Updated May 20th 2024

All About Remote Work in Mexico

Learn what it takes to hire employees in Mexico for remote work and how Justworks EOR can make hiring and managing those employees easier.

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Building a Remote Team in Mexico

In recent years, Mexico, particularly Mexico City, has boomed as a remote work hub. Businesses can easily tap into talent in Mexico using a global EOR provider like Justworks EOR. An EOR is responsible for local HR processes, such as:

  • Maintaining compliance with local employment laws and other regulations

  • Drafting employment contracts in the correct language

  • Managing payroll and taxes, including withholdings and deductions payments

  • Administering local benefits, such as private health insurance 

  • Registering with the local social security system, foreign tax authorities, and other government institutions

  • Offering support and navigating terminations and severance

On top of all that, Justworks EOR connects you with experts who can provide guidance on managing remote employees in Mexico compliantly. On top of all that, you’ll also skip the effort and costs of setting up a local entity.

Benefits of Hiring Remote Workers in Mexico

Choosing to hire in Mexico has benefits, including new talent, ideal location, and cost savings. 

Tap Into a Wider Talent Pool

With the growing popularity of remote work, Mexico has attracted fresh new talent worldwide with a wide set of skills. Hiring in Mexico gives you access to highly skilled talent with diverse perspectives and experience. 

Centrally Located 

Mexico is centrally located and has strong international relationships with the U.S., Canada, Costa Rica, and other parts of Latin America. Its proximity to the U.S. also means a less dramatic time difference than other countries making coordinating work schedules less complicated. Using an EOR service like Justworks allows you to expand more easily into Latin America and reach a wider customer base. 

Lower Employee Costs

Mexico’s lower cost of living means lower employment costs. Companies can hire top talent and offer competitive salaries and compensation packages at a lower cost than large tech hubs like New York and San Francisco.

Employee Rights for Remote Workers

While Justworks EOR can help you navigate local employment regulations, here are some things to be aware of. 

NOM-037

The Ministry of Labour and Social Work established a decree in 2022 detailing an employer’s workplace safety and health obligations for teleworkers. Under this decree, employees must outline a telework policy, document the differences between remote work and on-site work, protect employees’ data, respect work-life balance boundaries, offer equipment or compensation for remote work equipment, and maintain an updated list of remote workers. Employees must comply with their employer’s telework policy, inform their employer of address changes, protect sensitive company data, and comply with workplace health and safety policies. 

Ready to Hire Confidently in Mexico?

Justworks EOR makes building your global team seamless by helping you hire and onboard talent in Mexico and beyond. Save yourself the time and hassle of international hiring today.

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