly in Mexico. Rather than competing as a pure tech platform, Safeguard stands out for its strong in-country execution, risk management, and hands-on support, making it a trusted choice for organisations that prioritise accuracy, regulatory certainty, and operational control over speed alone.
Global
Ø Fee per Employee per Month, First Year
✓ Global Coverage & Services (4.4/5): Coverage across 100+ countries via partner entities. Supports full EOR scope: compliant employment contracts, payroll, statutory filings, terminations, and HR advisory. Proven experience with large, multi-country enterprise rollouts. Partner-led delivery means execution quality varies by country.
✓ Pricing & Transparency (3.7/5): No public pricing. Fees provided after sales scoping. Pricing varies by country and partner. FX fees and local employer burden not always disclosed upfront, impacting cost predictability for procurement-led buyers.
✓ Payment & Contract Terms (4.5/5): Jurisdiction-specific, enterprise-grade contract templates. Clearly defined payroll cut-offs and payment timelines. Payroll pre-funding required in some countries. Additional administrative steps apply in ICP-heavy jurisdictions.
✓ Customer Experience & Support (4.2/5): Dedicated client success managers for enterprise accounts. Strong experience handling complex, multi-entity, and regulated environments. No unified 24/7 global support model; responsiveness depends on local partner execution.
✓ Platform & Integrations (3.9/5): Provides payroll reporting, time tracking, and document management. Not a full HRIS and not automation-first. Limited integrations compared to SaaS-led EORs like Deel, Rippling, or Oyster.
4.1/5
✓ Entity Ownership (4.5/5): Safeguard Global operates through a direct Mexican entity, enabling compliant employment without reliance on third-party partners. This provides strong control over payroll, tax filings, and labour law compliance in a highly regulated market.
✓ Onboarding Speed (4.0/5): Onboarding timelines are reliable but slightly slower than tech-first EORs, typically completed within 5–7 business days once documentation is finalised. The process prioritises accuracy and compliance over speed.
✓ On-Site HR Support (4.5/5): Strong local HR and payroll expertise in Mexico, with dedicated account management and clear escalation paths. Support is service-led and well suited for complex employment scenarios.
✓ Visa & Work Permit Support (4.3/5): Immigration and work permit support is available for Mexico, including assistance with documentation and compliance for foreign hires. Best suited for structured, enterprise-level immigration cases.
✓ In-Country Compliance (4.8/5): Excellent compliance handling across Mexico’s Federal Labor Law, IMSS, INFONAVIT, PTU profit sharing, severance, and outsourcing reform requirements (including REPSE awareness). One of Safeguard Global’s strongest areas.
✓ Local Add-Ons (4.2/5): Supports Mexico-specific benefits administration, insurance options, expense management, and global payroll services. Add-ons are comprehensive but often priced at an enterprise premium.
4.4/5
Strong compliance and risk management: Safeguard Global excels in handling Mexico’s complex labour, payroll, and statutory requirements, making it a safe choice for regulated and enterprise environments.
Experienced local execution: Direct Mexican entity and service-led support provide reliable payroll accuracy, clear escalation paths, and strong handling of non-standard employment cases.
Slower onboarding than tech-first EORs: Processes prioritise accuracy and compliance, which can extend onboarding timelines compared to more automated platforms.
Premium pricing model: Enterprise-grade service and add-ons come at a higher cost, making Safeguard less attractive for budget-sensitive startups or small teams.
Safeguard Global is best suited for mid-market and enterprise companies hiring in Mexico as part of a larger, multi-country workforce strategy. It works particularly well for organisations that prioritise compliance certainty, advisory-led support, and risk mitigation over speed, low pricing, or self-service tooling. Safeguard Global is a strong fit for large hiring teams operating in Mexico’s highly regulated employment environment, where consistency, governance, and accurate execution matter more than rapid onboarding.
While Multiplier is more well known for APAC, they also have quite a good set-up in Mexico. They operate through their own entity and offer very competitive pricing. We went through their sales processes and saw how eager they are to sell and that they go above and beyond: Instant response from the team and much room for negotiations on price and deposits.
Global
Ø Fee per Employee per Month, First Year
✓ Global Coverage & Services (4.4/5): EOR services across 120+ countries, including contractor management, global payroll outsourcing, statutory compliance, benefits administration, and immigration support in selected jurisdictions.
✓ Pricing & Transparency (4.0/5): Generally clear pricing and competitive for scaleups at $505 per EOR contractor, though FX markups apply (stated ~2%, reported higher in some cases) and country-level cost breakdowns are not always fully transparent upfront.
✓ Payment & Contract Terms (4.0/5): No minimum contract commitment and flexible agreements. However, invoices are issued early and short payment windows (often ~7 days) can impact cash flow.
