Mexico — Hiring & Payroll Setup

Every employer (patrón) that hires workers in Mexico must register with the Instituto Mexicano del Seguro Social (IMSS) and enroll every employee from the first day of employment. The registration framework is governed by the Ley del Seguro Social (Social Security Law) and imposes strict timelines and reporting obligations on employers operating in the private sector.

Article 15, Fraction I of the Ley del Seguro Social establishes the core employer obligation: employers must (1) register themselves with IMSS and (2) enroll each worker with IMSS, reporting hires (altas), terminations (bajas), and salary modifications within the periods prescribed by the law and its regulations. The employer registration is known as the registro patronal or alta patronal; once registered, IMSS assigns a unique employer registration number (número de registro patronal).

Who must register. Article 12, Fraction I of the Ley del Seguro Social defines the compulsory regime to include "persons who are employed under an employment relationship (relación de trabajo) as defined by Article 20 of the Ley Federal del Trabajo"—meaning a person who performs personal, subordinate services in exchange for a salary. When such a relationship arises, the employing party is classified as a patrón and must register. Article 5-A, Fraction V defines patrón as "the natural or legal person (persona física o moral) holding that status in the terms of the Ley Federal del Trabajo." The registration obligation arises regardless of the employer's legal form, industry, or the number of workers hired.

Registration timeline. Employers must register before hiring their first worker or at the time of the hire. Under the Reglamento de la Ley del Seguro Social en Materia de Afiliación, Clasificación de Empresas, Recaudación y Fiscalización, Article 12, an entity becomes obligated to register as an employer when it hires its first worker subject to the mandatory regime. Once registered, the employer must communicate the enrollment (alta) of each new worker to IMSS; Article 15, Fraction I of the Ley del Seguro Social states this notice must be given "within the periods prescribed by this Law and its regulations," and the implementing regulation specifies a deadline of no later than five business days after the worker's start date (Reglamento, Article 3 and established IMSS practice).

Late or missing registration is sanctioned under Article 304-A of the Ley del Seguro Social and may result in fines of 20 to 350 times the daily minimum wage, disqualification from government procurement, and retroactive liability for social-security contributions dating to the worker's actual start date.

Registration mechanics. Employers register through IMSS's electronic platform (Desde su Empresa / IDSE system, accessible via www.imss.gob.mx) or in person at the IMSS subdelegación corresponding to the employer's fiscal domicile. To register, an employer needs a federal tax ID (Registro Federal de Contribuyentes, RFC) issued by the Servicio de Administración Tributaria (SAT). Foreign companies without a local subsidiary or branch typically lack an RFC and cannot directly register with IMSS; these companies commonly engage a Mexican Employer of Record (EOR) — a Mexican legal entity that hires the workers under its own IMSS registration and pays the social-security contributions, or they incorporate a Mexican subsidiary.

Automatic INFONAVIT registration. IMSS registration simultaneously triggers registration with the Instituto del Fondo Nacional de la Vivienda para los Trabajadores (INFONAVIT), the national housing fund. Although the Ley del Seguro Social itself does not detail INFONAVIT registration, IMSS and INFONAVIT share registry data under established administrative coordination; employers registered with IMSS are automatically subject to INFONAVIT contribution obligations (5% of each worker's base salary under the Ley del INFONAVIT).

Public-sector employers. Public-sector employees of the federal government and certain state governments are not covered by IMSS; instead, they are enrolled in the Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado (ISSSTE) under a parallel regime governed by the Ley del ISSSTE. Article 6 of the Ley del Seguro Social divides social security into the mandatory regime (IMSS, covering private-sector workers) and the voluntary regime; federal employees fall outside the IMSS mandatory scope.

Cessation of operations. Employers that close or suspend operations must notify IMSS and file a suspension or closure notice (aviso de suspensión or baja patronal). Failure to do so leaves the employer liable for monthly social-security charges even when no workers remain on payroll. Article 16 of the Reglamento requires employers to communicate suspension, termination, or resumption of activities to IMSS.

Source: Ley del Seguro Social, Articles 5-A, 6, 12, 15, 304-A Source: Reglamento de la Ley del Seguro Social en Materia de Afiliación, Clasificación de Empresas, Recaudación y Fiscalización, Articles 3, 12, 16

A foreign company (a non-resident of Mexico) that hires employees or engages contractors in Mexico faces the risk of creating a permanent establishment (establecimiento permanente) under Mexican tax law, which triggers an obligation to pay Mexican corporate income tax (Impuesto Sobre la Renta, or ISR) on income attributable to that permanent establishment. This PE risk is the threshold question for any cross-border employer considering hiring in Mexico: it determines whether the company needs to incorporate a Mexican subsidiary, use an Employer of Record (EOR), or accept PE exposure and register with the tax authority.

## Statutory framework and tax liability

Article 1, Fraction II of the Ley del Impuesto sobre la Renta (LISR, the Income Tax Law) provides that non-residents of Mexico with a permanent establishment in the country are subject to ISR "with respect to income attributable to that permanent establishment" (respecto de los ingresos atribuibles a dicho establecimiento permanente).

Article 2 of the LISR defines "permanent establishment" as "any place of business in which business activities are carried out, partially or totally, or independent personal services are rendered" (cualquier lugar de negocios en el que se desarrollen, parcial o totalmente, actividades empresariales o se presten servicios personales independientes). The statute lists examples: "branches, agencies, offices, factories, workshops, facilities, mines, quarries, or any location for the exploration, extraction, or exploitation of natural resources" (sucursales, agencias, oficinas, fábricas, talleres, instalaciones, minas, canteras o cualquier lugar de exploración, extracción o explotación de recursos naturales). The test is functional; it captures any fixed location through which the non-resident carries on business.

## Dependent agent PE — the employment trigger

Even when a foreign company has no office or physical location in Mexico, Article 2 of the LISR deems a PE to exist if the non-resident "acts in the country through an individual or legal entity, other than an independent agent." The statute states:

> "When a non-resident acts in the country through an individual or legal entity, other than an independent agent, the non-resident shall be considered to have a permanent establishment in the country with respect to all activities that such individual or legal entity performs for the non-resident, even when [the non-resident] does not have a place of business or location for the provision of services in national territory."

(Cuando un residente en el extranjero actúe en el país a través de una persona física o moral, distinta de un agente independiente, se considerará que el residente en el extranjero tiene un establecimiento permanente en el país, en relación con todas las actividades que dicha persona física o moral realice para el residente en el extranjero, aun cuando no tenga en territorio nacional un lugar de negocios o para la prestación de servicios.)

