Overview
- The reform takes effect on May 1, 2026, with the first cut to weekly hours arriving on January 1, 2027, and subsequent two-hour reductions each year until reaching 40 hours in 2030.
- Labor authorities state that wages and benefits will not be reduced as hours come down under the new framework.
- The Labor Ministry plans to issue secondary regulations in the first quarter of 2026 to detail overtime calculations, penalties for noncompliance, and potential incentives.
- Employers will be required to use an official electronic registry to track working time and verify compliance with ordinary and overtime limits.
- Government estimates indicate about 13.4 million workers will be directly affected, with significant impact in manufacturing, retail, hospitality and food services, and transport and warehousing.