✓ Customer Experience & Support (4.3/5): Improved support quality in recent years with a solid self-service knowledge base. Support experience and escalation handling can vary by region.
✓ Platform & Integrations (4.5/5): Strong, modern platform with clean UX, efficient onboarding, and good multi-country reporting. Integration depth and automation are slightly behind top tech-first EORs.
4.2/5
✓ Entity Ownership (4.5/5): Multiplier operates through its own legal entity in Mexico which is great news as they do not depend on any in-country partner.
✓ Onboarding Speed (4.5/5): Multiplier sales cycle is very fast and onboardings can be usually done within 5 -10 business days once all documentation is provided.
✗ On-Site HR Support (3.7/5): The Multiplier support for Mexico is based through their off-shore team in Colombia. This means they can support in Spanish language.
✗ Visa & Work Permit Support (3.7/5): Multiplier offers basic guidance on work permits and visa processes, but does not act as an immigration specialist. Complex cases usually require organizations to find additional legal support.
✓ In-Country Compliance (4.5/5): Strong compliance coverage for core Mexico labour law, including employment contracts, social & health insurance contributions, personal income tax, statutory leave, and termination rules.
✓ Local Add-Ons (4.0/5): Support includes payroll outsourcing, benefits administration, statutory filings, and HR operations.
4.2/5
Competitive pricing & fast setup: Generally more affordable than enterprise EORs, with quick onboarding timelines and a clean, easy-to-use platform.
Solid software: Platform provides reliable onboarding workflows and document handling that simplify Mexico’s paperwork heavy hiring processes.
Offshore support team: Customer service is routed through offshore hubs in Colombia which may slow resolution.
FX transparency can be inconsistent: FX markups are often not clearly disclosed upfront and have been reported to be higher in practice than initially indicated.
We recommend Multiplier to startups and SMBs hiring that want to hire in Mexico and are looking for a solid tech-first EOR with strong compliance and predictable execution. They offer quite competitive pricing and they move fast.
Ontop is not a Mexican provider buz close enough: Miami based. They are backed by Y Combinator so tech and scalability are most important. Pricing is average and they shifted their focus to Latin America within the last years.
Global
Ø fee per employee per month, first year
✓ Global Coverage & Services (4.0/5): EOR and contractor services in 50+ countries with strong presence in LATAM. Includes compliant contracts, global payments, Ontop Wallet, Visa card, and visa support – though coverage outside core regions depends on partners.
✓ Pricing & Transparency (3.8/5): Clear, publicly listed pricing – $49/month for contractors, $499/month for EOR. Significantly cheaper than premium competitors, but enterprise setups and advanced integrations may add cost.
✓ Payment & Contract Terms (4.2/5): Fast, automated contract generation with flexible payment options (wire, ACH, card, crypto). Strong worker experience via Ontop Wallet, though less ideal for teams wanting traditional bank-only payroll.
✓ Customer Experience & Support (4.2/5): Good balance of tech and human support with dedicated managers and fast onboarding. Well-reviewed by users, but less depth for highly complex enterprise cases.
✓ Platform & Integrations (4.3/5): Modern, startup-friendly platform with wallet and card features, solid API, and key integrations. Not a full HRIS and analytics depth still developing, but strong for SMB and scale-up needs.
4.1/5
✓ Entity Ownership (4.5/5): Ontop operates through its own Mexican legal entity, allowing direct employment and clear accountability for payroll, taxes, and statutory benefits without full reliance on third-party partners.
✓ Onboarding Speed (4.5/5): Fast onboarding in Mexico, often completed within 3–5 business days, supported by automated contract generation, digital document flows, and streamlined payroll setup.
✗ On-Site HR Support (3.5/5): Support is primarily delivered through regional teams and digital channels. While responsive and structured, Ontop offers limited on-the-ground HR presence in Mexico compared to service-led local specialists.
✓ Visa & Work Permit Support (3.8/5): Immigration guidance is available for standard Mexican work scenarios. More complex visa or relocation cases may require additional coordination and longer timelines.
✓ In-Country Compliance (4.2/5): Solid compliance coverage across Mexican labour law, including IMSS, INFONAVIT, statutory bonuses, leave, and termination handling. Strong for typical employment cases, though less specialised than Mexico-first providers.
✓ Local Add-Ons (4.0/5): Supports core statutory benefits, expense reimbursements, and multi-currency payroll. Advanced local benefits and specialised employment setups may require additional scoping.
4.0/5
Own legal entity in Mexico: Stronger compliance control and faster, cleaner onboarding.
Tech first EOR: Good for startups that want a techy experience.
Limited immigration support: More suitable for out of the box cases.
Limited benefits in Mexico: As most global providers they offer more general plans e.g global insurance plans not customized to the Mexican market.
