Labor reform ·
Overtime under Mexico’s 40-hour reform: caps, pay and how to control it
How overtime changes with the reform: staged cap 2026–2030, 100% extra pay and 200% extra pay, and how to keep control.
With a shorter ordinary workweek, overtime weighs more on payroll and on legal risk. This is what the decree published in the DOF on May 1, 2026 says.
How it is paid
- Overtime is paid with 100% extra over the salary for ordinary hours (article 66).
- Time beyond the limits of article 66 is paid with 200% extra (article 68).
- Nobody is obliged to work more than the permitted time.
How much can be worked
Article 66 sets a cap of twelve hours per week, distributable over up to four hours a day and a maximum of four days. That cap is reached gradually: the fourth transitory article sets 9 in 2026 and 2027, 10 in 2028, 11 in 2029 and 12 in 2030. In addition, article 68 limits the sum of ordinary and overtime hours to twelve hours a day.
Caps apply week by week, per person. Ask your labor advisor to confirm how they are interpreted in your operation.
Rest and Sunday
Article 69 provides at least one day of rest with full pay for every six days worked, and article 71 sets a premium of at least 25% for working on Sunday.
How to control it
- Record check-in and check-out with date and time, by person and by day.
- Review mid-week who is approaching the cap.
- Require prior authorization for any overtime and keep the trail.
- Reconcile records with payroll every period.
PPanel gathers the clock-ins of your whole operation so calculations start from reliable data, not manual entries. Request a demo.
Sources
- Decree amending the Federal Labor Law, Official Gazette (DOF), May 1, 2026 (in Spanish)
- Constitutional reform decree, article 123, section A, subsections IV and XI (DOF, in Spanish)
- INEGI, value of the UMA (Unit of Measure and Update)
Informational content based on the text published in the DOF. It is not legal advice. PPanel is a recording tool: subscribing to it does not release a company from its obligations, and legal compliance is the responsibility of each employer. Consult your labor attorney for your case. Last reviewed: October 12, 2026. The general rules from the Labor Ministry (STPS) on electronic time recording have not been published yet; we will update this guide when they are.