An employee in Mexico is a dependent agent under this rule. The employee performs services under the employer's direction and control, works for the employer's benefit, and receives a salary. The statute captures "all activities" the dependent agent performs for the non-resident, regardless of whether the employee has authority to sign contracts, works remotely, or holds a title suggesting limited responsibility. If the employee in Mexico performs work integral to the foreign employer's business — sales, customer service, engineering, supply-chain management, or any function beyond purely preparatory or auxiliary tasks — the foreign employer has a PE in Mexico by operation of Article 2.

## Preparatory or auxiliary exception

Article 2 of the LISR excludes from the PE definition activities that are "solely of a preparatory or auxiliary character." The statute provides that a location is not a PE if it is used "solely for the storage, display, or delivery of goods or merchandise belonging to the enterprise; solely for maintaining a stock of goods or merchandise belonging to the enterprise for storage, display, or delivery; solely for maintaining a stock of goods or merchandise belonging to the enterprise for processing by another person; solely for purchasing goods or merchandise or for collecting information for the enterprise; solely for advertising, for the supply of information, for scientific research, or for similar activities that have a preparatory or auxiliary character for the enterprise" (únicamente para el almacenamiento, exhibición o entrega de bienes o mercancías pertenecientes a la empresa; únicamente para mantener un depósito de bienes o mercancías pertenecientes a la empresa para su almacenamiento, exhibición o entrega; únicamente para mantener un depósito de bienes o mercancías pertenecientes a la empresa para su transformación por otra persona; únicamente para la compra de bienes o mercancías o para la recopilación de información para la empresa; únicamente para publicidad, para el suministro de información, para la investigación científica o para actividades similares que tengan carácter preparatorio o auxiliar para la empresa).

This exception is narrow. If a Mexico-based employee performs revenue-generating work, delivers services to paying customers, negotiates or manages supplier contracts that are integral to the company's operations, or develops the company's core product, those activities are not preparatory or auxiliary. The exception protects market-research staff, purchasing agents who collect quotations but do not finalize terms, or employees managing a display warehouse; it does not protect a sales team, a customer-success team, or a software-development team.

## Independent agent safe harbor

A foreign company that acts in Mexico through a bona fide independent agent (agente independiente) who operates "in the ordinary course of [that agent's] business" (en el marco ordinario de su actividad) does not create a PE. An independent agent is typically a broker, commission agent, or distributor who represents multiple principals, assumes its own commercial risk, and operates at arm's length.

Article 2 of the LISR specifies, however, that an agent is not acting in the ordinary course of business (and therefore triggers a PE for the foreign principal) if the agent:

• Maintains stocks of goods or merchandise from which it makes deliveries on behalf of the non-resident;
• Assumes risks of the non-resident;
• Acts subject to detailed instructions or the general control of the non-resident;
• Performs activities that economically correspond to the non-resident (not the agent's own business); or
• Is remunerated independently of the results of its activities.

(Tenga existencias de bienes o mercancías, con las que efectúe entregas por cuenta del residente en el extranjero; asuma riesgos del residente en el extranjero; actúe sujeto a instrucciones detalladas o al control general del residente en el extranjero; ejerza actividades que económicamente corresponden al residente en el extranjero y no a sus propias actividades; perciba sus remuneraciones independientemente del resultado de sus actividades.)

An employee fails these tests. The employee acts under the employer's control, performs the employer's business activities (not the employee's own separate business), and is paid a salary independent of results. Consequently, an employee cannot be an independent agent, and the independent-agent safe harbor does not apply.

## Corporate income tax rate and filing obligations

A non-resident with a PE in Mexico must pay ISR at the standard corporate rate of 30 percent on the net taxable income attributable to the PE. Article 9 of the LISR sets the 30-percent rate for taxable income of resident corporations; Article 2 and Article 3 incorporate this rate for non-residents with a PE. The non-resident must register with the Servicio de Administración Tributaria (SAT, the federal tax authority) and obtain a federal tax identification number (Registro Federal de Contribuyentes, or RFC). Monthly provisional tax payments are due by the 17th of the month following the month of the activity (Article 14 of the LISR), and an annual return must be filed within three months following the close of the taxable year. The non-resident must maintain accounting records in accordance with the Federal Fiscal Code (Código Fiscal de la Federación) and may be subject to transfer-pricing documentation requirements when the PE transacts with related parties.

## Treaty overlay — U.S.–Mexico Convention

The United States–Mexico Income Tax Convention (as amended by protocols in 1994 and 2002) provides a treaty-based PE definition that may differ from LISR Article 2. Under Article 5 of the Convention, a PE includes a fixed place of business through which the business of an enterprise is wholly or partly carried on. The Convention further provides, in Article 5(5), that an enterprise of one Contracting State is deemed to have a PE in the other State if a person (other than an independent agent) "is acting in a Contracting State on behalf of an enterprise of the other Contracting State" and "has and habitually exercises an authority to conclude contracts in the name of the enterprise" (unless the agent's activities are limited to the preparatory or auxiliary functions listed in Article 5(4)).

The treaty PE rule for dependent agents is narrower than LISR Article 2 in one respect: it requires that the agent "habitually exercises an authority to conclude contracts in the name of the enterprise," whereas the LISR captures "all activities" performed by a dependent agent. A U.S. company may argue that a Mexico-based employee who does not conclude contracts does not create a treaty PE, even if the employee performs core business activities. However, the treaty provides in Article 25 (Mutual Agreement Procedure) and the Technical Explanation that Mexican authorities may challenge treaty-based positions, and the burden is on the taxpayer to establish entitlement to treaty benefits under Article 4 of the LISR.

The treaty does not eliminate PE risk from hiring employees who perform sales, customer-facing, or other core functions. In practice, most Mexico-based employees who generate revenue or manage client relationships will either have de facto contract-conclusion authority or will be part of a fixed place of business (the home office or employer-provided workspace), bringing the employer within the treaty PE definition.

## Structural alternatives for cross-border employers

A foreign company hiring its first employee in Mexico typically chooses one of three structures to manage PE risk:

1. Mexican subsidiary. Incorporate a Sociedad Anónima (S.A.), Sociedad de Responsabilidad Limitada (S. de R.L.), or Sociedad por Acciones Simplificada (S.A.S.) under Mexican law, and have that subsidiary employ the workers. The subsidiary is a Mexican tax resident, pays ISR on its own income, and the foreign parent avoids having a PE (subject to transfer-pricing and controlled-foreign-corporation rules). This requires legal formation, capitalization, ongoing corporate governance, and annual tax filings by the subsidiary.