Ontop is a provider we usually recommend startups and SMBs that want to hire teams in Mexico and Latin America. To be clear: They are not a regional provider but they have focused a lot on this market in the last years. They are definitely a tech first company and offer very fast onboardings for flexible companies.
Globalization Partners (G-P) is one of the most trusted EOR providers as they market themselves as the compliance partner worldwide. They mainly operate with own entities, G-P supports compliant employment across payroll, tax, and labour law requirements in Mexico. Many large corporations trust G-P as they global hiring partner worldwide. Only downside is, G-P is one of the more slower and for sure most expensive providers in the world.
Global
Ø Fee per Employee per Month, First Year
- White-glove service
- Enterprise-grade software
✓ Global Coverage & Services (4.5/5): EOR services across 125+ countries, covering compliant employment contracts, payroll processing, statutory filings, terminations, and benefits administration. Supports contractor management (USD 39/month per contractor), global payroll, immigration and visa services, insurance and pension support, background checks, equipment procurement, and equity & stock option administration.
✗ Pricing & Transparency (3.0/5): EOR pricing typically ranges around USD 940 per employee/month plus a one-time setup fee of USD 2,820. Security deposits of 1–2.5 months of total employment cost apply depending on credit checks. FX markup estimated at ~3%. Pricing is sales-led only, with no public or self-serve country-level cost breakdowns.
✗ Payment & Contract Terms (3.0/5): Enterprise-leaning contract structures, often requiring longer minimum commitments (up to 12 months). Invoices are issued around the 15th of the month with net-7 payment terms. Late payments incur 5% interest. Offboarding fees of USD 1,000 may apply. Contracts are standardized, compliance-driven, and relatively rigid.
✓ Customer Experience & Support (4.5/5): Enterprise-grade, consultative support model with dedicated account managers, live chat (≈2-minute first response), phone support, onboarding and termination assistance, compliance alerts, and AI-supported guidance. Strong depth across HR, legal, and compliance topics.
✓ Platform & Integrations (4.0/5): Stable enterprise platform covering payroll, employment documents, time-off, expenses, reporting, and compliance workflows. Includes G-P Assist AI. SOC 2 and ISO 27001 certified. Integrations available with major HRIS/HCM systems (Workday, SAP SuccessFactors, UKG, BambooHR, HiBob). Reliable, but less automation-heavy than newer tech-first platforms.
3.8/5
✓ Entity Ownership (4.5/5): G-P operates in Mexico through their own wholly-owned legal entity, providing direct compliance accountability for IMSS, INFONAVIT, and SAT filings without reliance on third-party partners.
✗ Onboarding Speed (3.5/5): G-P’s strength is definitely not fast onboarding. The sales process typically takes 2-3 weeks, followed by another 2-3 weeks to fully onboard an employee including IMSS registration, contract execution, and payroll setup. Companies needing rapid hiring should consider faster alternatives.
✗ On-Site HR Support (3.5/5): G-P does not maintain dedicated on-the-ground HR staff in Mexico. Support is delivered remotely through their global teams, primarily in English. For complex local matters like labour disputes, IMSS audits, or termination negotiations requiring Spanish-language expertise and in-person presence, this can be a limitation.
✓ Visa & Work Permit Support (4.0/5): G-P provides coordination and advisory support for foreign nationals requiring Mexican work authorisation. Mexico’s immigration framework includes temporary resident visas for workers, which require employer sponsorship and INM (Instituto Nacional de Migración) processing. G-P assists with documentation and compliance, though complex cases may require additional immigration counsel.
✓ In-Country Compliance (4.5/5): Strong execution across Mexico’s Federal Labour Law requirements, including IMSS and INFONAVIT contributions, SAR retirement fund filings, aguinaldo (13th-month salary), vacation premium (25%), PTU profit sharing obligations, and compliance with the 2021 outsourcing reform. G-P’s structured, enterprise-grade approach significantly reduces compliance risk in Mexico’s heavily regulated employment environment.
✓ Local Add-Ons (3.5/5): Supports standard Mexico employment add-ons including payroll administration, statutory benefits coordination, and contract management. However, the offering is more standardised and enterprise-oriented, with fewer Mexico-specific perks like vales de despensa (meal vouchers), private major medical insurance options, or flexible benefits customisation compared to Mexico-specialist providers like Prodensa or Aviada.
3.9/5
Own entity in Mexico: G-P mainly operates through its own legal entity.
Global coverage: Extensive international footprint supports companies hiring across multiple markets.
Very high service fees: Pricing sits above many mid-market EOR providers.
High onboarding & offboarding fees: Larger fee structures compared with mid-market EOR competitors, especially for setup, termination, and worker transitions.
We are not going to lie: G-P is not cheap. But companies that have the necessary budget like big enterprises often value G-Ps focus on compliance and therefore risk reduction. Usually, start-ups and smaller corporations might go for a low cost provider or rather more techy global player.
