Cases and situations · 4 min read
Weekly or biweekly payroll cutoff: how to reconcile hours
Short answer
Overtime is calculated by week, even if you pay by pay period (quincena) or by month. First each week is closed with its caps and then they are added up for payment.
The common mistake
Adding up the overtime for the pay period and applying the cap only once.
How to do it
- Define when your week starts.
- Calculate double and triple time for each week.
- Add up the weeks in the pay period.
- A week split between two periods is paid when it closes.
How to do the math by hand
Take a salary of $400 per day on a day shift. The ordinary hour is worth 400 ÷ 8 = $50. In 2027, with 11 overtime hours in the week, the first 9 are paid at double time (9 × $100 = $900) and the remaining 2 at triple time (2 × $150 = $300). Total: $1,200.
The reform in one minute
The reform has two parts. On March 3, 2026, article 123 of the Constitution was amended to set the 40-hour workweek. On May 1, 2026, the Federal Labor Law was amended, which is where the detail is.
- The maximum working week drops from 48 to 40 hours, two hours per year, between 2027 and 2030.
- Overtime has a weekly cap: it is paid at double time up to the cap and at triple time for up to 4 more hours.
- Each company must electronically record the start and end time of each person's workday.
- Not keeping that record is fined 250 to 5,000 UMA.
- Salary and benefits cannot go down because of the reduction in hours.
What remains pending are the STPS general rules, which will define who the record applies to and what exceptions there will be. They take effect on January 1, 2027.
| Year | Maximum working hours | Double-time overtime | Triple-time overtime |
|---|---|---|---|
| 2026 | 48 h | 9 h | 4 h |
| 2027 | 46 h | 9 h | 4 h |
| 2028 | 44 h | 10 h | 4 h |
| 2029 | 42 h | 11 h | 4 h |
| 2030 | 40 h | 12 h | 4 h |
Decree published in the Official Gazette of the Federation on May 1, 2026, second and fourth transitory provisions, and article 68 of the LFT. Each change applies from January 1.
Common mistakes
- Resolving each case verbally, without putting it in writing.
- Adjusting the record to match the official schedule.
- Leaving days without a record and without an explanation.
- Treating alike situations the law distinguishes.
- Learning about the problem only when a claim arrives.
What to do now
- Identify whether this case occurs in your company and how often.
- Define the rule and write it into your policy or internal regulations.
- Explain it to the team and the managers.
- Verify that the record reflects the real time.
- Review the month's cases and adjust the rule if needed.
Related terms
What the STPS is and what it does. The STPS is the Ministry of Labor and Social Welfare.
What is a labor severance payment (liquidación). The liquidación is what is paid when the company ends the employment relationship without just cause.
Vacations by law: how many days are owed. With one year of work, 12 days of vacation are owed.
Frequently asked questions
Can I pay overtime in the following pay period?
The usual approach is to pay it in the period in which the week closes. Do not accumulate it for months.
Who monitors compliance?
The Ministry of Labor and Social Welfare, through inspections.
Where do I find the official text?
In the Official Gazette of the Federation of May 1, 2026 and in the current version of the Federal Labor Law published by the Chamber of Deputies.
Does this replace the advice of a lawyer?
No. It is general information. For decisions about your company, consult a labor lawyer.
Does the law require a particular system?
No. It asks that the record be electronic and include the start and end time for each person.
Legal basis and sources
- Workday as time at the company's disposal: article 58 of the LFT.
- Decree amending the Federal Labor Law on the reduction of the working week. Official Gazette of the Federation, May 1, 2026.
- Federal Labor Law, current text. Chamber of Deputies.
How we write this content. The Sicheca team writes it from the official text of the law. When something is not yet defined by the authority, we say so. It is general information and does not replace the advice of a lawyer or an accountant.