Our Employer of Record (EoR) / International PEO solutions enable staffing organisations and foreign businesses to expand into Mexico and hire employees without the need to establish a new corporate entity. 

We take care of the entire employment relationship including managing all social security costs, social benefits and statutory rights afforded to the employee. The best part is that our EoR solutions are completely managed by the Capital GES team, allowing you to concentrate on international expansion. 


Interested in doing business in Mexico? Here are the top five things you need to know: 

1. Social security
Social security contribution include:
- Health Care
- Social Security

Employer contributions providing that employees haven’t had any accidents (labour risk rate), total approximately 41% of the base salary for social security contributions.

Employee contributions total approximately 3% of the base salary for social security contributions.

2. Bonus and Expense Payments
Bonuses are treated as additional salary.

Business-related expenses can be reimbursed upon valid original receipt, containing Capital’s information, in order to enable tax deduction.

3. Employment contract details
There are no specific rules governing the language for employment contracts. The employee must understand the contract language.

Contracts must be in writing.

4. Fixed-term contract extensions
There is no limit for fixed-term contracts, as long as the nature of the work justifies the fixed-term contract, according to labour legislation. Successive fixed term contracts without an objective reason may deem the employment relationship as indefinite. 

5. Termination costs
Employment contracts can only be terminated if there is a just cause otherwise an indemnification has to be paid as follows:

- 3 months of salary;
- 20 days of salary for each year of employment;
- Seniority premium equal to twelve 12 days’ salary per year of employment, with a maximum cap of twice 2 the minimum daily wage per day;
- Proportional share of vacation, Christmas bonus, and profit sharing for the year in which the employment was terminated; and
- Salaries accrued from the date of termination to the date of payment of indemnities.


If you are looking to expand your workforce in Mexico (or any other of the 30 countries we operate in) without the burden of registering an entity and incurring significant expense and administration then please get in touch with Nick Broughton at Capital GES on +44 7539 337 563 or email Nick.Broughton@Capital-GES.com

Capital GES provides market-leading employment services to staffing companies, corporate clients and independent contractors in all sectors across Europe, Latin America and southern Africa. With headquarters in Switzerland and offices in USA, Brazil and UK, Capital GES provides services including Employer of Record, Contractor Payroll, Invoice & Pay and IC Compliance Checking.








For more detailed information on employment matters in Mexico, including statutory benefits, employment regulations and contract requirements, download our free guide today or contact our team for a free consultation. ​​