Connecting Mexico and USA through talent
About Mexico
The United Mexican States, better known as Mexico, is located in the southern part of North America. It has the fifteenth largest economy in the world by nominal GDP and the eleventh largest by PPP, with the United States being its largest economic partner. Its great economy, area, population, and politic stability make Mexico a regional power and reliable partner for diversifying your talent enhancement needs. and all within your timezone.
General overview
Currency
Mexican Peso
Language
Spanish
GDP
1.2% (2022)
VAT
16%
Population
130 million inhabitants (median age 29.2 years)
Payroll frequency
Weekly, biweekly or monthly, depending on the type of work
Minimum wage
Below $ 9 USD per day, compared to $ 7.25 in US per hour
Average overhead labor costs
Average overhead in Mexico us 15% as compared to 45% in US
Harness the power of Mexican talent
As attractive as it may be, hiring employees in Mexico may be challenging, you must dedicate considerable time and effort, just to get familiarized with intricacies of Mexican Law. Alternatively, you can hire specialized counsel to make sure you comply with all applicable regulations.
From the financial perspective, setting up a business entity and incurring the cost not only of incorporating but also of maintaining it, along with compliance and overhead costs, may be not the most cost-benefit effective solution for most companies.
From the risk perspective, the consequences of not complying with relevant laws, not conducting appropriate due diligence or not hiring appropriate counsel may be hash and may hold your company or yourself to liabilities.
Fortunately, we have the best solution! Let us walk you through the complexities and caveats of the Mexican regulatory landscape, so you can be confident of complying with relevant regulation, while you can focus on growing your business.
Non-working days
Mexican Federal Labor Law provides the following mandatory non-working days
- January 1st;
- February (the first Monday) in commemoration of February 5th;
- March (the third Monday) in commemoration of March 21st;
- May 1st;
- September 16th;
- November (the third Monday) in commemoration of November 20th;
- December 1st of every six years, when it corresponds to the transmission of the Federal Executive Power;
- December 25th;
- Election day, as provided by the federal and local electoral laws, in the case of ordinary elections (Usually 1st Sunday of June).
Mandatory labor benefits
Mexican Federal Labor Law provides the following mandatory labor benefits
- December bonus (Aguinaldo)
- Vacation bonus (Prima vacacional)
- Paid vacation or statutory leave (Vacaciones)
Importance of proper termination of contract
- If for any reason the employer would discharge the employee, still labor benefits would have vested, and must be paid accordingly, in a mandatory severance payment (finiquito).
- However, if the employee is wrongly discharged, additional damages for wrongful termination may apply, equivalent to 3 months of salary (Liquidación).
Taxes in Mexico
Employer
| Maternity & Illness |
| Housing Fund |
| Seniority Insurance |
| State Payroll Tax |
| Retirement |
| Disability & Life Insurance |
| Daycare Insurance |
| Labor risk insurance |
Employee
| Seniority Insurance |
| Disability & Life Insurance |
| Maternity & Illness |
Official leaves
The Federal Labor Law establishes several statutory leaves-
VACATION LEAVE
First and most importantly Statutory leave or vacation period that every employer must allow to each employee. Actual benefit varies, depends on the employee’s length of service, being as follows:
- 1 year of service: 6 days
- 2 years of service: 8 days
- 3 years of service: 10 days
- 4 years of service: 12 days
- After 4 years of service, each additional 4 years of service results in a 2 day increase in vacation entitlement.
Other leaves
- Pregnancy leave of absence (6 weeks, of which up to 4 can be rolled over to Maternity leave)
- Maternity leave of absence (6 weeks, that could be extended for up to 4 additional if rolled over from Pregnancy leave)
- Nursing period (at work resting periods for lactancy of minors, 6 months after birth)
- Paternity leave of absence (5 working days for biological paternity or adoption)
Type of employer-employee relationship:
According to its duration:
- Indefinitely (default)
- Definite time (by exception)
- Definite work (by exception)
According to the place where employee discharges its duties:
- In premises (on site)
- Remote “teletrabajo” (regulated since 2021 and permitted only for certain activities)
- Specialized subcontracting (permitted only under special set of narrow circumstances)
Benefits for companies
Acquisition of specific and highly trained talent
Transfer of legal compliance obligations
There are no hidden charges
Payroll Administration
We simplify your processes with human capital
With us you save time, money and worries in the administrative process
Benefits for employees
Support and attention 24/7
Direct interaction with the legal and human resources experts that will accompany you at all times
Opportunities for everyone. Talent Transfer puts your talent to work.
You will join to a community with international transcendence.
Legal compliance (Social Security, Labor and Taxes)
Perceptions above those existing in the market. With full clarity of your income, benefits and rights.
Benefits and rights superior to the law, as well as generous policies of holidays and vacations.
We need your data
A trained advisor will contact you by e-mail.
Let’s Get Started
Choose the best plan for your company
staffing
- ● Full legal and tax compliance for hiring workers in Mexico remotely
- ● Payroll processing
- ● Full employee lifecycle processing
- ● Onboarding for each hiring
- ● Shield your US legal business from liability from Mexican employees
- ● We handle all legal and tax matters related to your employees.
- ● We handle all legal intricacies, so you can focus on getting the right talent to grow your business
- ● Avoid harsh penalties and legal consequences due to non-compliance
recruting
- We handle your talent acquisition needs
- We seek for your talent candidates
- Pre selection of viable candidates
- Save time and resources
- Payment due only upon hiring
comptroller
- Full tax and corporate compliance for your Mexican company
- Internal due process and compliance procedures
- Fulfilling and important mandatory role as provided by corporate laws
- Protecting rights of investors
- Overseeing corporate and tax compliance
compliance officer
- Full legal compliance for your Mexican company for tax, labor and corporate legal matters.
- Internal due process and compliance procedures
- Compliance with anti-money laundry and anti-tax fraud regulations
- Preventing liabilities and penalities
- Overseeing legal compliance and conflicts of interest