Hire in Mexico
Tap into Mexico's nearshore tech talent pool without navigating the LFT, IMSS, aguinaldo, PTU, and the 2021 outsourcing reform alone. Vectis handles full LFT compliance — onboard in 48 hours.
Quick Facts
Mexican Employment Law Guide
A practical overview of Mexico's LFT framework — from IMSS and aguinaldo to PTU profit-sharing, the 2024 vacation reform, and the 2021 outsourcing rules.
Employment Contracts (LFT)
- ✓Ley Federal del Trabajo (LFT) governs all employment — highly employee-protective
- ✓Indefinite contracts are the default; fixed-term (tiempo determinado) only for specific justifiable reasons
- ✓Written contract required in Spanish; must be provided within 7 days of hiring
- ✓Probation: 30 days (general); 180 days for management, professional or technical roles
- ✓Outsourcing reform (2021): subcontracting of personnel prohibited; specialized services require REPSE registration
Working Hours & Overtime
- ✓Standard: 8h/day day shift, 7h night shift, 7.5h mixed shift; 48h/week maximum
- ✓First 9 hours of overtime: +100% premium (double the hourly rate)
- ✓Beyond 9 overtime hours per week: +200% premium (triple the hourly rate)
- ✓Overtime exceeding 3 hours/day or 3 days/week is prohibited
- ✓Sunday premium (prima dominical): 25% bonus on regular daily wage
Leave Entitlements
- ✓12 days annual vacation after 1 year; increases by 2 days per year up to 20 days
- ✓2024 reform: minimum 12 days from first year (up from 6 days)
- ✓Vacation bonus (prima vacacional): minimum 25% of vacation pay — mandatory
- ✓12 weeks maternity leave (6 pre-birth, 6 post-birth) paid by IMSS
- ✓5 days paternity leave (paid at 100%); 7 statutory public holidays
Wages & Christmas Bonus
- ✓Salario Mínimo General: MXN $248.93/day (2024); northern border zone: MXN $374.89/day
- ✓Aguinaldo (Christmas bonus): minimum 15 days of salary, paid by December 20 each year
- ✓PTU (Profit Sharing): 10% of pre-tax profits distributed to eligible employees by May 31
- ✓Food vouchers (vales de despensa) extremely common; partially IMSS-exempt
- ✓Payroll integrated salary (SIMSS): used for IMSS calculations; includes cash + benefits
Social Security (IMSS/INFONAVIT)
- ✓IMSS (social security): employer contributes ~30–35% of integrated salary
- ✓INFONAVIT (housing fund): 5% employer contribution monthly
- ✓SAR (retirement savings): 2% employer contribution into individual retirement account
- ✓IMSS registration required before first day of work; late registration carries penalties
- ✓SUA payroll software used for monthly IMSS dispersion calculation
Termination
- ✓Justified dismissal (rescisión justificada): must cite specific LFT cause; no severance beyond liquidación
- ✓Unjustified dismissal: employer must pay 3 months salary (indemnización constitucional) + 20 days per year of service + seniority premium
- ✓Seniority premium (prima de antigüedad): 12 days per year of service at minimum wage (all terminations)
- ✓Settlement agreements (finiquito/convenio) widely used to formalize exits
- ✓STPS (Labour Ministry) and IMSS audits common; proper documentation critical
How to Hire in Mexico with Vectis
From offer letter to first payroll — fully compliant with Mexico's LFT.
Share the details
Role, salary in MXN, city (border zone matters for minimum wage), and start date. We verify REPSE compliance requirements.
We draft the LFT contract
Spanish-language employment contract under the LFT, covering probation, position, salary, and mandatory benefit clauses.
IMSS registration & benefits
IMSS registration before day one, INFONAVIT and SAR setup, food voucher enrollment, and integrated salary calculation.
Bi-weekly payroll & annual benefits
Quincenal payroll with ISR, IMSS, INFONAVIT deductions. Aguinaldo (Dec), PTU (May), and prima vacacional calculated automatically.
“Mexico nearshoring was our growth play but the 2021 outsourcing reform scared off our lawyers. Vectis had the REPSE-compliant EOR structure ready, drafted our LFT contracts, and onboarded our Monterrey team in 2 days.”
Public Holidays in Mexico
Mexico has 7 mandatory federal public holidays under the LFT. Additional state and local holidays may apply. Vectis tracks all holiday pay obligations automatically.
Mexico Hiring FAQs
Common questions about employing staff in Mexico.
Ready to hire in Mexico?
Vectis is your Employer of Record in Mexico — managing LFT compliance, IMSS registration, aguinaldo, PTU, REPSE rules, and all mandatory entitlements.
Hire in Mexico compliantly — LFT & REPSE experts
No entity required. Onboard in 48 hours.