Fixed Salary for Tipped Workers in Mexico

Ensuring fair working conditions has become a focal point in Mexico's labor policy, with recent legislative efforts aiming to improve job stability and quality of life for workers. From proposals to extend break times during shifts to the implementation of a mandatory seating policy for retail employees, these measures reflect a broader effort to align Mexico’s labor standards with international practices. The latest initiative under discussion is the introduction of a fixed salary for workers in sectors traditionally reliant on tips, such as restaurants, hotels, and service stations.

"We approve, in general and in particular, the ruling that amends the Federal Labor Law to benefit individuals who receive tips, ensuring that they now receive a minimum wage and the rights established in Art. 123 of the Constitution,” wrote Pedro Haces, Member of the Chamber of Deputies of Mexico, through his X account. The proposal seeks to ensure that these employees receive a stable income that is not subject to customer generosity or external economic fluctuations. "Our objective is to improve the living conditions of workers who rely solely on tips, such as employees in supermarkets, gas stations, hotels, restaurants, and bars," states Juan Rubio Gualito, President of the Labor, Employment, and Social Welfare Commission in the local Congress.

The proposal establishes that a base salary must be paid regularly and cannot be lower than the national minimum wage. Additionally, it clarifies that tips should not be considered part of this base income nor used by employers to offset wages. The legislation aims to prevent employers from using gratuities to bypass their obligations while ensuring that workers receive social security benefits, paid vacation, and other labor rights.

This development follows a broader global discussion on labor rights and work-life balance. ILO has emphasized the importance of rest and fair wages, warning that excessive working hours and economic instability contribute to workplace accidents and health risks, reports MBN. Mexico, among the OECD countries, has one of the highest costs of free time due to extended work hours relative to wages earned. Recent legislative proposals, including reducing the standard workweek from 48 to 40 hours, extending rest periods during continuous work shifts, and introducing Ley Silla, mark a shift toward addressing these concerns.

The introduction of a guaranteed salary for tipped workers intersects with gender equity and economic inclusion. According to SEGOB, women in lower-income sectors often face a greater burden of unpaid domestic labor, limiting their ability to secure stable financial independence. The proposed reform seeks to address these disparities by ensuring a minimum income that is not contingent upon daily customer traffic or seasonal fluctuations in tipping habits. With Mexico City’s recent endorsement of the proposal, the next steps involve discussion at the federal level.