What Is an Employer of Record (EOR) in Mexico?

An Employer of Record (EOR) in Mexico is a legally authorized company that hires employees on behalf of a foreign business without a local entity.

The EOR in Mexico becomes the official employer under Mexican law, handling all labor, tax, and social security obligations, while the client supervises daily tasks. This model protects companies from legal risks and simplifies compliance after the 2021 outsourcing reform.

Key Points About EOR in Mexico

• Acts as the legal employer, not a staffing or outsourcing firm
  
  

• Manages payroll, tax withholding, IMSS, and INFONAVIT registration
  
  

• Issues valid employment contracts and CFDI pay slips
  
  

• Ensures compliance with the Federal Labor Law, Tax Law and Social Security Law
  
  

• Must be REPSE-registered under Mexico’s 2021 outsourcing reform
  
  

• Allows foreign companies to hire legally in Mexico without opening a local entity
  
  

• Guarantees employees full access to human HR services — not just software
  
  

Why Companies Use EORs to Hire in Mexico

• Fast market entry – Enables companies to begin operations and hire employees within days instead of waiting months for entity registration, tax ID approval, or bank account setup.
  
  

• Avoid complex entity setup – Eliminates legal incorporation, notary procedures, ongoing tax filings, and corporate maintenance costs required for a Mexican legal entity.
  
  

• Significant cost savings – Reduces expenses for accounting, HR staff, compliance audits, and legal representation costs that can exceed $20,000 annually for an entity.
  
  

• Local HR infrastructure – Provides established payroll systems, employee benefits management, and bilingual human HR support based in Mexico.
  
  

• Reduced risk and liability – The EOR in Mexico assumes employer responsibility, shielding clients from lawsuits, severance exposure, and labor audits.
  
  

• Scalable workforce model – Allows companies to expand or reduce teams in Mexico quickly without entity closure procedures.
  
  

Top Employer of Record (EOR) Companies in Mexico

Below are the top 11 EOR providers in Mexico, carefully researched and evaluated for compliance, local presence, and transparency.

Our analysis compares how each operates under Mexican labor law, highlighting which companies truly meet REPSE requirements and which rely on third-party partners or shell entities.

1. Human Resources Mexico (HRM)

Human Resources Mexico (HRM) is the only true Mexico-based Employer of Record operating under full REPSE registration with a real local presence.

With over 16 years of experience, HRM delivers end-to-end employment solutions entirely within Mexico’s legal framework — including the Federal Labor Law, Social Security Law, and NOM regulations.

Every process is managed by bilingual HR experts based in Mexico, ensuring compliance, transparency, and genuine human support. Clients always know their exact costs, with no hidden fees or unexpected add-ons.

As an EOR, we handle:

• Onboarding and offboarding management

• Payroll processing and tax withholding

• HR administration and employee relations

• Compliance with NOM (Normas Oficiales Mexicanas) standards

• Handling of legal and employment-related inquiries

• Expense reimbursement management

• Procurement of work resources (laptops, phones, office equipment)

• Company car administration

• Private medical insurance and employee benefits

• Gas and IAVE (toll road) cards management

• Travel logistics (airfare, hotels, car rentals)

• Payroll-deducted interest-free employee loans

• Full severance handling under the 90-day rule

All of these services are included in HRM’s single transparent markup — with no hidden, setup, or offboarding fees. Request a custom proposal from HRM to learn how we can help you hire legally and seamlessly in Mexico.

2. Native Teams

Native Teams operates as a global employment and payment platform offering contractor and EOR solutions in multiple countries, including Mexico. However, in Mexico it functions through undisclosed third-party partners and does not maintain its own REPSE registration or physical office.

Its approach is heavily software-driven, focusing on automation for onboarding and payments rather than human support or in-country HR management. The platform primarily promotes independent contractor models, which are risky under Mexican labor law when workers perform services exclusively for one client.

Unlike Human Resources Mexico (HRM), Native Teams does not directly manage IMSS registrations, CFDI payroll compliance, or severance payments. It also lacks bilingual HR staff or local experts supporting employees within Mexico.

Read our detailed review of HRM vs Native Teams.

3. Deel

Deel operates as a global EOR and payment platform in 150+ countries, but its operations in Mexico show serious compliance gaps. The company maintains a fiscal address without a real office, REPSE registration, or in-country HR presence, functioning instead through third-party partners.

In its own onboarding materials, Deel instructs employees not to request expense invoices in the company’s name, a clear indication that it does not conduct taxable operations in Mexico.

It also omits the mandatory Christmas bonus (Aguinaldo) from standard proposals, requiring employees to request it as an additional benefit. These practices create an artificially lower cost appearance while breaching core obligations under Mexican labor and tax law.