1. Employer of Record (EOR). Contract with a Mexican EOR firm that formally employs the individual, registers the worker with IMSS, withholds payroll taxes, and makes the worker available to the foreign company. The EOR is the legal employer under Mexican labor law; the foreign company pays a service fee. This structure limits PE exposure (though it does not eliminate it if the foreign company exercises operational control indistinguishable from direct employment) and is commonly used for small headcount or pilot hires.

1. Direct PE registration. Accept PE status, register with SAT, file monthly provisional tax returns and an annual return, and comply with Mexican tax and transfer-pricing rules. This approach gives the foreign company full control but imposes the heaviest tax-compliance burden.

A foreign company that hires an employee in Mexico and places the employee on a foreign payroll without choosing one of these structures operates in violation of Article 1 and Article 2 of the LISR and faces retroactive ISR liability on income attributable to the unregistered PE.

Source: Ley del Impuesto sobre la Renta, Articles 1, 2, 3, 9, 14 Source: United States–Mexico Income Tax Convention, Article 5 (Permanent Establishment)

Every employer hiring a worker in Mexico must prepare a written employment contract (contrato individual de trabajo) that specifies the conditions of employment. Article 24 of the Ley Federal del Trabajo (Federal Labor Law, or LFT) requires that "the conditions of work must be set out in writing when no collective bargaining agreement applies" (las condiciones de trabajo deben hacerse constar por escrito cuando no existan contratos colectivos aplicables). The statute directs that at least two copies of the contract be prepared, with one copy provided to each party.

Failure to provide a written contract does not invalidate the employment relationship, but it carries severe consequences for the employer. Article 26 of the LFT provides that "the absence of the written document referred to in Articles 24 and 25 does not deprive the worker of the rights that derive from labor laws and the services provided, as the absence of that formality shall be imputed to the employer" (la falta del escrito a que se refieren los artículos 24 y 25 no priva al trabajador de los derechos que deriven de las normas de trabajo y de los servicios prestados, pues se imputará al patrón la falta de esa formalidad). In practice, when a contract is missing or incomplete and a dispute arises, Mexican labor courts presume the employee's version of the employment terms is correct, shifting the burden of proof to the employer. This presumption applies to salary, job duties, work schedule, contract duration, and other material terms.

## Mandatory contract content — Article 25

Article 25 of the LFT enumerates the required elements of every written employment contract:

I. Identification of the parties. The contract must state the name, nationality, age, sex, marital status, Clave Única de Registro de Población (CURP, the national ID number), Registro Federal de Contribuyentes (RFC, the federal tax ID), and domicile (legal address) of both the worker and the employer.

II. Type and duration of employment relationship. The contract must specify whether the relationship is:

• For a specific work or project (obra determinada),
• For a fixed term (tiempo determinado),
• Seasonal (por temporada),
• For initial training (capacitación inicial), or
• Indefinite term (tiempo indeterminado).

If the contract includes a probationary period (periodo a prueba), the contract must state the duration and conditions of that period. Under Article 39-A of the LFT, a probationary period may not exceed 30 days for most positions, or 180 days for managerial, administrative, technical, or professional roles. The LFT presumes that an employment relationship is indefinite unless the nature of the services or a justified reason supports a fixed-term, seasonal, or project-based arrangement.

III. Description of services. The contract must describe "the service or services to be provided, which shall be determined with the greatest precision possible" (el servicio o servicios que deban prestarse, los que se determinarán con la mayor precisión posible). Vague job descriptions expose the employer to disputes over scope of duties and wrongful-termination claims.

IV. Place of work. The contract must identify the location or locations where the work is to be performed. For employees who work remotely or telework for at least 40 percent of their working time, the LFT (as amended in 2021) requires a supplemental telework agreement specifying the percentage of remote work, the work schedule, the allocation of costs for internet and electricity, and the employer's obligation to provide equipment and ergonomic furniture.

V. Work schedule (duration of the workday). The contract must state the length of the workday (jornada). Article 61 of the LFT establishes maximum workday limits: 8 hours for daytime work (diurna, 6:00 a.m. to 8:00 p.m.), 7 hours for nighttime work (nocturna, 8:00 p.m. to 6:00 a.m.), and 7.5 hours for mixed shifts. The contract should specify start and end times and any split-shift arrangement.

VI. Form and amount of salary. The contract must specify the salary amount and the form of payment (hourly, daily, weekly, biweekly, monthly, piece-rate, commission, or combination). If the salary is denominated in multiples of the minimum wage (salario mínimo), the contract should clarify whether it is a fixed peso amount or indexed. The current general minimum wage in Mexico is updated annually by the Comisión Nacional de los Salarios Mínimos (National Minimum Wage Commission) and published in the Diario Oficial de la Federación; as of January 1, 2024, the general daily minimum wage is MXN $248.93, and the rate in the Northern Border Free Zone is MXN $374.89.

VII. Day and place of salary payment. The contract must state the day (or frequency) and location where the worker will receive payment. Article 88 of the LFT requires that wages be paid at least biweekly or, for employees engaged in material execution of works, weekly.

VIII. Training obligation. The contract must include a statement that the worker will be trained or instructed in accordance with the training plans and programs established or to be established in the company, in conformity with the LFT. Articles 153-A through 153-X of the LFT impose on every employer an obligation to provide training to enable workers to improve their skills and productivity.

IX. Other conditions. The contract must specify any additional conditions of employment agreed by the parties, including rest days, vacations, and other benefits that supplement the statutory minimums. Standard supplemental clauses include the aguinaldo (annual year-end bonus, minimum 15 days' wages under Article 87 of the LFT, payable by December 20), the prima vacacional (vacation premium, 25 percent of vacation wages under Article 80), the employee's participation in company profits (participación de los trabajadores en las utilidades de las empresas, or PTU, governed by Articles 117–131 of the LFT and the Mexican Constitution), and social-security registration.

X. Beneficiary designation. The contract must include the designation of beneficiaries for the payment of unpaid wages and benefits in the event of the worker's death or disappearance resulting from a criminal act (Article 501 of the LFT).

## Timeline and mechanics

The LFT does not impose an explicit deadline by which the written contract must be signed, but Article 24 uses the present tense ("must be set out in writing") and Article 26's penalty for the missing contract applies from the first day of the relationship. Best practice is to execute the written contract on or before the employee's first day of work.

The contract must be in Spanish. Although the LFT does not explicitly mandate Spanish-language contracts, labor authorities and tribunals conduct proceedings in Spanish, and a contract in a foreign language without an official Spanish translation is not enforceable in Mexican labor courts. For foreign employees, employers typically prepare a Spanish-language contract and provide an informational translation in the employee's native language, but the Spanish version governs.

