How to Hire Remote Employees in Latin America Using Deel: Country-by-Country Guide

Why Latin America Is a Hotspot for Remote Hiring

The Talent and Economic Advantage

Latin America offers a rare combination of skilled talent, time zone alignment with North America, and affordability. For companies scaling globally, it provides a prime opportunity to access professionals without the overhead of hiring in the U.S. or Europe.

Examples of Popular Roles Hired from LATAM

• Software Developers (Brazil, Argentina)
• Customer Support Agents (Colombia, Mexico)
• Designers and Creatives (Argentina)
• Sales Reps and SDRs (Mexico, Chile)

Remote Work Adoption

Following the pandemic, countries like Argentina and Colombia saw massive shifts toward remote work infrastructure, increasing the availability of professionals used to working asynchronously or in English-speaking environments.

Common Challenges When Hiring in Latin America

Legal Complexity & Risk

Each country has unique labor laws — from probation periods and notice requirements to bonuses and terminations. Mistakes can lead to lawsuits or government penalties.

Example: In Brazil, failing to provide the 13th salary (mandatory extra month of pay) can lead to fines and disputes. In Colombia, severance payments (Cesantías) must be tracked and paid annually.

Payroll and Taxation Confusion

Managing contributions for pensions, health insurance, social security, and employment taxes is difficult without in-country legal experts.

Key Risk: Misclassifying an employee as a contractor can lead to legal audits, especially in countries with strict employment protections like Argentina or Mexico.

How Deel Solves the Problem

Employer of Record (EOR) Functionality

Deel becomes your official employer in each country, using its network of local entities. This allows you to:

• Avoid establishing a legal company locally
• Hire talent in full compliance with labor law
• Offer country-specific benefits (from private healthcare to meal vouchers)
• Manage payroll in local currencies

One Platform, All of LATAM

From your Deel dashboard, you can manage:

• Contracts
• Payslips
• Benefits
• Compliance alerts
• Support tickets

Result: Peace of mind and full control without legal headaches.

Country-by-Country Overview: Hiring with Deel in LATAM

🇲🇽 Hiring in Mexico with Deel

Why Hire in Mexico:

• Strong English proficiency
• Aligned with U.S. time zones
• Booming tech and service sectors

Compliance Overview:

• 6-day work week (can be negotiated)
• IMSS public healthcare mandatory
• Annual Christmas bonus (Aguinaldo)
• Profit-sharing schemes (PTU) may apply

Deel Advantage: Deel handles IMSS registration, bonuses, vacation accruals, and ensures employees receive locally compliant payslips.

🇧🇷 Hiring in Brazil with Deel

Why Hire in Brazil:

• Large talent base of developers, finance pros, and engineers
• Strong startup ecosystem

Compliance Overview:

• 13th salary is mandatory (paid in two installments)
• Labor unions and collective bargaining agreements are common
• FGTS (severance fund) must be deposited monthly
• Meal & transportation vouchers are expected benefits

Deel Advantage: Deel automates FGTS, bonus payments, and contract creation. It also supports optional benefits like private health insurance.

🇨🇴 Hiring in Colombia with Deel

Why Hire in Colombia:

• Excellent bilingual support agents
• Competitive salary expectations
• Low cost of living

Compliance Overview:

• Mandatory health coverage via EPS
• Annual severance and interest payments (Cesantías + Intereses)
• Mandatory mid-year bonus (Prima)

Deel Advantage: Deel ensures timely Cesantías deposits, tax calculations, and includes locally compliant bonus systems.

🇦🇷 Hiring in Argentina with Deel

Why Hire in Argentina:

• Highly educated workforce
• Competitive salaries due to currency fluctuations
• Strong creative and marketing sectors

Compliance Overview:

• Holiday bonus (Sueldo Anual Complementario)
• Trade unions often dictate baseline benefits
• High inflation makes timely payroll adjustments important

Deel Advantage: Deel navigates unions, builds in inflation indexing when required, and simplifies local deductions.

