Mexico has rolled out two major labour reforms that everyone is talking about — a sharp hike in minimum wages and a push to shorten the country’s long working hours.
The announcement came directly from President Claudia Sheinbaum’s administration, signalling a fresh push to improve the lives of workers across Latin America’s second-largest economy.
Summary Table: What Changes in Mexico?
| Key Update | Details |
|---|---|
| Minimum Wage 2026 | 13% increase |
| New National Daily Wage | 315.04 pesos (₹1,450 approx.) |
| Border Zone Wage | 440.87 pesos (₹2,040 approx.) |
| Total Wage Growth Since 2018 | 154% |
| New Work Week Target | 40 hours by 2030 |
| Current Average Work Hours | 2,193 hours/year (OECD highest) |
| Implementation Timeline | 2 hours reduction yearly from 2027 |
Minimum Wage Sees 13% Jump Starting January
Beginning January 2026, minimum wages across Mexico will go up 13%, reaching:
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- 315.04 pesos/day nationally
- 440.87 pesos/day in northern border regions near the US
These numbers matter because border zones historically offer higher wages due to cross-border trade and labour movement.
President Sheinbaum said that since 2018, accumulated wage hikes have reached a massive 154%, something she believes has directly reduced poverty levels.
Government Pushes Back Against Inflation Fears
Not everyone is cheering, though.
Some economists and Central Bank Deputy Governor Jonathan Heath feel wages rising too close to median incomes could trigger inflation.
But Sheinbaum has defended the move strongly.
She reminded critics that similar warnings were made in earlier years — yet Mexico currently enjoys:
- Record foreign investment
- Stable inflation close to the 3% target
- A more resilient labour force
She stressed that the decision had full consultation with the finance ministry, central bank, and business leaders.
Economy Shows Mixed Signals
The announcement also comes at a tricky time:
- Mexico’s economy contracted 0.3% in Q3 2025
- Industrial slowdown hit growth
- US–Mexico trade tensions and tariff uncertainty have added pressure
- The upcoming 2026 USMCA review looms large
Even then, the government feels long-term structural reforms like wage hikes will support households and consumption.
Mexico Moves Toward a 40-Hour Work Week
Perhaps the more dramatic reform is the proposal to bring down Mexico’s famously long work hours.
Right now, Mexican workers average 2,193 hours per year — the highest in the OECD.
The new Bill proposes:
- Reducing the work week from 48 hours → 40 hours
- Implementation from 2027 to 2030
- A gradual cut of 2 hours per year
This was one of Sheinbaum’s major campaign promises in 2024, but business groups had resisted it earlier.
If passed, Mexico will align itself with global norms, improving work–life balance for millions.
Frequently Asked Questions
1. When will the new minimum wage come into effect?
From January 2026, with a 13% increase applied nationwide.
2. Will the 40-hour work week start immediately?
No. It will reduce gradually from 2027 and reach 40 hours by 2030 if approved by Congress.
3. Why are border zone wages higher?
Because labour rates near the US border traditionally stay higher due to economic activity and cross-border trade.
