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Reform tracker: what is changing in Mexican business law and when

Last verified: 2026-10-26 · Status: Changing

Mexico is phasing in several reforms with fixed dates: the ordinary working week falls from 48 hours in 2026 to 40 in 2030, with mandatory electronic time records from 1 January 2027; the new national civil procedure code applies everywhere by 1 April 2027 at the latest; and the remaining judicial posts go to a popular vote on 4 June 2028. Tax and customs rules changed on 1 January 2026 (Federal Tax Code, Customs Law and new duty rates on many tariff lines), and administrative litigation rules changed on 10 June 2026. Still open: the 2027 Federal Revenue Law, which by law the Senate must approve by 31 October 2026, and the annual USMCA joint reviews that follow the United States' decision not to confirm a 16 year extension on 1 July 2026.

USD figures use MXN 18.5026 per US dollar, the noon buying rate in New York for 16 October 2026 published by the Federal Reserve Board (H.10) and shown on FRED, series DEXMXUS, the most recent official observation reachable when this page was verified. UMA based amounts use the daily UMA of MXN 117.31 in force from 1 February 2026. Conversions are for orientation only.

Key facts

Maximum ordinary working week in 2026	48 hoursLFT art. 59; decree DOF 1 May 2026, transitory Second, as of 2026-05-01 · in force
Maximum ordinary working week from 1 January 2030	40 hoursLFT art. 59; decree DOF 1 May 2026, transitory Second, as of 2026-05-01 · pending
Date from which the general provisions on electronic time records apply	2027-01-01 dateLFT art. 132, fraction XXXIV; decree DOF 1 May 2026, transitory Fifth, as of 2026-05-01 · pending
Latest date for the national civil and family procedure code to apply nationwide	2027-04-01 dateCNPCF decree DOF 7 June 2023, transitory Second, as of 2023-06-07 · pending
Date of the next federal and state judicial election	2028-06-04 dateCPEUM reform DOF 2 June 2026, transitory Third, as of 2026-06-02 · pending
Maximum amount for the summary administrative trial in 2026 (30 annual UMA)	1283839.20 MXNLFPCA art. 58-2, reformed DOF 9 June 2026, as of 2026-06-10 · in force
Deadline for the Senate to approve the next year's Federal Revenue Law	31 October textLFPRH art. 42, fraction IV, as of 2026-04-09 · in force
USMCA expiry date absent a 16 year extension	2036-07-01 dateUSMCA art. 34.7.1; entry into force 1 July 2020, as of 2026-07-01 · in force

The rule

1. 40 hour working week, phased in. The maximum ordinary working week is now written as 40 hours, reached gradually from 1 January of each year: 48 hours in 2026, 46 in 2027, 44 in 2028, 42 in 2029 and 40 in 2030. The weekly overtime cap, now 12 hours spread over up to four hours a day on up to four days, phases in at 9 hours in 2026 and 2027, 10 in 2028, 11 in 2029 and 12 in 2030. The decree states that the reduction may never reduce wages, salaries or benefits. Status: in force since 1 May 2026, with the phase in running to 2030.
Cost to do it: Same pay for fewer hours: a business that keeps 48 weekly hours of coverage needs more staff or overtime as the cap falls.
Example: A worker paid MXN 2,400 for a 48 hour week (MXN 50 an hour) keeps MXN 2,400 for 40 hours in 2030, an hourly cost of MXN 60, 20 percent higher. / About USD 130 a week in both years.Decree reforming the Ley Federal del Trabajo (LFT) on reduction of the working day, DOF 1 May 2026, LFT arts. 59 and 66; decree transitory articles First, Second, Fourth and Seventh, 2026-05-01 official text · verified 2026-10-26 · changed: Published DOF 1 May 2026 and in force that day: LFT art. 59 now sets a 40 hour maximum ordinary week, phased in from 48 hours in 2026 to 40 hours in 2030, and art. 66 caps weekly overtime at 12 hours, phased in from 9 hours.

