Mexico Proposes Equal Pay Law for Public, Private Employers

Mexico’s Chamber of Deputies is reviewing a proposal to establish the General Law on Equal Pay for Women and Men, which would introduce new obligations for companies and public institutions to address the gender pay gap.

The bill, led by MORENA Deputy Julia Olguín, would mandate salary audits, pay transparency mechanisms, and equal pay plans across workplaces, cites El Economista. It would also expand the authority of the Ministry of Labor and Social Welfare (STPS) to oversee compliance.

“Although the Federal Labor Law already contains provisions on non-discrimination by gender, its application and effectiveness are limited. The wage gap remains a reality, which makes evident the need for additional and specific measures to ensure equal pay,” says Olguín.

The initiative comes after constitutional and labor law reforms approved last year recognized the gender wage gap and committed the state to eradicating it. Despite these changes, limited progress has been reported. Data from the National Institute of Statistics and Geography (INEGI) shows that women’s labor income remains 25% lower than men’s.

Under the proposed law, employers would be required to guarantee equal pay for work of equal value, adopt objective and transparent criteria for salary determination, and conduct wage audits at least every two years. They would also need to implement equal pay plans to correct identified disparities, provide clear information to employees on their compensation rights, and refrain from requesting applicants’ salary histories.

The bill also introduces mandatory transparency in pay systems, including the creation of remuneration records, job evaluation mechanisms, and the right of workers to access information about company pay policies and their own compensation.

Workplaces with more than 50 employees would be required to implement equal pay plans, and companies could apply for an “Equal Pay Certificate” to demonstrate compliance. Employers found to have engaged in wage discrimination would be required to make retroactive payments to affected workers.

The STPS would be responsible for monitoring implementation, conducting studies on wage inequality and promoting training programs on equal pay practices. The Ministry of Women would develop technical guidance for carrying out wage audits.