# Hiring in Mexico Review edition — pending Theo Smith approval. ## Can this worker be employed through an EOR? Personnel subcontracting is prohibited. The specialized-services exception requires work outside the beneficiary’s corporate purpose and predominant economic activity and registration under REPSE. An EOR brand name does not establish that this exception applies. Applies to: Mexico subcontracting reform; actual services and supervision determine the analysis Still to establish: Beneficiary activity, actual structure, REPSE status, contract and employer identity - Beneficiary activity, actual structure, REPSE status, contract and employer identity Next step: Confirm Beneficiary activity, actual structure, REPSE status, contract and employer identity. - [Mexico Official Gazette](https://sidof.segob.gob.mx/notas/docFuente/5619148) Checked 2026-09-28. Research status: partial. ## What does employment cost above salary? The statutory aguinaldo is at least fifteen days’ salary, payable before December 20. Employees who worked less than a full year receive the proportional amount. Applies to: Mexico Federal Labour Law ordinary aguinaldo Still to establish: Salary basis, proration, enhanced terms, contributions and profit sharing - Salary basis, proration, enhanced terms, contributions and profit sharing Next step: Confirm Salary basis, proration, enhanced terms, contributions and profit sharing. - [Mexico PROFEDET](https://www.profedet.gob.mx/micrositio/index.php/aguinaldo) Checked 2026-09-28. Research status: partial. ## What must the agreement contain? After the first year of service, the statutory annual paid holiday entitlement starts at twelve working days. Further service increases the entitlement. Applies to: Mexico ordinary annual leave; not a flat entitlement for every service band Still to establish: Service band, vacation premium, schedule and more favourable terms - Service band, vacation premium, schedule and more favourable terms Next step: Confirm Service band, vacation premium, schedule and more favourable terms. - [Mexico PROFEDET](https://profedet.gob.mx/micrositio/index.php/vacaciones) Checked 2026-09-28. Research status: partial. ## When must payroll and payments happen? The statutory aguinaldo is at least fifteen days’ salary, payable before December 20. Employees who worked less than a full year receive the proportional amount. Applies to: Mexico Federal Labour Law ordinary aguinaldo Still to establish: Salary basis, proration, enhanced terms, contributions and profit sharing - Salary basis, proration, enhanced terms, contributions and profit sharing Next step: Confirm Salary basis, proration, enhanced terms, contributions and profit sharing. - [Mexico PROFEDET](https://www.profedet.gob.mx/micrositio/index.php/aguinaldo) Checked 2026-09-28. Research status: partial. ## What should a buyer verify about the legal employer? Personnel subcontracting is prohibited. The specialized-services exception requires work outside the beneficiary’s corporate purpose and predominant economic activity and registration under REPSE. An EOR brand name does not establish that this exception applies. Applies to: Mexico subcontracting reform; actual services and supervision determine the analysis Still to establish: Beneficiary activity, actual structure, REPSE status, contract and employer identity - Beneficiary activity, actual structure, REPSE status, contract and employer identity Next step: Confirm Beneficiary activity, actual structure, REPSE status, contract and employer identity. - [Mexico Official Gazette](https://sidof.segob.gob.mx/notas/docFuente/5619148) Checked 2026-09-28. Research status: partial. ## Can an EOR employ a developer doing our core business work in Mexico? Applies to: Mexico personnel subcontracting and specialised services; actual structure determines application Do not assume that an EOR contract makes personnel supply permissible. Assess the actual work and beneficiary business against Mexico’s subcontracting restrictions before selecting the route. Supported rule: Mexico prohibits personnel subcontracting. The specialised-services exception requires work outside the beneficiary’s corporate purpose and predominant economic activity, with the required REPSE registration. - Beneficiary corporate purpose and main activity - Nature and supervision of the developer’s work - Supplier registration and applicable contractual route Illustrative example: A software business hiring a developer for its main product cannot conclude that the work is specialised merely because the provider has a REPSE registration. The activity conditions still need assessment. - [Mexico Chamber of Deputies: Federal Labour Law](https://www.diputados.gob.mx/LeyesBiblio/pdf/LFT.pdf) ## What should we add to a Mexican contractor-conversion budget beyond monthly salary? Applies to: Ordinary Mexican statutory minima; actual benefit bases, premiums and enhanced terms require calculation Include statutory benefits, employer charges and provider costs after confirming a lawful employment route. A twelve-times-monthly-salary comparison misses obligations such as aguinaldo and vacation-related payments. Supported rule: PROFEDET states that aguinaldo is at least fifteen days’ salary with proportional entitlement for part-year service, and that annual holiday starts at twelve working days after the first year. - Lawful route and historic classification - Salary basis, proration, vacation premium and social contributions - Profit sharing where applicable and provider fees Illustrative example: For a full-year employee with a quoted daily salary of MXN 1,000, the fifteen-day minimum gives MXN 15,000 aguinaldo before any applicable payroll treatment. This is one component, not an all-in employment quote. - [PROFEDET: aguinaldo](https://www.profedet.gob.mx/micrositio/index.php/aguinaldo) - [PROFEDET: vacations](https://profedet.gob.mx/micrositio/index.php/vacaciones)