Mexico’s employment landscape could change significantly under recent proposals concerning the statutory year-end bonus and working hours. Although both initiatives remain pending approval, the key points of each are outlined below.
1. Year-end bonus reform
The proposed amendment to the Federal Labour Law (LFT) seeks to increase the minimum statutory year-end bonus from 15 to 30 days’ salary for employees who complete a full year of service.
Key points:
- Pro rata calculation: employees who work for less than one year would receive a bonus proportional to their length of service.
- Payment date: the deadline would remain December 20 each year, as currently provided.
- Financial impact: if the proposal is approved, companies would need to adjust their budgets to comply with the new requirement.
Status of the proposal:
Despite considerable interest, the reform remains in the legislative process, with no estimated date for debate or potential approval.
2. Working time reform: reduction to a 40-hour week
The current maximum daytime working week in Mexico is 48 hours. The proposal seeks to reduce it to 40 hours in line with international standards, with the stated aim of improving employees’ work–life balance.
Key points:
- Working time flexibility: the reform would retain the option of distributing the 40 hours over five or six working days.
- Overtime: existing arrangements for payment of additional hours would remain, subject to statutory limits.
- Productivity and costs: companies could face operational adjustments, particularly in industries that rely on long working hours.
Status of the proposal:
Although debate and possible approval are expected in 2025, political and economic obstacles could delay implementation.
We remain available to address any questions or comments.