Mexico: Major Labor Reform to Gradually Reduce the Work Week

In brief

The reduction of the work week from 48 to 40 hours is a historic change in Mexico.

On 22 April 2026, the Chamber of Deputies unanimously approved the amendment to the Federal Labor Act to reduce the work week to 40 hours, to be implemented gradually between 2027 and 2030. This reform will come into force on 1 May 2026. 

The keychanges are as follows:

• Reduction of the work week from 48 to 40 hours, with no reduction in pay, to be implemented gradually from 1 January 2027.
• Gradual increase in overtime hours, up to a maximum of 12 hours per week by 2030. Overtime may be spread over four hours per day on a maximum of four days per week.
• The total of ordinary and overtime hours may never exceed 12 hours per day.
• Employers are obliged to implement an electronic time-recording system, the scope and exceptions of which will be issued by the Ministry of Labor and Social Welfare (STPS).

Recommended actions

Employers are advised to:

• Review current work schedules and assess the economic impact of the reform  on business operations during the transitional four-year period.
• Develop and document a phased implementation plan for the reduction of working hours, in close coordination with the operations team.
• In partnership with legal counsel, review all employment-related documentation alignment with the new legal provisions and full compliance, to avoid penalties in case of an inspection by the labor authority, such as job offers, individual employment agreements, collective bargaining agreements, and internal work regulations.
• Implement attendance controls, in accordance with the guidelines to be issued by the STPS.
• Train managers and supervisors on the scope of this reform, and the legal and operational risks of non‑compliance, so that the overtime is only worked on extraordinary circumstances.
• Reassess and, if necessary, adjust the calculation of the quotation base salary used to determine social security contributions for overtime pay.

In more detail

The labor reform establishes the following:

• The possibility of arranging working hours by mutual agreement between the employer and the employee is maintained.
• The work week may be up to 40 hours and may be extended by up to 12 hours per week under extraordinary circumstances, with the employee being eligible to receive double pay for such overtime hours (“Double Overtime”).
• Double overtime may be distributed over a maximum of four hours per day and a maximum of four days per week.
• Overtime may be extended for up to four additional hours per week, which shall be paid at triple the normal rate (“Triple Overtime”).
• The reduction in working hours shall not entail a reduction in wages or benefits.
• The reduction of the maximum work week and the maximum overtime will be implemented gradually, according to the following timetable:

• The obligation for employers to electronically register the start and end of each employee's shift, in compliance with the provisions issued by STPS.
• Prohibition to work more than four triple-rate overtime hours per week, coming into force on 1 May 2026. Under no circumstances may the total working hours, regular and overtime, exceed 12 hours per day.

Our labor and social security team can assist by assessing the impact this reform will have on your operations and its implementation.