Mexico’s 40-Hour Workweek Reform
Mexico currently enforces a 48-hour workweek, one of the longest in Latin America. With Mexico’s 40-Hour Workweek Reform, the government aims to improve worker well-being, reduce burnout, and align with global standards. This reform isn’t just political—it’s a structural shift supported by both current leadership and the incoming administration. Leaders like Marath Bolaños are already building consensus through national discussions. The reform also ties into broader labor improvements, including wage increases and outsourcing regulations, showing Mexico’s commitment to modern, people-first labor policies.
🔑 Key Takeaways:
✔️ Mexico will reduce the 48-hour workweek to 40 hours by 2030.
✔️ Annual reductions of two hours begin in 2026.
Timeline for Implementation
The workweek reduction won’t happen all at once. Instead, it will roll out gradually, allowing employers and workers time to adjust. The plan begins in 2026 and reaches its final form by 2030. Every year, the workweek will drop by two hours. This gradual pace helps businesses adapt without serious disruption. Here’s the proposed schedule:
2026: 46 hours
2027: 44 hours
2028: 42 hours
2029: 41 hours
2030: 40 hours
Public forums will take place nationwide in mid-2025 to gather feedback. These discussions include businesses, unions, employees, and legal experts. The final draft of the law will reflect their input.
What the Legal Reform Will Include
To enforce Mexico’s 40-Hour Workweek Reform, lawmakers will need to update several legal texts. The most significant change will be to Article 123 of the Mexican Constitution, which defines working conditions nationally. Employers should expect new language that limits the standard workweek to 40 hours. In addition to the Constitution, updates to the Federal Labor Law (LFT) will follow. These changes may involve:
Revised overtime rules
Adjusted rest periods and break times
Mandatory contract revisions for all impacted employees
Sector-specific enforcement guidelines through labor agreements
All companies—regardless of size or industry—must prepare to comply with these changes.
What Employers Need to Do Now
Mexico’s 40-Hour Workweek Reform requires more than awareness—it demands action. Employers need to plan ahead to avoid legal and operational issues. Preparing early helps reduce risks and position your business for success. Here are the most urgent steps:
Audit current employee schedules. Identify teams where reduced hours will impact productivity.
Estimate added labor costs. You may need to pay more overtime or hire new employees.
Review employment contracts. Ensure your language matches the new workweek rules.
Update payroll and HR systems. This includes tracking hours, calculating overtime, and updating vacation accruals.
Start internal communications. Let managers and staff know what’s coming and when.
Each step reduces confusion and ensures smoother implementation.
What the Reform Means for Business Operations
Shorter workweeks bring real consequences. Businesses may face reduced coverage, increased payroll costs, and greater HR complexity. Shift-based industries—like manufacturing, retail, and logistics—may need to redesign workflows completely. Roles with high hourly demands will be hardest to adapt. Businesses must act early to avoid productivity gaps and burnout among remaining staff.
Some companies may consider automation or part-time roles to bridge labor gaps. Others may redesign internal KPIs to focus on outcomes, not hours. In every case, Mexico’s 40-Hour Workweek Reform challenges old work models. Success will depend on your ability to evolve quickly and legally.
Impacts on Collective Bargaining Agreements
Unionized businesses must take additional steps. Most Collective Bargaining Agreements (CBAs) in Mexico include specific terms around work hours, overtime, and compensation. Reducing the workweek could trigger mandatory renegotiations. Employers should begin reviewing these contracts now and plan dialogue with union leaders. Transparency is key. Proactive negotiation avoids strikes or complaints and protects business continuity.
If your current CBAs extend beyond 2026, build flexibility into contract terms now. Consider including language that references future legal changes, so you won’t need to renegotiate from scratch each year.
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How Mexico’s Private Sector Has Reacted
Reactions to Mexico’s 40-Hour Workweek Reform have been mixed. Labor unions support the measure, seeing it as a long-overdue improvement. However, business groups have voiced concerns. Organizations like COPARMEX and the CCE worry about higher labor costs and potential drops in productivity. Some employers expect cost increases of up to 36%, especially in labor-intensive sectors.
Despite this, most agree on the need for better balance between work and life. The challenge now lies in execution. The public forums will be critical in finding compromise and defining how each sector implements the change over time.
Final Thoughts: Be Ready Before It’s Mandatory
Mexico’s 40-Hour Workweek Reform marks a significant change in how businesses operate. It puts health, well-being, and sustainability at the center of labor law. While the shift won’t happen overnight, smart companies will prepare early. Those who ignore the reform may face compliance risks, staff shortages, or unnecessary costs.
Start your preparation today. Navigating Mexico’s 40-Hour Workweek Reform is easier with the right local partner. At Europortage, we specialize in supporting international companies with HR strategy, payroll processing, and Employer of Record (EOR) services across Mexico. Whether you need to redesign shifts, adjust payroll calculations, or manage employee communications, our bilingual team ensures full compliance with local labor laws. We also help companies without a legal entity in Mexico hire talent through our EOR model—fully aligned with the new work-hour limits. With over 15 years of experience in Latin America, we simplify change so you can focus on growth.
