Contractor vs employee calculator
Compare the cost of engaging someone as a contractor versus an employee through an EOR, with the country's misclassification notes.
| Option | Estimated annual cost | What you get |
|---|---|---|
| Contractor | $69,588 | Cheapest on paper. No statutory benefits; reclassification risk in Mexico if the relationship looks like employment. |
| Employee via EOR | $83,388 – $88,788 | Local contract, statutory benefits and payroll compliance handled by the EOR. |
Mexico contractor risk: 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. Not legal advice.
Want to hire this person in Mexico?
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.