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Senate Takes Up 40-Hour Week Reform as 13% Minimum Wage Rise Is Set for 2026

Employers seek targeted support for small firms to manage the transition.

Overview

  • The presidency sent initiatives to amend Constitution Article 123 and the Federal Labor Law to enable a 40-hour week, a process that requires congressional approval and ratification by at least 17 state legislatures.
  • The framework sets entry into force for May 1, 2026 with all of 2026 designated as an adaptation period before reductions begin on January 1, 2027 and continue annually through 2030.
  • The phased schedule lowers the statutory maximum from 48 to 46 hours in 2027, then to 44 in 2028, 42 in 2029, and 40 in 2030.
  • Protections include a constitutional guarantee that reduced hours will not cut wages or benefits, mandatory electronic recording of ordinary and overtime hours, expanded allowable overtime to 12 hours per week with worker consent, and a ban on overtime for minors.
  • Conasami confirmed a unanimous tripartite deal to raise the general daily minimum wage to 315.04 pesos on January 1, 2026, with the Northern Border Zone at 440.87 pesos, incorporating a 17.01-peso MIR plus a 6.5% adjustment; officials cite about 13.4 million people working more than 40 hours as primary beneficiaries of the hour cuts.