The Decree published in the Official Gazette of the Federation on May 1, 2026, amends, supplements, and repeals various provisions of the Federal Labor Law (LFT) in order to reduce the maximum ordinary working week from 48 to 40 hours.
Although the central purpose of the reform is the reduction of weekly working hours, the decree also reconfigures the rules governing overtime, introduces the obligation to keep electronic working-time records, and maintains a guarantee of non-regression in wages.
For companies, this is not merely a numerical adjustment: it entails reviewing productive organization, contractual instruments, and attendance-control systems, all under a phased implementation schedule that concludes on January 1, 2030.
The decree contains a Sole Article and seven transitory provisions. It amends Articles 59, 61, 66, 68, 69, and the second paragraph of Article 71; adds a second paragraph to Article 58, as well as Section XXXIV to Article 132 and Section IV Bis to Article 994; and repeals the second paragraph of Article 67.
The legislative technique combines a change in employment conditions —working hours— with a procedural change —recordkeeping and evidentiary value—, meaning that its impact goes beyond the mere recalculation of hours.
Ordinary Working Hours: Reduction to 40 Hours per Week
The amended Article 59 establishes a maximum ordinary working week of 40 hours, without modifying the structure of Article 61. Therefore, the daily limits of 8, 7.5, and 7 hours for daytime, mixed, and nighttime shifts, respectively, remain in force.
Accordingly, the reduction applies only to the weekly calculation.
For its part, Article 58 establishes that the working day “may be distributed by mutual agreement” between the employer and the employee.
In practice, this allows operational continuity to be preserved by concentrating the 40 weekly hours into fewer days, provided that the daily limits set forth in Article 61 are observed and the employee’s express consent is obtained.
In such a scenario, it is advisable to document the agreement —either in the individual employment agreement or through an amendment agreement— in order to prevent overtime claims.
The previous regime limited overtime to 3 hours per day, up to 3 times per week —an effective cap of 9 weekly hours—, paid at an additional 100%.
The decree repeals the second paragraph of Article 67 and reformulates Articles 66 and 68 to establish a dual scheme:
a) Up to 12 overtime hours per week, distributable in up to 4 hours per day for a maximum of 4 days, paid at an additional 100%.
b) An additional extension of up to 4 weekly hours beyond the 12-hour cap, paid at an additional 200%.
The third paragraph of Article 68 establishes an absolute daily cap: the sum of ordinary and overtime working hours may under no circumstances exceed 12 hours.
In material terms, the reform increases the available overtime: from the prior scheme of 9 hours paid at an additional 100%, it transitions —once the implementation period concludes in 2030— to 12 hours paid at an additional 100%, plus 4 hours paid at an additional 200%.
This introduces an intentional asymmetry: ordinary working hours are reduced, while the overtime margin is expanded to absorb production peaks.
Since the first 12 weekly overtime hours will be paid at an additional 100%, the reform may represent a cost advantage for employers compared to the previous scheme, which only contemplated 9 weekly hours at that same rate and, thereafter, required payment at an additional 200%.
The change, however, will be gradual. Overtime begins at 9 hours in 2027 and progressively increases until reaching 12 hours in 2030.
Thus, in 2027, the previous 9-hour overtime cap paid at an additional 100% will converge with the reduced ordinary working week of 46 hours, which could narrow the actual margin for reorganizing shifts and adjusting operational schemes.
Article 69 maintains the “six-for-one” rule: one paid rest day for every six days worked.
Despite public expectations regarding a mandatory “5×2” scheme, the reform does not modify the proportional structure; what changes is the weekly cap and, through Article 58, the possibility of agreeing on the distribution of working hours.
In practice, the 40-hour working week is compatible with 5×2 schemes —8 hours per day— or 4×3 schemes —10 hours per day, without overtime—, provided that the daily limits set forth in Article 61 and the absolute 12-hour cap established in Article 68 for the sum of ordinary and overtime working hours are observed.
With respect to the Sunday premium, it remains at 25%, without any substantive amendment.
A relevant change is set forth in Section XXXIV, which imposes on employers the obligation to “electronically record the working hours of each employee, including the start and end times,” as well as to provide such records to the authority when requested.
The Ministry of Labor and Social Welfare will issue general provisions specifying the scope of application and exceptions; pursuant to the fifth transitory provision, such provisions will enter into force on January 1, 2027.
Until then, the obligation exists under the law, but its operational enforceability depends on those provisions.
This is critical because the final paragraph of the section establishes that the electronic record “shall constitute full proof if it is shown that it was agreed upon between the employee and the employer.”
The logic of attendance control changes: it is not enough to generate the record; the employee’s consent to the mechanism used —electronic signature, biometric validation, or acceptance of the system— must also be evidenced in order for the data to constitute full proof.
Consequently, the recordkeeping system must be designed from the outset with a bilateral acceptance mechanism, either through a clause in the individual employment agreement or through a specific document.
It is also advisable to incorporate it into the collective bargaining agreement and, where applicable, into the internal work regulations.
The seventh transitory provision establishes, without qualification, that the reduction in working hours may not result in a decrease in wages, salaries, or benefits.
This rule makes it possible to measure the real cost of the reform: maintaining the weekly salary with fewer hours worked is, arithmetically, equivalent to a 20% increase in the cost per labor hour by the end of the transition —from 48 to 40 hours.