The employer must provide the employee with a signed original copy of the contract. The employer retains a signed copy for its records and must produce it upon request by the Secretaría del Trabajo y Previsión Social (STPS, the federal labor authority), IMSS, or the labor tribunal in the event of an inspection or dispute.

## Collective bargaining agreements

When a collective bargaining agreement (contrato colectivo de trabajo) covers the workers, the individual written contract requirement under Article 24 is satisfied by the collective agreement, provided the employer delivers to each worker a copy of the collective agreement and a notice specifying the worker's job title, start date, and salary. In unionized workplaces, the collective agreement establishes the general conditions of employment (wages, hours, benefits, grievance procedures), and the individual notice supplements it with worker-specific details. Employers not subject to a collective agreement must prepare individual written contracts for every employee.

## Fixed-term and project-based contracts — justification requirement

Fixed-term contracts (tiempo determinado) and contracts for a specific work or project (obra determinada) are permissible only when the nature of the work justifies a defined duration. Article 37 of the LFT limits fixed-term contracts to three scenarios:

1. When the nature of the work so requires (cuando lo exija la naturaleza del trabajo que se va a prestar),
2. When the purpose is to temporarily replace another worker (cuando tenga por objeto substituir temporalmente a otro trabajador), or
3. In other cases provided by law.

If a fixed-term contract does not fit these categories, or if the employer repeatedly renews fixed-term contracts for the same role, the relationship is reclassified as indefinite by operation of law, and the employee gains the full protections afforded to permanent workers, including higher severance in the event of unjustified termination. Employers drafting fixed-term contracts must include in the written contract the specific justification for the fixed term and, when relevant, the name of the worker being temporarily replaced.

## Consequences of non-compliance

An employer that fails to provide a written contract, provides an incomplete contract, or provides a contract only in a foreign language faces:

• Pro-employee presumption in disputes. Labor tribunals will presume the employee's testimony regarding salary, job duties, work hours, and other conditions is accurate, placing on the employer the burden to prove otherwise with alternative documentary evidence (payroll records, witness statements, email correspondence). This presumption alone often determines the outcome of wrongful-termination and unpaid-wage claims.

• Fines. The STPS may impose administrative fines on employers that fail to comply with the written-contract requirement during labor inspections. The fine range is established in Article 1002 of the LFT and is calculated in multiples of the Unidad de Medida y Actualización (UMA, the indexed reference unit for fines and fees); as of 2024, one UMA equals approximately MXN $108.57 per day.

• Reputational and operational risk. Employers without compliant written contracts struggle to enforce restrictive covenants (confidentiality, non-compete, IP assignment clauses), defend wrongful-termination claims, and establish just cause for dismissal.

Foreign companies hiring in Mexico through an Employer of Record (EOR) rely on the EOR to draft and execute compliant written contracts in Spanish. Companies that hire directly or through a Mexican subsidiary must ensure that HR, legal, or external counsel prepares contracts that satisfy Article 25's ten-point checklist and updates them whenever material terms (salary, job title, work location, or contract type) change.

Source: Ley Federal del Trabajo, Articles 24, 25, 26, 37, 39-A, 61, 80, 87, 88, 153-A, 501, 1002

Every company intending to hire employees in Mexico must register with the Servicio de Administración Tributaria (SAT), Mexico's federal tax authority, to obtain an employer federal taxpayer identification number, known as the Registro Federal de Contribuyentes (RFC). Possession of an RFC is a mandatory legal prerequisite for opening payroll, making IMSS enrollment, and satisfying monthly payroll tax and social-security contribution obligations.

## Legal basis and who must register

Under Article 27 of the Código Fiscal de la Federación (CFF, Federal Fiscal Code), all legal entities (personas morales) and individuals with business activities (personas físicas con actividad empresarial) are required to register with the RFC. Article 29 further provides that all persons issuing digital tax invoices (CFDI, comprobante fiscal digital por Internet) — mandatory for payroll, salary payments, and expense deductions — must be identified with an RFC. Without an RFC, an employer cannot issue valid payroll receipts and cannot lawfully deduct wages and benefits for tax purposes.

For foreign companies, an RFC can only be obtained if the entity has been legally incorporated in Mexico (e.g., via a Sociedad Anónima, Sociedad de Responsabilidad Limitada, or Sociedad por Acciones Simplificada), as RFC registration requires a Mexican legal domicile and a notarial deed of incorporation (escritura constitutiva). Non-resident companies without a local subsidiary or registered branch generally cannot obtain an RFC and thus cannot directly register with IMSS; they must either form a Mexican entity or utilize a Mexican Employer of Record (EOR) to employ staff.

## When and how to register

Article 27 of the CFF requires new legal entities to file for RFC registration within one month of incorporation. Registration is completed electronically via the SAT portal (www.sat.gob.mx) or in person at a SAT office, requiring a notarized copy of the company's charter, proof of domicile, and an authorized legal representative's ID. Only after obtaining an RFC number may a company proceed to register with IMSS, INFONAVIT, and begin lawful payroll operations. Failure to register for RFC on time exposes the company to fines under Article 79 of the CFF, and inability to issue pay slips exposes the company to severe payroll tax noncompliance penalties.

## Key procedural traps

• Attempting to employ staff or contract an IMSS registration before obtaining RFC is not possible — RFC status is always the first step.
• Companies that do not maintain an updated legal domicile or that fail to update changes of address, partners/shareholders, or legal representatives with SAT risk suspension of their RFC, which blocks all payroll and fiscal operations.

Source: Código Fiscal de la Federación, Articles 27, 29, 79

Mexico introduced a formal pilot regime for digital‑platform employers (ride‑hailing, delivery, and similar services) effective July 1, 2025, anchored in the Decree published in the Diario Oficial de la Federación (December 24, 2024) and rules approved by the IMSS Technical Council June 24, 2025. This regime imposes distinct registration, classification, and monthly compliance duties.

Who must register: Any platform (plataforma digital) that contracts with individuals to provide transportation, delivery, or analogous services must:

• Obtain a Registro Patronal (employer registration) through the IMSS Escritorio Virtual system;
• Officially notify IMSS of its digital-platform status by submitting the TIP, required platform forms, and its employer registration number by email (serviciosdigitales@imss.gob.mx), as detailed on the IMSS site.

Sector classification: Platforms must self-classify under Division 7: fraction 711 for passenger transport, fraction 755 for delivery or courier services (Class IV); or, if their principal activity differs, under Article 196 of the Reglamento de la Ley del Seguro Social en Materia de Afiliación (RACERF).

