Mexico has made significant strides in labor law reform, benefiting workers with important protections and benefits that came into force in 2024. Here’s the top 3 reforms now in place, as well as some anticipated upcoming changes.
1. Remote Work Law
Implemented in June 2023, Mexico’s Remote Work Law recognizes the needs of employees working more than 40% of their time outside of a traditional office. This law mandates that employers provide the essential tools and resources—such as computers, chairs, desks, and even proportional payments for utilities like internet and electricity. It also includes “disconnect time,” during which workers must not be contacted by their employers, with measures to prevent monitoring during off-hours. The law encourages periodic virtual or in-person meetings to foster connection and avoid isolation among remote employees.
2. Expanded Health Coverage
A new Expanded Health Coverage law adds 88 more health conditions to the list of ailments for which employees can take leave without penalty or loss of pay. This long-overdue reform addresses decades of worker vulnerability and ensures that individuals facing health challenges can seek treatment and recovery without risking their employment.
3. Minimum Wage Increase
Workers in Mexico saw one of the largest increases in minimum wage, with rates jumping from 207.44 to 248.93 pesos per day—a nearly 20% increase. This boost reflects the country’s commitment to supporting fairer wages in an increasingly challenging economic landscape.
Upcoming Reforms for 2024/2025 *
Mexico’s Congress is expected to vote on additional labor reforms in upcoming sessions, which could bring even more significant changes. Here are the five proposed reforms under consideration:
Annual Minimum Wage Increase: Adjusting minimum wage annually to outpace inflation.
Pension Reform: Revisiting the 1997 pension reform to secure fair pensions and reduce the retirement age.
Reduced Working Hours: Lowering the workweek from 48 hours to 40.
Expanded Christmas Bonus: Increasing the holiday bonus to a minimum of 30 days’ pay.
Extended Paternity Leave: Increasing paid paternity leave from 5 to 20 days, with up to 30 days for medical complications.
*For official announcements you can visit Mexico’s Official Gazette- DOF – Diario Oficial de la Federación
The increased worker protections in Mexico mark a positive shift, but they also require an in-depth, proactive approach from EOR companies to support clients through these transitions. As Mexico moves toward a more employee-centered framework, EOR providers that can deliver local expertise, ensure compliance, and provide strategic advisory services will be invaluable to businesses navigating this changing landscape. Talk to us, at Quadlux we can help you understand Mexico!
Visit www.quadlux.net today.
