Should Australian and New Zealand businesses hire offshore talent in Latin America?
Only in narrow cases: Spanish or Portuguese language work, customers in the Americas, asynchronous engineering or after-hours cover. For everyday admin, support and finance roles in ANZ hours, an 11 to 19 hour time gap and Brazilian and Mexican employment rules usually make the Philippines or South Africa simpler. Pear Tree does not place from Latin America.
A disclosure first: we place talent from the Philippines and South Africa, not Latin America, so we have a stake in this question. We have tried to say where the region is the right answer and where the evidence is thin. This is general information, not legal advice.
When does Latin America make sense for an ANZ business?
When the work does not depend on overlapping with your day, or when the language or customers are Latin American. Table 1 sets out the cases we think are sound and the ones where another market is usually better.
Table 1: When Latin America fits an ANZ business, and when another market is usually better
| Use case | Fit | Why |
|---|
| Spanish or Portuguese language support or sales for Latin American customers | Strong | Native speakers with local market knowledge; the hours suit customers in the Americas |
| Customers or teams in the United States and Canada | Strong | Latin America overlaps US hours, which is the main reason American employers hire there; an ANZ-only business gains less from this |
| Asynchronous software engineering, data or design with written handovers | Possible | Large developer communities and a team that works while you sleep; needs strong written English and documented handovers |
| After-hours English cover for ANZ customers | Possible, with limits | Early Latin American shifts land in your evening, but South Africa covers more of the ANZ night and is nearer |
| Live admin, reception or finance work in ANZ hours | Weak | Little or no overlap with a 9am to 5pm day; the Philippines gives four to eight hours depending on your city |
| Roles with frequent live calls with ANZ clients | Weak | The team's working day falls mostly in your night |
Source: Pear Tree analysis; the US-hours point is from a Latin America staffing firm (Near, via ABC17/Stacker, 28 August 2025), a vendor with a commercial interest. This is a suggested guide, not a rule. General information, not legal advice.
The common thread is that Latin America's strengths are real but sit elsewhere than the usual ANZ offshore roles. Large developer communities, a Spanish and Portuguese-speaking workforce and a time zone aligned with the United States are the draw, and most of the hiring guidance we found is written for American employers.
How big is the time zone gap?
Very large. Latin America sits on the other side of the world, 11 to 19 hours behind Australia and New Zealand depending on the city and the season. On an ordinary 9am to 6pm local day, a Buenos Aires or São Paulo team does not overlap a Sydney 9am to 5pm day at all, and overlaps an Auckland day by one hour at most. Table 2 shows the rest.
Table 2: Overlap between a 9am to 6pm Latin American day and a 9am to 5pm ANZ day
| Your city | Buenos Aires or São Paulo (UTC-3) | Bogotá or Lima (UTC-5) | Mexico City (UTC-6) |
|---|
| Perth (AWST, UTC+8) | 0 h (gap 11 h) | 0 h (gap 13 h) | 0 h (gap 14 h) |
| Brisbane, or Sydney in winter (AEST, UTC+10) | 0 h (gap 13 h) | 0 h (gap 15 h) | 1 h (gap 16 h) |
| Sydney or Melbourne in summer (AEDT, UTC+11) | 0 h (gap 14 h) | 1 h (gap 16 h) | 2 h (gap 17 h) |
| Auckland in summer (NZDT, UTC+13) | 1 h (gap 16 h) | 3 h (gap 18 h) | 4 h (gap 19 h) |
Source: Pear Tree calculation (hours of overlap, and the gap between the two clocks). The main cities listed do not currently observe daylight saving, so the gap shrinks by an hour when ANZ daylight time ends; we did not check every Mexican region or Chile, which does observe it. A 9am to 6pm Buenos Aires day runs from 11pm to 8am in Sydney during daylight saving. For comparison, Manila on 8am to 5pm overlaps a 9am to 5pm day by 8 hours in Perth, 7 in Sydney winter, 6 in Sydney summer and 4 in Auckland summer.
