Mexico Approves Gradual 40-Hour Workweek Reform: STPS

Mexico has approved a constitutional reform to gradually reduce the standard workweek from 48 to 40 hours by 2030, following unanimous congressional support. Implementation will begin in 2027, cutting two hours per year until reaching 40 hours. Wages and benefits will remain unchanged, overtime will be capped and prohibited for minors, and an electronic registry will monitor compliance. Officials say the reform modernizes labor standards and addresses long working hours.

Mexico has approved a constitutional reform to gradually reduce the standard workweek from 48 to 40 hours by 2030, following unanimous approval in both the Chamber of Deputies and the Senate. The measure, announced by Marath Bolaños, Minister of Labor, fulfills one of President Claudia Sheinbaum’s 100 commitments under her administration’s policy platform and aligns Mexico with long-standing international labor standards.

The reform seeks to reduce worker fatigue and occupational accidents by increasing rest time, while improving workplace health and safety and promoting a better balance between personal, family, and professional life. According to Bolaños, the initiative draws on International Labour Organization (ILO) Convention 47 of 1935 and Recommendation 116 of 1962, which encourage a 40-hour workweek implemented gradually, without wage reductions and through social dialogue.

To develop the proposal, the Ministry of Labor convened over 40 working groups involving about 2,000 representatives from business associations, unions, academia, and the broader labor sector, says Bolaños. The resulting framework establishes the 40-hour workweek at the constitutional level and mandates a phased implementation beginning in 2027. Weekly hours will decrease by two hours per year: to 46 hours in 2027, 44 in 2028, 42 in 2029, and 40 in 2030. The year 2026 will focus on regulatory preparation and continued dialogue with stakeholders.

Data from the National Occupation and Employment Survey (ENOE) shows that 36.1% of workers in Mexico already work 40 hours per week. However, 63.9% exceed that threshold, highlights Bolaños. Of those, 41% work between 41 and 48 hours, 13% between 49 and 57 hours, and 9.8% more than 58 hours weekly. The reform targets these extended schedules, which in some cases have reached up to 96 hours per week due to the absence of effective caps on overtime.

Under the new framework, the standard eight-hour workday remains unchanged. Workers completing eight hours per day will be entitled to two days of rest per week. The reform explicitly prohibits overtime for minors and reinforces that overtime is voluntary. A maximum of four triple-paid overtime hours will be established, replacing the previous system that lacked a firm upper limit. Overtime will be calculated starting from the 41st hour once the 40-hour week is fully implemented.

Bolaños also says that the reform does not reduce wages, benefits, overtime pay rates, Sunday premiums, or holiday compensation. Instead, hourly wages will effectively increase as weekly hours decline. Government estimates suggest that, under certain scenarios involving overtime within the new limits, workers could see income increases of up to 32.24%.

To ensure compliance, the Ministry of Labor will implement an electronic work-hour registry to strengthen inspections and monitor adherence to new legal limits. Following publication of the decree in the Official Gazette of the Federation (DOF) and approval by a majority of state legislatures, Congress will proceed to harmonize the Federal Labor Law with the constitutional amendment.

Bolaños says the reform places Mexico in line with practices adopted decades ago by many OECD countries and responds to longstanding calls to modernize labor standards. By reducing ordinary working hours, limiting extraordinary hours and safeguarding income, the administration aims to formalize rest periods and establish clearer boundaries for working time across sectors.

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 Organization 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.