Mexico has become a leading destination for nearshore engineering talent, with robust tech scenes in cities like Guadalajara and Mexico City leading the way. Time zone alignment, strong universities, and cultural compatibility make it ideal for US companies.
But without a legal entity, hiring in Mexico means navigating complex labor laws, mandatory benefits, and tax obligations. This guide explores how an Employer of Record (EOR) simplifies that process — and why Howdy.com offers more than just compliance.
Why use an EOR in Mexico
Direct hiring in Mexico brings legal obligations that can be burdensome for foreign companies. An EOR handles these requirements on your behalf.
- Compliance: Ensuring employment practices adhere to Mexico’s Federal Labor Law, including termination procedures and working hour regulations.
- Mandatory benefits: Administering legally required benefits such as Aguinaldo (year-end bonus), PTU (profit-sharing), and IMSS (Mexican Social Security).
- Payroll and taxes: Withholding income tax (ISR), calculating employer contributions, and submitting payments to government agencies.
Why Howdy.com is a better solution
While traditional EORs stop at legal employment, Howdy.com delivers a holistic approach — from sourcing to retention — so you can scale engineering teams with confidence.
- Top-tier talent sourcing. We recruit the top 1% in Guadalajara, Mexico City, and other key markets.
- Rigorous technical vetting. Candidates complete live coding interviews led by senior engineers.
- End-to-end operations. We handle recruiting, employment, compliance, and invoicing.
- Long-term team integration. Local support and cultural fit contribute to 98% retention.
Other leading standalone EOR providers for Mexico
If you’ve already found top candidates and simply need EOR support for employment, payroll, and compliance, these providers offer reliable service:
- Deel: A global leader in EOR with strong infrastructure and legal coverage in Mexico.
- Remote: Offers EOR and contractor services with localized compliance and benefits management.
- Papaya Global: Combines payroll and HR software with EOR services to support Mexican hires.
- Oyster HR: Built for remote-first teams, offering compliant hiring tools and payroll processing for Mexico.
- Velocity Global: Provides EOR and global workforce management, tailored to local legal requirements.
Conclusion
Mexico is an exceptional market for building high-performance engineering teams—but legal and operational complexity can slow you down.
Howdy.com provides a seamless, all-in-one solution to hire elite engineers while staying compliant, helping you scale quickly and confidently.