2. Electronic time records from 2027. Employers must record electronically each worker's working day, including start and end times, and provide the record to the authorities on request. The Ministry of Labor (STPS) issues general provisions on scope and exceptions, which apply from 1 January 2027. Breaching the duty is fined 250 to 5,000 UMA. Status: legal duty in force; the general provisions apply from 1 January 2027.
Cost to do it: Fine of 250 to 5,000 UMA: MXN 29,327.50 to MXN 586,550 at the 2026 UMA, plus the cost of a time recording system.
Example: Fine range MXN 29,327.50 to MXN 586,550. / About USD 1,585 to USD 31,701.LFT, as reformed DOF 1 May 2026, Art. 132, fraction XXXIV; art. 994, fraction IV Bis; decree transitory article Fifth, 2026-05-01 official text · verified 2026-10-26 · changed: New employer duty added DOF 1 May 2026; the STPS general provisions that define its scope apply from 1 January 2027.

3. Federal Tax Code changes for 2026. A decree reformed more than 30 articles of the Federal Tax Code, including the rules on digital tax receipts (CFDI), audits, penalties and guarantees. It took effect on 1 January 2026, except new art. 30-B, which took effect on 1 April 2026 and requires providers of digital services under the VAT law to give the tax authorities permanent online, real time access to the information needed to check their tax compliance. A later decree, DOF 9 April 2026, reformed the order of guarantees for tax debts in art. 141. Status: in force.
Cost to do it: Compliance cost for digital platforms (real time access) and tighter CFDI checks for all taxpayers.
Example: A foreign streaming platform registered for Mexican VAT must give the SAT real time access to its compliance data from 1 April 2026. / No fee; system costs vary.Decree reforming the Código Fiscal de la Federación (CFF), DOF 7 November 2025; decree reforming CFF art. 141, DOF 9 April 2026, CFF arts. 29-A Bis, 30-B and 141; transitory article First of each decree, 2025-11-07 official text · verified 2026-10-26 · changed: In force 1 January 2026 (art. 30-B from 1 April 2026); art. 141 reformed DOF 9 April 2026, in force the next day.

4. Customs Law reform. A broad reform of the Customs Law took effect on 1 January 2026, with some provisions on guarantees and temporary imports delayed: art. 86-A, fraction I, second paragraph from the following month, and arts. 86-A, fraction III, 106, fractions V and VI, 107 and 145 three months after entry into force. Existing customs broker licenses now last 20 years and can be renewed for the same period. Status: in force.
Cost to do it: See the trade section for fines and guarantees under the reformed law.
Example: An importer using temporary import rules under art. 106 applied the new terms from April 2026; imports made before the decree keep their original terms (transitory Third). / Not applicable.Decree reforming the Ley Aduanera, DOF 19 November 2025, Transitory articles First and Fourth, 2025-11-19 official text · verified 2026-10-26 · changed: Published DOF 19 November 2025; in force 1 January 2026, with delayed provisions from 1 February 2026 and 1 April 2026.

5. New duty rates on many tariff lines. A decree changed the duties on a wide range of tariff lines in the General Import and Export Tax Law, effective 1 January 2026. It allows the Ministry of Economy to set up specific mechanisms for imports from countries without a free trade agreement with Mexico to keep supply competitive. Status: in force.
Cost to do it: Depends on the tariff line and origin; see the customs duties and trade agreements pages.
Example: An importer sourcing from a country without a trade agreement should recheck the 2026 duty on each tariff line and whether a Ministry of Economy mechanism applies. / Not applicable.Decree reforming tariff lines of the Ley de los Impuestos Generales de Importación y de Exportación (LIGIE), DOF 29 December 2025, Sole article; transitory articles First and Fourth, 2025-12-29 official text · verified 2026-10-26 · changed: Duty rates on many tariff lines changed by decree published DOF 29 December 2025 and in force from 1 January 2026.

6. Administrative litigation reform. Reform of the Federal Administrative Litigation Procedure Law, in force the day after publication. Among other changes, the summary trial is available for final resolutions of up to 30 times the annual UMA. The new second paragraph of art. 19, tied to authorities appearing through the online justice system, applies 180 days after publication. Status: in force, with the art. 19 change from early December 2026.
Cost to do it: Summary trial threshold in 2026: 30 x MXN 42,794.64 = MXN 1,283,839.20.
Example: A tax assessment of MXN 1,000,000 issued in 2026 can be challenged in a summary trial, since it is below MXN 1,283,839.20. / Threshold about USD 69,387.Decree reforming the Ley Federal de Procedimiento Contencioso Administrativo (LFPCA), DOF 9 June 2026, LFPCA art. 58-2; art. 19, second paragraph; transitory articles First and Second, 2026-06-09 official text · verified 2026-10-26 · changed: Published DOF 9 June 2026, in force 10 June 2026; summary trial threshold set at 30 annual UMA; art. 19, second paragraph, applies 180 days after publication (6 December 2026).

