How to hire remote employees in


Late-night tacos on busy streets, grand old cathedrals, ancient ruins, and some of the best remote talent in all of Latin America. If you want to hire a new team member in Mexico, you’re in the right place. On this page, we’ll teach you how to hire remote talent in Mexico without spending tens of thousands and wasting months on legal red tape.

Country snapshot

Mexican Peso (MXN)
up to 22.75%
Monthly / Bi-Monthly

What to know before you hire in 


Mexico’s become a popular spot for hiring remote talent—and a popular place for remote workers to live. If you want to hire someone out of Mexico, you’ve got two options: Hire them as an employee, or hire them as a contractor. Here’s what you should know before you make a decision.

If you want to successfully hire in 


, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 


. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 


 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 


Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 



It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 


 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

Can be less risky than hiring employees

Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 



If you’re hiring contractors in 


, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 


Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 


If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Mexico than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Mexico.

Taxes in 


Employer tax

Sickness & Maternity

Disability & Death


Layoff and Retirement Benefits

Work Related Accidents (depends on the state)

Housing Tax

Payroll State Tax (depends on the state)

Individual tax


Paid Time Off (PTO)

Mandatory Vacations:

  • 1 year seniority = 6 days
  • 2 years seniority = 8 days
  • 3 years seniority = 10 days
  • 4 years seniority = 12 days
  • 5 to 9 years seniority = 14 days
  • 10 years or above – additional 2 days per 5 years.
  • No Carryover policy

Public Holidays

8 public holidays.

Sick Days

Pay is by social security based on the social security cap called “salario de cotizacion (SBC)”.

Maternity Leave

holidays for maternity leave (42 days before and42 days after birth of baby). Pay is by social security based on the social security cap called “salario decotizacion (SBC).

Paternity Leave

Male employee may take up to two weeks of paid time off following the birth of your baby.

Parental Leave

Parental leave is not mandatory.

Other Leave


Marriage Leave

No Info.

Bereavement Leave

You may take up to 20 calendar days (4 weeks) of full paid time (base salary) following the death of an immediate family member.


Termination Process

No mandatory process is required, however formalization of the termination before the conciliation and arbitration court is suggested.

Notice Period

There are no statutory notice periods for employment contracts in Mexico.

The employer is required to notify the employee in writing of the date and cause of dismissal, or must notify the relevant Conciliation and Arbitration Board no later than five days after the date of termination.

Severance Pay

Voluntary resignation: the employer must pay the employee all benefits that are due.  If the employee has 15 years or more of seniority, the employee is entitled to 12 days’ salary for each year employed.

Termination with Cause: The employer must pay the employee all benefits that are due. In addition, 12 days of salary for each year employed.

Termination without Cause:3 month’s salary, 20 days for each year in the company, and a seniority bonus of 12 days per year of service.  The employee will also receive back salary from the date of dismissal to the day that the employer complies with the Labor Board’s decision.

Probation Period

Optional, but the common practice is 3 months.

Employee requirements in 


Working Hours

Full time employment is considered 8 hours daily, 40 hours weekly.


Employees who earn minimum wage can work up to 9 hours exempt per week. The following 9 hours will be paid at a rate of 200% salary, with any hour beyond that paid at a rate of 300%.

Employees that earn more than the minimum wage are exempt for only 50% of the overtime worked per week up to 5 minimum wages per week. The first 9 hours will be paid at a rate of 200% and the following hours will be paid at a rate of 300%.

Want to hire contractors, anywhere? Start with Panther today for $0.

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