Labor Reform: New Minimum Wages And The 40-hour Workweek

The Mexican government has announced two important measures that will reshape the labor landscape for the coming year: an increase in the minimum wage effective January 1, 2026, and the formal announcement of an upcoming constitutional reform that will gradually reduce the work week from 48 to 40 hours. Both measures require internal review by employers.

Increase of minimum wages

The minimum wage will increase in both the general zone and the northern border zone. Companies must update their salary tables, employment contracts, and budget forecasts accordingly:

• General zone: +13%, from MXN 278.80 to MXN 315.04 per day.
• Northern border zone: +5%, from MXN 409.80 to MXN 440.87 per day.

Announcement of constitutional reform: transition to a 40-hour workweek

With the aim of protecting workers' health, improving work-life balance, and reducing fatigue and workplace accidents, a constitutional reform proposal regarding the work week was formally announced. The proposal, agreed upon by the government, business associations, union representatives, and academia, will be submitted to Congress for debate and approval.

It is expected that the reform will be discussed and approved shortly so that it can come into force on May 1, 2026, and that the gradual reduction in working hours will begin on January 1, 2027. This gradual reduction will be as follows:

Key points of the labor reform

Some additional key points in the labor reform are as follows:

• No reduction in wages or benefits will be allowed.
• Overtime will be prohibited for workers under the age of 18.
• The daily working day (regular hours + overtime) may not exceed 12 hours.
• Employers will be required to register with an electronic working hours recording system managed by the Ministry of Labor.

What is next for employers?

Based on the above, at VTZ we believe that companies should take the following relevant actions:

• Update salary tables and payroll structures for 2026.
• Assess the operational impact of reducing the working week.
• Redesign shifts, rotations, and rest periods.
• Identify positions with intensive use of overtime.
• Prepare for mandatory electronic time tracking.
• Train managers and HR teams on the new limits and compliance requirements.

Originally published December 3, 2025.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.