Mexico PEO Services

With a population of around 129 million, Mexicans are ranked as the most hard-working nationality in the world. This, combined with the country’s rich culture, strategic location, low labour costs, and countless free trade agreements, make Mexico an extremely popular destination to work.

Employment Information

The Mexican Labour Law (known as LFT) outlines the mandatory number of paid leaves that workers in Mexico are entitled to. Paid holidays are dependent based on the employment length of an employee, and generally work in the following way:

• 2 years – 8 days leave
• 3 years – 10 days leave
• 4 years – 12 days leave

After 4 years of service, an additional 2 days of leave is added for every 4 years of service.

Workers in Mexico can also enjoy a range of public holidays including the following:

• New Year’s Day
• Constitution Day
• Día de Benito Juárez
• Labor Day
• Independence Day
• Revolution Day
• President’s Succession
• Christmas

Employment Contracts & Payroll

Mexico’s blue-collar workforce usually undertake six-day weeks, composing of a total 48 hours (the legal limit in Mexico), overtime pay is commonly paid to workers who work beyond their contracted hours. White collar workers tend to work an average of 40-hour weeks, they also generally have more flexible and remote schedules.

In Mexico, there is a range of payment cycles for employees, depending on their positions. White collar workers are usually paid monthly, mid-level positions are usually paid bi-weekly, and blue-collar workers usually enjoy weekly payment terms.

Under Mexican Labour Law, employment contracts cover obligations and responsibilities for both parties and the exchange of services required. Employment contracts usually permit a probationary period for new workers, this is often a 180-day period which is followed up with an indefinite contract.

Expanding into the Mexican market can pose some risks and country-specific challenges for foreign businesses to consider. Fortunately, engaging with a Mexico PEO like Procorre Global can simplify this process significantly.

Severance Pay

Employees are usually entitled to severance pay if their employment contract is terminated without a just cause. Severance payment compensation usually consists of:

• Three months of full salary and bonuses agreed in the contract
• 20 days of pay per year of service with the employer
• Seniority bonus of 12 days payment for employees with 15 years+ experience in the employment market

Cultural Information

Spanish is the official language of Mexico, however there are over 60 languages spoken across the nation. Mexican people develop their connections through years of interaction and shared understandings of expectations. Foreign businesses entering the Mexican market should be prepared to invest time into establishing relationships.

Family and personal relationships are important to Mexicans, and mixing business and personal life is common in the country. In Mexico, workers can expect to be invited over to a colleagues’ home for dinner or even a weekend social gathering.

Mexico has no official religion, however Roman Catholicism is widely practiced across the nation.

Impacts from COVID-19

Following the COVID-19 pandemic, many white-collar Mexican workers embraced home-working and hybrid working patterns. In many industries, this trend is set to continue beyond the pandemic, as many workers have displayed a preference for these flexible patterns.