Hire in Mexico
Learn more about employment regulations, pay requirements, and other important information about hiring workers in Mexico.
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Employer of Record (EOR) in Mexico is the fastest and most compliant way to hire talent in one of Latin America’s largest and most dynamic markets — without opening a local entity. Mexico’s proximity to the U.S., growing tech ecosystem, and bilingual professionals make it a strategic hub for global expansion.
However, local labor laws, tax regulations, and the 2021 subcontracting reform make compliance complex. That’s where Toku steps in. As your trusted EOR partner in Mexico, we help you hire full-time employees quickly, manage payroll, and ensure every hire complies with Mexican labor law — so you can expand confidently and focus on growth.
What Is an Employer of Record (EOR) and How Does It Work in Mexico?
Defining the EOR Model
An Employer of Record (EOR) is a local entity that legally employs workers on your behalf. While your company manages day-to-day tasks, Toku becomes the legal employer in Mexico — handling payroll, contracts, benefits, taxes, and compliance with Ley Federal del Trabajo (Federal Labor Law).
This means you can operate in Mexico without creating a legal entity, avoiding months of setup, costs, and regulatory complexity.
EOR vs. Setting Up a Local Entity vs. Contractors
Under Mexico’s labor law, contractors performing full-time work under your direction may be reclassified as employees — leading to fines and back payments. Using an EOR like Toku eliminates this risk.
How EOR Works in Mexico
Toku acts as the legal employer for your Mexican hires by:
- Registering employees with the Mexican Social Security Institute (IMSS)
- Handling income tax (ISR) and social contributions to INFONAVIT (Housing Fund) and SAR (Retirement Savings)
- Managing payroll in Mexican pesos (MXN)
- Administering mandatory benefits such as vacation, Christmas bonus (aguinaldo), and profit sharing (PTU)
- Complying with all regulations set by the Secretaría del Trabajo y Previsión Social (STPS)
You stay focused on leading your team — Toku ensures they’re fully protected under Mexican law.
How to Use Toku to Hire in Mexico Without a Local Entity
What 5 Steps Help You Onboard Faster With Toku?
- Define Your Role: You identify the candidate or open position you wish to fill in Mexico.
- Engage Toku: We prepare contracts and handle all legal and payroll registrations.
- Onboard Locally: Toku manages new-hire documentation, IMSS registration, and benefits setup.
- Employee Starts Work: You direct daily activities; Toku handles payroll, taxes, and compliance.
- Scale or Transition: Add new hires as needed — or easily migrate to your own entity later.
How Does Toku Handle Local Compliance in Mexico?
Toku ensures full compliance by:
- Drafting bilingual employment contracts following Ley Federal del Trabajo
- Registering employees with IMSS and INFONAVIT
- Managing bi-weekly payroll and tax filings with Servicio de Administración Tributaria (SAT)
- Monitoring labor law updates (e.g., remote work obligations, profit-sharing reforms)
- Providing local employee support in both Spanish and English
Our compliance-first approach minimizes your risk and keeps your Mexico team fully protected.\
6 Benefits of Using an EOR in Mexico With Toku
1. Hire in Weeks, Not Months
With Toku’s ready legal infrastructure, you can start hiring in Mexico within days — instead of waiting months for entity setup.
2. Access Skilled, Bilingual Talent
Mexico offers a vast pool of tech, finance, and operations professionals fluent in both Spanish and English. Toku helps you onboard them effortlessly.
3. Stay Fully Compliant With Mexican Law
We manage IMSS, INFONAVIT, tax withholding, and labor-law obligations — ensuring your hiring meets every local requirement.
4. Avoid Entity Setup Costs
Skip the overhead of incorporation, accounting, and legal filings. With Toku, you can focus on growth, not red tape.
5. Simplify Payroll and Benefits
Toku handles all payroll processing, deductions, and statutory benefits, giving you accurate, on-time payments in MXN.
6. Scale Flexibly
Expand or reduce your headcount anytime. Toku’s EOR model adapts to your business — no long-term commitments or hidden costs.
What 7 Employment Law Highlights Should Global Teams Know About Mexico?
