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40-hour work week, mandatory paid day off: Inside Mexico’s new labour reforms

In a win for the Claudia Sheinbaum-led government in Mexico, lawmakers have unanimously approved a new labour reform, which will allow a reduction in the Mexican work week.

The new reform, backed by President Sheinbaum, will shorten the current 48-hour work week to 40 hours and will also pave the way for one mandatory fully paid day off per week.

The labour reform bill was passed with a total of 469 votes in favour in the 500-member lower house. Ahead of this vote, the Mexican Senate also unanimously approved the bill.

The proposal was first revealed by Sheinbaum in December 2025. However, lobbying and pushback from business leaders delayed the discussions on the overhaul for weeks.

What does the new reform state?

As per a Bloomberg report, the reform states that the transition for a shorter work week will begin from 2027 onwards, and till 2030, an annual reduction of two years will be made.

The labour reform will also reduce Mexico’s 48 hour work week to 40 hours, which translates to five days of work.

Currently, Mexican workers are not provided with paid time off. The bill, backed by Sheinbaum, would allow for one mandatory paid day off for workers for every six working days.

The proposal, which calls for constitutional amedments, will also prohibit workers below 18 years of age from working overtime.

Other reforms for working overtime include a limit of 12 hours per week, which will be distributed upto four hours a day. This double overtime will call for compensation at 100 per cent above the hourly reguar wage.

In case of triple overtime, employers must pay 200 per cent above the regular hourly wage.

With this reform, Mexico joins other Latin American countries Chile and Colombia to reduce weekly hours. Furthermore, Brazilian President Luiz Inácio Lula da Silva has also pushed for a similar proposal ahead of his re-election bid in October.

Business groups against labour reform

While the reform comes as the Sheinbaum government’s aim to make pro-worker policies a priority, several business groups have spoken against the reform.

Business groups, who also lobbied against the proposal, have claimed that these changes would cause labour costs to increase and reduce overall productivity of the nation.

An unusual criticism also comes from some opposition lawmakers, who have called for the bill to include two days off each week.

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