Read the table as an arrangement of days, not a verdict. A Buenos Aires day from 9am to 6pm runs from 11pm to 8am in Sydney during daylight saving, so the team starts as your evening ends and hands work back before you wake. That suits asynchronous work with clear written handovers, and it does not suit anything that needs a live answer at 10am Sydney time.
South Africa sits much closer. An ordinary 8am to 5pm day in Cape Town runs from 5pm to 2am in Sydney and from 7pm to 4am in Auckland, so if overnight cover in English is the goal, it is the nearer option.
What about English and talent depth?
Argentina is the standout we could verify. In the EF English Proficiency Index 2025 it ranks 26th with a score of 575, slightly above the Philippines at 569 (28th), and iProfesional reports it as the best in the region. Its speaking score of 489 is its lowest skill, so test spoken English on real tasks whatever the national figure.
We could not confirm scores for Brazil, Mexico or Colombia, and we would not assume them. English proficiency varies widely across the region, and Portuguese-speaking Brazil in particular is a different language market from Spanish-speaking countries.
On depth, GitHub's Octoverse 2024, as relayed by a Latin America staffing firm, counted more than 5.4 million developer accounts in Brazil, 1.9 million in Mexico, 1.1 million in Argentina and 1 million in Colombia. Accounts are not employable people, so treat that as a signal of an engineering culture rather than a headcount.
What employment and data rules apply?
Different ones in each country, and some of them make hiring directly harder than in the Philippines or South Africa. Table 3 covers what we could verify for Brazil and Mexico, plus the Australian rules that apply wherever you hire.
Table 3: Employment and data rules we could verify for Brazil and Mexico, and the Australian rules that apply anywhere
| Topic | Applies to | What we found |
|---|
| Brazil: employer costs (CLT) | Employees in Brazil | Employer INSS about 20%, FGTS 8%, 13th salary about 8.3% and vacation plus a one-third bonus about 11.1% of gross pay; a June 2026 vendor guide says a CLT employee typically costs 70% to 80% more than gross salary, although its own line items add to about 55% |
| Brazil: contractor risk | Contractors (PJ) | A worker with set hours, a manager and one client may be found to be an employee (pejotização), with back-payment of all CLT benefits, fines and social-security arrears |
| Brazil: dismissal | Employees in Brazil | Notice of 30 days plus 3 days for each full year worked, up to 90 days, and a 40% fine on the FGTS balance |
| Brazil: data transfers (LGPD) | Personal data sent out of Brazil | ANPD Resolution 19/2024 (23 August 2024) sets the permitted transfer mechanisms, including standard contractual clauses that had to be adopted by 22 August 2025; take advice on how it applies to your set-up |
| Mexico: working hours and pay | Employees in Mexico | A constitutional amendment proposed on 3 December 2025 would cut the 48-hour week to 46 in 2027 and to 40 by 2030, so check its status; the general daily minimum wage rose 13% to MXN 315.04 on 1 January 2026 |
| Mexico: subcontracting | Providers that supply staff | The 2021 reform bars supplying your own employees to another company; only registered providers of specialised services outside the client's core business are allowed, with enforcement expected to be a focus in 2026 |
| Privacy Act 1988, APP 8 and section 16C | Your Australian business | Take reasonable steps to ensure the overseas recipient does not breach the APPs; under s16C you stay accountable for their acts even if you took those steps |
| Fair Work Act, section 15AA, and superannuation | Your Australian business | Classification looks at the real substance of the relationship; no superannuation guarantee for a non-resident employee who does all their work outside Australia, but a contractor paid mainly for their labour can attract it under a separate ATO test |
Sources: Dupple, How to Hire Employees in Brazil (19 June 2026; vendor guide); Mattos Filho (ANPD Resolution 19/2024); American Bar Association, Mexico Labor Outlook 2026; Privacy Act 1988 (Cth); Fair Work Act 2009 (Cth); ATO. We did not research Colombia, Argentina or Chile. Engagement through an Employer of Record or Contractor of Record means the legal employer handles local payroll and statutory items. General information, not legal advice.