While many EOR providers are almost identical, Remofirst is not one of them! They have a very different strategy than other EORs: Operating only with in-country partners in all countries for a very low price. The advanatge is that they can offer almost all countries worldwide and they have very experienced local experts. The only problem is that they can offer less flexibility, less accountability and might have slower resolution times as they have to align everything with their partners first.
Global
Ø Fee per Employee per Month, First Year
- Low cost provider
- Extensive global coverage
✓ Global Coverage & Services (4.0/5): Broad global reach across 100+ countries delivered exclusively through a partner network rather than owned entities. Besides Papaya Global, no other EOR is operating like this. Based on our research, local partners selected by RemoFirst are strong (e.g. ThisWorks for Europe).
✓ Pricing & Transparency (4.5/5): One of the most transparent and affordable EOR pricing models on the market, with no setup or termination fees. However, pricing for mature markets such as Canada, UK, Germany or Spain are significantly higher (min. $399). Overall cost predictability remains a key strength.
✓ Payment & Contract Terms (4.0/5): Flexible contracts with no long-term commitments, fair payroll cut-off timelines, and support for multiple invoice and payout currencies (keep in mind that an FX markup may apply in this case).
✓ Customer Experience & Support (3.6/5): Startup- and SMB-friendly support model with dedicated account managers. Day-to-day support handled via ticketing system which is responsive, but complex cases and peak periods may see slower resolution since they rely on local partners’ response times.
✓ Platform & Integrations (4.0/5): Modern, intuitive platform with automated payroll workflows. However, advanced reporting, integrations to enterprise HCMs, and customization for complex organizational structures are more limited than with larger, enterprise-grade EORs.
4.0/5
✗ Entity Ownership (3.5/5): Like in all countries they operate in, RemoFirst uses in-country partners (ICP) in Mexico and do not have their own entity. As this is their business model, they have a very experienced partner network though.
✓ Onboarding Speed (4.2/5): RemoFirst typically completes onboarding within 7 to 12 business days but onboarding times can vary a lot as it is not up to Remofirst but up to their partner to onboard.
✗ On-Site HR Support (3.0/5): Remofirst does not have any local support staff in Mexico. Their support team is supporting Mexico remotely and does not guarantee support in Spanish.
✓ Visa & Work Permit Support (3.8/5): RemoFirst offers basic advisory support on Mexican work permits and immigration. Again, it is up to the partner to support and sponsor work visas.
✓ In-Country Compliance (4.3/5): The EOR covers core Mexican statutory compliance.
✓ Local Add-Ons & Flexibility (4.0/5): Standard benefits and statutory administration are included.
3.8/5
User-friendly platform: Effective EOR platform and client portal, without the unnecessarily expensive add-ons of some other providers.
Low pricing: Remofirst offers EOR for quite a low price with only a few additional fees.
No own entity in Mexico: Operate through in-country-partner that can cause delay and miscommunication.
No edge case support: Remofirst is a low cost provider that focus on scale and not complicated immigration or tax cases.
Employsome recommends Remofirst companies that do not want to pay high fees for EOR services. We just need to emphasize that Remofirst’s performance really depends on the country and in case you use them in another country already, does not mean you will receive the same level of performance in Mexico. Overall, good in case you do not require edge cases for immigration cases or difficult termination for executives.
Pebl (formerly Velocity Global) is a long-established global Employer of Record headquartered in Colorado, U.S., and is widely known for its high-touch, service-led approach and strong emphasis on compliance. In Mexico, Pebl positions itself as a premium EOR option for companies that want to hire locally while minimizing regulatory and operational risk
Global
Ø Fee per Employee per Month, First Year
- Strong global entity infrastructure
- Transparent (but high) pricing
✓ Global Coverage & Services (4.2/5): Leading global EOR coverage across core hiring markets with consistent, high-touch onboarding support. 65 own entity worldwide and 35 local partners. Well-suited for standard international hires, though invoicing and payroll complexity has been reported once companies operate across multiple markets.
✓ Pricing & Transparency (4.5/5): Clear and predictable pricing with good upfront cost visibility. Significant migration credits when transitioning from another EOR. Only downside: 3% FX markup & high bank wire fees.
✓ Payment & Contract Terms (4.2/5): Open-ended contracts without minimum commitments. Payroll cut-off on the 10th of each month with invoice issued on the 20th, payment due in 7 days. Standard, overall. If one commits to a one-year annual contract, then monthly fee drops to $599 instead of $699,
✓ Customer Experience & Support (4.3/5): 24h SLA in response times. Solid responsiveness for day-to-day operations, handled through off-shore support teams. No support offered via WhatsApp.Teams in 65+ countries, 43 languages spoken, with local experts who help you hire and support talent.
