May 16, 2026
Dear clients and friends:
On March 3, 2026, an initiative was introduced issuing the Decree amending subsections IV and XI of Section A of Article 123 of the Political Constitution of the United Mexican States, regarding the reduction of the workweek. Subsequently, on May 1, 2026, the Decree amending, adding, and repealing various provisions of the Federal Labor Law (Ley Federal del Trabajo) on the same matter was officially published.
This reform establishes a progressive reduction of the maximum weekly working time to 40 hours, expressly safeguarding employees’ wages, benefits, and acquired labor rights. Below we outline the key elements and their implications for companies operating in Mexico.
I. Reduction of the Workweek
Political Constitution of the United Mexican States
The Decree amending Article 123, Section A, introduces significant changes, particularly in relation to:
- The maximum weekly working hours, which are set at a cap of 40 hours.
- The constitutional rules governing overtime work.
- The reform establishes that the maximum duration of the workweek shall be 40 hours; however, the Decree provides for a gradual implementation, allowing companies and organizations to adapt their operating models.
Gradual implementation of the workweek
Pursuant to the transitory provisions of the Decree, the reduction will be implemented as follows:
Year | Maximum weekly hours
2026 48 hours
2027 46 hours
2028 44 hours
2029 42 hours
2030 40 hours
Accordingly, as of 2030, all employers must fully comply with the constitutional limit of 40 hours per week.
Additionally, the Decree expressly provides that the reduction of working hours shall not, under any circumstances, result in a decrease of employees’ wages, benefits, or vested rights, thereby reinforcing the principle of non-waivability of labor rights.
Federal Labor Law (Ley Federal del Trabajo)
The reform to the Federal Labor Law establishes several clarifications:
- The workday is defined as the period during which the employee is available to the employer to perform services. Its distribution may be agreed upon by both parties.
- The maximum duration of daily shifts remains: Day shift: 8 hours | Night shift: 7 hours | Mixed shift: 7.5 hours
- The period from May 1 to December 31, 2026, will allow employers and employees to adjust work processes in accordance with the Decree.
It is advisable to conduct a comprehensive review of employment agreements, internal policies, and working time arrangements, together with specialized labor counsel, in order to determine the necessary adjustments for regulatory compliance.
II. Overtime (Extraordinary Work)
Political Constitution of the United Mexican States
The Decree provides that, when working hours must be extended due to extraordinary circumstances:
- Overtime shall be compensated with an additional 100% over the regular hourly wage.
- Overtime may not exceed 12 hours per week, and may be distributed up to 4 hours per day for a maximum of 4 days.
- Any overtime exceeding such limits must be paid with an additional 200% premium over the ordinary wage.
- It is important to emphasize that the sum of the ordinary and overtime workdays may not exceed twelve hours per day.
- Minors under 18 years of age are prohibited from performing overtime work.
Federal Labor Law
The amendments to the Federal Labor Law also provide additional relevant provisions:
- Employees are not required to render services beyond the legal limits established.
- For every six days of work, employees are entitled to at least one rest day with full pay.
- Employers must:
- Maintain an electronic record of each employee’s working hours, including start and end times.
- Provide such records to the competent authority upon request.
- This obligation will become effective on January 1, 2027, and further general regulations are expected to define its scope and possible exceptions.
- Failure to comply may result in penalties ranging from 250 to 5,000 Units of Measurement and Update (UMA) (approximately MXN $29,500 to $587,000).
Gradual implementation of overtime limits
The allowable overtime limits will also be implemented gradually:
Year | Overtime hours (weekly)
2026 | 9
2027 | 9
2028 | 10
2029 | 11
2030 | 12
The law explicitly provides that the reduction in working hours may not result in any reduction of wages, benefits, or other labor rights, so any adjustment must be made preserving these conditions.
III. Social Security Considerations
It is important to highlight that this reform strengthens the audit and enforcement criteria of the Mexican Social Security Institute (IMSS), particularly regarding working time control and overtime payments.
In this regard:
Overtime paid at double rate may be excluded from integration into the base contribution salary (salario base de cotización), in accordance with applicable law.
However, the absence of proper attendance and working time controls may lead the authority to disallow such exemption, resulting in the inclusion of these amounts for purposes of calculating social security contributions.
IV. Recommendations
Employers are advised to:
- Evaluate and, if necessary, update internal policies, employment agreements, and internal labor regulations.
- Review time and attendance control systems to ensure compliance with new obligations.
- Analyze operational, financial, and tax impacts arising from the reduction of the workweek.
- Implement preventive compliance strategies before labor and social security authorities.
Sincerely
SALLES, SAINZ – GRANT THORNTON, S.C.