We have not researched Colombia, Argentina or Chile in depth, and the table is not a substitute for local advice. The practical message is that Latin American labour law is protective of workers, so engaging someone as a contractor to avoid on-costs is a well-known risk, particularly in Brazil. An Employer of Record or Contractor of Record arrangement means the legal employer handles local payroll and statutory items, which is usually how foreign businesses manage this.
What does it cost?
We cannot give you a trustworthy comparison. The only cost claim we found, that hiring in Latin America lowers salary costs by 30% to 70% against US rates, comes from a Latin America staffing firm and compares with the United States, not with Australia or New Zealand. Brazil's statutory on-costs, which a June 2026 vendor guide puts at roughly 55% to 80% on top of gross pay depending on how they are counted, also narrow whatever headline saving you see.
Our own pricing for the markets we serve is a one-time placement fee plus a flat $400 monthly management fee per hire, with no percentage markup on salary. When you compare any provider's quote, ask for the worker's actual pay, the full fee schedule and the replacement terms.
How should you test the idea?
Start from the reason, not the region. If you need Spanish-speaking support for customers in Mexico or Argentina, or a senior engineer who works asynchronously and writes well, run a paid trial task and set out the handover format in writing before you sign anything.
If the reason is cost or coverage in English for ANZ hours, test the Philippines or South Africa first. Pear Tree screens 200 to 400 applicants per role down to a shortlist of three to five, onboards in one to two weeks and backs each placement with a six-month replacement guarantee, and for roles that need live overlap, Manila gives a Sydney team six to seven hours of it.
The bottom line for Australian and New Zealand businesses
Latin America is a good answer to a specific question, such as Spanish-language work, Americas-facing customers or asynchronous engineering, and a poor default for admin, support and finance in ANZ hours. Pear Tree, with offices in Sydney, Auckland, Hawke's Bay, Cebu, Manila and Cape Town, has placed talent with 750+ Australian and New Zealand businesses, none of it from Latin America, so test our view against your own role before you decide.
Frequently asked questions
Is it worth hiring offshore talent in Latin America as an Australian or New Zealand business?
Only in narrow cases: Spanish or Portuguese language work, customers or teams in the Americas, asynchronous engineering with written handovers, or after-hours cover. For admin, support and finance work in ANZ hours, the 11 to 19 hour gap and the employment rules in countries such as Brazil and Mexico usually make the Philippines or South Africa simpler. Pear Tree does not place from Latin America, so test this view against a paid trial for your own role.
How big is the time zone gap between Latin America and Australia or New Zealand?
Between 11 and 19 hours depending on the city and the season. On an ordinary 9am to 6pm local day, a Buenos Aires or São Paulo team does not overlap a Sydney 9am to 5pm day at all, a Mexico City team overlaps it by 1 to 2 hours, and Auckland in summer overlaps by 1 to 4 hours depending on the city. The Latin American day mostly falls in your evening and night, which suits asynchronous work with written handovers.
Which Latin American country has the best English?
Argentina is the strongest we could verify: in the EF English Proficiency Index 2025 it ranks 26th with a score of 575, against 569 for the Philippines in 28th. Its speaking score of 489 is its weakest skill. We could not confirm scores for Brazil, Mexico or Colombia, so test spoken and written English on the actual tasks of the role.
Does Pear Tree hire from Latin America?
No. Pear Tree places vetted professionals from the Philippines and South Africa only, on a one-time placement fee plus a flat $400 monthly management fee per hire, with no percentage markup on salary. We cannot place from Latin America, so this guide is an outside view and not a pitch for the region.
What are the main employment risks of hiring in Brazil or Mexico?
In Brazil, statutory employer costs are high and engaging someone as a contractor to avoid them can be treated as employment, with back-payment of benefits and fines. In Mexico, the 2021 subcontracting reform restricts supplying staff to another company and a 40-hour week reform has been proposed for phasing in between 2027 and 2030. Local advice is essential, and an Employer of Record or Contractor of Record arrangement means the legal employer handles local payroll and statutory items. This is general information, not legal advice.
About the author
Nick, Co-Founder of Pear Tree, leads sales, partnerships and business development. Pear Tree connects Australian and New Zealand businesses directly with vetted offshore professionals from the Philippines and South Africa, with no agency middleman.
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