7. National civil procedure code. The new Código Nacional de Procedimientos Civiles y Familiares applies gradually: federally and in each state from the date set in a declaration by Congress or the state legislature, with no more than 120 days between the declaration and the date it applies. If no declaration is made, it applies automatically nationwide, and in no case later than 1 April 2027. Status: phasing in; deadline 1 April 2027.
Cost to do it: No fee; litigants must check which procedural code applies in each court until the deadline passes.
Example: A commercial creditor filing a civil claim in a state court in 2026 checks whether that state's declaration has brought the national code into force. / Not applicable.Decree issuing the Código Nacional de Procedimientos Civiles y Familiares (CNPCF), DOF 7 June 2023, Transitory articles First and Second, 2023-06-07 official text · verified 2026-10-26

8. Judicial election moved to 2028. A constitutional reform provides that federal and state judges not renewed in the 2025 judicial election, and vacancies, are elected without exception in coinciding federal and state judicial elections on the first Sunday of June 2028 (4 June 2028). Judges whose terms would end in 2027 stay in office until those elected take office; the elected judges take office before the Senate on 1 September 2028, and circuit and district judges elected then serve eight years, to 2036. Status: in force; election on 4 June 2028.
Cost to do it: No direct cost; litigation planning should account for changes on the bench in September 2028.
Example: A district judge whose term would have ended in 2027 now stays until the person elected in June 2028 takes office. / Not applicable.Decree reforming the Constitución Política de los Estados Unidos Mexicanos (CPEUM) on the judiciary, DOF 2 June 2026, Transitory articles Second, Third and Seventh, 2026-06-02 official text · verified 2026-10-26 · changed: Published DOF 2 June 2026, in force the next day: the remaining judicial posts are elected on the first Sunday of June 2028 instead of in 2027.

9. Anti money laundering law reform. A reform of the AML law took effect the day after publication, except where its transitory articles say otherwise. The Ministry of Finance had to amend the general rules within 12 months; the new obligations in art. 18, fractions VII to XI, apply on the dates those rules set; and the annual periods for training and audit under art. 18, fractions IX and XI, run by calendar year from 1 January 2026. Status: in force, with obligations phasing in under the general rules.
Cost to do it: Compliance cost for businesses carrying out vulnerable activities (training, audit and record keeping).
Example: A real estate developer covered as a vulnerable activity runs its first annual training and audit cycle for calendar year 2026. / Not applicable.Decree reforming the Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita (LFPIORPI), DOF 16 July 2025, LFPIORPI art. 18; decree transitory articles First, Second and Third, 2025-07-16 official text · verified 2026-10-26 · changed: Published DOF 16 July 2025; training and audit periods run by calendar year from 1 January 2026; other new duties start as set by the general rules.

10. Pending: the 2027 economic package. By law, the Executive sends the Federal Revenue Law bill and the budget bill by 8 September; the Chamber of Deputies approves the Federal Revenue Law by 20 October and the Senate by 31 October; the Chamber of Deputies approves the budget by 15 November; and both are published in the DOF within 20 calendar days of approval. The 2027 Federal Revenue Law will reset annual figures such as the surcharge rate (2026: 1.38 percent a month for extensions). Status: pending; this page will record the 2027 law once it is published in the DOF.
Cost to do it: Not applicable until published.
Example: Taxpayers should check the DOF in November and December 2026 for the 2027 Federal Revenue Law before setting January 2027 surcharge and withholding assumptions. / Not applicable.CPEUM; Ley Federal de Presupuesto y Responsabilidad Hacendaria (LFPRH), last reform DOF 9 April 2026, CPEUM art. 74, fraction IV; LFPRH art. 42, fractions III to VI, 2026-04-09 official text · verified 2026-10-26

