EOR in Mexico
Employer of Record in Mexico
- Hire Mexican talent without establishing a local legal entity
- Manage payroll, IMSS contributions, and tax compliance effortlessly
- Reduce permanent establishment exposure with compliant employment structures
- Onboard employees faster with Federal Labor Law-compliant contracts
- Enter the Mexican market cost-effectively with transparent pricing
Happy Customers Globally
Covered
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Currency
Mexican Peso (MXN)
Capital
Mexico City
Official Language
Spanish
Payroll Cycle
Biweekly or Monthly
Recognized Globally: Ranked #1 for ‘Ease of Use’ & ‘Customer Support’
our advantage
Why Choose Asanify's Employer of Record in Mexico
Asanify is ranked #1 across multiple categories on G2 for Employer of Record services. Our Mexico EOR solution enables you to hire and manage employees across Mexico City, Guadalajara, Monterrey, and throughout the country without the complexity of establishing a subsidiary. We handle all aspects of employment compliance including Ley Federal del Trabajo (LFT) regulations, IMSS and Infonavit contributions, profit-sharing obligations, and statutory benefits while you focus on leveraging Mexico’s talented workforce.
Hire Quickly and Legally
Expand into Mexico within days instead of months. Asanify's EOR eliminates the need for entity registration, allowing you to onboard employees immediately while maintaining full compliance with the Federal Labor Law (Ley Federal del Trabajo) and all statutory requirements.
Complete Compliance Management
Navigate Mexico's comprehensive labor regulations with confidence. We manage LFT compliance, IMSS (social security) registrations, Infonavit (housing fund) contributions, profit-sharing (PTU) calculations, and all federal and state employment regulations on your behalf.
IMSS & Benefits Administration
Ensure compliant social security and benefits management. Asanify handles mandatory IMSS and Infonavit contributions, aguinaldo (Christmas bonus), vacation premiums, profit-sharing, and all statutory benefits according to Mexican labor standards.
Risk Mitigation & PE Protection
Minimize permanent establishment exposure and employment risks. As the legal employer, Asanify assumes liability for employment matters and labor law compliance while you maintain operational control of your team's day-to-day activities and work direction.
How Asanify's Employer of Record Works in Mexico
Asanify serves as the legal employer of your Mexican workforce, managing all employment administration and statutory obligations while you retain complete management control over daily operations and assignments.
- Legal Employer of Record: Asanify becomes the registered employer, handling all statutory obligations including IMSS, SAT, and LFT compliance
- Payroll & Social Security: We process biweekly or monthly payroll with accurate tax withholding, IMSS, and Infonavit contributions
- Mandatory Benefits: Complete administration of aguinaldo, vacation premiums, profit-sharing (PTU), and severance calculations
Trusted by top companies around the Globe
Employer of record
Employment Law Compliance in Mexico
Mexico’s employment framework is governed by the Ley Federal del Trabajo (Federal Labor Law), which provides strong employee protections. Asanify ensures full compliance with all regulations including minimum wage requirements, working hour limits (48 hours/week), mandatory profit-sharing, IMSS and Infonavit contributions, aguinaldo payments, and proper termination procedures to avoid labor disputes.
- Federal Labor Law (LFT) compliance including proper employment contracts and mandatory benefits
- IMSS social security and Infonavit housing fund contributions calculated and remitted accurately
- Aguinaldo, vacation premium, profit-sharing (PTU), and severance managed according to Mexican law
What our happy customers say
Asanify's, should be the number 1 choice for companies looking to pay their overseas employees and contractors. I have a team of 40 people in India and not for a single month have i experienced any delays in the payment process.
In my business, things happen fast, and requirement for new employees is sudden. In such a situation a trusted partner like Asanify comes in handy as I know I can quickly ramp with onboarding and employee formalities diligently taken care of.
As a global company, we go through M&As in countries where we do not have presence. In India, we quickly onboarded ~30 employees as part of a takeover. With Asanify's turnaround time the overall change was managed brilliantly.
Asanify’s expertise when it comes to Local Compliances is something I have benefitted extensively from. Whether its Employee-Contractor classification, or the local laws for employee benefits and working hours - I trust the guidance provided.
