EOR GuideMexico Hiring Compliance Guide
Your guide to understanding employment regulations, payroll, employee benefits, and hiring compliance in Mexico.
Why Hire in Mexico?
Mexico is an attractive destination for international businesses looking to expand their teams. With a skilled and growing workforce, competitive labor costs, strong cultural and business connections with North America, and convenient time-zone alignment with the United States, Mexico offers opportunities for companies seeking talented professionals and remote support teams.
Mexico at a Glance
Capital
Mexico City
Currency
Mexican Peso (MXN)
Official Language
Spanish (primary business language; Mexico also recognizes Indigenous national languages)
Payroll Cycle
Semi-monthly (quincenal)
This is the VA WORKS payroll cycle. It is not mandatory for every category of employee.
Country
Mexico
Employment Laws & Regulations
Employer Obligations
Payroll & Taxes
Mandatory Employee Benefits
Employee Time Off & Leave
Termination & Severance
Compliance Updates & Resources
The following official Mexican government authorities provide authoritative information on labor law, social security, taxation, and housing fund obligations. Businesses should monitor these sources for regulatory updates and changes affecting employers, payroll, taxes, and statutory employee benefits.
Secretaría del Trabajo y Previsión Social (STPS)
Federal labor authority overseeing employment law and workplace regulations.
Instituto Mexicano del Seguro Social (IMSS)
Social security institute managing employer registrations and contributions.
Servicio de Administración Tributaria (SAT)
Federal tax authority responsible for income tax and payroll reporting.
INFONAVIT
National housing fund institute managing employer housing contributions.
Cámara de Diputados — Federal Labor Law
Official text of the Ley Federal del Trabajo (Federal Labor Law).
Last Reviewed: October 13, 2026
This guide is provided for general informational purposes only and does not constitute legal, tax, or employment advice. Employment regulations and compliance requirements may change. Businesses should consult qualified legal, tax, or employment professionals regarding their specific obligations.