Mexico Enacts New Subcontracting Protocol, Raises Minimum Wage for 2026

Changes are on the horizon for Mexico’s labor environment as the Ministry of Labor and Social Welfare (STPS) introduces a new Inspection Protocol on Subcontracting. In conjunction with this development, President Claudia Sheinbaum Pardo announced an increase in the minimum wage set to take effect in 2026. These initiatives aim to bolster worker protection and ensure compliance with labor regulations.

New Subcontracting Inspection Protocol

On November 24, 2025, the STPS released the New Inspection Protocol on Subcontracting. This protocol establishes the procedures and criteria the Ministry will utilize to verify adherence to the specialized services and works regime, which was reformed in 2021 to prohibit general subcontracting. Under this framework, only specialized services or tasks outside the beneficiary’s primary economic activities are permitted.

The Inspection Protocol is designed to enhance the detection of illegal subcontracting arrangements, identify irregular schemes lacking registration with the Registry of Specialized Service Providers (REPSE), and address simulated specialized services. Additionally, it outlines the application of sanctions for any non-compliance.

Inspections will be executed through three principal actions, targeting four key objectives. Inspectors will review various documents and “Compliance Indicators,” supplemented by interviews and interrogations that can occur in person, via electronic means, or on the following business day if required. To avoid potential fines and sanctions, both providers and beneficiaries of specialized services are encouraged to conduct a preventive assessment based on the protocol’s indicators and implement necessary compliance measures.

Minimum Wage Increase for 2026

In a significant move to support Mexican workers, President Claudia Sheinbaum Pardo, alongside the STPS, announced a 13% increase in the general minimum wage for 2026. Effective January 1, 2026, the daily minimum wage will rise from $278.80 pesos to $315.04 pesos, translating to a monthly income of $9,582.47 pesos for workers in the general minimum wage zone.

For those in the Northern Border Free Zone, a 5% increase will elevate the daily minimum wage from $419.88 pesos to $440.87 pesos, amounting to $13,409.80 pesos per month. This wage adjustment is expected to have significant implications for salary structures, collective bargaining agreements, and other labor commitments across the country.

Employers are advised to review and update their internal policies and agreements to ensure compliance with the new wage standards. As these changes take effect, the landscape of labor relations in Mexico will likely evolve, impacting both employers and employees alike.