APTV · 10-Q · 2026Q2 · Full report

Mexico Labor Regulation

Aptiv PLC · 2026-08-04 · Importance 56 · Surprise 58 · In source text

Mexico implemented statutory minimum-wage increases of approximately 13% in 2026 and 12% in 2025, with the 2026 increase reduced to 5% in the Northern Border Zone. Mexico may also shorten the standard work week from 48 to 40 hours beginning as early as January 1, 2027, through a gradual two-hour annual reduction. Aptiv said Mexican labor costs have increased significantly, prompting review of lower-cost jurisdictions and accelerated manufacturing automation, although the ultimate business impact remains uncertain.

Key facts

• The government of Mexico indicated it may shorten the work week from 48 to 40 hours as early as January 1, 2027 through a gradual reduction of two hours per year. source
• The government of Mexico implemented statutory minimum wage increases of approximately 12% effective January 1, 2025 and approximately 13% (5% in Northern Border Zone) effective January 1, 2026. source
• Aptiv stated labor costs have increased significantly in Mexico as a result of this and other labor reform initiatives, necessitating review of more cost-competitive jurisdictions and greater acceleration in manufacturing automation. source

Impact estimates