Mexico

Employing an offshore workforce can be a viable human resource strategy, however, it can also present complex challenges. By utilizing Satellite Teams, you can effortlessly and confidently recruit and oversee top-tier talent from Mexico through a single platform.

Working With Top Global Talent Just Got Easier

Satellite Teams provides an all-in-one solution for hiring the most talented remote workers in Mexico while ensuring compliance with local labor laws, regulations, payroll, taxes, benefits management, and other crucial aspects of HR management.

What’s The Talent Like In Mexico?

The Workforce

Mexico has no shortage of skilled, talented workers that contribute to just about any industry. However, the highest-growing industries in the country include energy, information technology, and healthcare.

A Bilingual Workforce

Mexico is located in the southern portion of North America, giving it the geographical advantage of being close to the United States and Canada. Its proximity to the United States and Canada means much of its workforce is fluent in both English and Spanish.

Large Pool of Talent

With a population of about 128 million (2020 estimate), Mexico offers one of the largest pools of bilingual talent in its region.

Benefits of Hiring Talent From Mexico

Mexico is a great destination for global talent that can help out with your business. Take a look at why.

Steadily Growing Economy

Mexico is the 15th largest economy in the world and possesses a real GDP growth rate of 1.94% (2018 estimate).

Cost-Effectiveness

For foreign businesses looking to reduce costs, Mexico is a great place to start thanks to the relatively low cost of labor. The current minimum wage in the country is only about P48 MXN an hour, or roughly $3 USD.

Government Incentives

Various incentives and programs are provided by the Mexican government to attract foreign investments, including benefits like ease of doing business and state payroll tax as low as 3%.

Most Hired Roles in Mexico

Business Development Specialist

R. Garcia

A reliable, hardworking bilingual business specialist that maintains professionalism at all times whether talking to a client, business partner, or any other stakeholder in Mexico or abroad.

Technical Support Specialist

B. Cruz

Experienced technical support specialist with a steady record of installing, configuring, updating, and maintaining equipment such as routers, PC, access point devices, and more.

Medical Coder

M. Morales

Efficient and meticulous coder with years of experience examining the coding submissions and codes of junior medical coders, verifying that healthcare facilities adhere to clinical coding standards, and conducting regular reviews of patients' medical records.

What It Takes To Hire Global Talent in Mexico

  • Minimum Wage
    There are two categories for the general minimum wage in Mexico. The first category is MXN 185.56 for the 432 municipalities that make up the "Free Zone of the Northern Frontier," while the second category is MXN 123.22 for the rest of the country.

  • Maternity & Illness
    Employers are obliged to pay at least 20.40% tax on maternity and illness.

  • Housing Fund
    Employers must pay a 5% tax towards the state’s housing fund.

  • Retirement
    2% in tax goes from the employer towards the state’s retirement fund.

  • Disability and Life
    1.75% in tax goes from the employer towards disability and life insurance.

  • Daycare Insurance
    1% from the employers is taxed to go towards daycare insurance.

  • Labor Risk Insurance
    Roughly 0.5% in taxes goes from the employer and towards labor risk insurance.

Employer Income Tax Obligations:

  • Employers are taxed roughly around 35% on a combination of maternity & illness, housing, retirement, labor risk, and more.

Employee Income Tax Obligations:

  • Employees are required to pay their taxes based on a calculation according to their income. Tax rates range from 1.92% to 35%.

  • Employees must pay taxes on seniority insurance, disability and life insurance, and maternity & illness.

  • Statutory leave:
    All employers in Mexico are required to provide their employees with a minimum vacation period as per the Federal Labor Law.

  • The length of minimum vacation days depends on the employee's length of service, as follows:
    • One year of service: 12 days
    • Two years of service: 14 days
    • Three years of service: 16 days
    • Four years of service: 18 days
    • Five years of service: 20 days
    • After the sixth year of service, the annual leave will increase by 2 days every 5 years of service.

  • Pregnancy and maternity leave:
    • Pregnant employees are entitled to up to 12 weeks of paid maternity leave of absence as per the Federal Labor Law and the Social Security Law.
    • Six weeks can be taken before the birth and six weeks after, but with authorization from the Mexican Social Security Institute (IMSS), up to 4 weeks of the 6 weeks can be moved to after the birth.
    • Mothers are also entitled to additional rest breaks during the six months after the birth (the nursing period).

  • Paternal leave:
    Employees have the right to take five working days of paid paternity leave of absence in the event of birth or adoption of a child.

  • Other leaves
    • Women who adopt a child can take six weeks of paid maternity leave of absence after the date of adoption.
    • Fathers are entitled to five days of paid leave following the adoption of the child.

The Federal Labor Law in Mexico makes a distinction between two types of employment termination: dismissal (Spanish: despido) and termination (Spanish: terminación). Dismissal can be justified by reasons related to the employee's conduct, while termination can be for economic reasons, employee incapacity, force majeure, death of the employee, or termination of the work. Articles 47 and 52 of the country’s Federal Labor Law provide guidelines on dismissal and termination, respectively.

  • Notice period
    Mexican law does not require employers or employees to give advance notice of a dismissal or resignation, and notice obligations for employees are not legally recognized or enforced. While employers can be obligated to provide notice if it has been agreed to, this is not common practice in Mexico.

  • Probationary period
    For contracts longer than 180 days or with no set end date, employers may establish a probationary period of up to 30 days. This period can be extended for up to 180 days for certain managerial, technical, or professional positions.

Compare Costs of Hiring in Mexico

Mexico

Account Executive

All-inclusive Monthly Rate

$2640 - $4150

United States

Business Intelligence Analyst

All-inclusive Monthly Rate

$7,280 - $9,986

Get The Best Talent Mexico Has To Offer

Find out how you can easily access Mexico’s top talent. Reach out to us today!

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