Step-by-Step: How to Hire with Deel in Latin America

H2: Fast, Legal Hiring in 7 Simple Steps

1. Create Your Deel Account
2. Select the Country for Hiring
3. Input Job Details & Salary
4. Deel Auto-Generates Localized Contract
5. Employee Signs Digitally
6. Deel Runs Monthly Payroll + Benefits
7. You Manage the Daily Workload

Example Scenario

You hire a UX Designer in Buenos Aires for $1,500/month. Deel:

• Applies exchange rate to convert USD to ARS
• Withholds retirement contributions
• Ensures 13th salary and union obligations are met
• Provides digital onboarding for local laws

Deel vs Other Global Hiring Options

Real Example: U.S. SaaS Company Hires Across LATAM with Deel

A New York-based SaaS firm needed to build a tri-lingual support team in Colombia and expand its dev team in Brazil.

• Deel enabled hiring of 10 employees across 3 countries in 14 days
• No need for law firms or tax consultants
• Deel handled EPS, FGTS, and Prima bonuses automatically

Result: Reduced costs by 58% and expanded support coverage to 18 hours/day.

FAQs About Using Deel to Hire in Latin America

Can Deel help with onboarding and equipment delivery?

Yes. Deel supports a smooth onboarding process by coordinating everything from document collection and compliance checks to delivering IT equipment like laptops or phones to new hires. They offer custom onboarding workflows, making it easy to manage access to internal tools and training resources across multiple countries.

Example: A U.S.-based fintech company used Deel to send pre-configured MacBooks to its marketing team in Buenos Aires within a week of signing contracts.

What if I need to terminate an employee?

Deel handles the entire offboarding process in line with local employment law. This includes calculating final payments, ensuring notice periods are respected, preparing compliant exit documentation, and managing severance packages. In countries with complex labor protections (like Brazil or Colombia), this avoids costly missteps.

Example: In Colombia, an unjustified termination without proper cause can lead to severance payments of up to 90 days’ salary. Deel’s local HR advisors guide the offboarding to ensure compliance and protect your business.

Are bonuses and 13th salaries handled by Deel?

Absolutely. Deel incorporates all statutory bonuses and benefits into its monthly payroll system. This includes:

• 13th salaries in Brazil and Argentina
• Prima (mid-year bonus) in Colombia
• Aguinaldo (Christmas bonus) in Mexico

All of these are calculated automatically and included in the employee’s payslip.

Can Deel offer equity or stock options?

Yes, Deel supports equity grant management for global employees. Their equity management solution allows you to issue RSUs, stock options, and phantom equity across jurisdictions, while complying with local tax and reporting obligations.

Example: A tech startup granted 0.5% equity to a senior engineer in Brazil using Deel’s integrated equity dashboard — ensuring the process remained compliant with Brazilian laws and tax implications were clearly communicated to the employee.

What about taxes, pensions, and social contributions?

Deel calculates and pays all required contributions automatically. This includes:

• Social security and public healthcare (IMSS in Mexico, EPS in Colombia)
• Pension funds (mandatory in Argentina, optional in some LATAM countries)
• Severance reserve funds (e.g., FGTS in Brazil, Cesantías in Colombia)

You don’t need to hire accountants or local HR consultants — Deel takes care of every aspect, reducing risk and saving time.

Can I use Deel for both contractors and full-time employees?

Yes. Deel supports hiring both full-time employees through EOR and independent contractors with localized contracts. Each path comes with a separate set of compliance, invoicing, and tax handling processes. You can manage them side by side in one dashboard.

Note: When hiring long-term team members, the employee model is safer and preferred, as many LATAM countries are strict on contractor classification.

How does Deel ensure legal compliance in each country?

Deel works with in-country legal experts, labor attorneys, and HR professionals to keep its contract templates, benefit structures, and tax obligations up to date. Their platform reflects any legal changes in real time, and their legal team reviews all contracts before they are issued to employees.

Bonus: You get compliance alerts and personalized legal guidance as part of Deel’s customer support.

Conclusion: Start Hiring Remotely in LATAM — The Smart Way

Latin America is full of top-tier talent, but local laws can be daunting. Deel simplifies the entire process — from contracts and onboarding to benefits and payroll.

You get localized compliance without setting up branches — and your team gets the perks they deserve.

👉 Explore Deel and start hiring in LATAM today.