Timeline and ongoing process:

• The pilot regime took effect July 1, 2025, and will remain until further legislative changes.
• Platforms must submit updated salary base of contribution (SBC) figures for each worker within the first five calendar days of every month through IMSS’s electronic system.
• IMSS issues a payment proposal by the 10th; platform employers must pay all assessed quotas by the 17th of the month.
• All obligations (registration, reporting, Buzón IMSS activation, payment) are fulfilled electronically.

Worker coverage: Once registered, platform workers immediately receive IMSS coverage: work accidents, illness/maternity, invalidity/life, retirement, and child care, per statutory IMSS branches.

Legislative status: The regime supplements, not replaces, general obligations under the Ley del Seguro Social and Ley Federal del Trabajo. Further formal and legislative changes may follow once IMSS publishes results of the pilot.

Source: IMSS – Seguridad social para empresas y trabajadoras de plataformas digitales Source: IMSS press release, 24 June 2025

Employers in Mexico are required to withhold and remit a complex set of payroll deductions, and to pay statutory employer contributions to federal and state authorities. The essentials are:

1. Income tax (ISR) withholding: The Income Tax Law (Ley del Impuesto sobre la Renta, LISR) obligates the employer to withhold income tax (ISR) from employee wages and remit monthly to the federal tax authority (SAT). Under Article 96 of the LISR, the employer must calculate withholding using government-published tables based on salary, benefits, and bonuses, apply allowable deductions, and deliver employees a detailed payslip (CFDI nómina) reflecting the tax withheld. Remittance is due by the 17th day of the month following payment (LISR Art. 96; CFF Art. 31).

2. Social security (IMSS) contributions: Employers must enroll workers with the Instituto Mexicano del Seguro Social (IMSS) and pay both employer and employee IMSS contributions, with the employer required to withhold the employee portion from wages (Ley del Seguro Social, Art. 15, 40). The IMSS system covers health, pension, disability, life, and occupational risk insurance, and contributions are calculated as a percentage of the salario base de cotización (SBC), the official contribution wage base. Payment is made monthly with the deadline typically on the 17th.

3. Housing fund (INFONAVIT) contributions: Employers must also register with Instituto del Fondo Nacional de la Vivienda para los Trabajadores (INFONAVIT) and contribute 5% of each worker's SBC (Ley del INFONAVIT Art. 29). This employer-only contribution is paid via monthly IMSS filings. The employee portion is not withheld; the employer alone pays the 5%.

4. State payroll tax (impuesto sobre nóminas): All Mexican states levy a payroll tax on gross salary paid to employees, with rates typically ranging around 2-3%, and the employer usually bears the entire burden. Each state establishes its own filing and payment deadlines and registration protocols, independent of federal IMSS/INFONAVIT reporting. There is no universal federal payroll tax.

Mechanics and deadlines:

• Payroll calculations must be supported by a CFDI payslip (comprobante fiscal digital por Internet), autogenerated and digitally stamped for every pay cycle per CFF Art. 29 and LISR Art. 99.
• Employers must deliver paystubs to employees, and file electronic reports and remittances via SAT (for ISR) and IMSS (for social security and housing).
• Failure to remit on time or to provide proper CFDI documentation exposes employers to fines and loss of deduction rights (LISR Art. 27; CFF Art. 83, 84).

Example statutory schedule (2025):

• Federal ISR and IMSS/INFONAVIT employer contributions: payable by the 17th of month following payroll
• State payroll taxes: deadlines vary by state, typically monthly

Source: Ley del Impuesto sobre la Renta, Arts. 27, 96, 99 Source: Ley del Seguro Social, Arts. 5-A, 15, 40 Source: Ley del INFONAVIT, Art. 29 Source: Código Fiscal de la Federación, Arts. 29, 31, 83, 84 Unable to cite a single unified federal statute for all state payroll tax obligations; must consult each state's law individually.

Last updated to fix the INFONAVIT primary-source link (was LINFONAVIT.pdf, now LIFNVT.pdf) as of 2026-06-16. No material legislative changes to withholding or contribution rates detected as of this update.

Every employer in Mexico must register every new employee with the Instituto Mexicano del Seguro Social (IMSS) as soon as the employment relationship begins. This registration is separate from the employer’s own registration and is foundational to social security and housing fund benefit access for the worker.

Legal framework and deadline. Article 15(I) of the Ley del Seguro Social (LSS) requires employers to register workers with IMSS and to communicate entries, exits, and salary changes "within the periods established by this Law and its Regulations." Under the Reglamento de la Ley del Seguro Social en Materia de Afiliación, Article 12, an employer must file a worker’s registration (alta del trabajador) no later than five business days after the start of employment. Note that while registration within this period is permitted by regulation, immediate registration (on or before the worker’s first day) is industry best practice, since disputes over service start date or salary almost always resolve in favor of the employee when supporting documentation is lacking.

Registration process: electronic and in person. Employers can register employees either through IMSS’s electronic portal "IDSE – Desde su Empresa" (requiring an employer digital certificate) or in person at the IMSS Subdelegación corresponding to the fiscal domicile or worksite. The electronic route is now the dominant, preferred method for tracking compliance and generating timely receipts (Aviso de Alta); Article 3-Bis of the Reglamento allows electronic registration for employers with digital credentials.

Required data and documentation. IMSS registration requires the worker’s full name, date of birth, sex, CURP (national ID), RFC (tax ID), and Social Security Number (NSS), as well as job title, start date, and salary (salario base de cotización). Although it is common and advisable to collect proof of address, identification, and a signed employment contract for HR files and inspection readiness, the statute does not list these as mandatory for filing the alta itself—these are mechanical compliance best practices. The employee must have an NSS, which may be obtained by the worker (online or in person) or with employer assistance and written authorization per IMSS guidance.

INFONAVIT onboarding. INFONAVIT registration of the worker is not a discrete manual step: once the employee is registered with IMSS, registration information is shared automatically from IMSS’s database to INFONAVIT under joint administrative arrangements. The statutes do not require or provide a separate procedure, but the law is silent on the technical process. Employers should nevertheless confirm employee INFONAVIT visibility through statement downloads or employee self-inquiry.

Practical traps. Failure to report timely or accurately exposes the employer to retroactive contributions. Errors in the salary base or entry date, or gaps in NSS/CURP/RFC data, create disputes and require correction directly with the IMSS Subdelegación. Employers should generate, archive, and provide the Aviso de Alta confirmation receipt; this is standard practice but not detailed in statute.

Unable to confirm penalty details or data cross-sharing protocols as of 2026-06-16.

