Mexico’s 40-Hour Workweek Nears as Survey Finds Most Firms Unprepared
An EY survey shows most firms remain unready, raising payroll and compliance risks.
Overview
- EY, which on Monday reported that 72% of employers have taken no concrete steps, said payroll costs could rise 15% to 20% and flagged widespread dependence on overtime.
- The reform reduces the legal workweek from 48 to 40 hours on a phased schedule through 2030 set by the federal government.
- Coparmex Tijuana urged companies to follow the legal calendar rather than move early, as many firms run pilots and buy automation to hold output with fewer hours.
- Sectors with shift and manual work such as maquiladoras and security services face the hardest adjustments, while tech, professional services and call centers are finding productivity gains faster.
- Labor specialists advise employers to update contracts, internal rules and policies by December 31, 2026 to reduce legal risk as shorter weeks begin to take effect.