Congress Clears Gradual 40-Hour Workweek

Mexico approved a constitutional reform to reduce the workweek from 48 to 40 hours by 2030 without lowering wages, introducing capped overtime and phased implementation. The measure affects over 13 million workers and requires operational adjustments across manufacturing, services, and SMEs, with implications for labor costs, productivity, and Mexico’s competitiveness.

Mexico has approved a constitutional reform to gradually reduce the legal workweek from 48 to 40 hours by 2030, maintaining wages and setting new limits on overtime. The measure, promoted by President Claudia Sheinbaum, cleared Congress and now requires ratification by at least 17 state legislatures before entering into force.

Federal authorities describe the change as a structural update to a standard in place for more than a century. In Bulletin 15/2026, the Ministry of Labor and Social Welfare (STPS) stated that the reform “does not seek to work more and earn less,” emphasizing that the constitutional text explicitly prohibits reductions in salaries or benefits during the transition.

Legislative Approval and Regional Positioning

The amendment modifies Article 123 of the Constitution to establish a 40-hour weekly limit, while maintaining the eight-hour daily cap. It guarantees at least one paid day of rest for every six days worked but does not mandate two rest days after five consecutive days, an omission that became a focal point of debate.

The initiative, introduced in December 2025 by President Claudia Sheinbaum, advanced through Senate committees before receiving unanimous approval in the upper chamber. It was later endorsed by a qualified majority in the Chamber of Deputies, with 469 votes in favor on non-reserved articles and 411 votes in favor on reserved provisions.

With the lower house’s approval, Mexico positions itself as the third country in Latin America with a 40-hour constitutional standard, alongside Ecuador and Chile, which is currently transitioning toward that threshold. Lawmakers cited regional convergence and international labor benchmarks in support of the measure.

The decree will enter into force once ratified by a majority of state legislatures and published in the Official Gazette. Congress will then have 90 days to amend secondary legislation, including the Federal Labor Law, to align it with the new constitutional framework.

Legislative documents indicate that the reform incorporates elements of Recommendation 116 of the International Labor Organization (ILO), which promotes gradual reductions in working time while protecting wages.

Phased Reduction and Compliance Measures

The reform establishes a gradual transition beginning in 2027. The workweek will remain at 48 hours in 2026, then decrease by two hours annually: 46 hours in 2027, 44 in 2028, 42 in 2029, and 40 hours in 2030.

According to the STPS and national labor data, between 13.4 million and 13.5 million workers could benefit once the measure is fully implemented. The ministry reports that more than 64% of workers currently labor more than 41 hours per week.

The amendment restructures overtime rules. Under the current regime, employers may require up to 48 regular hours per week, followed by nine double-paid overtime hours and additional triple-paid hours without an overall cap. Authorities have acknowledged that this framework has enabled workweeks of up to 80 or 90 hours in some sectors.

The new model sets defined ceilings: up to 12 overtime hours per week paid at double rate and up to four additional hours paid at triple rate. Total weekly working time may not exceed 56 hours. Overtime will begin accruing from the 41st hour rather than after the 48th hour. The reform also prohibits persons under 18 years of age from performing overtime work.

In earlier committee discussions, lawmakers incorporated gender-inclusive language and added a requirement for employers to implement electronic time-tracking systems to record working hours. Authorities say the measure aims to improve oversight and ensure compliance with overtime payments.

The STPS says the reform defines maximum limits rather than imposing a uniform scheduling model. Officials argue that the constitutional language preserves flexibility for sectors with variable production cycles, including manufacturing, logistics, agriculture, and services.

Political and Market Debate

Despite broad legislative backing, the reform has generated debate among opposition lawmakers, labor organizations, and business groups.

During floor debate in the Chamber of Deputies, members of MORENA and allied parties described the measure as part of a broader “labor spring,” citing recent increases in the minimum wage, expanded vacation entitlements, and other labor reforms. Supporters argued that reducing working hours could improve health outcomes, reduce workplace accidents, and support productivity gains per hour worked.

Opposition legislators voted in favor but criticized the exclusion of a second mandatory rest day. Lawmakers from Movimiento Ciudadano and PRI said that without establishing a five-day workweek with two days of rest, the reform may fall short of expectations and create what they described as a gap between political narrative and legal guarantees.

Independent labor groups have staged demonstrations outside Congress, arguing that maintaining a one-day rest guarantee could preserve six-days-on, one-day-off schedules in practice. They have also raised concerns that language referring to “effective working time” in earlier drafts could narrow the definition of compensable hours, particularly in sectors with standby or waiting periods.

Business organizations affiliated with the Business Coordinating Council (CCE) have expressed conditional support for the gradual timeline, stating that a multiyear transition reduces the risk of abrupt cost increases. However, representatives of SMEs have warned that reducing hours without parallel productivity strategies could increase operating costs, especially in labor-intensive industries such as manufacturing, retail, and hospitality.

Accounting specialists say that more than half of Mexico’s workforce operates in the informal economy and that most formal employers are SMEs. Compliance costs associated with electronic time tracking, shift restructuring and potential headcount adjustments may weigh more heavily on smaller firms.

International comparisons have shaped the discussion. Data from the Organisation for Economic Co-operation and Development (OECD) shows that Mexico records among the highest annual working hours among member countries, at about 2,128 hours per year. Federal officials argue that long working days often include extended inactive periods that increase fatigue without proportional productivity gains.

The reform unfolds alongside other labor policy measures, including a recent increase in the general minimum wage approved by the National Minimum Wage Commission. Authorities have framed wage adjustments and the gradual reduction of working hours as part of a multiyear effort to update labor standards and strengthen formal employment.

If state legislatures ratify the amendment, Mexico will establish a constitutional path toward a 40-hour workweek by 2030. For companies, the reform signals the need for medium-term operational adjustments and compliance planning. For workers, it sets a defined ceiling on working time, protects wages during the transition, and establishes clearer overtime limits.

The long-term impact on productivity, employment, and competitiveness will depend on secondary legislation, enforcement, and the broader trajectory of Mexico’s labor market through the end of the decade.