Source: Ley del Seguro Social, Article 15 Source: Reglamento de la Ley del Seguro Social en Materia de Afiliación, Articles 3-Bis, 12 Source: IMSS worker registration: official portal

When a company hires its first employee in Mexico, in addition to IMSS and SAT registration, it must register as an employer with the relevant labor authority—either the Junta Local de Conciliación y Arbitraje (for most local-level employment relationships) or the Junta Federal (for federally regulated activities such as transport, banking, and telecommunications, per Article 527 of the Ley Federal del Trabajo). Article 123 of the Ley Federal del Trabajo (LFT, Federal Labor Law) and its implementing regulations impose these onboarding and compliance requirements alongside mandatory workplace postings.

Employer registration with the labor board. Article 15 of the Reglamento Federal de Seguridad y Salud en el Trabajo requires every employer to notify the labor authority of the start of operations and to register any establishment where workers are employed. This notification—formally called the "aviso de apertura"—must be filed within 8 days of beginning operations or hiring the first worker. The submission is made to the local Junta Local unless the business is classified as federal jurisdiction under LFT Article 527 (federally regulated activities include transport, banking, telecommunications, and others specifically enumerated in Article 527).

The registration must include:

• Employer’s RFC (federal taxpayer ID) and company details,
• Name and CURP of the legal representative,
• Description and address of the worksite,
• Total workforce (number of employees, sex, job types),
• Copy of the written employment contract(s).

Registration triggers inclusion on the official employer rolls and enables the labor board to monitor compliance with workplace standards and intervene in labor disputes. Failure to comply exposes the employer to fines (Article 994 LFT) and may hinder official recognition of employment relationships in claims.

Mandatory worksite posting. Article 132, Paragraphs I–VI of the LFT requires employers to visibly post at the worksite copies of labor standards for:

• Work schedules and weekly rest periods,
• Statutory minimum wage table (tarifas del salario mínimo),
• Health and safety rules, and
• Names and contact information for the health and safety committee members (if applicable).

The Reglamento Federal de Seguridad y Salud en el Trabajo, Article 17, expands posting mandates to emergency contacts, evacuation routes, and information on the prevention of workplace risks. These must be updated promptly whenever working conditions change. Labor inspectors may verify these postings at any time, and omissions may result in administrative fines under Article 994 of the LFT.

Key procedural trap: New foreign employers frequently focus solely on IMSS and tax registrations and overlook labor board notification and postings, which are enforced in on-site inspections and can trigger penalties or complications in dispute resolution if missing.

Source: Ley Federal del Trabajo (LFT), Articles 123, 132, 527, 994 Source: Reglamento Federal de Seguridad y Salud en el Trabajo, Articles 15, 17

Every employer with employees performing work in Mexico City must register with the Secretaría de Administración y Finanzas CDMX for local payroll tax (Impuesto Sobre Nóminas, or ISN), even after completing all federal registrations (SAT, IMSS, INFONAVIT). This registration is mandatory and independent of other tax or social-security obligations.

Legal framework and who must register. Article 156 of the Código Fiscal de la Ciudad de México (Mexico City Fiscal Code) imposes ISN on any "employer or those responsible for the payment of remuneration to subcontracted workers who carry out subordinate personal services within Mexico City," capturing both domestic and foreign entities with personnel physically working in Mexico City.

Registration deadline and requirements. Article 161 of the Código Fiscal de la Ciudad de México provides that every subject employer must register as a payroll taxpayer (inscribirse en el Registro de Contribuyentes del impuesto) within 45 calendar days of the first taxable event or from the filing of the initial notice to the registry (see also CGMA compliance guidance, p. 19). Article 29 separately provides that new taxpayers must register within one month following the initiation of taxable activities. In practice, the 45‑day deadline governs ISN registration. Registration is electronic or in-person; late registration exposes the employer to fines under Article 464.

ISN rate and effective date. Article 158 of the Fiscal Code establishes the general ISN rate for Mexico City. As of the last statutory amendment available (2025 edition), the general rate remains 3%. Article 158’s text should be referenced for current rate confirmation, as amendments—or rate increases—would be reflected directly in that article and published in the annual Código Fiscal.

Monthly reporting and payment. Article 160 requires ISN declarations and payments to be filed monthly, no later than the 17th day of the month following the payroll period.

Enforcement and sanctions. Article 464 provides for administrative fines for non-registration, late filing, or underpayment, assessed per day of non-compliance.

Scope note. This section addresses only ISN registration and deadlines for employers in Mexico City. Every Mexican state has its own payroll tax regime with potentially different rates, exemptions, and procedures.

Source: Código Fiscal de la Ciudad de México, Arts. 29, 156, 158, 160, 161, 464 Source: CGMA — Procedimiento para la presentación de avisos, p. 19, confirming 45-day deadline Source: CDMX ISN Transparency (unable to relink official URL as of 2026-06-16; original transparency portal document is not available at a working official address)

Every employer in Mexico is legally required to generate, digitally sign, and deliver an electronic payroll receipt—known as the CFDI nómina (comprobante fiscal digital por Internet de nómina)—for each payment of salary, wages, or compensation to an employee. This requirement, anchored in the Código Fiscal de la Federación (CFF, Federal Fiscal Code) Articles 29 and 29-A and the Ley del Impuesto sobre la Renta (LISR, Income Tax Law) Article 99(VI), is foundational to lawful payroll operations in Mexico, both for statutory withholding and for deductibility of wages as a business expense.

## Legal requirements

• Obligation to issue CFDI. Article 29 of the CFF establishes that every person (including employers) who makes payments for services must issue a CFDI with each transaction: in payroll, this is the CFDI nómina, with data fields and format prescribed by the SAT in its electronic invoicing rules (Anexo 20).
• Content and format. The CFDI nómina must reflect detailed information about the payment: gross salary, ISR withheld, IMSS/INFONAVIT contributions, bonuses, overtime, vacation premium, tax-exempt vs. taxable portions, and cumulative annual earnings. The format is standardized and must conform to the digital stamp (sello digital) and validation process.
• Digital signing and validation. Each CFDI must be issued by the employer's certified digital signature (e.firma), and validated/stamped by a SAT-authorized certification provider (Proveedor Autorizado de Certificación, PAC) for it to be legally valid.
• Delivery to the employee. Article 29(IV) of the CFF, as interpreted by SAT, obligates the employer to provide the worker with an electronic copy (XML or PDF) of the CFDI nómina, either by email or through an accessible online portal, at or right after payment. Best practice (and regulatory expectation) is delivery with or immediately following every payroll cycle; failure to provide timely payslips to employees exposes the employer to fines (CFF Articles 83, 84) and hinders dismissal or dispute defense.
• Retention period. Article 30 of the CFF sets a statutory 5-year retention requirement: the employer must preserve all CFDI nómina XMLs and supporting payroll documents for at least five years from the date of creation, available for SAT or labor authority inspection.

