Reduction of working hours would cost 65 thousand pesos per employee

The Confederation of National Chambers of Commerce, Services and Tourism ( Concanaco) Servytur warned that reducing the working week from 48 to 40 hours in Mexico would have an impact on companies of almost 65,793 pesos per worker.

"For a microenterprise, a reduction in working hours to 40 hours a week could put it in the dilemma of surviving or closing," said Octavio de la Torre, president of Concanaco.

Of that amount, approximately 6,854 pesos would be for Christmas bonuses, 5,672 pesos for additional vacation time, 29,917 pesos for social security, and 23,348 pesos derived from the adjustment of taxes linked to the new work schedule , he explained.

The leader of organized trade said that all these additional costs will severely impact "the heart of the tertiary sector," which generates 65 out of every 100 jobs, because companies are faced with the dilemma of "paying their employees or keeping their doors open."

He also mentioned that in reality, workers only work 45 hours and not the 48 that is stated, as is done in European countries that have 40-hour work days and all breaks fall outside of that schedule .

He requested that the government assume the fiscal costs for those working over 40 hours per week and that no additional tax be paid on overtime, payroll tax, or any other salary tax that employers must absorb.

He added that the 40-hour workweek must not include breaks; he called for hourly wage schemes, full payroll deductions for those who formalize their employment, and voluntary employee-employer flexibility so that, through a letter of recommendation, they can opt for 48- or 40-hour workdays and jointly establish rest days .

Because "rigidity will only generate evasion, undermine trust, and lead to noncompliance, regulated overtime should be regulated, not criminalized," he explained. This could extend to 56 hours with additional pay, because workers want to earn more, not work less, according to a survey.

CT