Mexico's 40-hour work week cuts the legal maximum from 48 to 40 hours a week in steps: 46 hours in 2027, 44 in 2028, 42 in 2029 and 40 in 2030, each taking effect on January 1. The schedule comes from the Federal Labor Law reform decree published in Mexico's Diario Oficial on May 1, 2026, which also bars employers from cutting pay or benefits to offset the shorter week. At the Talentosy Salary Index national median of $35,000 MXN a month (≈ $1,950 USD), the effective hourly cost of an employee rises 20%, from $170 to $204 MXN (≈ $9.40 to $11.25 USD). USD figures use 18.13 MXN/USD (ECB reference rate, September 30, 2026).
When does Mexico's 40-hour work week take effect?
Mexico's 40-hour work week takes effect in stages: the decree has been in force since May 1, 2026, but the first mandatory cut lands on January 1, 2027, when the weekly cap drops from 48 to 46 hours. The rest of 2026 is a transition period for employers to redesign schedules. The full timeline, from the decree's transitory articles:
| Year (from Jan 1) | Max regular hours per week | Max double-pay overtime per week |
|---|---|---|
| 2026 | 48 | 9 |
| 2027 | 46 | 9 |
| 2028 | 44 | 10 |
| 2029 | 42 | 11 |
| 2030 | 40 | 12 |
Can employers in Mexico reduce pay under the 40-hour week?
No. The decree's seventh transitory article states that the shorter work week can never reduce wages, salaries or benefits. Monthly pay stays the same while hours fall, so the cost per hour worked goes up. For a US company with a team in Mexico, budget the transition as a rise in hourly cost, not as a payroll cut.
How much does an hour of work cost under the 40-hour week?
Under the 40-hour week, an employee paid the Talentosy Salary Index national median of $35,000 MXN a month costs $204.17 MXN per regular hour (≈ $11.25 USD), up from $170.14 MXN (≈ $9.40 USD) at 48 hours. Mexican law computes the daily wage as monthly pay ÷ 30 and pays the full 7-day week, rest day included:
- Weekly pay: $35,000 ÷ 30 × 7 = $8,166.67 MXN (≈ $450 USD).
- 2026 (48 hours): $170.14 MXN per hour.
- 2027 (46 hours): $177.54 MXN per hour.
- 2028 (44 hours): $185.61 MXN per hour.
- 2029 (42 hours): $194.44 MXN per hour.
- 2030 (40 hours): $204.17 MXN per hour (≈ $11.25 USD), 20% above today.
How does overtime work under Mexico's 40-hour week?
Overtime under Mexico's 40-hour week is paid at double time up to a weekly cap and at triple time beyond it. The amended article 66 of the Federal Labor Law adds 100% to the regular hourly rate and caps double-time overtime at 12 hours a week by 2030, spread over at most 4 hours a day on 4 days. Article 68 limits anything beyond that cap to 4 more hours a week, paid at 200% extra, and regular plus overtime hours can never exceed 12 in a day. At the $35,000 MXN median, a double-time hour in 2030 costs $408.33 MXN (≈ $22.50 USD) and a triple-time hour $612.50 MXN (≈ $33.80 USD).
What should US companies with teams in Mexico do now?
US companies with employees in Mexico should model coverage before January 2027, because shift-based roles lose hours first. Salaried remote staff who already work close to 40 hours see little schedule change; contact centers, warehouses and plants running 48-hour weeks lose 20% of each person's regular hours by 2030. In the Talentosy Salary Index, 25.3% of active roles are on-site, 38.0% hybrid and 36.7% remote.
- Recalculate coverage: covering the same 48 hours with 40-hour schedules takes 1.2 people per seat, before overtime.
- Set up electronic time records: new article 132, section XXXIV, requires employers to record each worker's start and end times electronically from January 1, 2027; non-compliance carries fines of 250 to 5,000 UMA (article 994).
- Update contracts and internal work rules so the weekly schedule matches the legal cap each year.
- Keep one rest day per six worked (article 69) and a 25% Sunday premium for Sunday shifts (article 71).
Our guide to Mexico labor laws for US employers covers the rest of the compliance picture, and the breakdown of IMSS, aguinaldo and payroll costs shows the full loaded cost of an employee. If the shorter week means adding headcount, Talentosy's recruitment team in Mexico hires for contact centers, operations and tech, and the Mexico salary data pages list current medians by role and city.
Frequently asked questions
When does Mexico switch to a 40-hour work week?
Mexico reaches the full 40-hour work week on January 1, 2030. The cap drops from 48 to 46 hours in 2027, 44 in 2028 and 42 in 2029, under the reform decree published on May 1, 2026.
Does the 40-hour week require two days off in Mexico?
No. Mexican law still requires one paid rest day for every six days worked. Employers and employees can agree on how to distribute the weekly hours, so a five-day week is an option, not a mandate.
Can a company in Mexico lower salaries because of the 40-hour week?
No. The reform explicitly prohibits reducing wages, salaries or benefits as a result of the shorter work week.
How much overtime is allowed under Mexico's 40-hour week?
Up to 12 hours a week of double-time overtime by 2030, in no more than 4 hours a day on 4 days. Hours beyond that cap are paid at triple time and are limited to 4 a week.
