We are not a law firm. Do not consider our information as legal advice. This information has been summarized based on our legal inquiries. Information can become obsolete from one day to another due to changes in laws, regulations, or government procedures. Consult labor and tax attorneys for legal advice. (Note from HR Mexico staff)
Overtime in Mexico
The Mexican Federal Labor Law outlines how overtime is earned and calculated.
Overtime is considered as time worked after a normal shift and must be paid as double or in some cases as triple the regular pay rate.
Overtime in Mexico applies to all employees and all job descriptions and titles. If the employees belong to a union, it is possible that the labor contract contain variations of how overtime will be handled.
Overtime is considered as time worked after a normal shift and must be paid as double or in some cases as triple the regular pay rate.
Overtime in Mexico applies to all employees and all job descriptions and titles. If the employees belong to a union, it is possible that the labor contract contain variations of how overtime will be handled.
There are three Work shift stated in federal labor law:
There are two considerations to determine if overtime hours are considered double or triple paid hours:
• The total amount of overtime hours worked during the work week.
• The amount of hours worked during a single day after a regular shift.
The first nine overtime hours during the week are considered double, every hour after that is considered triple. The first three hours after a regular shift are considered double hours, every hour after that is considered triple regardless of the number of overtime hours worked during the week. Overtime rate is calculated diving the daily pay rate by the number of hours worked, for example let's use a daily pay rate of $100 per day:
CALCULATION FOR PAYMENT MECHANISM IN CONFORMITY WITH ARTICLES 66 TO 68 OF THE FEDERAL LABOR LAW:
The Article 66 of the Federal Labor Act establishes that the overtime should not exceed three hours a day or three times a week. On the other hand, paragraphs 67 and 68 of the Law indicates, in terms of the pay, overtime not exceeding that limit will be covered with 100% (It means double) more than the wage corresponding to the regular hours of the day, While hours exceeding nine per week must be paid with 200% more of the respective salary (it means Triple). Having that said, these devices are cautioned a mechanism for the calculation of the payment based not only on the maximum of nine hours in a week, but also by day, reason why must be counting the real working hours by every day. In that sense, if an employee worked a full week generating two daily hours of overtime, is clear that the first six overtime originated in the first three days will be paid with 100% more salary (Double), while the remaining six hours of the next three days with 200% more (Triple).
- Day shift comprise 48 hours / week (between 6 am to 8pm )
- Night shift comprise 42 hours /week (between 8 pm to 6am)
- Mixed shift comprise 45 hours /week
There are two considerations to determine if overtime hours are considered double or triple paid hours:
• The total amount of overtime hours worked during the work week.
• The amount of hours worked during a single day after a regular shift.
The first nine overtime hours during the week are considered double, every hour after that is considered triple. The first three hours after a regular shift are considered double hours, every hour after that is considered triple regardless of the number of overtime hours worked during the week. Overtime rate is calculated diving the daily pay rate by the number of hours worked, for example let's use a daily pay rate of $100 per day:
- 100 USD/8 hours (day shift) = 12.50 usd per hour Double pay rate $12.50 * 2 = $25 Usd Triple Pay rate $12.50 * 3 = $37.5 Usd
CALCULATION FOR PAYMENT MECHANISM IN CONFORMITY WITH ARTICLES 66 TO 68 OF THE FEDERAL LABOR LAW:
The Article 66 of the Federal Labor Act establishes that the overtime should not exceed three hours a day or three times a week. On the other hand, paragraphs 67 and 68 of the Law indicates, in terms of the pay, overtime not exceeding that limit will be covered with 100% (It means double) more than the wage corresponding to the regular hours of the day, While hours exceeding nine per week must be paid with 200% more of the respective salary (it means Triple). Having that said, these devices are cautioned a mechanism for the calculation of the payment based not only on the maximum of nine hours in a week, but also by day, reason why must be counting the real working hours by every day. In that sense, if an employee worked a full week generating two daily hours of overtime, is clear that the first six overtime originated in the first three days will be paid with 100% more salary (Double), while the remaining six hours of the next three days with 200% more (Triple).
