Countries/Mexico/In-country employment
Latin America · In-country employment
In-country employment in Mexico
Mexico is often a nearshore manufacturing or commercial seat. The true cost is base pay plus IMSS, housing-fund contributions, Aguinaldo, vacation premium, and — where it applies — profit sharing (PTU).
Subcontracting of core activities is restricted. In-country employment has to be structured as a lawful specialised service, not as a way around the 2021 outsourcing reform.
Plan an in-country hire- ✓
Mexican employment contract — The person is employed under the Federal Labour Law (LFT), not as an unpaid visitor.
- ✓
You still manage — Your managers set the work. We run the contract, IMSS registration, and payroll.
- ✓
No company first — Start the hire before you incorporate. Convert later if you open a Mexican entity.
Statutory stack
What sits on top of wages
Employer social cost, Aguinaldo, and vacation premium sit on top of daily salary. This is not a salary survey.
| Item | 2026 rule |
|---|---|
| IMSS + INFONAVIT + retirement | IMSS employer branches plus 5% INFONAVIT and 2% retirement on the integrated salary base (SBC) — often around 25–30% of SBC before risk premium |
| Aguinaldo | At least 15 days' salary by 20 December (Art. 87 LFT), prorated for part years |
| Vacation premium | At least 25% of vacation pay (prima vacacional) |
| PTU | 10% of taxable profits distributed to eligible staff — a real May cash line when the company is profitable |
| Minimum wage 2026 | MXN 315.04 / day general zone; MXN 440.87 / day Northern Border Free Zone, from 1 January 2026 |
Role salary ranges are not on this page. Open the 2026 salary guide when those figures are published.
Choose a path
In-country employment vs incorporating
A Mexican sociedad is the usual long-term employer, especially for a plant. In-country employment is for a first seat that must start before the company exists — within the specialised-services rules.
| In-country employment | Your own entity | |
|---|---|---|
| When to use it | A first country manager or commercial hire before the Mexican company exists. | When you want your own Mexican company as employer, especially for plant headcount. |
| Who employs | A licensed local employer holds the contract, registered for IMSS, where the arrangement is a lawful specialised service. | Your Mexican company registers with IMSS, INFONAVIT, and SAT in its own name. |
| Outsourcing reform | You cannot use a third party to supply your core production or commercial activity as a disguised payroll. Structure has to match the law. | Your own company employs core staff directly. |
Onboarding
From briefing to first payday
IMSS alta is due within days of the start date. That — not the search — sets the calendar.
01
Briefing
Workplace (general vs border wage zone), role, and whether the activity is specialised vs core.
02
Contract
Written individual employment contract under the LFT, with daily salary and statutory benefits.
03
IMSS
Register the employee, calculate SDI/SBC including Aguinaldo and vacation premium, and set CFDI payroll receipts.
04
First payday
Monthly or biweekly payroll with IMSS, INFONAVIT, ISR withholding, and state payroll tax where it applies.
05
Convert or close
Move the person onto your Mexican company, or terminate with statutory severance where due.
Compliance
Five points that change the hire
01
Aguinaldo is statutory
At least 15 days' salary by 20 December. It cannot be waived or quietly folded into monthly pay without still meeting the annual minimum.
02
Two wage zones
General minimum MXN 315.04 a day; Northern Border Free Zone MXN 440.87 a day from 1 January 2026. Professional minima also exist for listed trades.
03
Integrated salary (SDI)
IMSS contributions are calculated on salary plus statutory benefits, not on a naked daily wage.
04
Termination
Dismissal without a statutory cause generally triggers constitutional severance (three months plus 20 days per year, and a seniority premium in many cases). Build it into the hire plan.
05
Foreign nationals
A work visa / resident status matching the job — not a visitor entry — if the person is not a Mexican national.
Questions
FAQ
- Can a foreign company hire in Mexico without a Mexican company?
- Not on its own IMSS registration without a local employing vehicle. In-country employment uses a licensed local employer, within specialised-services rules, while your managers direct the work.
- Is Aguinaldo required?
- Yes. At least 15 days' salary, paid by 20 December, prorated for incomplete years (Article 87 of the Federal Labour Law).
- What is the 2026 minimum wage?
- MXN 315.04 per day in the general zone and MXN 440.87 per day in the Northern Border Free Zone, from 1 January 2026.
- Can we convert later?
- Yes. When your Mexican entity is ready, we move the employment across under local rules and close the in-country assignment.
Labour-law detail for Mexico sits on the hiring guide.
Other markets
Other in-country employment pages
Reviewed 11 September 2026
This is a hiring briefing for multinational employers, not legal advice. Statutory rates move by city, province, and sector. Confirm the place of work before you issue an offer.
Sources
- Ley Federal del Trabajo — Art. 87 Aguinaldo; vacation premium; termination
- CONASAMI — 2026 general and Northern Border Free Zone minimum wages
- Ley del Seguro Social / INFONAVIT contribution rules
Plan an in-country hire in Mexico
Tell us the city, the role, and when they need to start.