Compliant employment contracts
Spanish-language contracts aligned to Mexican Federal Labor Law and the role's actual conditions.
Employer of Record
Employer of Record (EOR) in Mexico
An Employer of Record lets you employ people in Mexico without forming a Mexican company. We become the legal employer, contract, payroll, IMSS, INFONAVIT, taxes and statutory benefits, while your team directs the work.
Last reviewed: September 2, 2026 · Reviewed by the Staffing in Mexico delivery team, a Gracemark Global Group company. General business information, not legal or tax advice. The appropriate structure depends on the facts of each project.
EOR solves a timing problem. You have found the person, or the market opportunity, before you have a legal vehicle to employ anyone. Rather than delay the hire for months of formation, the employment relationship sits with our Mexican infrastructure from day one.
The honest limitation: EOR is priced per employee. It is excellent economics for one to fifteen people and progressively worse as headcount grows, particularly if you also need to invoice locally or hold contracts in Mexico. We will tell you where that line sits for your numbers.
Most of our EOR clients follow the same arc, employ through us, validate the operation, then transition the workforce onto their own entity on a planned date with continuity of service, benefits and seniority.
Definition
Employer of Record (EOR)
A legally established company in Mexico that assumes the formal employer obligations for a worker, contract, payroll, social security enrolment, tax withholding and statutory benefits, on behalf of a client that has no local entity.
What you get
Payroll in MXN
Payroll calendars, withholding, remittance and payslips, with USD-denominated invoicing to you.
IMSS & INFONAVIT enrolment
Social security and housing-fund registration and contributions handled at onboarding.
Statutory & market benefits
Vacation, vacation premium, aguinaldo and profit sharing where applicable, plus competitive market benefits.
Onboarding & offboarding
Documentation, equipment coordination and legally sound termination handling when assignments end.
Entity transition planning
A modelled crossover point and a migration plan onto your own entity when it becomes the better structure.
EOR vs. your own Mexican entity
| EOR | Own entity | |
|---|---|---|
| Time to first hire | Weeks | Months |
| Setup cost | None | Formation, notary, registration, banking |
| Ongoing cost shape | Per employee, per month | Fixed administration plus payroll |
| Local invoicing & contracting | Not the purpose of EOR | Full capability |
| Administrative burden on you | Minimal | Accounting, tax filings, labor compliance |
| Best at | 1–15 employees, market testing | Stable or growing headcount, local revenue |
Enterprise and MSP programs
Programs delivered inside enterprise and MSP frameworks
Netflix: Latin America expansion, one country at a time
Netflix needed to stabilize a new Latin America program quickly, run from the United States without a local entity in each market.
Gracemark became the local staffing and payroll supplier across the region, supporting compliant local invoicing market by market and earning a formal client award.
Experience shown belongs to Gracemark group teams and companies, including work delivered outside Mexico. Relationships referenced: Netflix, NextSource, Magnit, AgileOne, KellyOCG.
What we commit to on this type of engagement
- Supplier onboarding, compliance documentation and program reporting handled by our team
- Multi-market delivery coordinated under one accountable relationship
- Local invoicing and employment structures adapted market by market
- Recurring, multi-year placement programs administered end to end
Frequently asked questions
What is an Employer of Record in Mexico?+
A local company that becomes the legal employer of your worker in Mexico. It issues the employment contract, runs payroll, enrols the employee with IMSS and INFONAVIT, withholds and remits taxes and provides statutory benefits, while the worker performs their role for your business.
What statutory benefits apply to Mexican employees?+
Mexican law establishes minimums including paid vacation with a vacation premium, an annual aguinaldo (year-end bonus), profit sharing where applicable, IMSS social security and INFONAVIT housing contributions. Market practice in competitive cities often exceeds these minimums.
When should we stop using EOR and form our own entity?+
Generally when headcount is stable and growing, when you need to invoice or contract locally, or when the per-employee EOR fee exceeds the cost of running your own payroll and administration. We model the crossover point rather than defending EOR indefinitely.
Can EOR be used for any role?+
EOR covers genuine employment relationships. Engagements that are really outsourced core activity, or that should be structured as specialized services or an SOW, are handled under those models instead.
Sources and methodology
- Author
- Staffing in Mexico delivery team, A Gracemark Global Group company
- Reviewer
- Mexico workforce compliance review, A Gracemark Global Group company
- Last reviewed
- September 2, 2026
- What changed in this review
- Reviewed against the current Ley Federal del Trabajo text, the enacted 2026 to 2030 weekly working-hours transition and the 2026 CONASAMI minimum-wage resolution.
Primary sources
- Cámara de Diputados: Ley Federal del Trabajo, current text (PDF)
- Cámara de Diputados: Ley del Seguro Social, current text (PDF)
- IMSS: employer registration and contributions
- INFONAVIT: employer portal and contribution rules
- SAT: tax obligations and payroll CFDI
- STPS: Secretaría del Trabajo y Previsión Social
Official Mexican sources are cited directly so you can verify every figure. General business information, not legal or tax advice. The appropriate structure depends on the facts of each project.
Tell us what you need in Mexico.
Send the roles, the headcount or just your question. We come back with a clear recommendation and what it costs.
- A Mexico specialist replies within one business day
- You get an employment route, the implementation steps and the cost components.
- No obligation, no exclusivity, no lock-in
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Talk to a Mexico Specialist
You get an employment route, the implementation steps and the cost components.