Overview
- The government set a phased timeline that begins with a 46-hour weekly cap on Jan. 1, 2027 and reaches 40 hours by 2030, with the schedule published in the presidential decree.
- The decree and LFT reform forbid cuts to wages or benefits as hours fall and establish overtime pay of 100% extra for up to 12 hours a week and 200% beyond that while banning overtime for workers under 18.
- Employers must maintain an electronic record of hours worked or face fines ranging from 29,327 to 586,550 pesos for noncompliance, and regulators will use digital logs to verify hours and extra pay.
- AON surveys presented at sector forums show firms are prioritizing shift redesign, process optimization and some automation over broad hiring and expect to revise overtime schemes to meet the new limits.
- Consultants warn the change could raise company labor costs by about 11–22% by 2030 and recommend multidisciplinary simulations by HR, finance and legal teams so each employer can model precise impacts.