By partnering with Toku, you automatically comply with these obligations, ensuring smooth and lawful operations in Mexico.
How Does Payroll, Taxes, and Compliance Work in Mexico With Toku?
Payroll Frequency and Currency
Mexican employees are typically paid bi-weekly in pesos (MXN). Toku manages payroll processing, pay slips, and tax remittances seamlessly.
Employer and Employee Contributions
Toku ensures all filings and payments to SAT, IMSS, and INFONAVIT are accurate and on time.
Benefits Administration and Year-End Obligations
We calculate and distribute:
- Aguinaldo (Christmas bonus by December 20)
- Vacation and premium pay
- Profit-sharing (PTU)
- Seniority premium upon termination
All employee records are securely maintained in compliance with Mexican data protection laws.
Why Choose Toku vs Other EOR Providers in Mexico?
- 100% Compliance Guarantee: We stay ahead of changing labor and tax laws.
- Bilingual Support: Our Mexico team speaks both Spanish and English.
- Transparent Pricing: No hidden fees or surprise markups.
- Local Expertise: Deep understanding of Mexican employment culture and law.
- Fast Onboarding: Most hires are active within 1–2 weeks.
- Flexible Scaling: Add or reduce staff anytime without entity commitments.
- Tech-Powered Platform: Real-time visibility into payroll, compliance, and contracts.
Toku is built for modern, global teams that value speed, compliance, and transparency.
How Fast Can You Hire in Mexico With Toku?
Most companies can hire and onboard within 7–14 business days.
Timelines depend on:
- Employee documentation readiness
- IMSS registration turnaround
- Payroll setup and cut-off dates
- Candidate notice period
Our local experts manage everything end-to-end, ensuring your employees can legally start working in Mexico — without delays or legal headaches.
Ready to Hire in Mexico With Toku? Book a Demo or Get a Quote
Expanding your business into Mexico doesn’t have to be complicated.
With Toku, you can hire, pay, and manage employees in Mexico without creating a legal entity — while staying 100% compliant with Mexican labor laws.
👉 Get a Quote today and see how fast your team can start operating in Mexico.
What’s the Smartest Next Step to Scale in Mexico With EOR?
Choosing an Employer of Record is not just about avoiding paperwork — it’s about building a foundation for long-term success. With Toku, your business can tap into Mexico’s rich talent market while maintaining compliance, trust, and operational control.
Our local experts handle payroll, taxes, and contracts, ensuring your employees receive everything required under Ley Federal del Trabajo. You’ll have transparency, speed, and peace of mind as you grow your team.
Whether you’re testing the market or scaling a nearshore hub, Toku helps you:
- Hire employees in as little as two weeks
- Ensure all statutory benefits and registrations are fulfilled
- Focus on productivity — not red tape
- Seamlessly transition to a local entity when the time is right
The smartest next step? Talk to our team today. Let’s help you expand into Mexico with compliance, confidence, and clarity.
Frequently Asked Questions About EOR in Mexico
What is an employer of record in Mexico?
An Employer of Record (EOR) in Mexico legally employs your workers on your behalf, managing payroll, benefits, and tax compliance under Mexican labor law.
Can I hire in Mexico without an entity?
Yes. With Toku’s EOR service, you can hire and pay employees in Mexico legally without creating a local company.
How much does it cost to use an EOR in Mexico?
Pricing depends on salary, benefits, and scope. Toku provides transparent quotes that include payroll, benefits, and compliance management.
How long does onboarding take?
Most employees can start working within 1–2 weeks after signing the employment contract and completing documentation.
Are employees hired through Toku full-time under Mexican law?
Yes. They are legally registered employees with the same rights and protections as direct hires in Mexico.
What happens if I later open a local entity?
Toku can transfer employment contracts from our EOR to your entity smoothly, ensuring continuity and compliance.
Do employees receive the same benefits as locals?
Yes. All statutory benefits such as vacation, aguinaldo, and social security are fully provided.
Is payroll handled in Mexican pesos (MXN)?
Yes, all payroll processing and tax payments are made in MXN through local financial channels.
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