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Mexico Unveils 2026 Minimum-Wage Hike and Phased 40-Hour Week Plan

Mandatory electronic time tracking underscores a shift toward tighter enforcement.

Overview

  • President Claudia Sheinbaum’s package pairs a 13% increase to the general minimum wage for 2026 with a staged cut to the legal workweek beginning after a 2026 preparation year.
  • The proposed schedule reduces the weekly cap by two hours per year—46 hours in 2027, 44 in 2028, 42 in 2029 and 40 in 2030—pending presentation and debate in Congress.
  • The reform adds an obligatory electronic register of working hours, with the Labor Ministry to issue implementing rules, alongside limits on overtime and a ban on extra hours for minors.
  • Business groups, including Coparmex representatives, warn the dual change could strain micro, small and medium firms, heighten informality risks and pressure prices and margins.
  • Labor coalitions such as the Frente Nacional por las 40 Horas reject the gradual approach as insufficient and press for immediate implementation, arguing inspection capacity is inadequate.