BASHAM NEWS

2026 Minimum Wage Increase and Implementation of the Reduced Workweek

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December 3, 2025

On December 3, 2025, during the daily morning press conference, the Secretary of Labor and Social Welfare, Marath Baruch Bolaños, announced that the Council of Representatives of the National Minimum Wage Commission (CONASAMI) unanimously approved an increase to the minimum wage, which will take effect on January 1, 2026.

According to the announcement, the minimum wages will be adjusted as follows:

  • In the northern border-free zone, a 5% increase, raising the daily minimum wage from $419.88 MXN to $440.87 MXN.
  • In the rest of the country, there will be a 13% increase, raising the general daily minimum wage from $278.80 MXN to $315.04 MXN.

For the general minimum wage (applicable to the rest of the country), the increase consists of the 2025 minimum wage plus an Independent Recovery Amount (MIR) of $17.01 MXN and a 6.5% adjustment, representing a total increase of 13% compared to the previous year. It is important to highlight that the MIR applies only to the general minimum wage, while in the Northern Border Free Zone this mechanism has been eliminated, meaning that its increase corresponds exclusively to the 5% percentage adjustment.

It is essential for employers to review their salary tables to ensure that no base salary falls below the applicable minimum wage as of January 1, 2026. Adjustments must be implemented immediately, as non-compliance may result in administrative fines under the Federal Labor Law and even potential criminal consequences related to labor exploitation.

Companies must also consider that most specialized service providers, such as industrial cafeterias, security, cleaning, maintenance, and similar services, typically structure their pricing directly around the minimum wage. Consequently, these services are likely to experience double-digit cost increases in 2026, reflecting the rise in the wage floor.

We recommend anticipating this impact in budgeting, contract renewals, and supplier negotiations to mitigate risks and ensure operational continuity.

In the context of collective bargaining, salary adjustments must be determined by mutual agreement between the parties, as the minimum wage increase serves only as a reference and is not automatically binding on collective bargaining agreements, except with respect to salaries that fall below the new minimum. This distinction is particularly important because, for purposes of collective and salary negotiations, it is common practice to consider not only the percentage increase published by CONASAMI, excluding the Independent Recovery Amount (MIR) (in this case, the 6.5% applicable to the general minimum wage), but also additional factors such as inflation, the increase in the basic basket of goods, and other economic indicators.

We also recommend maintaining proactive communication with unions, as some workers may perceive the minimum wage percentages as a starting point during contractual negotiations.

Implementation of the Reduced Workweek

During the same press conference, the Secretary of Labor outlined the proposal to implement the constitutional reform that seeks to reduce the weekly work schedule from 48 to 40 hours, which would come into effect gradually beginning May 1, 2026, as follows:

YearWeekly Working Hours
2026Entry into force / transition period
202746 hours
202844 hours
202942 hours
203040 hours

The reduction will not entail any decrease in salary or benefits. Likewise, overtime work is prohibited for minors.

The reform also completely restructures the overtime regime. Going forward, employees may work between 9 and 12 overtime hours per week, provided that such work is voluntary.

Additionally, the reform introduces, for the first time, a maximum limit of 4 triple-paid overtime hours per week, meaning any overtime exceeding the voluntary double-paid hours (up to 12) will be capped at four triple-paid hours. This new cap will affect IMSS employer and employee contributions associated with overtime that exceeds three hours per day or occurs more than three times per week, as it is expected that Article 66 of the Federal Labor Law will be amended accordingly. Furthermore, a new operational limit is established: the combined total of regular and overtime hours may not exceed 12 hours in a single day, which will require companies to strengthen shift management and time-tracking controls.

Regarding the electronic timekeeping requirement, the reform establishes a mandatory obligation for employers to implement a digital system through which the Ministry of Labor and Social Welfare may verify compliance with regular and overtime schedules. The Ministry will issue specific technical guidelines on its operation, but it is already expected to become an essential requirement for labor inspections, audits, and compliance verifications.

As for the impact on employers, it will be necessary to review and redesign work shifts, rest periods, and scheduling structures to adapt to the gradual reduction of the weekly workweek.

Internal policies and time-tracking systems will also need to be updated to comply with both the new “4 triple hours per week, no more than 4 times per week” overtime rule and the mandatory electronic registry.

This proposed constitutional and statutory reform is subject to approval by the Federal Congress and the State Legislatures, whose review is expected during the next regular legislative session beginning in February 2026.

The Labor and Employment Practice of Basham, Ringe y Correa remains at your disposal to address any questions and to support you in the implementation of these measures.

This newsletter was prepared with the support of Ana Sofia Lazcano.

Sincerely,

Jorge A. de Presno Arizpe
jorgedepresno@basham.com.mx

David Eugenio Puente Tostado
dpuente@basham.com.mx

Luis Antonio Álvarez Cervantes
lalvarez@basham.com.mx