Overtime in Mexico: Rules, Pay Rates, Limits, and Upcoming Labor Reform
Understanding overtime in Mexico is critical for employers and employees alike. Mexican labor law strictly regulates working hours and overtime pay. Therefore, companies must apply the rules correctly to avoid penalties and payroll errors. At the same time, employees need clarity to ensure fair compensation for additional work.
This guide explains how overtime in Mexico works under current law. It covers pay rates, legal limits, calculation methods, and enforcement risks. In addition, it explains the upcoming labor reform that will reduce the standard workweek to 40 hours and reshape overtime practices.
Let’s explore overtime in Mexico step by step ⬇️
What Is Overtime in Mexico Under Labor Law?
Mexican labor law defines overtime clearly. According to Article 67 of the Federal Labor Law (LFT), overtime includes any work performed beyond the legal working schedule. Currently, the maximum workday is 8 hours per day and 48 hours per week.
Therefore, any time worked beyond these limits qualifies as overtime. This rule applies to day, night, and mixed shifts. Importantly, the law also considers accumulated minutes. If extra minutes worked during the week reach one full hour, that time must be paid as overtime.
Because of this, employers must track working time accurately. Even small deviations can trigger overtime obligations.
How Is Overtime Paid in Mexico?
Overtime in Mexico must always be paid at a higher rate than regular hours. The law recognizes two overtime categories: double overtime and triple overtime.
Double overtime applies when employees work extra hours within the legal overtime limits. Triple overtime applies when those limits are exceeded or when work occurs on mandatory rest days or public holidays.
As a result, overtime cannot be treated as a normal salary supplement. Authorities expect it to be exceptional and limited.
How to Calculate Overtime in Mexico
To calculate overtime correctly, start with the employee’s hourly wage. Divide the monthly salary by the total monthly working hours.
Example
An employee earns MXN 10,000 per month and works full time.
Calculation:
8 hours × 5 days × 4 weeks = 160 hours per month
Hourly wage:
10,000 ÷ 160 = MXN 62.50 per hour
Once you know the hourly rate, calculating overtime becomes straightforward.
Double Overtime in Mexico
Double overtime applies to the first overtime hours worked within legal limits. Mexican law allows:
Up to 3 overtime hours per day
No more than 3 days per week
Therefore, the maximum allowed is 9 double overtime hours per week.
Double overtime is paid at 200% of the regular hourly wage.
Using the example above:
62.50 × 2 = MXN 125.00 per overtime hour
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Triple Overtime in Mexico
Triple overtime applies when overtime exceeds legal limits or occurs on mandatory rest days or public holidays, such as Christmas or New Year’s Day.
Triple overtime is paid at 300% of the regular hourly wage.
Using the same example:
62.50 × 3 = MXN 187.50 per hour
Because of the high cost, employers should treat triple overtime as exceptional. Repeated use may indicate non-compliance.
Legal Limits on Overtime in Mexico
Mexican law sets strict limits on overtime. Employees may work:
No more than 3 overtime hours per day
No more than 3 days per week
A maximum of 9 overtime hours weekly
This means an employee may work up to 57 hours per week, including overtime. However, the law discourages habitual overtime. Authorities expect it to remain occasional.
In rare situations, companies may exceed limits. Still, they must guarantee health and safety conditions and pay the correct premium.
Upcoming Labor Reform: Overtime and the 40-Hour Workweek in Mexico
Mexico is preparing a major labor reform that will reshape overtime in Mexico. The government plans to reduce the standard workweek from 48 to 40 hours between 2027 and 2030.
The proposed transition includes:
2027: 46 hours
2028: 44 hours
2029: 42 hours
2030: 40 hours
The reform also aims to end the routine use of overtime as a way to supplement income. Overtime would remain allowed, but only on a voluntary and limited basis. Minors would be strictly prohibited from working overtime.
For a detailed analysis of this reform and its impact on employers, see:
🔗 Workweek reform in Mexico
Until the reform is approved and implemented, current overtime rules remain fully in force.
Why Overtime Compliance in Mexico Matters
Overtime directly affects payroll, labor costs, and employee satisfaction. Moreover, inspections are frequent, and penalties can be significant. Poor overtime management increases legal and financial risk.
At the same time, the upcoming reform will force companies to rethink staffing models, productivity, and compensation strategies. Early preparation will be essential.
Manage Overtime in Mexico With Europortage
Managing overtime in Mexico requires accuracy, legal knowledge, and constant monitoring. Rules evolve. Enforcement tightens. Payroll mistakes become costly.
Europortage supports employers with compliant payroll processing, working-time compliance, and labor law guidance in Mexico and across Latin America. Our local experts help you calculate overtime correctly and prepare for upcoming reforms.
FAQ
Can employers replace overtime pay with time off in Mexico?
No. Mexican labor law does not allow compensatory time off instead of overtime pay. When overtime occurs, employers must pay it as double or triple overtime, depending on the case. Even if both parties agree, time off cannot replace overtime pay.
Are managers and executives entitled to overtime pay in Mexico?
In most cases, trust employees (personal de confianza), managers, and executives are not entitled to overtime pay. Their roles often involve flexible schedules and decision-making authority. However, classification must be correct. Misclassifying an employee as managerial may lead to labor claims.
Do part-time employees qualify for overtime in Mexico?
Yes. Part-time employees may qualify for overtime if they work beyond the hours agreed in their contract or exceed the legal daily or weekly limits. Overtime pay rules apply regardless of contract type.
Is overtime mandatory for employees in Mexico?
No. Overtime must generally be voluntary. Employers cannot force employees to work overtime as a regular practice. Exceptions may apply in emergencies, but they must be justified and paid correctly.
Does overtime in Mexico affect payroll taxes and social security?
Yes. Overtime pay forms part of taxable income. Therefore, it affects income tax, social security contributions, and payroll calculations. Employers must report overtime correctly on payslips.
How will the 40-hour workweek reform affect overtime in Mexico?
The proposed reform will gradually reduce the standard workweek to 40 hours by 2030. Overtime will still exist but with stricter limits and closer monitoring. Employers should prepare early for staffing and payroll changes.