Mexico’s labor landscape is undergoing changes as the Ministry of Labor and Social Welfare (STPS) introduces a new Inspection Protocol on Subcontracting and the federal government announces a substantial increase in the minimum wage for 2026.
New STPS Inspection Protocol on Subcontracting
On Nov. 24, 2025, the STPS published the New Inspection Protocol on Subcontracting. This protocol outlines the procedures and criteria by which the Ministry will verify compliance with Mexico’s specialized services or works regime, in line with the 2021 reform that prohibits general subcontracting. Under this regime, only specialized services or tasks that are not part of the beneficiary’s corporate purpose or main economic activity are permitted.
The Inspection Protocol aims to reinforce the detection of illegal subcontracting agreements, irregular schemes lacking REPSE (Registry of Specialized Service Providers) registration, and simulated specialized services. It also sets forth the application of sanctions for non-compliance.
Inspections will be conducted through three main actions:
- REPSE Verification Visits: Ensuring that companies providing specialized services are properly registered.
- Specific Subcontracting Inspections: Targeted reviews of contractors and beneficiaries involved in subcontracting arrangements.
- Ordinary Inspections: Assessments of general working conditions, safety and health standards, and training and education, with a particular focus on subcontracting practices.
The inspections will pursue four key objectives:
- Confirm the existence and validity of the REPSE registry,
- Assess the operational legality of subcontracting arrangements,
- Verify compliance with labor and social security obligations, and
- Conduct “on-site” verification to ensure that workers’ activities align with the terms of the subcontracting agreement.
Inspectors will analyze various documents and “Compliance Indicators,” supplemented by interviews and interrogations, which may be conducted in person, via IT, or on the next business day if necessary.
To mitigate the risk of fines and sanctions, both providers and beneficiaries of specialized services may wish to conduct a preventive diagnosis based on the protocol’s indicators and implement any necessary compliance measures.
Minimum Wage Increase for 2026
In a move to further support Mexican workers, President Claudia Sheinbaum Pardo, accompanied by the STPS, announced a 13% increase in the general minimum wage for 2026. Effective Jan. 1, 2026, the daily minimum wage will rise from $278.80 to $315.04 pesos, resulting in a monthly income of $9,582.47 pesos for workers in the general minimum wage zone.
For the Northern Border Free Zone, a 5% increase will raise the daily minimum wage from $419.88 to $440.87 pesos, equivalent to $13,409.80 pesos per month.
This wage adjustment may have broad implications for salary structures, collective bargaining agreements, and other labor commitments. Employers may wish to review and update their internal policies and agreements to enhance implementation and compliance with the new wage standards.
