Lawmakers Push for Mandatory Salary Range Disclosure in Mexico

Mexican legislators have introduced a bill to amend the Federal Labor Law (LFT) that would compel employers to disclose salary ranges in all job advertisements. The proposal, presented in the Senate by members of MORENA, PT, and Movimiento Ciudadano, aims to promote pay transparency and reduce gender-based wage disparities in the labor market.

“The culture of salary secrecy not only prevents job seekers from making informed choices but also masks significant pay inequalities,” reads the proposal, according to El Economista. The initiative seeks to make salary disclosure a legal requirement from the start of any hiring process.

While the LFT already establishes the principle of equal pay for equal work, it does not oblige employers to reveal compensation details publicly. As a result, many job postings use vague language such as “competitive salary” or “to be determined,” limiting workers’ ability to compare opportunities.

Despite Mexico’s legal framework and international commitments to wage equality, the gender pay gap persists. Figures from the National Survey of Occupation and Employment (ENOE) and the OECD show that women in Mexico earn 14% to 18% less than men, while the Mexican Institute for Competitiveness (IMCO) estimates the difference at about 15%. The proposal underscores that, over a lifetime, this gap could translate into a loss of up to MX$1.6 million for women compared to men with similar professional trajectories.

To address this, the reform suggests adding a clause to Article 83 of the LFT to require that employers publish the salary range associated with each position throughout the recruitment process. The lawmakers argue that transparency would make it easier to identify and challenge discriminatory practices and foster fairer hiring decisions.