2026 Labor Reform: Reduction of the Workweek to 40 Hours

On May 1, 2026, the reform to the Federal Labor Law (LFT) came into effect, establishing the gradual reduction of the maximum workweek in Mexico, from 48 to 40 hours per week by 2030. This reform, published in the Official Gazette of the Federation on May 1, 2026, complements the constitutional reform published on March 3, 2026, and represents a structural change in the country's labor relations.

What changed with the LFT Reform regarding the workweek?

The main changes introduced by this LFT reform are as follows:

• Reduction of the maximum ordinary workweek: it decreased from 48 to 40 hours per week (gradually until 2030).
• New rules for the first block of overtime hours: extraordinary work will not exceed 12 hours in a week, which can be distributed up to 4 hours daily, over a maximum of 4 days within that period, and will be paid at 100% more than the rate for ordinary hours (i.e., double the salary). The increase in the maximum number of overtime hours per week will be gradual until 2030, as exemplified below. Under the previous overtime regime, the limit for this first block was 9 hours per week, which could not exceed 3 hours daily or be repeated more than 3 consecutive times.
• New rules for the second block of overtime hours: the extension of extraordinary time exceeding what is established in the previous point cannot be more than 4 hours per week and obliges the employer to pay 200% more than the salary corresponding to ordinary working hours (i.e., triple the salary).
• Daily total work limit: The sum of regular and overtime hours cannot exceed 12 hours per day (e.g., 8 regular hours + 4 overtime hours = 12 hours maximum daily).
• Mandatory electronic record-keeping of working hours: Employers must electronically record the start and end times of each worker's shift (e.g., using a time clock) and provide it to the labor authority when requested. Non-compliance will be penalized with a fine of between 250 and 5,000 Units of Measurement and Actualization (UMA).

Regarding this point, the Ministry of Labor and Social Welfare will issue general provisions that will determine the scope of application and exceptions to this new employer obligation, which will come into effect on January 1, 2027.

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What the 2026 Labor Reform DID NOT Change?

Although the text of the Federal Labor Law (LFT) introduced certain modifications in the following aspects, they essentially remain the same as before the reform:

• Working hours can still be distributed by mutual agreement between employers and employees, as long as the maximum daily and weekly limits are respected.
• The daily regular working hour limit remains 8 hours for day shifts, 7 hours for night shifts, and 7.5 hours for mixed shifts.
• For every 6 days worked, the employer is still obligated to grant at least 1 day of rest with full pay.
• The Sunday premium, consisting of 25% of the Sunday wage, remains in effect, provided that employees work on Sunday during their regular hours.

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Gradual Reduction of Working Hours: Implementation Schedule

The transitional articles of the reform establish that the reduction of regular working hours and the adjustment of overtime hours will be gradual. The implementation schedules are presented below:

See previous analysis: Towards the 40-hour work week

Regular Working Hours

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Limit on Overtime Hours

The period between May 1 and December 31, 2026, represents an opportunity for employers to reconfigure their work schemes, analyze their internal processes, and make the necessary adjustments to comply with the new legal provisions. It's important to note that reducing working hours cannot lead to a decrease in workers' salaries or benefits. As we noted in our previous analysis on the next steps after the constitutional reform, the reform's final impact will depend on how it is integrated with ordinary legislation and the interpretive criteria issued by the labor authority.

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How should employers prepare for the 40-Hour Workweek Labor Reform?

Since February 2026, when the Senate approved the constitutional reform, we anticipated that early preparation would be key for employers. Today, with the reform to the Constitution and the Federal Labor Law (LFT) already in effect, that recommendation is more urgent than ever. A technical and preventive approach will allow for timely and legally secure adaptation of labor processes and policies. Key actions include:

• Evaluation of internal work processes to identify areas of impact.
• Identification of necessary adjustments and opportunities for flexible schemes to optimize existing human resources and contain the financial impact.
• Review and adaptation of contracts, policies, regulations, and internal processes in accordance with the new legal framework.
• Effective internal communication with employees regarding the content and legal scope of the labor reform.
• Collective bargaining with the union to adjust collective agreements regarding this matter.
• Implement electronic timekeeping once the general provisions are issued by the labor authority.

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