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.
On top of salary, the employer pays
- 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.
What the employer pays on top of salary in Mexico
- 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.
Yearly cost of one employee in Mexico, by vendor
Salary plus the charges above plus the vendor's published monthly fee, for twelve months. Not included: benefits and currency conversion fees.
Vendor fees used
Atlas HXM $599, Deel $599, G-P $599, Multiplier $459, Oyster $699, RemoFirst $199, Remote $699, Skuad $199, Velocity Global (Pebl) $399. 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.