Mexico

Mexico sets minimum wage rise and plans to cut workweek to 40 hours

Mexican employers, notably manufacturers and maquiladoras, face higher wage costs and shorter legal working hours, and only a minority of companies report being fully ready.

Photo: Mexico Business News

What happened

President Claudia Sheinbaum announced a bill to reduce Mexico's long-standing 48-hour workweek to 40 hours, with a gradual plan that runs to 2030. courthousenews.com She also announced, following negotiations in the National Minimum Wage Commission, a minimum wage increase starting Jan. 1, 2026. courthousenews.com The daily minimum wage will rise from 278.80 pesos to 315.04 pesos, while in the six border states of the Free Zone of the Northern Border it will rise from 419.88 to 440.87 pesos. courthousenews.com Under a Federal Labor Law reform, the ordinary workweek limit drops to 46 hours on Jan. 1, 2027, with weekly overtime capped at nine hours, eight-hour daily limits kept, and electronic time records mandated. Mexico Business News

Around it

The National Minimum Wage Commission is a tripartite council made up of members of the federal government, labor unions and the private sector. courthousenews.com Manufacturers and maquiladoras must choose among six-day, five-day, 4x3 and rotating 12-hour shift models, which differ in overtime exposure and legal certainty. Mexico Business News Only 18% of companies report full readiness for the change. Mexico Business News

What comes next

The 46-hour weekly limit takes effect on Jan. 1, 2027, and the minimum wage increase begins on Jan. 1, 2026. courthousenews.com+1

Sources

  1. courthousenews.comSheinbaum announces minimum wage increase and workweek decrease (opens in a new tab)
  2. Mexico Business NewsMexico’s 46-Hour Week: Shift Models for Manufacturing in 2027 (opens in a new tab)

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