Mexico’s 40-Hour Workweek Raises Questions Over Pay, Tracking

Mexico’s planned transition to a 40-hour workweek is moving forward under a gradual legislative framework, but changes in how working time is defined and measured are emerging as a central point of debate for employers, workers, and labor specialists.

The reform, announced by President Claudia Sheinbaum in December 2025, would reduce the legal workweek from 48 to 40 hours by 2030. Beyond the reduction itself, labor experts warn that the initiative could redefine compensable time by prioritizing “effective working time,” a shift that may affect how standby periods, idle time, and hybrid work arrangements are treated under labor law.

Marath Bolaños, Minister of Labor, says that the proposal offers a flexible approach that seeks to rebalance work and personal time without imposing uniform schedules across the economy. “What we want is flexibility in favor of workers, so that working people themselves, in agreement with their employers, can define how their workday will be organized,” said Bolaños following meetings with members of the Senate’s governing coalition. He adds that the constitutional reform is intended to set maximum limits rather than dictate a single operating model.

The government argues that the reform addresses long-standing structural issues. Mexico averages about 2,128 working hours per year, among the highest levels in the OECD, while productivity indicators remain comparatively low. Cronista México attributes part of this gap to extended periods of inactivity within long workdays, which increase fatigue without proportional gains in output.

Under the proposal sent to the Senate, 2026 would serve as an adaptation year, followed by staged reductions to 46 hours in 2027, 44 in 2028, 42 in 2029, and 40 hours by 2030. Officials estimate the change would directly benefit about 13.4 million to 13.5 million workers who work 48 hours or more per week. The Ministry of Labor has stated that wages would remain unchanged throughout the transition.

At the same time, labor attorneys caution that redefining work time could alter pay practices. Current law defines the workday as the period during which a worker is at the employer’s disposal, regardless of whether tasks are actively performed. Estefanía Rueda, a labor lawyer, tells El Heraldo that shifting toward a definition based on “effective working time” could exclude waiting periods from paid hours. She points to sectors such as call centers or customer service operations, where employees may spend part of their shifts on standby, as particularly exposed to reinterpretation.

The reform includes stronger oversight mechanisms intended to prevent abuse. Employers would be required to implement electronic time-tracking systems to record entries, exits, and actual working time, allowing labor authorities to verify compliance. The proposal also adjusts overtime rules, increasing double-paid overtime to 12 hours per week, capping triple-paid overtime at four hours, and establishing a daily maximum of 12 total working hours, including overtime. Exceeding limits could trigger fines and, in severe cases, criminal liability for labor exploitation.

Business groups have expressed conditional support for the gradual approach, citing the need for operational flexibility. Employer associations including the Business Coordinating Council and COPARMEX say the phased timeline allows companies to reorganize shifts and processes. However, accounting professionals have raised concerns about the broader economic context. Over half of Mexico’s workforce operates in the informal economy, and most businesses are micro, small, or medium-sized enterprises (MSMEs) with limited capacity to absorb higher labor costs.

Didier García, President of the Commission before Social Security Organizations, The Mexican Institute of Public Accountants, warns that reducing hours without a clear productivity strategy could pressure smaller firms. He adds there is limited evidence in the Mexican context that fewer hours automatically translate into higher productivity, cautioning that some companies may respond by cutting jobs or shifting toward informality.

Technology providers see digitalization as a key tool for navigating the transition. Fernanda Cater, Country Manager, Sesame HR, says regulatory changes such as NOM-035 and NOM-037 have already pushed companies to formalize well-being and remote work practices, increasing demand for data-driven workforce management. She adds that real-time feedback, people analytics, and digital time management tools allow organizations to focus on outcomes rather than physical presence, particularly in hybrid environments.

According to Cater, sectors with rotating shifts and high turnover, including logistics, retail, and hospitality, require systems capable of real-time, location-aware tracking to maintain compliance without adding administrative burden. She says companies using integrated platforms report reductions of 30% to 40% in time spent on repetitive administrative tasks, with higher gains possible depending on adoption levels. These efficiencies, she adds, free HR teams to focus on workforce planning and engagement as work schedules evolve.

Lawmakers supporting the reform say these tools are part of the rationale behind a gradual rollout. Ignacio Mier, President, Senate’s Joint Coordination Committee, says the proposal is designed to extend labor rights while avoiding disruptions to production, with sector-specific arrangements developed through dialogue with unions and employers.

If approved by the Senate, the initiative will move to the Chamber of Deputies for further debate. As the discussion advances, the focus is shifting from the number of hours worked to how work itself is defined and measured, a distinction that could shape pay structures, compliance costs, and labor relations across Mexico’s economy during the transition to a shorter workweek.