Mexico: Navigating Mexico's labor policies - key actions for employers to stay ahead

In brief

Mexico is experiencing a historic moment with the inauguration of its first female President. Claudia Sheinbaum Pardo, who took office on 1 October 2024, recently announced that her government will promote several labor policies and reforms aimed at improving working conditions, promoting equal opportunities, and reducing wage gaps.


Contents

Labor policies proposed by Mexico's New Government

Policy Actions to take
Progressive minimum wage increase: Annual increases above inflation to cover the cost of 2.5 basic food baskets Plan for wage adjustments: Conduct a detailed analysis of current salaries and compensation to determine any potential impact on cost of operation and ensure that wage structures align with the new requirements
Reduction of the working week: Gradual reduction from 48 hours to 40 hours, including a shift from six to five working days a week to improve quality of life Review work schedules: Analyze current work schedules and plan for the gradual reduction in working hours and days-off
Digital platforms workers: Formalizing relationships for digital platform workers to ensure access to health systems, pensions, and other labor benefits Plan for the employment of digital platforms workers: Ensure that employees within this industry are formally employed and have access to social security benefits
Creation of the national care system: Policies to redistribute caregiving responsibilities, facilitating women's integration into the labor market Draft care policies: Draft policies to redistribute caregiving responsibilities and support women's participation in the workforce
Equal pay reforms: New obligations for employers to adopt wage transparency policies and conduct periodic wage audits Plan for equal pay requirements: Start adopting wage transparency policies, conduct regular wage audits, and address any salary gaps


Our labor and social security team will keep you duly informed about the development of these labor policies.

Click here to download this alert in Spanish.

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Marjorie Simon Alva, Law Clerk, contributed to this legal update.


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