✓ Platform & Integrations (4.3/5): Modern platform designed to handle the basic EOR workflows. However, by far not as strong as its competitors. It feels Pebl is still playing “catch-up”. Integration ecosystem is solid but not as extensive as larger enterprise HR suites.
4.3/5
✓ Entity Ownership (4.0/5): Pebl operates in Mexico through their own entity. in-country partner. No public REPSE registration has been confirmed, which creates compliance uncertainty under Mexico’s 2021 outsourcing reform.
✓ Onboarding Speed (4.0/5): Onboarding typically smooth and efficient, with employees generally onboarded within days in most jurisdictions. Some users report onboarding can take up to 14 days in certain markets depending on documentation requirements.
✗ On-Site HR Support (3.5/5): Pebl operates remotely from the United States and global locations. In Mexico, maintains only a fiscal address without an active HR office, functioning effectively as a remote operation. Support provided through global teams rather than local presence.
✓ Visa & Work Permit Support (4.0/5): Immigration and visa support services available as add-ons. Assists with international mobility for employees and contractors working across borders, including standard work authorization pathways for Mexico.
✗ In-Country Compliance (3.0/5): Handles Mexican labor law requirements including IMSS, INFONAVIT, and payroll tax obligations. Pre-charges severance monthly rather than managing locally. Compliance concerns exist due to lack of confirmed REPSE registration for specialized services in Mexico.
✓ Local Add-Ons (4.0/5): Benefits add-ons available including medical insurance, pensions, life and AD&D plans, and visa services. Benefit packages offered, though some users report communication gaps around region-specific benefits customization.
3.8/5
Owned Entity Infrastructure: Pebl has a strong global coverage and operates mainly through its own legal entities across all markets they’re servicing.
Immigration Support: Pebl is one of the leading EORs when it comes to immigration and work permit cases. They have a dedicated mobility team to sort things out globally.
No public source of REPSE registration: Hold compliance concern.
Premium Pricing: Compared to other EORs, Pebl’s pricing is still premium and includes several costs that come on top such as bank wire fees and FX markups.
Pebl is best suited for U.S.-based and international companies hiring in Mexico that value high-touch, white-glove support and are willing to pay a premium for compliance certainty. It performs particularly well for complex employment and immigration scenarios, where hands-on legal oversight and structured processes matter. However, if you’re looking for a tech-first EOR platform with deep automation and integrations comparable to Deel or Rippling, Pebl may feel more service-heavy and less product-led.
How We Score EOR Services in Mexico
At Employsome, we don’t rank EORs based on marketing claims or headline country counts. Every provider is evaluated using a two-layer scoring system that reflects both global capability and real in-country performance – because that’s where most employment risk actually happens. The final ranking is done by a weighted average of 40% global score and 60% local score.
🌍 Global EOR Score
A Global EOR Scorecard rates providers on international capabilities such as:
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Global Coverage & Services: Where the provider truly operates (not “180 countries” marketing claims), whether through owned entities or partners, and how consistent service quality is across markets.
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Pricing & Transparency: How clear, predictable, and honest pricing is, including FX fees, deposits, termination charges, and hidden costs. Not just “pricing starts at $399” nonsense.
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Payment & Contract Terms: We actually review service agreements including flexibility of contracts, payroll cut-offs, invoicing timelines, and multi-currency support.
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Customer Experience & Support: Quality of day-to-day support, availability escalation paths, and how complex cases are handled.
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Platform & Integrations: Depth of HR technology, automation, reporting, and HRIS functionalities. We review integrations (not just the amount of integrations) but how data is transferred between systems.
🇲🇽 Mexico EOR Score
A Mexico EOR Scorecard evaluates how an EOR actually operates within Mexico such as:
- Mexican Entity Ownership: Whether the provider employs through its own Mexican legal entity or relies on third-party partners. Direct entity ownership is strongly preferred in Mexico due to REPSE registration requirements and heightened scrutiny following the 2021 outsourcing reform.
- Onboarding Speed: Sometimes you need your new employees to start asap. We analyze how quickly employees can actually be hired including contract issuance, SAT registration, IMSS enrollment, and payroll setup.
- On-Site HR Support: Some EORs have just remote support teams while some have local expert in Mexico. We analyze the strength of in-country HR and payroll teams, including the ability to handle terminations, severance calculations, union-related matters, and labour inspections. Local presence matters significantly in Mexico, where disputes are process-driven.
- Visa & Work Permit Support: Practical immigration capability to sponsor and manage Mexican work visas and residence permits for foreign nationals. Advisory-only support is common; true execution capability is a differentiator.
- In-Country Compliance: Depth of handling Mexico’s Federal Labour Law, including IMSS, INFONAVIT, SAR retirement contributions, aguinaldo (13th-month pay), vacation premium, PTU profit sharing, severance obligations, and compliance with the outsourcing reform and REPSE rules.
