Destination Guide

Mexico

Gini Talent simplifies employment in Mexico, managing payroll, benefits, taxes, and compliance on one platform.

Services available in this country:
Employer of Record
Contractor Management
Payroll

Capital City

Mexico City

Currency

Mexican Peso
(mex$, MX$)

Languages

Spanish

Population size

130,861,007
Who needs authorization?
Mexican citizens don’t need a permit; foreign nationals must have explicit work authorization before starting work.
How the process works (INM)
Employer files with INM; work can start only after the residence card / official authorization is issued.
Main work statuses
Common routes: Temporary Resident Visa with Work Authorization, Permanent Resident status, and Independent/Investor authorization.
Working hours & overtime
Max week is 48 hours; overtime is double for the first 9 hours/week, and triple beyond limits.

Discover working conditions in Mexico

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IMSS is mandatory
Once employment exists, IMSS registration is required for both locals and foreigners.
Contributions & payroll accuracy
Contributions are shared employer/employee, paid monthly, and depend on risk class + salary ceilings.
Coverage scope
IMSS covers public healthcare, work injury/occupational disease, maternity, disability, and retirement benefits.
Renewals & audits
Continuous IMSS compliance is often checked in immigration renewals, audits, and labor inspections.
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Discover social security in Mexico

Residency rules
Residents may be taxed on worldwide income; non-residents are taxed on Mexico-sourced income.
Other payroll deductions
Common items include IMSS, AFORE, and INFONAVIT contributions (plus local employer payroll taxes).
Salary tax (ISR) via withholding
ISR is progressive and withheld by the employer with monthly filings/payments to SAT.
RFC & DTAs
An RFC tax ID is required for payroll/banking; DTAs may reduce double taxation with proper documentation.

Taxation system in Mexico

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Termination types
Resignation, justified dismissal, unjustified dismissal, mutual separation, contract expiry, or economic necessity.
Severance basics (unjustified)
Typically includes 3 months’ integrated salary, plus 20 days/year (if no reinstatement), and accrued benefits.
Notice approach
Mexico generally doesn’t require statutory notice periods, but written termination notice is mandatory.
Foreign employee offboarding
Close payroll/tax/IMSS records and update immigration status if employer sponsorship ends.
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Employment termination in Mexico

Public schools (SEP)
Public education is run by SEP, instruction is mainly Spanish, and requires a residence permit for foreign children.
International schools
Programs include IB, US Diploma, British (IGCSE/A-Level), mostly in Mexico City, Monterrey, Guadalajara, Querétaro.
Private schools
Private schools often offer bilingual/multilingual options and stronger academic support with smaller classes.
Enrollment documents
Usually passport/residence permit, transcripts, transfer certificate, health/vaccination records, and placement tests.

Education Options for Children

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Private healthcare
IMSS gives access to public hospitals/clinics; quality and waiting times can vary by location.
Insurance structure
IMSS is mandatory for employees; many add private/international insurance for broader access.
Private healthcare
Faster appointments, higher comfort, and more English support—especially in major cities.
Emergency & pharmacies
National emergency number is 911; pharmacies are widespread, often extended hours, with good access to meds.
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Healthcare Options in Mexico

Holiday Name
Mexican Name
Date
Type
New Year’s Day
Año Nuevo
January 1
National
Constitution Day
Día de la Constitución
First Monday of February
National
Benito Juárez’s Birthday
Natalicio de Benito Juárez
Third Monday of March
National
Labor Day
Día del Trabajo
May 1
National
Independence Day
Día de la Independencia
September 16
National
Revolution Day
Día de la Revolución
Third Monday of November
National
Inauguration Day
Transmisión del Poder Ejecutivo
December 1 (every 6 years)
National
Christmas Day
Navidad
December 25
Religious
Entity Options
Common structures include Private Limited Company, LLP, Branch/Liaison/Project Offices—Pvt. Ltd. is often preferred for credibility and ownership flexibility.
Banking & Tax Setup
Corporate bank account requires incorporation docs and KYC; ongoing tax includes corporate tax, GST (if applicable), and withholding (TDS) compliance.
Incorporation (MCA Process)
Setup is largely digital via MCA: DSC, DIN, name reservation, SPICe+ filings, and issuance of incorporation certificate plus PAN/TAN.
Payroll, Compliance & Incentives
Before hiring, EPF/ESI/PT registrations may be needed; ongoing bookkeeping/audit/ROC filings apply, and incentives exist via SEZs/PLI and state programs.