Despite these issues, Deel still charges clients for statutory benefits such as profit sharing (PTU) even though it has no operating profits in Mexico. Its pricing is roughly 15% higher than HRM’s transparent model while offering limited local accountability and human support.

Read our detailed review of HRM vs Deel.

4. Pebl (Velocity Global)

Formerly known as Velocity Global, Pebl promotes itself as a global employer platform providing EOR and contractor services. However, in Mexico, Pebl does not have its own legal entity or REPSE registration. It operates through undisclosed third-party local partners, meaning it cannot legally act as the direct Employer of Record under Mexican law.

Pebl focuses on an AI- and automation-driven model, combining digital tools with remote advisors. While efficient for global operations, this approach lacks true local presence, bilingual HR teams, and understanding of Mexico’s complex labor and tax requirements. Its structure relies on automation rather than in-country compliance management.

In contrast, HRM’s Mexico-based experts manage all compliance, tax, and NOM requirements directly, ensuring no hidden outsourcing or reliance on third-party partners.

Read our detailed review of HRM vs Pebl.

5. Globalization Partners (G-P)

Globalization Partners, now branded as G-P, is a well-known global employment platform with a registered legal entity in Mexico. However, it operates primarily through a fiscal address, with most HR and compliance functions handled remotely from abroad. This means it lacks a true physical presence or dedicated local HR team supporting employees directly in Mexico.

G-P provides compliant payroll, IMSS registration, and CFDI pay slips, making it functional for multinational companies seeking global standardization. However, its remote structure limits employee engagement and localized HR attention. It also markets contractor services alongside EOR offerings, which can create confusion regarding employment status under Mexican labor law.

While G-P focuses on scale, HRM’s Mexico-only model provides local HR access, transparent cost structures, and hands-on compliance under Federal Labor Law—qualities that global providers struggle to match without in-country staff.

Read our detailed review of HRM vs Globalization Partners.

6. Boundless

Boundless provides international employment and payroll management across multiple countries. In Mexico, however, it does not have its own legal entity or REPSE registration. The company relies on undisclosed third-party local partners to manage employment and compliance, meaning it cannot legally function as the direct Employer of Record under Mexican law.

Its model focuses on technology-driven efficiency, offering automated onboarding and payroll with limited human involvement. While it emphasizes fair employment practices, the absence of a local HR team or in-country expertise restricts its ability to manage critical processes such as IMSS registration, severance, or compliance with Mexico’s labor laws.

Boundless is suitable for smaller startups, yet unlike HRM, it cannot provide direct bilingual HR services, on-site legal compliance management, or human assistance with complex processes such as IMSS registration or severance settlements.

Read our detailed review of HRM vs Boundless.

7. Prodensa

Prodensa is a long-standing HR and EOR firm headquartered in Monterrey, Mexico, with nearly four decades of experience. It maintains REPSE registration and deep local expertise, primarily serving manufacturing and nearshoring sectors.

While Prodensa provides exceptional service for large-scale corporate clients, its model is geared toward enterprise and manufacturing operations rather than smaller, remote, or hybrid teams. 

In contrast, HRM provides the same level of legal compliance and HR depth with transparent pricing, faster onboarding, and bilingual support for international companies of all sizes.

Read our detailed review of HRM vs Prodensa.

8. Safeguard Global

Safeguard Global is a large international payroll and workforce platform offering EOR and contractor services across more than 170 countries. In Mexico, however, the company does not have a legal entity or REPSE registration. It operates through undisclosed third-party partners, which means it cannot act as the direct Employer of Record under Mexican law.

Its operations are managed remotely from abroad, using centralized compliance teams instead of local HR professionals. While the platform efficiently handles payroll calculations and tax filings, the absence of an in-country presence limits its ability to support employees with everyday HR matters, legal questions, or NOM compliance.

While its technology platform simplifies management, HRM’s local specialists handle every employment task personally — offering faster response times, deeper legal insight, and genuine human connection in the Mexican labor environment.

Read our detailed review of HRM vs Safeguard Global.

9. Multiplier

Multiplier provides global EOR and contractor management services through an automated platform designed for fast international hiring. In Mexico, however, Multiplier does not have a legal entity or REPSE registration. The company operates through undisclosed third-party partners, meaning it cannot legally act as the direct Employer of Record under Mexican law.

Its technology allows businesses to onboard employees and contractors quickly, but compliance in Mexico depends entirely on partner entities. Multiplier’s dual offering of EOR and independent contractor management creates potential legal risks when contractors perform work under the client’s supervision — a form of subordination prohibited by Mexican labor law.

HRM provides a safer, REPSE-certified alternative — managing every aspect of employment legally within Mexico and ensuring true employer-of-record accountability instead of a technology-mediated outsourcing setup.

Read our detailed review of HRM vs Multiplier.