In piecework or unit-based compensation schemes, it will be necessary to review whether the calculation basis should be adjusted, since the guarantee applies to the employee’s ordinary income and not necessarily to the unit rate.
The second and fourth transitory provisions define the gradual implementation. Under this schedule, 2027 will be the first year in which the key obligations converge: reduced working hours, the overtime cap applicable for that year, and operational enforceability of electronic records under the provisions issued by the Ministry of Labor and Social Welfare.
| Year | Ordinary Weekly Working Hours | Weekly Overtime Hours | Regulatory Milestone |
|---|---|---|---|
|
2026 |
48 hours |
9 hours |
General effective date; adjustment period until December 31 |
|
2027 |
46 hours |
9 hours |
The Ministry’s electronic recordkeeping provisions enter into force |
|
2028 |
44 hours |
10 hours |
Continúa la transición |
|
2029 |
42 hours |
11 hours |
Transition continues |
|
2030 |
40 hours |
12 hours |
Final target regime |
Three obligations converge:
This is the critical compliance moment; the 2026 adjustment period should be used to ensure readiness by that date.
Assuming wages remain unchanged, the cost per labor hour will increase progressively as working hours are reduced —approximately 4% for every two weekly hours reduced, accumulating to nearly 20% by 2030.
Companies with cost structures based on labor hours —construction, manufacturing, and professional services— should reflect this increase in their economic proposal models for multi-year contracts covering the 2026–2030 period.
The addition to Article 58 opens the door to compressing the 40-hour working week into four or five days, which allows weekly operational continuity to be preserved without generating overtime.
The condition is the employee’s consent and compliance with the daily limits of 8, 7.5, and 7 hours for daytime, mixed, and nighttime shifts, respectively.
In continuous operations —rotating shifts, industrial plants, logistics— this type of scheme may reduce the impact of the reform.
In office-based operations, 4×3 schemes could become a standard practice.
The reform does not establish exceptions based on employee category: the limits apply to trusted employees, to special regimes to the extent not expressly exempted, and to specialized service companies.
REPSE companies must adapt their service agreements to reflect the new parameters.
Remote work and NOM-037 already provided for working-time control; electronic records now become a legal obligation, not merely an administrative one.
Clauses in collective bargaining agreements that establish working hours exceeding those progressively set forth in the second transitory provision will be unenforceable to the extent that they exceed the applicable cap.
For the 2026 and 2027 contractual reviews, it is advisable to anticipate negotiations regarding the distribution of working hours and overtime schemes, with particular care in sectors whose wage scales are built on a 48-hour working week.
The base salary for contribution purposes may be affected if the adjustment entails changes to variable compensation or if compressed working schedules alter the structure of overtime registered for purposes of the Mexican Social Security Institute.
It is advisable to validate the impact on SUA modifications and, where applicable, adjust integration criteria.
Three litigation fronts are expected as a result of the reform.
Any hour worked above the weekly cap applicable in the corresponding year may potentially give rise to a claim, multiplying the risk for companies with weak attendance controls during the transition period.
Individual or collective clauses establishing working hours above the applicable cap may be challenged.
The non-regression rule contained in the seventh transitory provision protects employees against any attempt to offset the reduction in working hours through a concealed salary reduction.
Once the rendering of services is established, the employer bears the burden of proving the working hours actually performed.
The absence of electronic records, or a deficient recordkeeping design —without consent— will facilitate the success of claims, in addition to exposing the company to the specific fine provided in Article 994, Section IV Bis.
We propose four lines of action to be implemented during the 2026 adjustment period, with January 1, 2027, as the critical compliance date.
Mapping of actual working hours by area, shift, and work center; identification of critical positions; and simulation of the cost per labor hour for 2027 and 2030.
Review of individual employment agreements to include the working-time distribution clause pursuant to Article 58; update of the internal work regulations and filing before the Federal Center for Labor Conciliation and Registration; and preventive review of the collective bargaining agreement, where applicable.
Selection or adaptation of technology —biometric system, app, ERP— with the design of a bilateral acceptance mechanism by the employee, a record-retention policy, and a protocol for submission to the authority.
Implementation of a pilot program during the second half of 2026 is recommended.
Training for human resources and middle management on the new working-hour and overtime caps, the dual payment regime —100% / 200%—, and the proper use of the recordkeeping system.
The reform is not merely a reduction in working hours.
It represents the broadest reconfiguration of the working-time regime since 1970, with substantive changes —weekly cap, dual overtime scheme, and guarantee of non-regression— and procedural changes —electronic records with conditional evidentiary value and a specific sanction.
The gradual implementation provides room for adaptation, but it requires orderly preparation.
In particular, January 1, 2027, concentrates most of the operational obligations; those who use the 2026 adjustment period to assess, renegotiate contracts, and implement the recordkeeping system will be better positioned to absorb the increase in labor costs with less disruption.
There are multiple variations in daily operations that must be analyzed on a case-by-case basis, including, for example: work performed outside the workplace, remote work, services rendered by senior executives, and other modalities that may arise during implementation.
We recommend conducting a thorough analysis to adapt the organization’s legal framework and operations.
We remain at your disposal to assist with your company’s assessment, contractual updates, and compliance process.
Sincerely,