- Local Add-Ons: You want to offer your employees some additional benefits? We check Mexico-specific add-ons such as statutory and supplemental benefits, private health insurance, meal vouchers, equipment provisioning, expense management, and compliance support during audits or labour inspections.
Hiring in Mexico: What You Need To Know
First time hiring in Mexico and you want to know what you need to consider when hiring in Mexico? Employsome will break it down for you.
The Standard Employment Relationship
All employment in Mexico defaults to indefinite (unlimited) contracts. Fixed-term arrangements are the exception, not the rule, and are only legally valid for seasonal work or temporary replacements (maternity cover, sick leave backfill). If your plan involves hiring someone for a “6-month trial” on a fixed-term contract, you’re likely misclassifying the relationship from day one.
Probation periods exist but are capped at 30 days for most roles. For management, administrative, or specialized technical positions, this extends to 180 days; but only because these employees are considered de facto representatives of the employer under Article 11 of the Federal Labor Law. Probation cannot be renewed or extended. If you don’t terminate for documented performance reasons during this window, you’ve committed to the full employment relationship.
💡 Employsome Insight: Limited contracts are usually not compliant
In Mexico, employment is indefinite by default – fixed-term “trial contracts” are usually non-compliant. Probation is limited (30 days or up to 180 for senior roles) and cannot be extended!
Compensation Structure
Mexican payroll runs semi-monthly; the 15th and last working day of each month. This isn’t optional; it’s how the system works. This is quite important to discuss with the EOR provider of your choice how they invoice you. Are they invoicing you also semi-monthly or only once per month for two periods?
Beyond base salary, three mandatory payments define the Mexican employment relationship:
Aguinaldo (Christmas Bonus): Minimum 15 days’ salary, paid before December 20th. Most competitive employers offer 30 days or more. This isn’t a discretionary year-end bonus—it’s a statutory entitlement, pro-rated for incomplete years.
Vacation Premium: 25% of salary paid when employees take their annual leave. Combined with the increasing vacation entitlement (starting at 12 days and growing with tenure), this adds meaningful cost to your total employment expense.
Home Office Allowance: Since NOM-037 took effect in 2024, employers must cover internet and electricity costs for remote workers; minimum MXN 390/month (roughly USD 23). For EOR arrangements where employees work from home exclusively, this is non-negotiable.
Food vouchers (vales de despensa) aren’t mandatory but are standard practice across most industries. Up to 40% of the UMA (Mexico’s measurement unit, currently around MXN 3,440/month) can be provided tax-efficiently through IMSS, making this a cost-effective way to enhance compensation.
💡 Employsome Insight: Payroll Dates ≠ Invoice Dates
In Mexico, payroll is always semi-monthly, but many EORs still invoice clients monthly. Make sure you understand when you pay vs. when employees are paid, otherwise cash-flow gaps and reconciliation issues show up fast.
Working Hours and Overtime
The standard workday is 8 hours, with a 48-hour weekly maximum. But the overtime rules have real teeth: the first 9 hours of weekly overtime pay at 200%, everything beyond that (or any work on rest days and holidays) pays at 300% (yes a lot!). If you’re hiring for roles that routinely require extended hours, factor this into your cost modeling.
Annual Leave and Public Holidays
Mexico reformed its vacation law in 2023, jumping the minimum entitlement from 6 to 12 days after the first year of service. This increases by 2 days annually up to 20 days, then by 2 days for every 5 years of service thereafter. Unused leave can be carried over for up to 18 months, and employers must provide annual seniority certificates documenting entitlements.
Seven public holidays are mandatory, with several others (Holy Week, Mother’s Day, Day of the Dead) widely observed across industries. When public holidays fall on weekends, the following working day typically becomes the observed holiday.
Social Security and Benefits
Every employee must be registered with IMSS (Mexican Social Security Institute) from day one. This covers healthcare, maternity, disability, and retirement. The employer contribution runs approximately 20-25% of salary across IMSS, INFONAVIT (housing fund at 5%), and state payroll taxes (2-3% depending on location).
The public healthcare system covers basics but moves slowly. Private medical insurance isn’t legally required, but it’s effectively table stakes for professional roles; especially if you want access to English-speaking specialists and shorter wait times. Most competitive EOR packages include private coverage as standard.
Termination Reality
Here’s where Mexico gets expensive if you don’t plan correctly. Unlike in the US, there is no at-will employment in Mexico. Poor performance alone doesn’t justify termination without severance; except during probation, and only with documented evidence.
The practical termination path is mutual agreement, which requires compensating the employee. The standard settlement mirrors what they’d receive if they claimed unfair dismissal:
- Constitutional Indemnification: 3 months’ salary (Article 123 of the Constitution)
- Seniority Indemnity: 20 days’ salary per year of service for indefinite contracts
For an employee with 3 years of tenure earning MXN 50,000/month, you’re looking at roughly 4.5 months’ salary in severance – before accounting for accrued vacation, pro-rated aguinaldo, and vacation premium.
