Hiring in Mexico through an Employer of Record
A Mexican employer pays into the housing fund and the retirement branch of social security, both set in federal law.
Employing someone in Mexico through an Employer of Record costs their salary, plus 5 percent housing fund (infonavit), 2 percent retirement branch, plus the vendor's own monthly fee, the lowest published being from $199 from RemoFirst. Major charges in this country had no official figure we could read, so that is a floor, not the full cost. The charges were read from diputados.gob.mx and the other government pages listed below, last on .
What does an employer pay on top of salary in Mexico?
- 5% Housing fund (INFONAVIT)
- 2% Retirement branch
This is a floor, not the full cost: major employer charges in Mexico are left out, as explained below.
Each charge, and what it is for
- Housing fund (INFONAVIT): 5 percent of the contribution base salary (Reglamento del INFONAVIT).
- Retirement branch: 2 percent of the contribution base salary (Ley del Seguro Social art. 168).
This is well short of the full cost. Mexico's biggest employer charge, the old age and severance branch, rises with salary each year and is left out, along with the health, disability, childcare and work-risk branches. Treat this total as a floor, not an estimate.
What does one employee in Mexico cost a year?
Salary plus the charges above plus the vendor's published monthly fee, for twelve months. "At least" marks a vendor whose published fee is a starting price. Not included: benefits and currency conversion fees.
Vendor fees used
Atlas HXM from $599, Deel from $599, G-P from $599, Multiplier from $459, Oyster $699, Pebl (Velocity Global) $399, RemoFirst from $199, Remote from $599, Remundo from $498, Rivermate from $349, Skuad from $199, Slasify from $250, Teamed from $599. Not published: Rippling.
Where these numbers come from
- Housing fund (INFONAVIT) on diputados.gob.mx read
- Retirement branch on diputados.gob.mx read
- Each vendor's own pricing page, linked from its name above.