Senate Approves Inspections to Close Gender Wage Gap

Mexico’s Senate approved a reform to the Federal Labor Law (LFT) that would require the Ministry of Labor and Social Welfare (STPS) to conduct inspections focused on addressing the gender pay gap, marking a further step in the country’s efforts to enforce pay equity in workplaces. The measure passed unanimously and now moves to the lower chamber for review.

Senators say the change seeks to make equal pay a guaranteed right rather than a voluntary practice. “Pay equity cannot depend on the individual will of companies. It must be guaranteed by the state through effective supervision and sanction mechanisms,” says Senator Geovanna Bañuelos, President,  Senate Committee on Labor and Social Welfare, reports El Economista.  She adds that despite existing constitutional and international frameworks, equal pay for equal work has not been consistently observed.

The reform comes amid persistent wage disparities in Mexico. Although over half of university graduates in the country are women, they earn on average 34% less than men, according to World Bank data. The organization also reports that Mexican women experience a 33% reduction in income after having children, a pattern associated with broader labor market inequalities. The gap has long-term consequences. The IMF estimates that lower lifetime earnings translate into pension levels up to 20% below those of men, increasing vulnerability in old age.

Under the reform, Article 86 of the LFT would be modified to clearly assign responsibility to the STPS and state-level labor authorities to carry out inspections that verify compliance with equal pay requirements. Inspectors would review whether workers performing jobs of equal value receive equal remuneration, in line with the General Law for Equality between Women and Men. Authorities would be able to request corrective actions from employers when inconsistencies are identified. Lawmakers argue that this mechanism will act as both a preventive and corrective tool, discouraging discriminatory practices and increasing transparency around wage policies.

The proposal also aligns Mexico with international standards. The country has ratified the International Labour Organization’s (ILO) Convention 100 on equal remuneration and is bound by the UN Convention on the Elimination of All Forms of Discrimination against Women (CEDAW). The reform echoes the UN Sustainable Development Goal 5, which calls for the elimination of discrimination and violence against women, including in the workplace. Proponents say that reducing wage inequality would also contribute to economic growth, citing IMF projections that gender parity could increase GDP by up to 25%.

The Senate’s decision follows ongoing discussions about pay transparency measures in the country. In a separate initiative introduced earlier, legislators proposed amending Article 83 of the LFT to require employers to disclose salary ranges in all job postings. Supporters argue that making compensation visible from the start of the hiring process would help identify unfair practices and allow job seekers to make more informed decisions. According to lawmakers, the absence of mandatory disclosure allows employers to continue using ambiguous terms such as “competitive salary,” limiting public access to wage information.

Globally, women earn just 52% of men’s total labor income, a figure that accounts not only for wages but also labor participation and time spent in paid and unpaid work, reports ILO. Although the Americas have seen some progress in gender equality, driven by increased female participation in formal jobs, women continue to shoulder most unpaid care tasks. ILO data shows that women work fewer hours in paid employment but perform three times more unpaid care work than men. “The gender gap arises from factors both inside and outside the labor market,” says Ursula Quijano, Mexico Country Lead, Laboratoria, noting the impact of unpaid childcare, eldercare, and household management.

Occupational segregation also contributes to unequal outcomes. Women remain concentrated in lower-paying sectors such as education, healthcare, and domestic work, while men dominate technical, industrial, and construction roles. In tech, women hold fewer than 30% of entry-level and managerial positions globally, and only one in five leadership roles. STEM participation among women in Latin America remains low, with fewer than one in five women aged 30–40 working in these fields. Studies from the OECD and CEDLAS show that girls’ expectations of entering STEM careers remain significantly below those of boys despite similar academic performance.

High informality rates further affect the landscape. In Mexico, 60% of women work in the informal sector, limiting access to social protection and formal career paths. These combined factors reinforce income inequality throughout women’s professional lives.

Once approved by the Chamber of Deputies and signed into law, Mexico’s reform would enter into force the day after its publication in the Official Gazette. Labor authorities would then have 30 working days to update inspection programs to meet the new requirements. Lawmakers argue that closing gender-based wage gaps is not only a legal obligation but also a strategy to reduce poverty and support national economic development.