11. USMCA: annual reviews instead of an automatic extension. The USMCA ends 16 years after its entry into force unless each party confirms in writing, at a joint review, that it wishes to extend it for a new 16 year term. If a party does not confirm at the sixth year review, the Free Trade Commission meets every year for the rest of the term, and the parties may extend at any time by written confirmation. The agreement entered into force on 1 July 2020. At the joint review on 1 July 2026 the United States did not agree to renew the agreement in its current form; it said the agreement remains in force pending resolution of the issues or termination. On 2 October 2026 the US Trade Representative opened public comments for the 2027 joint review, due 12 January 2027. Status: in force until 1 July 2036 unless extended; annual reviews under way.
Cost to do it: No direct cost; preferential tariffs continue while the agreement is in force.
Example: An exporter shipping USMCA qualifying goods to the United States in 2027 still claims the preference, while watching the annual review. / Not applicable.Agreement between the United States of America, the United Mexican States and Canada (USMCA), chapter 34; USTR statements of 1 July 2026 and 2 October 2026, USMCA art. 34.7, 2026-07-01 official text · verified 2026-10-26 · changed: At the first joint review on 1 July 2026 the United States did not confirm a 16 year extension, so under art. 34.7.4 joint reviews now take place every year.

Effective date	Reform	Status	Source
1 January 2026	Federal Tax Code reform; Customs Law reform; new duty rates on many tariff lines	In force	CFF decree DOF 7 November 2025; Ley Aduanera decree DOF 19 November 2025; LIGIE decree DOF 29 December 2025
1 April 2026	CFF art. 30-B real time access for digital services; delayed Customs Law provisions	In force	CFF decree transitory First; Ley Aduanera decree transitory First
1 May 2026	40 hour week law in force (48 hours for 2026)	In force	LFT decree DOF 1 May 2026
10 June 2026	Administrative litigation reform	In force	LFPCA decree DOF 9 June 2026
1 July 2026	USMCA joint review without extension; annual reviews begin	In force	USMCA art. 34.7; USTR statement 1 July 2026
31 October 2026	Senate deadline for the 2027 Federal Revenue Law	Pending	LFPRH art. 42
6 December 2026	LFPCA art. 19, second paragraph	Pending	LFPCA decree transitory Second
1 January 2027	46 hour week; electronic time record provisions	Pending	LFT decree transitories Second and Fifth
12 January 2027	Comments due for the 2027 USMCA joint review	Pending	USTR release 2 October 2026
1 April 2027	National civil procedure code applies nationwide at the latest	Pending	CNPCF decree transitory Second
1 January 2028	44 hour week; 10 hour overtime cap	Pending	LFT decree transitories Second and Fourth
4 June 2028	Federal and state judicial elections	Pending	CPEUM decree DOF 2 June 2026
1 January 2030	40 hour week; 12 hour overtime cap	Pending	LFT decree transitories Second and Fourth

Reform calendar with effective dates (official texts cited on this page).

Worked example

A manufacturer with 200 hourly workers on 48 hour weeks plans for the labor reform.
2027: the cap falls to 46 hours (LFT decree transitory Second) and electronic time records apply from 1 January (transitory Fifth); a missing record risks fines of 250 to 5,000 UMA, MXN 29,327.50 to MXN 586,550 (about USD 1,585 to USD 31,701).
2030: at 40 hours with pay unchanged (transitory Seventh), covering the same 48 hours of output needs 20 percent more hours, met with hiring or overtime within the 12 hour weekly cap (LFT art. 66).
The same company exports to the United States under USMCA and should follow the annual joint reviews under USMCA art. 34.7 while preferences remain in force.

Step by step

1. Map each reform to the business: labor hours and records (HR), CFDI and digital services (tax), customs and tariffs (trade), litigation venue (legal).
2. Put the effective dates in the calendar, starting with 1 January 2027 (46 hours and time records) and 1 April 2027 (civil procedure code).
3. In November and December 2026, check the DOF for the 2027 Federal Revenue Law and the 2027 tax rules.
4. Rerun labor cost models for each step of the working week reduction to 2030.
5. Recheck tariff lines and origin for imports from countries without a trade agreement.

Common traps

Reading LFT art. 59 alone. The text says 40 hours, but the transitory schedule sets 48 hours for 2026 and steps down each 1 January to 2030.
Cutting pay with hours. The decree bars any reduction of wages, salaries or benefits because of the shorter week (transitory Seventh).
Assuming the USMCA has lapsed. It remains in force; what changed is that reviews are now annual and the term is not yet extended (art. 34.7.4).
Using 2026 annual figures in 2027. Surcharge rates and other annual amounts come from each year's Federal Revenue Law.

Sources

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