What does it cost to employ someone in Mexico?

Budget gross salary plus roughly 25% to 35% in statutory employer burden covering IMSS, INFONAVIT, SAR and payroll tax, then add aguinaldo, vacation premium and PTU. Compare landed cost, not salary, when benchmarking against other markets.

Do we need REPSE to hire in Mexico?

REPSE registration is required for providers of specialized services. Generic personnel subcontracting is prohibited. Working through a registered provider or an employer of record keeps the arrangement compliant and your payments deductible.

How fast can we onboard in Mexico?

An identified candidate can typically be onboarded through an employer of record in 5 to 10 business days once documents and IMSS registration are complete. A full search plus placement usually takes 2 to 5 weeks.

Owned entities and governed partners across all of Latin America, compliance, consultancy and implementation under one contract, SILA, a Gracemark company

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LATAM staffing guide, Mexico

Staffing in Mexico: what it really costs, and how fast you can start

Mexico is the default nearshore market for US teams: full timezone overlap, the deepest bilingual talent pool in the region, and a mature outsourcing framework. It is also the market where employment structure is scrutinized hardest, the 2021 outsourcing reform ended generic labor subcontracting and made REPSE registration mandatory for specialized services.

Employer burden: Roughly 25–35% of gross salary in statutory employer cost
Onboarding time: 5–10 business days for an identified candidate
Currency: MXN (contracts commonly USD-referenced for senior roles)
Timezone: CST/CDT, full overlap with US business hours

What you are legally required to provide in Mexico

IMSS social security

Employer contributions covering health, risk, disability and childcare.

Aguinaldo

Minimum 15 days of salary, payable by 20 December.

Vacation & vacation premium

12 days minimum in year one plus a 25% vacation premium.

PTU (profit sharing)

Statutory profit sharing, capped at three months of salary or the prior three-year average.

INFONAVIT & SAR

Housing fund and retirement contributions on top of IMSS.

Roles our clients hire most in Mexico

▸Bilingual customer experience
▸Software engineering
▸Accounting & AP/AR
▸Logistics coordination
▸Field and technical services

Strong bilingual supply in Monterrey, Guadalajara, CDMX, Mérida

Where Mexico hiring goes wrong

Subcontracting personnel without REPSE registration is prohibited and disallows deductions.
Long-term contractors performing core, supervised work are a reclassification exposure.
Severance follows statutory formula; unilateral termination without cause is expensive.

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