How many workers in Mexico work more than 40 hours?

The workweek in Mexico will be reduced from 48 to 40 hours, according to the federal government's proposal. But this has yet to be approved by Congress. Many see the risk and high costs of implementing it . Here are more details:

Businesses will be significantly impacted if the reduction in the length of the workweek is approved, warned the Center for Economic Studies of the Private Sector (CEESP) . Although the effects of reducing working hours vary by company, The greatest impact will be on the cost of hiring workers .

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"For example, if a company with employees working 48 hours per week decided to continue at the same pace while paying overtime to retain employees, it would face an increase in labor costs that could reach 36%, and would be higher if the number of overtime hours is greater," estimated CEESP.

He added that "deciding to simply hire new workers to offset the reduction in hours would likely be less costly, by nearly 22%, but would still have a significant impact."

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He explained that 60% of workers work more than 40 hours a week , so the reduction in working hours will be added to other costs such as the increase in minimum wages, higher contributions from companies implied by the 2021 pension reform, and additional vacations legislated two years ago .

"Such an environment only encourages informality and makes the economy less productive and competitive," CEESP warned.

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The Federal Labor Law establishes that the maximum working day must be 48 hours per week , but the government announced that Discussions will begin with employers, unions and workers to gradually reduce it to 40 hours by 2030. .

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OA