Reform Formalizes App Labor Rights, Preserves Flexibility

Mexico’s labor reform for app-based workers has taken effect without altering the core business model of digital platforms, focusing instead on providing labor protections and legal certainty for drivers and couriers. According to the STPS, the reform formalizes rights without removing the operational flexibility that defines gig work.

“The reform does not modify the business model; it makes it fairer,” said Alejandro Salafranca, Head of the Dignified Work Unit, STPS, as reported by El Economista. “A driver or courier can continue working the way they do now, with absolute freedom to choose when, how much and with which platforms to work.”

The reform adds a chapter to the Federal Labor Law (LFT) that legally recognizes individuals working via platforms such as Uber, Didi, and Rappi, and grants them access to social protections including healthcare, workplace accident coverage, and housing contributions. The STPS emphasized that the new rules preserve flexibility while addressing the lack of formal protections for a growing segment of the workforce.

Key measures include mandatory registration with IMSS, and the National Workers' Housing Fund Institute (Infonavit) for workers earning at least one monthly minimum wage across platforms. All workers, regardless of income, are entitled to workplace risk insurance. The reform also introduces algorithmic transparency obligations, requiring platforms to inform workers how automated systems assign tasks, apply penalties, or grant incentives.

“The algorithm gives orders, assigns a delivery, boosts, or penalizes you,” Salafranca said during El Economista’s Coffee Break Live. “Even if workers are not required to follow the orders, there are consequences. What the law demands is clarity; workers must know the rules of the game.”

To support implementation, STPS published general provisions for calculating workers' net income, taking into account their mode of transport. Final exclusion percentages from gross income are set at 36% for four-wheel motor vehicles, 30% for motorcycles and 12% for bicycles or non-motorized transport. A temporary, higher exclusion scheme will apply during the first three months of enforcement, transitioning to permanent rates by Jan. 1, 2026.

The regulation confirms that vehicles are not considered employer-provided tools, so associated expenses do not reduce the base salary for contributions. Fleet leasing schemes are also addressed; only operators registered in Mexico’s REPSE system will be allowed to manage third-party drivers, who must be enrolled in social security.

In parallel, the Tax Administration Service (SAT) and STPS issued Release 19/2025 to reaffirm that fiscal obligations for individuals working through platforms remain unchanged. The new labor classification does not alter the current treatment under income and value-added tax laws. The agencies framed this as a step toward legal certainty for both workers and platforms.