How To Hire in Mexico: Complete Guide

Remote work in Mexico is booming. Companies worldwide are tapping into this market, drawn by its skilled workforce and cost-effective hiring. If you're looking to hire employees in Mexico, this guide covers everything you need: key hiring insights, in-demand roles, salary expectations, and proven strategies to attract, hire, and retain top talent.

How to Hire Remote Talent in Mexico

When hiring in Mexico, it's essential to understand your options and the legal framework. Here are three effective ways to hire employees while staying compliant:

1. Contractor

Independent contractors offer cost savings and flexibility—but misclassification risks are real. Lupa takes the guesswork out of hiring in Mexico, ensuring compliance and efficiency.

• Recruiting: We source and vet top candidates, while you manage hiring and payroll. This is ideal if you want full control with expert support.
• RPO: We take over your entire recruiting process for a fixed monthly fee, including sourcing, screening, and hiring. Scale fast without adding internal overhead.

2. Staffing Model

A specialized staffing agency handles recruitment, vetting, procurement, and admin—connecting your company with top Latin American talent while ensuring compliance. 

Our staffing service covers recruiting, employment, payroll, and compliance, so you can bring in top talent without worrying about administrative complexities.

3. EOR (Employer of Record)

An EOR is the legal employer for global hiring, managing payroll, taxes, benefits, and compliance. This is the best option for hiring in Mexico without setting up a legal entity.

Remote Roles to Hire in Mexico

When hiring remotely in Mexico, some roles are especially well-suited for virtual work. These include:

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Benefits of Hiring Talent from Mexico

• Remote-native professionals: With 57.7% of companies offering flexible work options, Mexico has a strong remote work culture that keeps employees engaged and productive.
• High retention rates: Stability matters. Mexican professionals value long-term roles, and flexible work arrangements increase job satisfaction.
• Independent, problem-solving talent: Adaptability is key. Mexican professionals excel in fast-paced, ever-changing environments.
• Innovative mindset: Mexico is a rising force in tech, finance, and creative industries, attracting global businesses and fostering entrepreneurship.
• Seamless onboarding: A culture of collaboration and clear communication ensures smooth integration for remote teams.

Bringing on Mexican talent means gaining skilled, reliable professionals—without complications.

Labor Costs in Mexico vs. USA

Hiring remote workers or contractors in Mexico enables U.S. companies to reduce employment costs, increase flexibility, and scale efficiently. Below is the pricing comparison of average annual salaries for key remote jobs in Mexico vs. USA:

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How to Pay Talent in Mexico

Paying remote workers in Mexico as a U.S. company requires understanding exchange rates, Mexico’s banking system, and compliance with local and international regulations. Here are the most common payment methods:

Bank transfers

A straightforward way to pay directly into a personal bank account. However, high fees and long processing times can be drawbacks.

PayPal

It is fast and secure for international payments but comes with high fees and unfavorable exchange rates.

Payoneer

Popular for freelancers and independent contractors, offering flexible digital payments. 

Global payroll providers

Platforms like Deel, Ontop, and Oyster provide lower fees, competitive exchange rates, and compliance with both U.S. and Mexican labor laws.

Cryptocurrencies

Payments in Bitcoin or Ethereum offer decentralization and potential cost savings, though regulatory concerns may not suit all businesses.

Wise

A cost-effective way to send international payments with real exchange rates and low transfer fees.

Mexican labor law requires salaries be paid in Mexican Pesos through government-approved banks. Companies hiring employees directly must manage payroll taxes, including income tax, IMSS contributions for social security, and employer taxes. Additionally, employers must contribute to INFONAVIT, a housing fund that helps employees acquire housing.

This only applies to foreign companies looking to establish a legal entity in Mexico. Otherwise, you can hire Mexican employees through us as your Employer of Record (EOR) or as contractors via Lupa’s services.

Hiring Remote Trends in Mexico 2025

• Mexico is a leading software engineering hub in Latin America, with 700,000+ developers across 443+ tech companies.
• A rising expat community and multinational presence drive demand for bilingual professionals, making them more competitive globally.

• Artificial intelligence (AI), machine learning (ML), and automation are reshaping recruitment, streamlining talent acquisition, and boosting efficiency.

Talent Hubs in Mexico

For successful hiring, focus on cities driving innovation and industry growth:

• Mexico City: The country’s startup and tech capital, leading in fintech, e-commerce, and software development, backed by incubators and venture capital.
• Guadalajara: A former manufacturing hub turned tech powerhouse, excelling in software development, AI, and biotech.
• Monterrey: Known for manufacturing but rapidly growing in software, fintech, edtech, and health tech.
• Querétaro: A strategic hub for aerospace, automotive, and IT, attracting engineers and tech specialists.
• Tijuana: A hotspot for hardware, manufacturing, and software fueled by startups and accelerators.
• Puebla: A rising player in software, e-commerce, and fintech, supported by universities and incubators.

Each city offers top talent in high-demand sectors, making them prime locations for hiring remote employees.

Labor Laws or Employment Laws in Mexico

Mexico's labor laws protect employee rights and set clear hiring regulations. Key points to know:

Salary Payment

New employees’ salaries are set in employment contracts and collective bargaining agreements and are typically paid biweekly or monthly.

