July 14, 2025
The federal government, through the Ministry of Labor and Social Welfare, convened representatives from the private sector, labor groups, international and civil organizations to participate in public forums aimed at building consensus around a potential legislative reform to reduce the standard workweek in Mexico from 48 to 40 hours.
These discussions materialized in six regional forums held between June 19 and July 7, 2025, in the following locations: Mexico City, Nuevo León, Jalisco, Tijuana, Querétaro, and Quintana Roo.
The discussions in these forums focused on three key areas:
- Economic and social feasibility.
- Gradual implementation.
- Benefits and technical considerations.
The most significant issues discussed during these six forums were as follows:
OBJECTIVE OF THE REFORM
| Sector | Position | Rationale |
| Government | In favor | Aims to fulfill President Claudia Sheinbaum’s campaign promise and improve both productivity and workers’ quality of life. |
| Private sector | In favor with reserves | The reform must be economically viable, especially for small and medium enterprises (SME), and aligned with Mexico’s labor commitments under the USMCA. |
| Workers | In favor | Seek a better quality of life and health outcomes without reducing productivity. |
| Academic and international | In favor | Consider the reform necessary, as Mexico is among the countries with the longest working hours among ILO members. They also note its potential to help close the gender gap. |
IMPLEMENTATION STRATEGY
| Sector | Position | Rationale |
| Government | Gradual and consensus-based | Seeks broad agreement among stakeholders, promoting a phased implementation to protect business viability. |
| Private sector | Gradual and differentiated | Proposes a phased rollout through 2030, starting with a one-hour reduction. Without proper planning, they warn of a potential 6.7% drop in GDP, a 20% increase in costs, and a staffing increase of up to 15%. They also request differentiation by sector, company size, and region; they suggest creating a tripartite commission to monitor the rollout; and call for ongoing dialogue. Additional flexibility for overtime arrangements is also requested. |
| Workers | Gradual, but short-term | Most accept gradual implementation but favor a firm timeline of 2 to 3 years (2027–2028). There is little consensus on extending it to 2030. Workers propose that each union or group negotiate the terms based on sector-specific conditions. |
| Academic and international | Sectoral and regional approach | Recommend differentiated implementation by industry and region. |
INCENTIVES
| Sector | Position | Rationale |
| Government | Announced that tax incentives for companies will be explored. | |
| Private sector | Proposed measures include: tax deductibility of social benefits; revision of the employment subsidy table; more flexible work arrangements (daily, weekly, biweekly, or monthly schedules; day, night, or intermittent shifts; hour banks); hiring bonuses and incentives for technology adoption and training (estimated 25% deductibility); administrative simplification; preferential tax rates or reduced income/payroll taxes; and targeted support for SMEs. | |
| Academic and international | Recommend incentives for employees working extended hours and targeted support for SMEs during the transition. |
In this context, Mexico followed the recommendation of the Organization for Economic Cooperation and Development (OECD), which advises member countries to conduct open and transparent consultations with all stakeholders from the early stages of any regulatory process.
As shown above, a general consensus has already been reached across sectors regarding the reduction of the standard workweek to 40 hours, as well as the need for a gradual rollout. However, significant differences remain regarding the timeline and mechanisms for implementing the reform.
With the conclusion of the consultation forums, the Ministry of Labor and Social Welfare has committed to preparing and submitting a draft reform bill during the first ordinary legislative session of Congress, which begins on September 1, 2025. We do not anticipate major obstacles during the legislative process, and the reform is likely to be approved by the end of 2025, with its effective date potentially as early as January 2026.
At this stage, it remains unclear whether the reform will involve amendments to the Federal Constitution, to the Federal Labor Law, or to both.
This newsletter was prepared by the Labor practice with the support of Regina Torres Septién.
Sincerely,
Jorge G. de Presno Arizpe
David Puente Tostado
Luis Álvarez Cervantes