We hereby inform you that on May 1, 2026, the Decree amending, adding to, and repealing various provisions of the Federal Labor Law, regarding the Reduction of the Workweek (the "Decree"), was published. The Decree represents one of the most significant reforms in the area of labor culture in recent times, as it establishes that the maximum limits of the weekly workday will be progressively reduced over the coming years, until reaching a maximum workweek of 40 hours.
We hereby inform you that on May 1, 2026, the Decree amending, adding to, and repealing various provisions of the Federal Labor Law, regarding the Reduction of the Workweek (the "Decree"), was published. The Decree represents one of the most significant reforms in the area of labor culture in recent times, as it establishes that the maximum limits of the weekly workday will be progressively reduced over the coming years, until reaching a maximum workweek of 40 hours. The most relevant points of the Decree are the following:
Reduction of the workweek: Going from a maximum of 48 hours in the day shift, 42 in the night shift, and 45 in the mixed shift, to a general maximum for all shifts of 40 hours per week, without any modification to the maximums per shift.
Prohibition on reducing salary and benefits: The gradual reduction of the workweek is subject to the condition that no reduction may be made to the salaries or benefits of the workers.
Gradual implementation: The maximum workday will be progressively reduced by 2 hours each year, beginning in 2027 and concluding in 2030; that is, it will begin in 2027 with a reduction to 46 hours per week, in 2028 to 44, in 2029 to 42, and finally in 2030 reaching 40 hours as the maximum weekly workweek.
The rule of 6 working days for 1 day of rest is maintained: Employer and worker retain the right to decide how to manage the weekly workday as best suits them.
New scheme of permitted overtime that will be modified gradually:
i. The legal limit of the maximum weekly overtime hours will be increased, with the increase beginning in 2028, going from 9 to 10, in 2029 from 10 to 11, and in 2030 from 11 to 12 maximum hours per week, which will continue to be paid, as they are now, with an additional one hundred percent over the pay for one ordinary hour of work (what we call "double time").
ii. Overtime hours that exceed double time, under the same progression, will continue to be paid with an additional two hundred percent (what we know today as "triple time"), with a very important characteristic: as of 2027, these triple-time hours may not exceed 4 in a week.
iii. New limit on the daily workday: As of 2027, the sum of the ordinary and extraordinary workday may not exceed 12 hours of work.
iv. Daily overtime hours are limited: As of 2027, no more than 4 overtime hours per day may be worked, nor may overtime be worked more than 4 times per week.
v. Interpretation as to whether paid overtime forms part of the salary and of the base contribution salary: Arising from the amendment to article 66, which establishes that the amounts paid for overtime "shall be credited as salary," such modification could be interpreted to mean that overtime pay must be considered part of the salary integration for purposes of severance payments and, potentially, for determining the daily base contribution salary before the Mexican Social Security Institute ("IMSS"), so it will be necessary to await the judicial criteria and those of the IMSS Technical Council.
Obligation to maintain an electronic record of the workday: The electronic record of the start and end of the daily workday must be implemented, kept, and provided to the Authority upon request; to this end, the Ministry of Labor and Social Welfare ("STPS") will be responsible for issuing the guidelines to regulate this obligation and the exceptions thereto.
The Decree establishes the following key points for implementation:
A. GRADUAL NATURE OF THE REDUCTION OF THE WORKWEEK
The transition to the 40-hour workweek will be carried out on a staggered basis each January 1, in accordance with the following schedule:
Year Workweek
2026 48 hours
2027 46 hours
2028 44 hours
2029 42 hours
2030 40 hours
B. PERIOD OF INTERNAL ADJUSTMENTS FOR COMPANIES
A period from May 1 to December 31, 2026 is contemplated for employers to carry out the necessary internal actions in order to adjust their work processes to the new legal terms.
C. GRADUAL NATURE OF OVERTIME HOURS
The new scheme of maximums for double-time overtime hours will also be adjusted gradually each January 1 until reaching the legal maximum of 12 hours in 2030, in accordance with the following schedule:
Year Workweek
2026 9 hours
2027 9 hours
2028 10 hours
2029 11 hours
2030 12 hours
D. ENTRY INTO FORCE OF THE ELECTRONIC RECORD OF THE WORKDAY
The obligation to implement the electronic record will enter into force as of January 1, 2027. Failure to comply with this obligation will be sanctioned with fines of 250 to 5,000 UMAs ($117.31 as of today, meaning they may range from $29,327.50 up to $586,550.00; even in the worst-case scenario, the fine will be imposed per worker, as indicated in the second-to-last paragraph of article 992 of the LFT).
It is recommended not to make drastic changes, nor to contract these recording systems, until such time as the STPS issues the operating rules and defines the exceptions to this obligation.
In order to ensure regulatory compliance with the new provisions, it is important to carry out a technical and operational analysis of the current shift structures and operating model, as well as detailed reviews of payroll cost projections. Likewise, it is recommended to carry out strategic modifications to individual and collective employment agreements, internal work regulations, and internal policies, as well as to the documents that stipulate workdays and shifts, in order to align them with the scheme of flexibility and gradualness provided for in the reform.
We remain fully at your disposal to resolve any questions or to delve deeper into how these changes will impact your specific operation. For more information, we share the link to the publication in the Official Gazette of the Federation: https://www.dof.gob.mx/nota_detalle.php?codigo=5786537&fecha=01/05/2026#gsc.tab=0