Minimum Wage

The current minimum wage is around USD 450 per month, but offering above-market salaries is essential to attract top talent.

Holidays in Mexico

Mexico has seven national holidays, including Labor Day and Independence Day. Some employers offer additional paid time off as a perk.

Overtime Pay

Employees who exceed the standard workweek of 48 hours must be paid an additional 100% of their hourly rate for extra overtime hours. Special compensation applies for night shifts and weekend work.

Vacation Rights

Employees earn vacation days after their first year of service, which increases by two days per additional year. Many companies also offer a vacation bonus.

Aguinaldo

A mandatory Christmas bonus (13th-month salary) equal to at least 15 days of salary, paid by December 20.

Social Security Benefits

Employers must contribute to IMSS, covering health insurance, retirement, severance pay, sick leave, maternity leave, and paternity leave.

Profit-Sharing

By law, employers must distribute a portion of their annual profits to employees.

Probation Period

Employers may establish a probation period in employment contracts for mutual assessment before full employment.

Termination and Severance

There's no legal notice period, but if an employee is dismissed without just cause, they are entitled to at least three months' salary as severance, plus additional compensation in some cases.

By complying with Mexican labor laws, you can avoid risks and ensure a smooth hiring process for your business.

Holidays in Mexico

To respect the culture and diversity of your Mexican team, consider offering time off on these seven national holidays:

• January 1: New Year
• February 5: Constitution Day
• March 21: Benito Juarez’s Birthday
• May 1: Labor Day
• September 16: Independence Day
• November 20: Revolution Day
• December 25: Christmas

Recognizing these important dates fosters an inclusive workplace that values local traditions and strengthens team culture and work environment.

Characteristics of Mexican Talent

Remote Employment Growth

Remote work in Mexico surged 117% from 2022 to 2023, with the biggest growth in Mexico City (30%), Guadalajara (7%), and Monterrey (3%).

Exceptional Education Levels

Mexico has one of the highest rates of engineering graduates in Latin America, with 25% of university degrees focused on STEM fields.

Top Cities Proficient in English

Mexico ranks moderate in English proficiency, with Guadalajara, Monterrey, and León leading in skilled bilingual professionals.

Cultural Considerations of Mexican Professionals

Hiring in Mexico requires an understanding of work culture and regional differences. A clear company policy aligned with local laws and employee expectations boosts retention and engagement. Businesses near the northern border should account for regional labor variations.

Mexican professionals value adaptability, creativity, and innovation, but personal relationships are just as important for strong teamwork. Work-life balance also plays a major role in job satisfaction.

To attract and retain top talent, companies should adopt policies to respect family and social commitments and offer compensation packages that match local living costs.

Start Hiring Remote Mexican Talent with Lupa Today

Hiring Mexican employees strengthens your team and expands your Latin American operations, but cultural insight is key to a smooth hiring process.

At Lupa, we help U.S. companies hire in Mexico—quickly and risk-free. Our expert recruiters specialize in remote talent across Latin America, streamlining recruiting, interviewing, and onboarding without complications.

With deep market knowledge, automated sourcing, and an extensive talent network, we connect you with top tech, finance, marketing, and more professionals.

For expert guidance on compliant hiring in Mexico, check out our services (recruiting, staffing or RPO) or book a consultation today.

FAQs

What is an employer of record (EOR)?

An EOR in Mexico allows companies to hire employees without setting up a local legal entity. The EOR handles payroll, employment contracts, tax compliance, and employee benefits, ensuring full regulatory adherence.

What jobs are in high demand in Mexico?

Tech is booming, and companies need software developers, data analysts, IT project managers, cybersecurity specialists, and AI/ML engineers. Demand is driven by nearshoring and digital transformation.

What is the minimum wage in Mexico?

In January 2025, the general minimum wage was MXN 278.80 daily. In the northern border zone, it was MXN 419.88 per day. Wages continue to rise annually to boost purchasing power.

In what currency do companies pay remote workers in Mexico?

Employees must be paid in Mexican Pesos (MXN) by law. Contractors can negotiate payments in USD or other currencies, but labor law requires employees to be paid in pesos.

Do I need a visa to hire a remote worker in Mexico?

No. Mexican citizens and residents don’t need a visa to work remotely.

What language is spoken in Mexico?

Spanish is the official language and dominates business, government, and legal matters. English is taught but not widely spoken in daily life.

What are unions and labor organizations like in Mexico?

Mexican labor unions have traditionally been employer-aligned, but USMCA labor reforms now enforce democratic elections and transparent collective bargaining, giving workers stronger rights.

How do you terminate an employee in Mexico?

Severance typically includes three months' salary 20 days per year of service, and accrued benefits. The final amount depends on tenure and termination type.

How much do social security and other payroll taxes cost in Mexico?

Employers contribute 15-31% of their salary to social security, housing funds, and retirement, while employees contribute around 3%. The total depends on salary and company risk classification. In February 2025, the monthly UMA (government-set monetary unit) was MXN 3,439.46.

What is the difference between contractors and employees in Mexico?

Employees receive social security, paid leave, and severance protections. Contractors work independently, set their own schedules, and don’t qualify for these benefits under Mexican labor law.