Mexico Advances Plan for 40-Hour Week, Increases Minimum Wage

Mexico’s federal government will send Congress a proposal to reduce the legal workweek from 48 to 40 hours beginning in 2027, marking the first major change to working-hour regulations in more than a century. The measure will be implemented gradually, cutting two hours per year until reaching 40 hours in 2030. The announcement came as the government, employers, and labor groups also agreed to raise the general minimum wage by 13% in 2026.

President Claudia Sheinbaum says that the planned transition will allow companies to prepare for new requirements during 2026. “It does not imply higher costs for the business sector and is an agreement reached by consensus,” she said during a press conference. The plan was developed after discussions with employers, unions, and workers across 40 roundtables convened by the Ministry of Labor.

The reform seeks to address the long working hours that have historically characterized Mexico’s labor market. More than 13.4 million people work over 40 hours per week, and although the law sets a 48-hour maximum, many employees exceed 56 hours without penalties for employers, reports El País. Marath Bolaños, Minister of Labor, says the reduction aims to support workers while improving workplace outcomes. “The reduction of the workday not only brings benefits for workers, but also for economic units and the economy,” he says.

The initiative also includes restrictions on overtime for minors and would require two mandatory rest days once the 40-hour limit is reached. The government first introduced the idea for public discussion on May 1, as part of a broader labor agenda. However, the change is expected to face operational and economic challenges, particularly in a context of slower economic activity, lower investment levels, and limited job creation.

Alongside the proposed workweek reduction, the government confirmed an increase to the minimum wage. The National Minimum Wage Commission (CONASAMI) agreed to raise the general daily minimum wage from MX$278.80 (US$15.28) to MX$315.04 (US$17.26) starting Jan. 1, 2026. In the Northern Border Free Zone, the rate will rise 5% to MX$440.87 (US$24.15) per day. With these adjustments, monthly earnings will reach MX$9,582 (US$525) for the general wage and MX$13,409 (US$734) for the border zone.

According to Bolaños, the new minimum wage levels continue a multiyear recovery effort that has lifted purchasing power by 154% compared with 2018. He says that the increase will benefit 8.5 million workers and noted that an estimated 6.6 million people have left poverty due to wage increases in recent years. Purchasing power is now expected to cover the equivalent of two basic grocery baskets, up from 1.8 baskets in 2025.

The employers’ association COPARMEX endorsed both the wage adjustment and the gradual reduction of working hours. The group says the MX$315.04 (US$17.26) wage meets 100% of the national well-being line, calculated at MX$9,519.82 (US$521) per month in October 2025. COPARMEX also highlights the differentiated increase in the border region as a measure to prevent labor-market distortions. The group said the new rate in the north exceeds the administration’s goal of setting wages equal to 2.5 times the value of the basic consumption basket.

COPARMEX describes the agreements as evidence that tripartite dialogue can strengthen workers’ income without affecting formal employment stability. The organization says the minimum wage has recovered 148% of its purchasing power over nearly a decade. It reaffirmed support for the government’s target of achieving a minimum wage equivalent to 2.5 times the basic basket value by 2030, noting that the path will require ongoing monitoring of labor-market conditions, inflation, and economic growth.

The association also backed the constitutional reform to establish the 40-hour workweek, arguing that a gradual implementation schedule will give companies time to adjust internal processes while supporting work-life balance. The proposal includes an overtime framework allowing up to 12 hours per week, without exceeding four hours per day on no more than four days. Final details will be defined in amendments to the Federal Labor Law.

COPARMEX says the negotiation process reflected a “serious and open” dialogue that aligned workers’, employers’ and the government’s interests. The group emphasized that a stable labor environment, legal certainty, energy supply, and security will remain essential to attracting investment and ensuring economic opportunities. It reiterated its commitment to agreements that improve the quality of formal employment and support conditions for business growth.

The government is expected to present the workweek reform to the legislature in the coming weeks. If approved, companies would begin preparations in 2026, with the first reduction applied in 2027. The administration has framed the dual announcements — the minimum wage increase and the workweek reform — as part of a broader effort to reshape labor conditions, raise incomes, and strengthen the country’s economic and social foundations.