Just-cause termination exists on paper (fraud, harassment, repeated absences, safety violations), but requires in-person delivery of termination letters, strict documentation, and often external legal assistance. Most employers (and most EORs) default to negotiated exits because the litigation risk rarely justifies the savings.
EOR Legislation in Mexico: The 2021 Reform Changed Everything
If someone tells you that Employer of Record services in Mexico work the same as they do in the UK or Germany, they either don’t understand the market or they’re hoping you won’t ask follow-up questions.
Mexico’s 2021 outsourcing reform created one of the most heavily regulated staffing environments in Latin America and compliance isn’t optional.
The Subcontracting Ban
In April 2021, Mexico effectively banned traditional labor subcontracting (subcontratación de personal). Companies can no longer “lease” workers to perform activities that fall within the client’s core business purpose. The reform targeted decades of abuse where employers used shell staffing companies to avoid labor obligations, but it also forced the entire EOR industry to restructure how it operates in Mexico.
What remains legal: providing specialized services that are genuinely outside the client’s main economic activity, and only through providers registered with the government.
REPSE: The Registry You Can’t Ignore
Every company providing specialized services or executing specialized work must register with
REPSE (Registro de Prestadoras de Servicios Especializados u Obras Especializadas), administered by the Ministry of Labor (STPS). This registration:
- Validates that the provider is authorized to offer the specific services it claims
- Requires renewal every 3 years
- Must be verified by clients before engaging any staffing or EOR provider
If your EOR isn’t REPSE-registered – or can’t demonstrate that their Mexican entity holds valid registration -you’re both exposed. The law imposes joint liability: clients using non-compliant providers can be held responsible for unpaid taxes, social security contributions, and employee claims. Fines for violations reach up to MXN 4.5 million (approximately USD 250,000).
How Compliant EORs Structure Their Operations
The providers that got this right operate genuine Mexican legal entities; not just fiscal addresses for invoice routing. They employ workers directly under indefinite contracts, handle all IMSS and INFONAVIT registrations in their own name, and file payroll taxes through their Mexican entity.
They’re not “subcontracting” personnel to clients because the client doesn’t direct the work through the EOR – the client directs the work directly to their employee, who happens to be legally employed by the EOR’s Mexican entity. This distinction matters to regulators.
Some EORs structure themselves as consulting companies providing administrative and HR management services, rather than specialized services providers. Under this model, they’re not placing workers to perform tasks for clients; they’re providing a legal employment vehicle while clients maintain the working relationship with their own workforce. This approach sidesteps the REPSE requirement but requires careful structuring – employees can only work from home (not client offices), and clients cannot sign documents directly with employees.
What This Means for Your Provider Selection
When evaluating EORs for Mexico, the compliance questions that matter are:
- Entity ownership: Does the EOR operate a wholly-owned Mexican entity, or do they route through local partners? Partner models aren’t inherently non-compliant, but they add a layer of due diligence you need to perform.
- REPSE status: Can they provide their registration number? Is it verifiable on the STPS portal? If they claim exemption, what’s the legal basis?
- Employment structure: Are employees hired on indefinite contracts through the Mexican entity? Are IMSS contributions filed under the EOR’s own employer registration?
- Physical presence: Do they have actual HR and payroll staff in Mexico, or is everything managed remotely from another country? For ongoing compliance and employee support, local presence matters.
The 2021 reform eliminated a lot of gray-area operators from the Mexican market. What remains is a smaller pool of providers who either invested in doing it right or who are operating with meaningful legal risk. Your job is to figure out which category your prospective EOR falls into before you sign anything.
Frequently Asked Questions (FAQs)
An Employer of Record in Mexico is a third-party organization that legally employs workers on behalf of foreign companies. The EOR handles all Mexican employment obligations from payroll processing, IMSS social security registration, INFONAVIT housing fund contributions, tax withholding, to compliance with the Federal Labor Law; while the client company directs the employee’s day-to-day work. This allows businesses to hire Mexican talent without establishing their own legal entity in the country.
Yes, EOR services remain legal in Mexico, but the April 2021 outsourcing reform significantly changed how providers must operate. The reform banned traditional labor subcontracting (subcontratación de personal) for core business activities. Compliant EORs now structure their services either as specialized service providers registered with REPSE, or as consulting companies providing administrative employment vehicles. The key distinction: the EOR employs workers directly rather than “leasing” them to perform the client’s core activities.