Wages paid without issuing a valid, employee-delivered CFDI nómina do not qualify as deductible business expenses for ISR, per LISR Article 27(VIII). Foreign companies or EORs employing staff in Mexico must ensure CFDI compliance via a Mexican-registered RFC; foreign payrolling without CFDI is non-compliant.

Source: Código Fiscal de la Federación, Articles 29, 29-A, 30, 83, 84 Source: Ley del Impuesto sobre la Renta, Articles 27, 99 Source: SAT — Guía de llenado del CFDI de nómina

Employers outside Mexico face structural hurdles when hiring their first worker in Mexico. The core legal barrier is that only entities with a Mexican tax ID (Registro Federal de Contribuyentes, or RFC), domiciled and registered before the Secretaría de Administración Tributaria (SAT), can (1) directly employ personnel in Mexico, (2) register with IMSS (social security), and (3) issue statutory electronic payslips (CFDI nómina). Foreign companies without a Mexican-incorporated subsidiary, registered branch, or officially domiciled representative office cannot obtain an RFC—and, therefore, cannot directly put a worker on Mexican payroll or comply with Mexico's core employer laws.

Legal requirements – RFC and local presence

• Article 27 of the Código Fiscal de la Federación (CFF) compels all legal persons and individuals carrying out business activities in Mexico to obtain an RFC. The SAT registration process requires proof of Mexican incorporation (acta constitutiva), a Mexican legal address, and a designated legal representative with a local tax ID. SAT procedural guidance states RFC is not available to entities without a national incorporation act and domicile.
• IMSS registration, which is mandatory for all employers of Mexican workers, is conditioned on having an RFC. Article 15 of the Ley del Seguro Social (LSS) and IMSS's registration portal require the RFC for registration; the IMSS system rejects applications from entities lacking a registered Mexican RFC.
• Issuing CFDI payroll receipts (required by Article 29 of the CFF for all wage payments) is only possible for entities with a valid RFC and e.firma issued by SAT.

EOR and subsidiary models – statutory context

• Employer of Record: Most foreign employers without a local company use an Employer of Record (EOR)—a Mexican legal entity that hires the worker directly, puts them on its own RFC, IMSS, and INFONAVIT registrations, and contracts with the foreign parent for a fee. Under Mexican law, the EOR is the legal employer (patrón); the foreign company cannot issue official pay, register the worker with IMSS, or deduct payroll expenses on its own.
• Subsidiary or branch incorporation: Alternatively, the foreign company can create a Mexican-incorporated company (e.g., Sociedad Anónima (S.A.), Sociedad de Responsabilidad Limitada (S. de R.L.), or Sociedad por Acciones Simplificada (S.A.S.)), register for RFC with SAT, and proceed as a local employer.

Foreign parent registration trap: Foreign companies sometimes attempt to treat a worker as a direct employee without incorporation, RFC, or IMSS registration—e.g., paying salary from abroad expecting local compliance to be managed later. Mexican labor law (LFT Art. 15) and IMSS/LSS treat such engagements as noncompliant, exposing the parent to retroactive liability for social security, payroll taxes, and severe fines; workers are presumed employees of the entity that derives benefit and can seek local labor protections.

Source: SAT — RFC registration requirements Source: Ley del Seguro Social, Art. 15 Source: Código Fiscal de la Federación, Art. 27, 29

Every employer in Mexico must classify its business activity in one of the IMSS work risk insurance classes (clases de riesgo) at the time of registration. This classification directly determines the employer’s contribution rate for the Seguro de Riesgos de Trabajo (Work Risk Insurance), which covers workplace accidents, occupational illnesses, and related disabilities, and is a central element of the Mexican social security financing system.

## Regulatory framework and obligation

The framework for classification is found in Articles 73–75 of the Ley del Seguro Social and the Reglamento para la Clasificación de Empresas y Determinación de la Prima en el Seguro de Riesgos de Trabajo (RACERF). Under Article 73 LSS, "The Instituto Mexicano del Seguro Social shall operate obligatory insurance against risks of work. Employers are obliged to enroll their workers in this insurance, with the classes and ratios determined by regulation." The employer’s risk class (Clase I through V) is defined in Article 196 of the Reglamento, based on the principal “business activity performed by the company or establishment.”

## How classification is determined

• Initial assignment: Upon registering with IMSS, the employer must declare the principal activity and provide supporting documentation (such as articles of incorporation and, if requested, operational description). IMSS then assigns the employer to one of five risk classes, with Class I representing the lowest hazard (office work) and Class V the highest (mining, heavy industry). The legal basis for this is Article 73 LSS and RACERF Articles 5–7 and 196.
• Published risk classes: The full list of standard activities and their classes is set out in Article 196 of the RACERF, which contains a detailed table by industry code. Employers are legally obligated to self-classify accurately; misclassification is subject to inspection and correction by IMSS (Article 16-B LSS, RACERF Arts. 8–11).

## Premium rates and recalculation

• Initial premium: The employer pays the standard risk-class premium established for its industry, ranging from 0.5% (Class I) to 7.0% (Class V), applied to the employee's salario base de cotización (contribution salary base). See LSS Art. 74; actual figures are adjusted by IMSS circular.
• Annual adjustment: After the first full year, each employer recalculates its specific rate based on actual claims and accident incidence, reporting annually in February per LSS Art. 74 and RACERF Art. 32. Failure to file the risk recalculation leads to continued application of the prior rate and exposes the employer to sanctions.

## Procedural requirements and compliance risks

Employers must declare risk class in their IMSS Alta Patronal application and document the economic activity. Regular IMSS audits target risk misclassification and underreporting—penalties include back premiums and fines (LSS Art. 304-A). For multi-activity employers, the highest-risk operation governs unless separable by workforce and location (RACERF Arts. 7, 11).

Source: Ley del Seguro Social, Articles 73–75, 16-B, 304-A Source: Reglamento para la Clasificación de Empresas y Determinación de la Prima en el Seguro de Riesgos de Trabajo, Articles 5–11, 32, 196

Every employer in Mexico that generates taxable income must comply with the statutory worker profit-sharing regime known as PTU (Participación de los Trabajadores en las Utilidades de las Empresas), governed by Articles 117–131 of the Ley Federal del Trabajo (LFT).

Applicability and triggering. PTU obligations apply to all private-sector employers with employees, except for a limited list of exceptions established in Article 126 (including the employer's first year of operation and, for new extractive industries, their initial two years). There is no standalone electronic registration with a government portal; instead, the obligation is an annual compliance process triggered once the employer earns taxable profits (LFT Art. 117, 126).