Apart from using EOR services, I find a lot of value in the fully automated Asanify HRMS. For me, it makes it absolutely comfortable that I can access all my HR inforation anytime, anywhere and on any platform - Slack, Whatsapp etc.
My employees are in India, while I am based in Dubai and the co. in the US. Managing time zones is a huge challenge for us. Working with global partners like Asanify ensures that all my payments, and query resolutions are done in time.
It is paramount that my employees are well taken care of. Asanify goes above and beyond In terms of employee benefits, salary structuring to make it more tax friendly and constant guidance. For over a year with Asanify’s EOR, I have had no reason to feel disappointed.
Employer of Record FAQs in Mexico
What is an Employer of Record in Mexico?
An Employer of Record (EOR) in Mexico is a third-party organization that becomes the legal employer of your workforce, handling all employment administration, payroll processing, IMSS and Infonavit contributions, tax compliance, and statutory benefits. This allows your company to hire Mexican employees without establishing a local entity, while you maintain full operational control over their work activities.
How quickly can I hire employees in Mexico using Asanify's EOR?
With Asanify’s EOR service, you can hire employees in Mexico within 3-5 business days. Once you select your candidate, we prepare LFT-compliant contracts, register employees with IMSS and Infonavit, handle tax registration (RFC), and complete onboarding documentation, enabling your new hire to start working almost immediately.
Does using an EOR create permanent establishment risk in Mexico?
When properly structured, using an EOR significantly reduces permanent establishment (PE) risk in Mexico. Asanify acts as the legal employer, maintaining the employment relationship and all statutory obligations. However, PE risk depends on multiple factors including business activities, authority levels, and physical presence. We recommend consulting with tax advisors for your specific circumstances.
What are IMSS and Infonavit contributions in Mexico?
IMSS (Instituto Mexicano del Seguro Social) is Mexico’s social security system covering healthcare, disability, and retirement. Infonavit is the national housing fund. Asanify calculates and remits both employer and employee portions of these mandatory contributions based on employee salary, ensuring timely payments and compliance with Mexican social security regulations.
What employment benefits are mandatory in Mexico?
Mexican employees are entitled to statutory benefits under the Federal Labor Law, including: aguinaldo (Christmas bonus equivalent to 15+ days’ salary), vacation days with 25% premium, profit-sharing (PTU), IMSS and Infonavit contributions, paid public holidays, maternity/paternity leave, and severance pay for certain terminations. Asanify ensures all mandatory benefits are provided and properly calculated.
How does profit-sharing (PTU) work in Mexico?
Under Mexican law, companies must share 10% of pre-tax profits with employees (Participación de los Trabajadores en las Utilidades). PTU is distributed annually based on worked days and salary. Asanify manages PTU calculations, distributions, and compliance reporting. The PTU obligation applies to the legal employer (the EOR), and we handle all aspects of this complex requirement.
How is payroll processed for Mexican employees?
Asanify processes payroll according to your preferred cycle (biweekly is most common in Mexico, though monthly is also available). We calculate gross wages, apply income tax (ISR) withholding, process IMSS and Infonavit contributions, manage any salary deductions, and ensure employees receive compliant CFDI payroll receipts (recibos de nómina). Payments are made in Mexican Pesos (MXN).
Can I terminate an employee through an EOR in Mexico?
Yes, Asanify manages compliant termination processes in Mexico. Mexican labor law provides strong employee protections, so we ensure proper procedures including justification documentation for cause terminations, severance calculations (3 months’ salary plus 20 days per year worked, plus accrued benefits), settlement agreements (finiquitos), and proper IMSS deregistration to minimize labor dispute risks.
What are the costs of using an EOR in Mexico?
Asanify’s EOR pricing in Mexico is transparent and competitive. Costs typically include a service fee based on employee salary, plus the employee’s gross salary, employer IMSS contributions (approximately 20-25% of salary), Infonavit contributions (5%), payroll taxes, and other statutory obligations. This is significantly more cost-effective than establishing and maintaining a legal entity in Mexico.
Start Hiring in Mexico Today
Expand your team in Mexico within days with Asanify’s compliant EOR solution