On May 1, 2026, the decree amending Mexico's Federal Labor Law to reduce the working week was published in the Official Gazette (DOF) and took effect that same day. The maximum working week will shrink gradually to 40 hours by 2030, while the number of overtime hours paid at double rate rises from 9 to 12 per week. Here is what changes for your payroll.
The reduction schedule
| Year | Maximum weekly hours | Double-rate overtime hours per week |
|---|---|---|
| 2026 | 48 h | 9 h |
| 2027 | 46 h | 9 h |
| 2028 | 44 h | 10 h |
| 2029 | 42 h | 11 h |
| 2030 | 40 h | 12 h |
Each change applies from January 1 of the corresponding year.
Double or triple: how they are paid
| Type | Limit | Pay | Legal basis |
|---|---|---|---|
| Double | Up to the year's weekly limit, with a maximum of 4 hours per day and 4 days per week | 100 % on top of the regular salary | Art. 66 LFT |
| Triple | Hours beyond the previous limit, with a maximum of 4 hours per week | 200 % on top of the regular salary | Art. 68 LFT |
Regular hours plus overtime can never exceed 12 hours in a day, and no employee is required to work beyond the permitted time.
Income tax (ISR) treatment
ISR is Mexico's federal income tax; the UMA is the official reference unit used to set tax and social security limits.
- Double hours: 50 % is exempt, up to 5 UMA per week ($586.55 in 2026).
- Triple hours: fully taxable.
- Minimum-wage employees: their double hours within the legal limit are 100 % exempt; triple hours remain taxable.
Social security (IMSS) treatment
As long as overtime stays within the Federal Labor Law limits, it is not included in the contribution base salary used by IMSS (the Mexican Social Security Institute). Any amount above those limits is included.
Electronic time records
The reform also requires employers to keep an electronic record of each employee's working hours, with start and end times, and to provide it to the authorities upon request. The Ministry of Labor's rules take effect on January 1, 2027, and non-compliance is fined from 250 to 5,000 UMA. In addition, reducing working hours cannot result in any cut to wages, salaries or benefits.
Legal basis
- Decree amending, adding and repealing various provisions of the Federal Labor Law regarding the reduction of working hours (DOF, May 1, 2026) and its transitional articles.
- Federal Labor Law, Articles 59, 61, 66, 68, 69, 132 section XXXIV and 994 section IV Bis.
- ISR Law, Article 93, section I.
- Social Security Law, Article 27, section IX.
In Nomikhor, overtime is split into taxable and exempt amounts using up-to-date UMA and minimum wage values, and ISR, IMSS contributions and state payroll tax (ISN) are calculated automatically every pay period.