🇧🇷 Hire in Brazil vs 🇲🇽 Mexico
Statutory employer on-costs are lower in Mexico; the full picture depends on salary level, termination exposure and how fast you need the person on payroll.
Not professional advice. Rates, rules and prices change often. Figures here are researched estimates from the sources listed; anything marked “unverified” needs checking with the provider or a local adviser before you rely on it.
| Brazil | Mexico | |
|---|---|---|
| Employer on-costs | 47–70% | 27–36% |
| Total cost on a $60,000 salary | $88,200–$102,000 | $76,200–$81,600 |
| Mandatory benefits | 13th salary (paid in two instalments, by 30 Nov and 20 Dec); Vacation pay plus 1/3 constitutional bonus; FGTS deposits (8%); Vale-transporte (commuting allowance) for employees who commute; Maternity leave 120 days (180 if Empresa Cidada); paternity leave 5 days in 2026 (Law 15.371 of 31 Mar 2026 raises it to 10 days from 2027, 15 from 2028 and 20 from 2029 with a paid 'salario-paternidade', per secondary sources); Meal vouchers, health plans, etc. are usually required by collective bargaining agreements (CCT) rather than statute | Aguinaldo: at least 15 days' pay by 20 December; Vacation premium: at least 25% on vacation pay; PTU profit sharing (10% of company taxable income); Paid sick leave via IMSS; Work-from-home allowance (Deel cites MXN 1,000/month for remote workers); Maternity 12 weeks paid (IMSS); paternity 5 working days (employer; Remote) |
| Probation | Experience contract (contrato de experiencia) up to 90 days total (one extension allowed within that cap). | Up to 30 days for contracts over 180 days; up to 180 days for managerial or technical roles (Remote). |
| Notice and severance | Dismissal without cause: notice (aviso previo) of 30 days plus 3 days per completed year of service beyond the first, capped at 90 days (Law 12.506/2011) (worked or paid in lieu); FGTS balance released plus 40% fine paid by employer; proportional 13th salary and vacation pay. Resignation: employee gives 30 days' notice. Mutual agreement termination: 20% FGTS fine and 80% FGTS withdrawal. | No statutory advance notice. Unjustified dismissal: 3 months' integrated salary plus 20 days per year of service (Deel; LFT arts. 48 and 50 as generally described), plus a seniority premium of 12 days per year of service on a salary capped at twice the minimum wage and accrued benefits. Retrenchment-type or employee-resignation seniority-premium conditions not verified. |
| Paid leave | 30 calendar days of paid vacation after each 12-month accrual period (may be split into up to 3 periods), paid with an extra 1/3. About 9-12 national/state/municipal public holidays depending on location. | 12 vacation days after year one, rising with tenure to 20+ (Remote, Deel). Public holidays: about 7 mandatory days per year plus 1 Oct every six years (not verified from a retrieved source). |
| Contractor risk | High risk. Courts apply the CLT employment test (personal service, subordination, habitual service, pay). Misclassified 'PJ' contractors can claim retroactive INSS, FGTS, 13th salary, vacation and overtime, plus the 40% FGTS fine. The Supreme Court (STF) has been reviewing the legality of 'pejotizacao'; status of that ruling should be checked with local counsel. | Risk is significant. The 2021 outsourcing reform bans personnel subcontracting except registered specialized services (REPSE) (not verified from a retrieved source). Deel reports misclassification fines above MXN 500,000 between 2021 and 2025. Genuine independent contractors need their own invoices (CFDI), control of their work and multiple clients. |
| EOR onboarding | 5-10 business days (Deel claim) | 1-2 business days to start, contract in ~5 days (Deel claim) |
| Time zone | Brasilia time is UTC-3 year-round (DST abolished 2019); 1 hour ahead of US Eastern in winter, 2 in summer; Manaus/Acre zones are UTC-4/-5. | Mostly UTC-6 (Mexico City; no DST since 2022), so aligned with US Central and 1-3 hours from US coasts. Northwest border states differ. |
| Data confidence | medium | medium |
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FAQ
Is it cheaper to hire in Brazil or Mexico?
On statutory employer on-costs alone, Mexico is lower (27–36%). Salary levels, EOR fees and benefits also matter; use the cost calculator.