10. Skuad

Skuad offers global Employer of Record and contractor management solutions across 160+ countries, including Mexico. However, in Mexico, Skuad has no legal entity, REPSE registration, or local HR team. It operates through undisclosed third-party partners, which means it cannot legally function as the direct Employer of Record under Mexican law.

While its pricing and platform appear attractive for startups, the service relies on automation and external intermediaries rather than genuine in-country management. Its inclusion of contractor-based hiring adds further compliance risks, as Mexican labor law prohibits classifying employees as contractors when subordination exists.

HRM’s Mexico-only focus and in-country HR experts ensure compliance with NOM regulations, labor laws, and IMSS obligations — offering stability and legality that low-cost, globally dispersed providers like Skuad cannot match.

Read our detailed review of HRM vs Skuad.

11. Remote

Remote is a well-known global employment platform offering payroll, benefits, and contractor management in over 150 countries. In Mexico, however, Remote does not have its own legal entity or REPSE registration. It operates through undisclosed third-party partners, which prevents it from legally acting as a direct Employer of Record under Mexican labor law.

Its service is largely technology-driven, providing compliant-looking payroll and CFDI documentation via partner entities. While efficient for global operations, this structure lacks a local HR department or in-country specialists to resolve employee issues, conduct legal terminations, or ensure daily compliance. Remote also promotes contractor hiring, a risky model in Mexico when subordination exists.

HRM surpasses Remote in providing local accountability, personal HR relationships, and immediate legal responsiveness — ensuring employees and client companies in Mexico receive fully human, compliant, and transparent employer-of-record services.

Read our detailed review of HRM vs Remote.

How to Evaluate the Best EORs in Mexico

Choosing the right EOR in Mexico requires more than comparing software features, it’s about verifying legal compliance, real local presence, and proven accountability under Mexican labor law.

• Verify physical presence – Confirm that the provider has a real office, registered staff, and active operations in Mexico. Many global EORs operate through shell entities or undisclosed partners in Mexico, which limits accountability and increases compliance risk.
  
  

• Check REPSE registration – Ensure the provider appears in the official REPSE database managed by the Ministry of Labor (STPS). Only REPSE-certified companies can legally act as the employer of record under the 2021 outsourcing reform.
  
  

• Confirm legal employer status – The EOR in Mexico must sign employment contracts directly and register employees with IMSS, INFONAVIT, and SAT. Avoid platforms that only process payments without assuming full legal responsibility.
  
  

• Evaluate bilingual HR support – Local bilingual professionals should handle payroll, benefits, and labor relations promptly. Response time and human accessibility are key for ongoing operations.
  
  

• Assess technology and reporting – Look for EORs in Mexico that generate compliant CFDI pay slips, tax summaries, and benefits reports.
  
  

• Review client credibility – Request testimonials, case studies, or government verification proving long-term, compliant operations in Mexico.
  
  

Human Resources Mexico (HRM) stands out as the most trusted EOR in Mexico, combining 16+ years of local expertise, full REPSE registration, and a real on-the-ground HR team. Unlike global platforms, HRM provides direct bilingual support, transparent pricing, and full compliance with Mexican labor law.

Get your custom HRM proposal and hire confidently with Mexico’s leading Employer of Record.

FAQs

What is the difference between an EOR and a PEO in Mexico?

In Mexico, an Employer of Record (EOR) and a Professional Employer Organization (PEO) are the same. Unlike in the U.S., there is no co-employment model. The EOR is the sole legal employer, handling all payroll, benefits, and compliance while the client directs daily work activities.

Is outsourcing still legal in Mexico after the 2021 reform?

Outsourcing core business activities became illegal after the 2021 labor reform. However, EOR services remain legal when provided by REPSE-registered companies. These certified employers can hire and manage staff on behalf of foreign clients that do not have a legal entity in Mexico, ensuring full compliance and protection.

How much does an EOR cost per employee in Mexico?

EOR pricing typically ranges from 10–20% of gross salary or a flat monthly fee per employee. HRM uses a transparent single markup model with no setup, severance, or hidden fees. Costs cover payroll processing, taxes, benefits, HR management, and full compliance with Mexican labor and tax laws.

How fast can an EOR onboard new employees?

A compliant EOR in Mexico can onboard employees in a few business days once documentation is complete. HRM’s local HR team prepares employment contracts, IMSS registration, and CFDI payroll setup quickly, enabling companies to start operations immediately—without waiting months for entity registration or government approvals.

What happens if a company uses an unregistered EOR provider?

Using an unregistered or non-REPSE-certified EOR is illegal under Mexican law. Both the provider and client can face heavy fines—up to MX$4.8 million—and employment contracts may be declared invalid. The client company becomes the direct employer, assuming full liability for taxes, benefits, and severance obligations.