Announcement of the 2026 Minimum Wage Increase and Draft Amendment to Reduce the Workweek to 40 Hours
Announcement of the 2026 Minimum Wage Increase and Draft Amendment to Reduce the Workweek to 40 Hours
1. Minimum Wage Increase Effective January 1, 2026
The Government of Mexico, through the Ministry of Labor and Social Welfare (STPS) and the National Minimum Wage Commission (CONASAMI), announced the new minimum wages that will take effect on January 1, 2026, both for the general minimum wage and for the Northern Border Free Zone (ZLFN).
In the ZLFN, the authorized increase is 5%, raising the daily minimum wage from MXN $419.88 to MXN $440.87, which represents an approximate monthly income of MXN $13,409.80. For the rest of the country, a 13% increase was approved for the general and professional minimum wages, raising the daily minimum wage from MXN $278.80 to MXN $315.04, equivalent to an estimated monthly income of MXN $9,582.47.
This change requires employers to immediately review their salary structures, with particular attention to positions tied to or close to the minimum wage, and to identify potential “compression effects” where lower salary bands may be overtaken by the new minimum wage. It is also necessary to update individual and collective employment agreements, internal work regulations, and other corporate documents that reference the minimum wage for setting salaries, bonuses, allowances, or financial penalties.
2. Draft Reform: 40-Hour Workweek
In parallel with the minimum wage announcement, the Draft Reform for the Implementation of the 40-Hour Workweek was presented. This initiative is conceived as a constitutional and statutory amendment with broad impact.
The central element of the proposal is the gradual reduction of the weekly work schedule, ultimately reaching a maximum of 40 regular hours by the year 2030. The reduction would occur in 2-hour annual increments, beginning with a transition period in 2026, according to the following schedule: in 2027 the maximum weekly working time would be 46 hours; in 2028, 44 hours; in 2029, 42 hours; and by 2030, the 40-hour limit would be consolidated.
One of the most relevant aspects for employers is that the draft expressly provides that the reduction in working hours may not result in a decrease in salaries, wages, or benefits for workers. Additionally, for the first time, the proposal explicitly prohibits overtime work for minors.
Regarding maximum working limits, the reform proposes that the combined ordinary and overtime hours may not exceed 12 hours in a single day, with the aim of promoting dignified working conditions and longer rest periods. The draft allows between 9 and 12 overtime hours per week, always voluntarily, and introduces—for the first time in the Federal Labor Law—a cap of 4 triple-overtime hours, a limit that currently does not exist.
The proposal also incorporates an employer obligation to maintain an electronic record of working hours so that the labor authority can monitor compliance with the new limits. The STPS will be responsible for issuing the corresponding regulations for this electronic registry.
Regarding the legislative path, the initiative is expected to be submitted to Congress for discussion and eventual approval, with the goal of having the reform enter into force on May 1, 2026, and the first effective reduction of working hours taking place on January 1, 2027.
It is important to emphasize that, at this stage, this is a draft reform, and its content may be modified during the legislative process. Nonetheless, the policy direction is clear: towards a system that reduces working hours and strengthens the protection of workers’ health and personal well-being.
3. Practical Implications and Recommendations for Employers
Both the minimum wage increase and the proposed 40-hour workweek emerge from the same policy trend: strengthening worker protection while requiring greater planning and compliance from employers.
In the short term, the minimum wage increase taking effect in January 2026 requires employers to adjust payroll budgets, assess the impact on production and service costs, and review collateral effects on benefits tied to the minimum wage. This analysis should be accompanied by a salary competitiveness review to avoid internal distortions (e.g., when higher-tier positions end up too close to the new minimum wage).
In the medium term, the potential approval of the workweek reform will require companies to redesign their work structures. Employers will need to review individual and collective labor agreements, internal regulations, overtime policies, and shift arrangements to gradually align with the reduction schedule (46, 44, 42, and ultimately 40 hours per week). This will also require revisiting productivity metrics and performance indicators, given that ordinary working time will be reduced.
At Zubieta & Landa Elizondo, we remain attentive to the publication of official regulations and to the legislative progress of the workweek reform. We are at your disposal to assist with the review of contracts and internal policies, the design of labor compliance strategies, and any collective bargaining processes that may be necessary in light of these changes.
Sincerely,
Gabriel Zubieta y Landa Ortiz
gabriel@zubietaylanda.com
Iván Elizondo Gámez
elizondo@zubietaylanda.com
Roberto C. González Ávila
rcgonzalez@zubietaylanda.com
Marco Marchand Aceves
marcom@zubietaylanda.com
Gabriel Zubieta y Landa Corona
gcorona@zubietaylanda.com
The information contained in this note does not constitute, nor is it intended to constitute, legal advice on the matters discussed herein. It is provided solely for general informational purposes. For legal advice regarding a specific matter, please contact any of our attorneys.
