Mexico is moving toward a historic transformation of its labor market with the gradual reduction of the standard workweek from 48 to 40 hours. This reform is expected to reshape workplace organization and talent management across the country by 2030.
Mexico’s labor market is heading toward one of the most significant reforms in recent decades. The Joint Committees on Constitutional Affairs and Labor in the Chamber of Deputies unanimously approved the proposal to reduce the legal workweek from 48 to 40 hours, with 61 votes in favor and none against. The initiative is now moving toward debate in the full Chamber and later in the Senate.
This change represents a major turning point in how work is organized in Mexico and introduces a new framework for both employers and workers. The reform aims to improve work-life balance while establishing a gradual transition designed to prevent negative impacts on productivity and economic stability.
For Human Resources departments and business leaders, the reform goes far beyond a legal adjustment. It requires rethinking processes, schedules, and organizational structures that have operated for decades under the traditional 48-hour workweek.
What Will Change Under the Labor Reform
The proposal approved in committee includes a constitutional amendment to Article 123 that would guarantee two paid days of rest for every five days worked. This would effectively replace the traditional six-day workweek with one day off as the legal standard.
The goal is to establish a shorter workweek without reducing wages, a key element for maintaining purchasing power and avoiding inflationary pressures. Workers would continue earning the same salaries even as their working hours decrease.
A central feature of the reform is that the transition to a 40-hour workweek will not be immediate. Instead, the proposal outlines a phased implementation through 2030, allowing businesses to adapt their operational structures gradually.
Implementation Timeline
If the reform receives final approval, the rollout will follow a gradual schedule designed to minimize economic and operational disruption.
During 2026, the legal maximum workweek would remain at 48 hours while regulatory guidelines and technical standards are developed. This period would serve as a preparation phase for employers.
In 2027, the first reduction would take effect, lowering the maximum workweek to 46 hours.
In 2028, the limit would drop to 44 hours. By this stage, many companies are expected to have redesigned schedules and production processes.
In 2029, the maximum workweek would decrease to 42 hours, representing the final adjustment phase before the new standard is reached.
By 2030, the 40-hour workweek would become the official labor standard in Mexico.
This phased approach is intended to provide certainty for employers and allow structured adjustments rather than abrupt operational changes.
Operational Flexibility and Overtime
One of the most relevant aspects of the proposal is the increase in the maximum number of overtime hours allowed, from 9 to 12 hours per week.
This adjustment would provide companies with operational flexibility, particularly in industries that experience seasonal demand or production peaks. Businesses would be able to temporarily offset reduced regular hours through overtime while complying with legal pay requirements.
The reform maintains the principle of premium pay for overtime work. If the allowed limit is exceeded, additional hours must be compensated at a rate equal to 200 percent of the regular wage.
This framework seeks to balance worker protections with the operational needs of businesses.
Impact on Talent Management
From a Human Resources perspective, the shorter workweek is expected to address long-standing structural challenges in Mexico’s labor market.
Mexico has historically ranked among the countries with the highest annual working hours among industrialized economies. The reform aims to reduce workplace fatigue and improve workers’ physical and mental well-being.
Lower stress levels could translate into reduced absenteeism and fewer health problems associated with burnout. This would benefit both employees and employers.
Another expected outcome is improved workplace safety. International evidence shows that well-rested workers make fewer mistakes and experience fewer accidents, particularly in industrial and operational environments.
In addition, increased personal time may strengthen employee engagement and organizational loyalty. The concept of “emotional compensation” — including time for family and personal life — has become an increasingly important factor in attracting and retaining talent.
Lawmakers supporting the initiative stated that the reform aims to protect workers’ incomes while allowing each sector of the economy to adapt the transition according to its specific needs.
How Companies Should Prepare
Although the reform still needs to pass the remaining legislative stages, the unanimous support in committee suggests that approval is highly likely.
As a result, many organizations have already begun evaluating the potential impact on their operations.
One of the first recommended steps is analyzing future labor costs. Maintaining the same wages with fewer working hours will require careful financial planning.
Another key area will be schedule redesign. Many companies may need to adopt new work models, such as rotating shifts or compressed workweeks.
It will also be essential to move toward productivity models based on results rather than physical presence. Technology, automation, and hybrid work arrangements will play an increasingly important role in offsetting reduced working hours.
The reduction of the workweek in Mexico is no longer a distant possibility but a transformation already underway. The committee approval represents the first formal step toward a new labor model that could redefine business competitiveness in the coming years.
Companies that adapt early will gain a strategic advantage in a labor market that is increasingly focused on efficiency, employee well-being, and work-life balance.
