Looking to hire in Mexico

Mexico provides statutory paid annual leave that increases with seniority, as well as sick leave that requires medical certification after a short absence.

Sick leave is provided on an annual anniversary basis. A medical certificate is required when an employee is absent for more than 3 days.

Employees in Mexico must submit current-year expenses within 60 days of the expense date or within 30 days after returning from a business trip, whichever is later. Prior-year expenses must be submitted by February 1 of the following year to be processed.

All expenses in Mexico must be supported by a paid invoice or receipt issued directly to the client, not to the local employer entity. Under Mexican income tax regulations, many reimbursements are treated as taxable income, and strict documentation standards apply.

Approved expenses are paid through payroll. Items approved after the payroll cut-off dates move to the next payroll cycle.

Travel-related costs such as local transport, flights, accommodation, and similar items are reimbursable but treated as taxable income. For each claim, attach a tax invoice or receipt showing when and where you paid, the amount, the merchant or service provider, a brief description of the service, and the serial number for invoices.

Meals and related entertainment costs are reimbursable but are treated as taxable income. Each claim must be backed by a tax invoice or receipt that shows the date, amount, merchant or service provider, a description of the purchase, and the serial number for invoices.

Office equipment, laptops, and supplies can be reimbursed but are treated as taxable income. For computers, invoices must include the serial number, IMEI, and MAC address; for all items, invoices or receipts must show the date, amount, merchant or service provider, and a description of the purchase.

Communication and workspace costs such as internet, phone, coworking, and software subscriptions are reimbursable but treated as taxable income. Each claim must be supported by an invoice or receipt showing the date, amount, merchant or service provider, a short description, and the serial number for invoices.

Training, courses, books, promotional items, and gifts may be reimbursed but are treated as taxable income. Claims must be supported by an invoice or receipt that includes the date, amount, merchant or service provider, a description of the purchase, and the serial number for invoices.

Approved per diem amounts are processed as taxable administrative bonuses. A gross-up is added so that the payment covers the related taxes owed by the employee.

Bonuses in Mexico, including contractual and discretionary bonuses, incentive payments, and commissions, are taxed as regular income and are subject to social security contributions. Mexico applies progressive income tax rates and withholds tax at source, so the effective withholding rate in any pay period that includes a bonus may be higher than in a regular period without bonuses.

Mexican labor rules on telework require employers to cover certain remote-work costs, and the following allowances are designed to meet that obligation in practice. These amounts reflect platform policy and benefit design rather than government-fixed peso figures, and they must be offered to all employees in Mexico where indicated.

Employers may also choose to offer a range of discretionary allowances. These are optional benefits that can be extended to one or more employees at the employer’s discretion and are treated as taxable income, with employees submitting them manually for processing.