Compliance & Legal8 min read
Nearshoring to Mexico in 2026: The Shorter Workweek and the Outsourcing-Registration Test
Mexico enacted a 48-to-40-hour workweek reform in 2026, and its 2021 outsourcing law means "outsourcing" requires REPSE registration. A neutral explainer of both — the phase-in through 2030 and the registration test — and what they mean for hiring Mexican talent.
Published July 2026 · RSW Editorial
Frequently Asked Questions
Did Mexico pass a 40-hour workweek in 2026?
Yes. A constitutional amendment reducing the maximum workweek from 48 to 40 hours was published in the Diario Oficial de la Federación on 3 March 2026, with secondary Federal Labor Law changes on 1 May 2026. The reduction phases in two hours at a time — 46 hours in 2027, 44 in 2028, 42 in 2029, and 40 by 2030 — and cannot come with any cut to wages or benefits.
When does Mexico’s 40-hour workweek take full effect?
By 2030. The schedule steps down gradually: 46 hours in 2027, 44 in 2028, 42 in 2029, and 40 in 2030. Separately, employers must implement electronic time-tracking of hours worked, with a statutory deadline of 1 January 2027, and overtime is capped at four hours a day and no more than four days a week.
What is REPSE in Mexico?
REPSE (Registro de Prestadoras de Servicios Especializados u Obras Especializadas) is a public registry with the labor ministry (STPS). Under Mexico’s 2021 outsourcing reform, subcontracting personnel for a company’s core activities is banned; only "specialized services" outside the client’s main activity are allowed, and any provider of those services must be registered in REPSE. Registration lasts three years and must be renewed.
What happens if I use an unregistered outsourcing provider in Mexico?
The consequences are serious. Contracts for the services can be treated as void, and penalties include administrative fines, loss of tax deductibility for the expense, back-payment of social security (IMSS) and housing-fund (INFONAVIT) contributions, and profit-sharing (PTU) recalculations — with criminal exposure under the Federal Tax Code for improper deductions in repeated or deliberate cases. Verifying a provider’s current REPSE status is essential.
How should a foreign company hire in Mexico compliantly?
Through your own Mexican entity (you are the employer under the LFT), a compliant Employer of Record (confirm how it is structured relative to the outsourcing reform), or genuine independent contractors (with care to avoid engagements that look like disguised employment). For any specialized-services provider, verify a current REPSE registration and that the service is genuinely outside your core activity.
Will the workweek reform raise the cost of Mexican labor?
Gradually, yes, in effective terms. Because the workweek falls to 40 hours by 2030 with no reduction in pay, the effective hourly cost of Mexican labor drifts upward over the decade. For most remote knowledge-work and support roles the near-term impact is modest given the gradual phase-in, but multi-year budgets should account for the trajectory and the electronic time-tracking requirement from 2027.