Mexico’s 40-Hour Workweek Reform: 6 Key Changes to Federal Labor Law

Mexico City — Mexico’s secondary labor reform has completed its legislative process, paving the way for the transition to a 40-hour workweek. The changes to the Federal Labor Law (LFT) will harmonize the law with constitutional limits on working hours approved in March, including overtime rules.

With the endorsement of the Chamber of Deputies, the LFT will now align with the new maximum work hours. The reform also reiterates a prohibition on reducing wages and benefits during the transition.

Here are six key changes approved by Congress:

1. Electronic Timekeeping

Employers will be required to maintain an electronic record of employees’ work hours, from start to finish of each shift. The Ministry of Labor and Social Welfare (STPS) will issue regulations governing this system and may request data to verify compliance. Fines for non-compliance range from 29,327 to 586,550 pesos (250 to 5,000 times the UMA, Mexico’s unit of measurement).

2. Second Day of Rest and Flexibility

The reform sets the standard workday at exactly eight hours, rather than a maximum of eight, to ensure two days of rest per week. However, employers and workers may agree to distribute the 40 hours flexibly to accommodate non-traditional schedules.

3. Overtime Limits

The law will gradually increase the maximum weekly overtime from the current limit to 12 hours, in line with the constitutional change. The phase-in schedule is:

• 9 hours in 2026
• 9 hours in 2027
• 10 hours in 2028
• 11 hours in 2029
• 12 hours in 2030

4. Effective Date

The secondary reform takes effect on May 1, 2026, after publication in the Official Gazette of the Federation (DOF). The period between that date and January 1, 2027 — when the first two-hour reduction occurs — will allow businesses to make operational adjustments.

5. Evaluation Mechanisms

The STPS must establish systems to collect, process, and evaluate data on the implementation of the reduced workweek, ensuring oversight of the transition.

6. Definition of Workday

Lawmakers retained the existing definition of the workday as “the time during which the worker is at the employer’s disposal to perform their work,” rejecting a proposed change that would have defined it as time spent on subordinate activities.

Transition Timeline

Both the Constitution and the LFT provide for a gradual reduction. The remainder of 2026 will be a preparation period, with the first two-hour cut on January 1, 2027. The schedule is:

• 46 hours in 2027
• 44 hours in 2028
• 42 hours in 2029
• 40 hours in 2030

Wage and benefit reductions are prohibited throughout the transition, in line with international recommendations.