Overview
- The reform took effect May 1 in the government gazette, opening a preparation window through December 31, 2026 before the 46‑hour weekly cap starts January 1, 2027 on the path to 40 hours by 2030.
- Employers must install electronic attendance systems by January 1, 2027, with STPS technical rules pending and fines of about 29,000 to 586,000 pesos for failure to comply.
- Workers’ pay and benefits cannot be cut during the transition, and the law eliminates hour‑bank swaps in favor of paid overtime under tighter limits and higher rates.
- Labor groups are pressing for fiscal changes that would exempt bonuses, profit‑sharing and overtime from income tax to protect take‑home pay during the rollout.
- A Deloitte study projects wages could rise 9.2% and unemployment fall to 2.9% between 2027 and 2030 if firms boost efficiency, warning results weaken if companies rely on overtime instead of redesigning work.