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Mexico Plans Digital Time Clock for 40-Hour Week Rollout

Senate approval could start a nationwide digital time clock in 2027.

Overview

  • The constitutional reform published March 3, 2026 set a phased cut in the standard workweek from 48 to 40 hours by 2030, with the first step to 46 hours in 2027.
  • The presidential bill now in Senate committees would amend the Labor Law to require an electronic hours registry from 2027, turning a daily “time clock” into the main proof of compliance and inspection tool.
  • The new overtime scheme permits up to four extra hours per day on a maximum of four days at double pay and caps triple-pay time at four hours a week, which allows, by agreement and proper pay, workweeks of up to 56 hours.
  • A new EY Mexico study finds nearly four in ten companies are not prepared, 44% are still evaluating options, only about 27% have begun changes, and most fear higher costs and depend on routine overtime.
  • Labor advisers urge employers to finish audits and update contracts, internal rules, and policies by December 31, 2026 to align with the new limits, warning of tougher inspections and higher risk for small firms.