Workforce Payments Guide Mexico

Last updated: Dec 18, 2023

Mexican Peso (MXN)
Payroll Frequency
Bi-Monthly / Monthly
Mexico City
Fiscal Year
1 January - 31 December
Employer Taxes
36.69 – 43.72%
Employee costs
Central Bank
Bank of Mexico (Banco de México)
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3rd Party Payments

Authority  Payment Frequency  Due Date  Payment Method 
Corporate Income Tax (CIT)  Annually  31 March  Electronic 
Estimated CIT Payments  Monthly  17th day of each month  Electronic 
Employees’ Profit-Sharing Payments  Annually  31 May  Electronic 

Payments Coverage

Papaya Global can support payments to contractors. Payments to payroll employees require a local bank/trust account.

Contractor Payments

Papaya Global supports payments to contractors in Mexico. The payout currency may vary based on the receiver bank account setup when receiving foreign currencies. it is advised for contractors to reach out to their bank to confirm how foreign currencies are handled

Payroll Frequency

Bi-Monthly / Monthly


In Mexico, the Know Your Customer (KYC) process is governed by the Anti-Money Laundering Law, known as the Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin (LFPIORPI), and the Law to Regulate Financial Technology Institutions (Fintech Law). The primary objective of these laws is to gather comprehensive and accurate information about customers to prevent criminal activities.

The laws set two key obligations for entities:

  1. Appropriate Identification of Customers: This involves verifying the identity of customers to ensure they are who they say they are.
  2. Reporting to the Office for the Treasury and Public Credit (SHCP): Entities must report certain transactions, especially those classified as “Vulnerable Activities,” according to the established guidelines.

To meet these obligations, entities engaged in Vulnerable Activities are required to:

  1. Designate a Representative to SHCP: A designated person must present reports on the transactions made.
  2. Identify Customers and Users (KYC): This includes storing their information for five years and refraining from transactions classified as ‘Vulnerable Activity’ if customers do not provide identification information or documentation.
  3. Present Transaction Reports: Reports with detailed information from the previous month need to be submitted from the 17th of each month, depending on the transaction amount and type of ‘Vulnerable Activity.’

The KYC process in Mexico also entails:

  • Validating the Identity of Clients: Ensuring that all client information is accurate and up-to-date.
  • Monitoring Operations: Continuously overseeing transactions to detect any anomalies or suspicious activities.
  • Establishing Compliance and Risk Management Policies: Creating and enforcing policies to adhere to regulatory requirements and manage risks in new business relationships.
  • Incorporating Digital Technologies: Utilizing biometrics, digital tools, and facial and voice recognition technologies to adhere to regulations and enhance the user experience.

Additionally, Financial Technology Institutions must maintain automated systems containing three specific lists:

  1. Unusual Operations List: Tracking operations that deviate from normal patterns.
  2. Politically Exposed Persons List: Identifying individuals who hold a prominent public position that may present risks due to their role.
  3. Blocked Persons List: Including individuals or entities restricted or prohibited from conducting certain transactions.

These comprehensive measures and technologies ensure that the financial sector in Mexico operates with integrity, transparency, and security, adhering to both national and international standards in the fight against money laundering and terrorist financing.

Banking Regulations

Country-specific banking laws and regulations that impact cross-border workforce payments.

Bank Account Opening

Bank Account Opening

To open a company bank account in Mexico, the following requirements are needed:

1. The company’s documents of incorporation.

2. Public deeds related to the Legal Representative’s POAs (if applicable) and public deeds related to substantial changes in the company (e.g., corporate name).

3. Tax certificate and e-signature certificate.

5. Legal IDs of shareholders.

6. Additional documentation from the Legal Representative (Tax ID, Certification Number, ID, etc.).

7. A current proof of domicile.

8. The company should also register its commercial registration number with the Public Registry of Commerce.

9. The company’s legal representative must present his/her official identification, which can be the Elector’s Credential (INE), Mexican passport, temporary/permanent residency visa, or Mexican passport (for foreigners).

10. The company’s tax ID and the ‘Proof of Fiscal Situation,’ a document that proves the tax ID is active.

11. The legal representative may also be required to sign an Anti-Money Laundering legal document.

12. Proof of a registered address and statutory documents.

13. Visas and residence permits, in the case of foreign investors/directors.

14. Proof of legal residency, which could be a residency card, Residente Temporal, or Residente Permanente, along with a current passport.

15. Finally, an initial deposit to activate the account. The amount may vary, but it’s generally around MXN 10,000 or approximately USD 500.

The bank application/questionnaire must also be filled out. After submitting all the necessary documents, the document validation process takes approximately one week. Once approved, the formal opening of the bank account will take approximately a week and a half.

International Banks

The major foreign banks operating in the country are BBVA, Santander, Citigroup, HSBC, Scotiabank, Citibanamex, and BBVA Bancomer.

Major Local Banks

The major local banks operating in the country are Grupo Financiero Banorte and Grupo Financiero Inbursa.

Payment Tools

The B2C payment tools available in Mexico include:

  • Paypal
  • Culqi
  • Mercado Pago
  • Kushki
  • Riqra
  • Kueski Pay
  • ProPay
  • Citibanamex payment processor voucher systems (also known as boletos)
  • Debit cards
  • Digital wallets (such as Visa Checkout, and Masterpass)
  • Bank transfers.

Other tools include OXXO, Mastercard, Visa, American Express, Apple Pay, Carnet, 7Eleven, and Banamex.



In Mexico, the operations of cryptocurrencies are regulated under the Fintech Law, which allows the financial system to use virtual assets recognized by the Bank of Mexico. This law oversees Institutions of Financial Technology (ITFs), aiming to provide legal certainty for users of digital financial services. Among the entities regulated by the Fintech Law are Institutions of Electronic Payment Funds (IFPE), which are permitted to conduct operations with national and virtual currencies.

It’s crucial to note, however, that the Government of the Republic does not guarantee or back the funds of customers who choose to save or invest in companies within this emerging sector. While the law permits operations with virtual assets authorized by the Bank of Mexico, it remains silent on the usage of cryptocurrencies for paying wages. Therefore, individuals or entities looking to navigate the cryptocurrency landscape in Mexico are advised to seek guidance from legal experts or consult the relevant governmental authorities for the most up-to-date and accurate information. This ensures compliance with current regulations while engaging with the evolving world of digital assets.

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