Hiring in Mexico Just Got Easier: EOR & Labor Reforms Foreign Employers Must Know

By easyco Published August 10, 2025 Updated October 10, 2026

Mexico offers a large bilingual talent pool in the same time zones as North America. Before hiring, foreign companies must choose how to employ people legally, because Mexico’s 2021 outsourcing reform changed the rules.

Why global companies are hiring in Mexico

Strong engineering, finance and customer-support talent
Overlapping working hours with the US and Canada
Manufacturing and nearshoring hubs in the north and the Bajío

Mexico’s outsourcing reform

Since April 2021, a company may not supply its own employees to work for another company. Only specialized services or works that are not part of the client’s corporate purpose or main activity may be subcontracted, and the provider must be registered in the Ministry of Labor’s REPSE registry. The client is jointly liable if the provider fails to pay workers.

How to hire in Mexico

Option 1: Set up a subsidiary

A Mexican company employs staff directly, registers with the IMSS and runs payroll. It is the clearest structure for a long-term team. See how to set up a company in Mexico.

Option 2: Use an employer of record (EOR)

An EOR hires staff on its own payroll and assigns them to you. Because of the 2021 rules, check carefully whether the arrangement fits the law for your activity and get local legal advice. Many companies use an EOR only for a short test period before opening their own entity.

Payroll in Mexico: what you need to know

Minimum daily wage of MXN 315.04 (MXN 440.87 in the Northern Border Free Zone) from 1 January 2026
IMSS, INFONAVIT and retirement contributions, plus a state payroll tax
Aguinaldo of at least 15 days’ salary, vacations of at least 12 days after the first year, and profit sharing
CFDI payroll receipts for every payment

Roles companies hire for

Software development, customer success, finance and accounting, sales for the Mexican market, and operations for manufacturing and logistics.

Get help from Easyco

Easyco coordinates the company setup in Mexico up to the issue of the RFC, and supports companies afterwards with tax, accounting, payroll and company compliance, including a registered office address. Contact us to discuss your project.