Business Setup Services

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Download Mexico Destination Guide

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Living Cost in Mexico

Discover the living costs in Mexico with our detailed insights, helping you plan your budget and make informed decisions for your lifestyle.




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FAQ

Gini Talent streamlines employment in Mexico by handling payroll, taxes, benefits, compliance, contract management, and contractor services on a single platform. With Mexico City as its capital, Spanish as the language, and a population of ~131 million, Mexico offers robust opportunities for staffing across industries such as tech, automotive, tourism, and agriculture. We support global companies to expand in Mexico with localized expertise and operational efficiency.

Mexican nationals do not need a work permit to work legally in Mexico.
Foreign nationals must obtain work authorization through an appropriate immigration status (Temporary or Permanent Resident with permission to work) before starting employment.

Mexico grants work rights through immigration status rather than a standalone permit:

  • Temporary Resident with Work Authorization
  • Permanent Resident Status (work allowed without additional authorization)

Independent / Investor Authorization for self-employed individuals or company directors

No. Tourist or visitor visas cannot be converted directly into work authorization. Foreign nationals must apply for the appropriate residence status with work permission through the National Immigration Institute (INM).

Yes. IMSS registration is mandatory for both Mexican and foreign employees from the first day of employment. Work cannot legally begin without IMSS registration.

IMSS provides:

  • Public healthcare services
  • Work accident and occupational disease insurance
  • Maternity benefits
  • Disability coverage

Retirement and survivor pensions
These benefits apply equally to local and foreign employees.

In limited cases, foreign employees may be exempt under international social security agreements, subject to approval and proper documentation. Otherwise, IMSS registration is mandatory.

Legal working hours are:

  • Day shift: up to 8 hours
  • Night shift: up to 7 hours

Mixed shift: up to 7.5 hours
The maximum weekly working time is 48 hours.

Overtime is:

  • Paid at double rate for the first 9 overtime hours per week

Paid at triple rate if these limits are exceeded
Overtime is strictly regulated under Mexican labor law.

Employees are entitled to paid annual leave, which increases with years of service, as well as paid public holidays and rest days in accordance with labor law.

Both local and foreign employees are subject to income tax (ISR). Employers are responsible for calculating, withholding, and remitting payroll taxes on a monthly basis.

Individuals are considered tax residents if they:

  • Have their primary residence in Mexico, or
  • Spend more than 183 days in the country, or

Have their center of vital interests in Mexico
Tax residents are generally taxed on worldwide income.

Yes. Mexico has Double Taxation Avoidance Agreements (DTAs) with many countries to prevent double taxation and allow tax credits or exemptions where applicable.

Severance pay applies mainly in cases of unjustified dismissal and may include:

  • Three months’ salary
  • 20 days’ salary per year of service
  • Seniority premium (where applicable)
  • Accrued benefits

There is no statutory notice period, but employers must provide written notice stating the cause of termination. Failure to do so may render the termination invalid.

Employers must:

  • Deregister the employee from IMSS
  • Complete final payroll and tax payments
  • Settle accrued benefits
    For foreign employees, immigration authorities must also be notified if sponsorship ends.

Yes. Employees can access public healthcare through IMSS. Many local and foreign families also choose private healthcare or international hospitals for faster access and English-speaking services.

Families can choose from:

  • Public schools (Spanish curriculum)
  • Private bilingual schools

International schools offering IB, American, British, and European curricula
These options are available to both local and foreign residents.

Yes. Foreign investors can establish companies in Mexico with 100% foreign ownership in most sectors, subject to registration and regulatory requirements.

GiniTalent’s EOR service enables companies to hire employees in Mexico without setting up a local entity. GiniTalent acts as the legal employer and manages payroll, taxes, IMSS, and labor compliance.

GiniTalent provides:

  • End-to-end recruitment and talent sourcing
  • Local labor market advisory
  • Technology consulting for HR systems, workforce analytics, and digital hiring processes

Together, GiniTalent and GiniFinance provide:

  • Company incorporation
  • Tax and IMSS registration
  • Accounting and payroll setup
  • Ongoing financial and legal compliance
    offering a single-point market entry solution.

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