Unlocking Opportunities: Mexico’s Shift to a 40-Hour Workweek
In the year 2023, Mexico is witnessing a remarkable economic upswing, presenting a plethora of prospects for businesses aspiring to broaden their horizons or establish a foothold in the region. Recent years have seen Mexico make significant strides in curbing corruption and enhancing its investment climate, resulting in a more stable and predictable economic milieu.
The country boasts a vibrant and youthful workforce, abundant natural resources, and a strategic geographical location that grants convenient access to both North and South American markets. Furthermore, the Mexican Congress, in late April 2023, passed a resolution to amend the Constitution with the aim of reducing the workweek from 48 to 40 hours per week. Although this labor reform is yet to be enacted into law, it is highly likely to occur in September.
This shift follows the recent increment in the minimum wage and annual leave entitlement for Mexican workers. This article aims to outline the latest labor reform in Mexico, its implications for companies, and the crucial role of experienced legal representation for businesses operating in Mexico.
Should the new labor reform in Mexico be passed, it would propose a 40-hour workweek, contrasting the conventional 48-hour workweek.
What does the labor reform in Mexico mean for businesses?
The labor reform amendment passes in Mexico’s National Congress (April 2023).
The potential implications of the labor reform if passed in September, including the reduction of the workweek to 40 hours and the provision of an additional day off.
Alignment of Mexico with other OECD member nations, which adhere to a standard 40-hour workweek.
Statistics from the Mexico National Statistics Institute revealing that over 40% of Mexicans currently work six days a week.
Insight from Mexican Congress Member Susana Prieto Terrazas, the proponent of the proposal, emphasizing the importance of prioritizing a work-to-live mentality.
Opposition from business groups regarding the labor reform, expressing concerns over potential adverse effects on small and medium-sized enterprises due to financial constraints and inflexible implementation.
What is the duration of the workweek in Mexico?
As of May 2023, the standard workweek in Mexico encompasses 48 hours, positioning it among the nations with the longest work hours worldwide. Presently, only Argentina, Peru, Bolivia, Panama, Costa Rica, Paraguay, and Mexico adhere to the 48-hour workweek among Latin American countries.
However, thanks to the new labor reform, this duration will be reduced to 40 hours, with swift implementation following the passage of the bill. Notably, in contrast, Chile plans to gradually reduce the official workweek by an hour each year until it reaches 40 hours in 2028.
To provide further context, Egypt currently maintains a 53-hour workweek, while Norwegian workers typically average 34 hours per week. In Latin America, Brazil observes a 44-hour workweek, while Colombia recently lowered its workweek to 42 hours.
Overview of Recent Labor Reform Changes in Mexico:
Reduction of the workweek from 48 to 40 hours.
Increased annual leave entitlement
Rise in the minimum wage.
The summary of key changes resulting from the labor reform in Mexico includes the transition from a 48-hour to a 40-hour workweek, leading to Mexicans working five days a week instead of six. Additionally, the Mexican Government implemented new regulations in December 2022, enhancing workers’ annual leave from six to twelve days. Furthermore, in January 2023, Mexico raised its general minimum wage from $172.87 to $11.54 per day and increased the minimum wage in the Free Zone of the Northern Border from 260.34 pesos to 312.
For assistance in preparing for this change, we kindly request you to contact us at online@roelatam.com. We possess the appropriate expertise and a proven track record to ensure that you remain well-informed and equipped to navigate any legal modifications that may arise, preventing any unforeseen disruptions.
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