GMT-5 to GMT-7
Mexican Peso (MXN)
GMT-5 to GMT-7
Mexican Peso (MXN)
Mexico, located in North America, is quickly becoming a major player in the global IT industry. By placing a strong focus on technological education, Mexico produces an impressive 130,000 engineering graduates each year, solidifying its position in the tech world.
Mexico City, as the nation's technological hub, is a bustling center of innovation, tech events, and emerging startups, attracting talented individuals specializing in AI, software development, and digital design.
The IT industry in Mexico is valued in the billions and has a compound annual growth rate (CAGR) of 10.6% for 2023-2028, driven by the increasing number of tech enterprises and international partnerships. With over 700,000 developers, Mexico is establishing itself as a noteworthy IT service provider on the global stage.
Mexico's extensive English proficiency, growing tech workforce, and strategic proximity to the U.S. make it one of the prime tech hotspots in the Americas. Businesses searching for unparalleled software development expertise can benefit from Mexico's cost-competitive environment and relentless commitment to tech evolution.
ALLSTARSIT takes care of everything for you – we have a 360° approach with a full recruitment cycle
Employees in Mexico can be compensated on a weekly, bi-weekly, or monthly basis, but this frequency must be specified in their employment contract. Bank transfers are the recommended method for payment as cash transactions face strict regulations. Electronically issued payslips, known as CFDIs, are mandatory. Moreover, payroll documentation in Mexico needs to be retained for a duration of 5 years.
36.1 – 44.73%
Overtime work beyond the standard shift is compensated as per the terms set in the employment contract or collective agreements. Employees can work up to 3 overtime hours daily, but not for more than 3 consecutive days. Some managerial positions may be exempt from overtime pay and its restrictions.
Overtime compensation is governed by two primary factors: the cumulative number of overtime hours in a week and the number of hours worked post a regular shift on a given day.
In Mexico, the employment contract stipulates that employees receive a minimum of 12 days of paid holiday annually. After completing a year of service, they are entitled to an additional two days of holiday each year. Once an employee reaches 5 years of service, they earn two more days every five years, as illustrated in the subsequent table. If leave remains unused, it can be carried forward for up to 6 months.
Additionally, for each day of vacation taken, employees should receive a 25% bonus on their daily wage as a vacation premium.
Compensation for sick leave is provided by Social Security (IMSS). Qualified employees can receive up to 52 weeks of sick leave, paid at 60% of their standard wage, upon verification by medical authorities affiliated with IMSS. In cases of work-related injuries, the employee receives full compensation, amounting to 100% of their regular salary.
Public and Provincial Holidays
There are 7 public holidays in Mexico
While Mexico doesn't have a set statutory minimum notice period, federal labor regulations require companies to give written notice to the employee within 30 days once they become aware of any misconduct. This notice must specify the reasons for dismissal. If not provided, the labor board is responsible for issuing a termination notification. Typically, a courtesy notice of two weeks is extended in situations of 'termination without cause' or when an employee resigns.
13th Month Bonus
In Mexico, employers are required to pay a 13th-month salary, known as Aguinaldo, which must be disbursed by December 20th. The Aguinaldo is determined based on 15 workdays of pay, factored over a 365-day year, with an additional allowance included.
Setting up a separate business entity in every location where you plan to hire employees or a team is time-consuming and incurs high legal fees.
At the same time, navigating local labor laws and adhering to employee expectations can be a complex and challenging task, as is finding accurate and up-to-date employment information for all your potential hiring locations. Not to mention that tracking invoices and managing employee contracts through email and spreadsheets is messy and error-prone.
Compliance is critical in this context, and we must ensure that we follow local guidelines, particularly regarding taxes and legalities.
ALLSTARSIT streamlines the process by offering an integrated solution for finding and hiring employees, managing HR and payroll, and automating compliance across 20+ countries. All simple and hassle-free.
Choose the right expert professionals required for your specific project, saving time and wasted effort.
This service enables software development companies worldwide to meet any technical needs outside their core skill set by adding specialized staff on demand while retaining control of the project's specifications and scope.
Establish R&D / Tech Support / QA & Testing / DevOps / Data Entry Centers in your chosen location.
Forget about investing in facilities, equipment, technology, or human resources. We manage all necessary operations as your specialist. This can help you save money and resources, all while reducing frustration and simplifying internal processes.
Use ALLSTARSIT as your EOR / CM to easily hire employees in new countries without setting up a legal entity.
We act as the employer for your new hire, handling all HR, payroll, tax, and compliance requirements on your behalf, while you maintain control of their workload.
Tap into a wide talent pool of top-tier engineers from our database. We will find the right fit for your business and help you reduce your hiring timeline.
Attract, hire, and retain top talent, building a motivated workforce that drives your business forward.
Managing tech equipment
Retention and risk analysis
Compensation revision & expense returns
1:1 meetings (180-degree)
Performance reviews & periodic surveys
Ongoing client and expert support
Expand your business globally and hire employees or contractors quickly and efficiently by partnering with ALLSTARSIT, who can act as your EOR/CM and handle the administrative and legal aspects of their employment while you control their workload.
Improve your employees' well-being and job satisfaction by offering them a range of corporate benefits through ALLSTARSIT, including wellness consultant sessions, music lessons, workations, gym compensation, and employee recognition programs.
Keep track of your team's progress and satisfaction with ALLSTARSIT's monthly reports and periodic surveys, allowing you to identify any issues and make necessary adjustments to retain top talent.
Enhance your employees' working experience by offering them the possibility of working from an office or securing a seat in a premium co-working space shared area through ALLSTARSIT.
Simplify your HR operations and ensure your employees receive timely and accurate paychecks with ALLSTARSIT's comprehensive payroll solution.
Increase your employees' satisfaction and productivity by providing them with the peace of mind that comes with having access to a reliable and comprehensive health insurance package made possible by ALLSTARSIT.
Invest in your employees' professional development by implementing a comprehensive L&D program that includes access to online education platforms, language classes, and technical meetups, courtesy of ALLSTARSIT.
Build a Customer Care or a Customer Support team to ensure that your business excels in providing exceptional assistance to your customers.
Whether you need a team of professionals that can handle relationship building and product knowledge or a group of Tier 1/2/3 engineers that can help with troubleshooting and other technical issues, ALLSTARSIT can help you find, hire and manage them.