Calculation base and statutory adjustments. The distributable PTU pool is 10% of the company's taxable income as determined under the Income Tax Law (ISR), subject to statutory adjustments specified in Article 120. These may include non-deductible expenditures or certain exempt income. The company’s annual SAT tax declaration is the foundation for this calculation (LFT Art. 120).

Distribution and deadlines. Article 122 requires that PTU be distributed to eligible employees within 60 days after the annual income tax filing deadline (typically March 31 for companies; LFT Art. 122). Each employee must receive written notice of the calculation basis, the allocated profit pool, and their entitlement, with a worksite summary posted and notification provided to the relevant Labor Board (Junta de Conciliación y Arbitraje) within the same timeframe. Failure to comply exposes employers to fines (LFT Art. 994) and potential labor claims.

Individual cap and exclusions. The 2021 reform to the LFT caps individual PTU payments at three months’ salary or the worker’s average PTU from the previous three years, whichever is higher. Executive management and listed statutory categories are excluded (LFT Art. 127).

Source: Ley Federal del Trabajo, Articles 117–131, 120, 122, 126, 127, 994

Employers in Mexico with complex operations, multiple shifts or locations, or formal workplace structures are legally required to create and register an Internal Work Regulation (Reglamento Interior de Trabajo, RIT). The RIT is a formal workplace code prescribing operational, disciplinary, and procedural rules binding on all employees and the employer. Unlike individual employment contracts, the RIT sets standards of general application: work schedules, discipline systems, complaint procedures, and worksite safety standards. Its contents, adoption process, and statutory effect are governed by Articles 422–425 of the Ley Federal del Trabajo (LFT), with enforcement and penalties provided in Article 994.

When is a RIT required? The LFT mandates that a RIT must be established "in every work establishment" where the nature of the work, the number of workers, the system of organization, or the use of multiple shifts makes regulation needed (Article 422). The law does not set a numerical threshold; the widespread administrative practice is that ten or more workers, rotating schedules, or workplace complexity triggers the requirement, but the statute itself leaves it open-ended.

Mandatory contents (Article 423 LFT): The RIT must, at minimum, address:

• Opening and ending hours of the workday, time for meals and rest;
• Days and hours fixed for beginning and ending work, for daily and weekly rest;
• Place and time for wage payment;
• Rules for use and custody of work instruments and materials;
• Preventive measures for workplace safety and hygiene;
• Disciplinary measures and how penalties can be imposed, as well as procedures for workers to make complaints or present claims;
• Other rules necessary for the workplace's orderly operation.

These are set out verbatim in Article 423; explanatory notes or more detailed rules specific to the company may supplement these as long as they do not undermine labor law protections.

Consultation, registration, and posting mechanics: Drafting the RIT requires consultation with the union or, if no union exists, with a worker committee representing the employees. Both the employer and the workers' representatives must sign the RIT before submitting it to the Junta de Conciliación y Arbitraje (Labor Board) for review, approval, and registration (Article 424). Once approved, the employer must post the RIT in a visible place at every worksite (Article 425). The RIT is not enforceable until registered and posted.

Sanctions: Failure to register or display the RIT, or applying unregistered rules, can result in fines under Article 994 LFT (the law prescribes fine ranges in multiples of the Unidad de Medida y Actualización; as of 2026, one UMA is MXN $108.57 per day). Labor inspectors may require employers to produce the RIT during inspections.

Practical note for cross-border employers: Foreign companies new to Mexico sometimes mistake general policy handbooks for compliance; under Mexican law, only a registered RIT (with proper worker consultation and Labor Board approval) carries legal force for workplace discipline and organization.

Source: Ley Federal del Trabajo, Articles 422–425, 994

Foreign nationals (non-Mexican citizens) wishing to work in Mexico must secure lawful authorization before beginning employment. Employers wishing to hire foreign workers are subject to a distinct set of requirements set out in the Ley de Migración (Migration Law), its Regulations, and administrative guidance from the Instituto Nacional de Migración (INM). The failure to comply exposes both employer and employee to sanctions, including voiding of the employment relationship and deportation orders (Ley de Migración Art. 52, 156, 160; LFT Art. 132(XI)).

## Employer INM registration (constancia de inscripción de empleador) Before sponsoring any foreign worker, an employer must obtain a "Constancia de inscripción de empleador" (Employer Registration Certificate) from the INM. Article 166 of the Reglamento de la Ley de Migración requires any private or public person wishing to hire foreign nationals to register as an employer—submitting legal identity, domicile, tax ID (RFC), company charter, and proof of payroll operations. Once granted, the employer is assigned a unique registration number and must notify the INM of new hires and terminations (Reglamento Art. 169). Registration is completed via the INM portal or (for initial setups) at a local INM office; updates are required whenever there is a corporate change (Art. 170).

## Sponsoring a work visa (Residente Temporal/Permiso para Trabajar) To lawfully hire a foreign national for salaried employment, the standard work-permit route is the "Residente Temporal, con permiso para trabajar" (Temporary Resident with work authorization) as per Ley de Migración Art. 52(IV); Reglamento Art. 138–141. The process is employer-driven:

• The employer submits an electronic placement offer (oferta de empleo) through its INM account, attaching the foreign national's passport, job offer letter, and proof that the position is not excluded from the quota system (for some regulated professions/roles).
• INM issues an "oficio de autorización de trabajo" (authorization letter), permitting the foreign national to apply for a Temporary Resident Visa at a Mexican consulate abroad (with rare exceptions for in-country change of status).
• After consular issuance, the worker must enter Mexico and register at the INM within 30 days to receive the temporary resident card (Residente Temporal), at which point formal employment may begin (Reglamento Art. 160).

Employers are prohibited from engaging foreign workers who lack proper authorization or whose status is irregular, regardless of contract status (LFT Art. 132(XI); Ley de Migración Art. 160).

## Reporting, document retention, and penalties After onboarding, the employer must update INM within 90 days of any job change or termination (Reglamento Art. 175). Article 160 of the Ley de Migración and the Regulations impose an ongoing duty to document-check and report. Immigration inspectors may audit payroll records, employment contracts, and documentation to ensure ongoing compliance.

Sanctions for noncompliance (employing a foreign worker without proper employer registration, or without valid immigration status) include fines up to 10,000 times the daily UMA, and in egregious cases, criminal sanctions. Workers found without proper authorization face deportation (Ley de Migración Art. 160, 156).

Source: Ley de Migración, Articles 52, 156, 160 Source: Reglamento de la Ley de Migración, Articles 138–141, 166, 169, 170, 175 Source: INM — Employer registration and foreign worker sponsorship process