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Mexico Sets 40‑Hour Workweek to Begin in January 2027

Employers must preserve wages, restructure shifts, install electronic time records, raising hourly labor costs, straining low‑productivity firms

Overview

  • The reform begins a gradual reduction on January 1, 2027, cutting the standard workweek toward 40 hours and requiring firms to change schedules and update contracts.
  • Article 18 of the Ley Federal del Trabajo bars cuts to salaries or statutory benefits, requires continued IMSS and Infonavit contributions, and protects seniority accrual.
  • Consultancies report limited readiness with only about 18% of firms fully prepared, and most companies plan to meet the change by reorganizing shifts rather than large‑scale hiring.
  • Oxford Economics projects roughly a 20% rise in labour cost per hour by 2030, warns that 24/7 operations and labour‑intensive sectors such as manufacturing, hotels and restaurants face the biggest pressure, and flags a risk of increased informal work.
  • The reform mandates electronic time registration for enforcement, but biometric systems require workers' express consent under data‑protection rules, adding legal and operational compliance tasks for employers.