Glossary · 3 min read
Overtime: what it is
Short answer
Overtime is the hours worked above the regular workday. It is what is commonly known as extra hours.
Rules in force
- It is paid at 100% more within the weekly cap.
- The cap is 9 hours in 2026 and 2027, and rises to 12 in 2030.
- A maximum of 4 hours a day, on no more than 4 days.
- What exceeds the cap, up to 4 hours, is paid at 200% more.
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.
Why everything starts with the working-time record
Almost every labor calculation starts from the same data point: how many hours and which days each person worked. If that data is uncertain, so is everything else.
- Overtime: it is paid according to the hours of each week.
- Sunday premium and rest days worked: they depend on which days were worked.
- Aguinaldo and profit sharing: they use the days worked in the year.
- Labor lawsuits: the company must prove the working time.
Since 2026, the Federal Labor Law requires that record to be electronic, per person, with start and end time.
Common mistakes
- Using the UMA or minimum wage value from a previous year.
- Confusing daily salary, integrated salary and contribution base salary.
- Calculating benefits without knowing the days actually worked.
- Taking the legal minimums as if they were the maximum.
- Not keeping the backup of the calculation.
What to do now
- Confirm the current value for the year.
- Have each person's daily salary at hand.
- Check the days and hours worked in your record.
- Do the math and keep it.
- Validate it with your accountant.
Related terms
What is the Official Gazette of the Federation (DOF). The Official Gazette of the Federation is the publication where federal laws, decrees and rules appear.
What is PTU, or profit sharing. PTU is the workers' share in the company's profits: 10% of the company's taxable profit, which is distributed among its staff.
Mandatory rest days in Mexico. These are the holidays set by article 74 of the Federal Labor Law.
Frequently asked questions
Does time count when someone stays without being asked to?
If the company tolerates it, it can be claimed. That is why it is worth reviewing late departures daily.
Can I use this for my payroll?
It works as a reference. Your accountant should do or validate the payroll calculation.
Where does the data come from?
From the Federal Labor Law and from the official values published by INEGI and the National Minimum Wage Commission.
Do these values change every year?
Yes. The UMA is updated every February 1 and the minimum wage every January 1. Always confirm the current value.
Are the amounts gross or net?
Gross. They do not account for taxes or social security contributions.
Legal basis and sources
- Overtime: articles 66 and 68 of the LFT and fourth transitory provision of the decree.
- 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.