In Mexico’s workplace setting, overtime hours are a critical aspect of the relationship between employers and workers. That’s why understanding how to calculate payment for overtime is essential for both parties. It’s also crucial to know the legally established limits and the provisions that regulate them.

And for those reasons, this article gives you all the information you need—not just to understand how overtime is paid in Mexico, but also to make sure the regulations in force are being followed.

Overtime in Mexico: A Practical Guide

What Are Overtime Hours?

These are the hours an employee works beyond the standard schedule set as the regular workday—whether it’s a daytime, nighttime, or mixed shift.

They represent extra time worked beyond the limits established by the Ley Federal del Trabajo (LFT), which are:

Overtime hours can’t be forced on you by the employer; working them is a decision the employee makes voluntarily. If you do work them, of course, they must be compensated at a higher pay rate, based on their classification.

Types of Overtime

Overtime depends both on the extra time worked and the circumstances under which it’s done. Moreover, to calculate it properly, it’s helpful to know the relationship between gross salary and net salary, since that can directly impact the hourly rate.

Generally, overtime is divided into 3 categories:

1. Common overtime. Not an official category, it’s more a term used for extra work done in emergencies.

2. Double overtime hours. Paid at twice the value of a regular hour, applying for the first 9 extra hours worked per week.

3. Triple overtime hours. Occurs when a worker surpasses the 9-hour weekly overtime limit, thus increasing the pay to three times the value of a regular hour.

It’s worth noting that Mexico’s Federal Labor Law prohibits minors (under 18) from doing overtime, as well as working on Sundays and public holidays.

How to Calculate Overtime in Mexico [+ Examples]

How is overtime paid in Mexico?

To figure out how overtime is calculated, you need to consider these factors:

• The type of working day. Whether it is daytime, night-time or mixed, as this defines when overtime starts to be counted.

• The hourly wage cost. You need to determine the daily wage and the hourly pay.

• The number of extra hours to be paid. It’s essential to identify how many hours exceed the legal threshold.

Suppose your monthly wage is 12,000 MXN and you work 3 extra hours in a daytime shift (8 hours).

• Calculate your daily wage by dividing the monthly salary by 30 days:

12,000 MXN ÷ 30 = 400 MXN per day.

• Next, find your hourly rate by dividing your daily wage by the hours worked:

400 MXN ÷ 8 = 50 MXN per hour worked.

So, 50 MXN is your pay per regular hour—this number forms the basis for learning how to calculate double and triple overtime, in addition to simple overtime.

Calculating and Paying Simple Overtime

A simple overtime hour corresponds to one extra hour worked within the permitted limit. Under the LFT, these hours are paid at twice the normal wage.

Using the above example:

• Monthly Salary: 12,000 MXN

• Daily Wage: 12,000 ÷ 30 = 400 MXN daily

• Hourly Rate: 400 ÷ 8 = 50 MXN per hour

• Payment per Overtime Hour: 50 MXN × 2 = 100 MXN

Hence, you’d get 100 MXN for each simple overtime hour you work.

Calculating and Paying Double Overtime

If you work 2 extra hours, both are paid at twice your ordinary hourly wage. So, with the 50 MXN hourly rate, the equation is:

• Payment per double overtime hour: 50 MXN × 2 = 100 MXN

• Total payment for double overtime hours: 100 MXN × 2 = 200 MXN

Your total for 2 double overtime hours would be 200 MXN on top of your base salary.

Calculating and Paying Triple Overtime

If you exceed 9 overtime hours per week, the hours worked beyond that threshold are considered triple, paid at 3 times the regular hourly wage (i.e., the base salary plus a 200% surcharge).

For 3 triple overtime hours, the calculation is:

• Payment per triple overtime hour: 50 MXN × 3 = 150 MXN

• Total payment for triple overtime hours: 150 MXN × 3 = 450 MXN

That’s how to calculate overtime pay according to the type of overtime and per the law.

How Many Overtime Hours Can I Work Under the LFT?

Mexico’s Federal Labor Law sets clear limits on overtime to protect workers’ rights and prevent abuse:

This means you can work a maximum of 57 hours a week overall, adding your regular and overtime hours. Although, in exceptional cases, this limit can be extended if proper health, safety, and fair compensation conditions are guaranteed.

How Is Sunday Overtime Paid in Mexico?

If you work on Sunday, Article 71 of the law states that the employee should receive an extra 25% above the regular daily wage.

Are Taxes Charged on Overtime?

Yes—overtime is considered additional income, so it’s subject to ISR (Income Tax). The specifics vary depending on the worker’s salary and the total number of overtime hours worked.

The Income Tax Law (LISR) sets certain exemptions and considerations, such as:

• Workers making the general minimum wage who don’t exceed the 9 permitted overtime hours per week are exempt from ISR.

• Employees above the minimum wage will have 50% of their paid overtime hours subject to ISR, as long as they don’t go over the 9-hour weekly limit.

• If more than 9 weekly overtime hours are worked, these hours are paid triple the normal salary rate and are fully taxable.

• This is regulated under Article 93 of the LISR.

Conclusion

Paying overtime is a mechanism ensuring fair and equitable working conditions. While it’s voluntary, it must be compensated as the Mexican labor laws dictate. That’s why it’s important to know the legally set limits and how to compute overtime pay. It’s also vital to understand the associated tax implications, to avoid irregularities and protect your earnings.

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