The reform progressively reduces the maximum workweek to 40 hours by 2030, modifies the overtime regime and introduces a mandatory electronic working-time registry.
On May 1, 2026, the Decree amending, adding and repealing various provisions of the Federal Labor Law regarding the reduction of working hours (the “Decree”) was published in the Federal Official Gazette. The reform establishes a gradual transition from a maximum 48-hour to a 40-hour workweek and modifies several provisions governing overtime and working-time records.
The reduction will be implemented progressively on January 1 of each year. The maximum workweek will remain at 48 hours in 2026, decrease to 46 hours in 2027, 44 hours in 2028 and 42 hours in 2029, and reach 40 hours in 2030. Under no circumstances may the reduction result in lower wages, salaries or employee benefits.
The reform maintains the maximum daily limits applicable to each shift: eight hours for a day shift, seven hours for a night shift and seven and a half hours for a mixed shift. It also preserves the rule requiring at least one fully paid rest day for every six days worked. Employers and employees may agree on the distribution of the workweek within the applicable statutory limits.
The overtime regime will also change gradually. Overtime paid at an additional 100% over the regular hourly rate will remain capped at nine hours per week in 2026 and 2027, increasing to ten hours in 2028, eleven in 2029 and twelve in 2030. Once the new regime is fully implemented, these hours may be distributed in increments of up to four hours per day and on no more than four days in a week.
Overtime exceeding those limits will continue to be paid at an additional 200% over the applicable regular hourly rate. In addition, the combined ordinary and overtime working day may not exceed twelve hours.
The amended wording of Article 66 of the Federal Labor Law provides that overtime will be paid “as salary” with the applicable premium. This language may give rise to questions regarding its treatment for salary-integration purposes and, potentially, for determining the base contribution salary before the Mexican Social Security Institute (“IMSS”). Judicial and administrative guidance on this issue should therefore be monitored.
Another significant change is the requirement for employers to electronically record each employee’s working hours, including start and end times, and to provide such records to the authorities upon request. The Ministry of Labor and Social Welfare (“STPS”) must issue general rules defining the scope of this requirement and any applicable exceptions. The obligation will take effect on January 1, 2027.
Failure to maintain the electronic working-time registry may result in fines ranging from 250 to 5,000 Units of Measurement and Update (UMAs). Employers should therefore consider the STPS implementing rules regarding the operation, scope and potential exceptions before adopting or contracting specific time-recording systems.
The Decree also establishes an adjustment period from May 1 through December 31, 2026, allowing employers and employees to adapt their working processes to the new legal framework.
For employers, implementation of the reform will require an early review of work schedules and shift structures, payroll and overtime costs, as well as individual and collective bargaining agreements, internal work regulations, workplace policies and other documents governing working hours.
Gradual planning during 2026 will be important to identify the operational and documentary changes required before the annual reductions in working hours begin and the electronic working-time registry becomes mandatory.
The Decree published in the Federal Official Gazette is available at:
https://www.dof.gob.mx/nota_detalle.php?codigo=5786537&fecha=01/05/2026#gsc.tab=0