REPSE stands for Registro de Prestadoras de Servicios Especializados u Obras Especializadas (English: “Registry of Specialized Service Providers or Specialized Works”) and is the mandatory government registry for companies providing specialized services in Mexico. Administered by the Ministry of Labor (STPS), REPSE registration validates that a provider is authorized to offer staffing-related services. Companies using non-registered providers face joint liability for unpaid taxes, social security, and employee claims with fines reaching approximately USD 250,000 (!). When selecting a Mexico EOR, verify their REPSE status or understand their legal basis for exemption.
Mexico EOR pricing typically ranges from USD 299 to USD 700 per employee per month, depending on the provider and service level. Additional costs may include setup fees (USD 0–500), security deposits (typically 1–3 months of total employment cost), currency conversion markups (1–4%), and offboarding fees. Some providers charge separately for benefits administration, expense processing, or out-of-cycle payments. Always request a complete cost breakdown including employer contributions, which add approximately 25–35% to base salary in Mexico.
Most established EOR providers can onboard employees in Mexico within 2 to 5 business days once the employment contract is signed. Providers with owned Mexican entities and streamlined processes (like Deel or Oyster) often complete onboarding in 48 hours. Factors that extend timelines include IMSS registration backlogs, incomplete employee documentation, or complex benefits configurations. But many EORs are overpromosing on onboarding times and can usually take up to 2 weeks in real life.
For non-Mexican nationals requiring work permits, add 4 to 12 weeks for immigration processing.
Mexican labor law requires several benefits that EORs must provide: Aguinaldo (Christmas bonus) of minimum 15 days’ salary paid before December 20th; vacation premium of 25% of salary when employees take annual leave; IMSS social security covering healthcare, disability, and maternity; INFONAVIT housing fund contributions at 5% of salary; and home office allowance of minimum MXN 390/month for remote workers under NOM-037. Most employers also provide private health insurance and food vouchers (vales de despensa) to remain competitive.
As of 2025, Mexico’s minimum wage is MXN 278.80 per day for most of the country and MXN 419.88 per day in the Free Trade Zone along the US border. However, EOR employees in professional, technical, or specialized roles typically earn significantly above minimum wage. Salary benchmarks vary substantially by industry, location (Mexico City commands 20–40% premiums), and specialization. Your EOR should provide market salary guidance for competitive positioning.
Theoretically yes, but contractor relationships in Mexico carry significant misclassification risk. Mexican labor law presumes an employment relationship exists when workers provide personal services under the direction of a company. If authorities determine a contractor should be classified as an employee, the company faces liability for unpaid social security, benefits, and severance – potentially even going back years. EOR arrangements provide cleaner compliance for ongoing, integrated work relationships. Contractors work best for genuinely independent, project-based engagements with multiple clients.
Mexico has no at-will employment. Terminating an employee (even for poor performance reasons) typically requires severance unless you have documented just cause (fraud, harassment, safety violations, repeated absences). The standard severance package through mutual agreement includes 3 months’ salary (Constitutional Indemnification) plus 20 days’ salary per year of service. For an employee with 2 years of tenure, expect approximately 4 months’ total compensation in severance. Your EOR handles the negotiation and legal documentation, but you fund the settlement.
Not really. Mexico does offer certain tax-efficient compensation structures, including food vouchers (up to 40% of UMA tax-advantaged through IMSS) and savings fund contributions. Your EOR should optimize the compensation package within Mexican tax law, but don’t expect the dramatic tax reductions available in some European countries.
In the United States, PEOs operate as co-employers, sharing employment responsibilities with the client company. Mexico doesn’t permit this co-employment model—the 2021 reform explicitly requires a single legal employer. What some providers market as “Mexico PEO” is functionally an EOR arrangement where the provider is the sole legal employer. Be cautious of any provider claiming to offer true co-employment in Mexico; this
Yes, most established Mexico EORs offer immigration support as an add-on service, either directly or through immigration law partners. Common visa types include the Temporary Resident Visa (1–4 years, requires job offer) and the NAFTA/USMCA Professional Visa for qualifying US and Canadian professionals. Processing times range from 4-12 weeks depending on visa type and consulate workload. If you’re hiring non-Mexican nationals, confirm your EOR’s immigration capabilities and associated costs before signing; this service is rarely included in base pricing.
Written by
Dane Cobain is a Copywriter at Employsome and an accomplished author whose work spans fiction, non-fiction, and professional writing. Over the past decade, he has built a strong track record creating straightforward content for the HR, payroll, and corporate sectors. Dane brings a storyteller’s eye to the evolving world of global employment, with a particular focus on Employer of Record and PEO models. His articles explore industry trends and dedicated Best Of Guides when managing an international workforce.
Our content is created for informational purposes only and is not intended to provide any legal, tax, accounting, or financial advice. Please obtain separate advice from industry-specific professionals who may better understand your business’s needs. Read our Editorial Guidelines for further information on how our content is created.