Initiative Aims to Make Salary Audits a Legal Obligation for Employers
In an effort to eliminate the gender pay gap, a reform to Mexico’s Federal Labor Law (LFT) is being promoted in the Chamber of Deputies to include mandatory salary audits as part of employer obligations.
Background on the Promoter and Relevance
The driving force behind this initiative is Diputada Ivonne Ortega (MC), who has highlighted the success of countries incorporating salary transparency and evaluation as part of their public policies for gender equality. She emphasizes the European experience, where combined internal audits and external inspection powers have proven more effective than either mechanism alone.
Understanding the Gender Pay Gap
Diputada Ortega explains that the gender pay gap is a complex issue with multiple causes, requiring more than individual reactive instruments or isolated measures. The proposed reform aims to foster deep transformation in organizational compensation practices.
Key Provisions of the Reform
- Employers with 50 or more workers must conduct salary audits at least every two years to identify pay disparities between men and women.
- After identifying a gender pay gap, employers must develop a work plan with deadlines and targets to correct the disparity within one year.
- Labor authorities will consider audit results during inspections.
- The Federal Government’s role in promoting, coordinating, and implementing gender-perspective salary audits (both public and private sectors) will be strengthened through modifications to the General Law for Equality Between Women and Men.
Gender Pay Gap: Upcoming Changes in Mexico
The gender pay gap may become a central topic in Mexico’s legislative agenda this year. In 2025, the Senate approved a reform to include salary equality inspections among the Secretariat of Labor and Social Prevision’s (STPS) obligations.
Although the right to equal pay is guaranteed by the LFT, the gender wage gap remains a common reality in Mexico’s labor market. The latest report from INEGI’s Poverty Labor Institute reveals that women earn 34.6% less than men, meaning for every 100 pesos earned by men, women receive 66 pesos.
Closing the gender pay gap was a government commitment made by President Claudia Sheinbaum. While constitutional and labor law reforms were enacted in her first year to legally recognize the issue and obligate the state to its eradication, further adjustments may be needed to ensure equal remuneration between women and men.
Key Questions and Answers
- What is the proposed reform about? The reform aims to include mandatory salary audits for employers with 50 or more workers, every two years, to identify and rectify gender pay gaps.
- Why are salary audits important? Salary audits help identify and correct pay disparities between men and women, promoting deeper transformation in organizational compensation practices.
- What are the key provisions of the reform? Employers must conduct audits, develop corrective plans, and labor authorities will consider audit results during inspections. The Federal Government’s role in promoting gender-perspective salary audits will be strengthened.
- What is the current state of the gender pay gap in Mexico? Despite legal guarantees for equal pay, women in Mexico earn 34.6% less than men on average.
- What commitments has the government made regarding the gender pay gap? President Claudia Sheinbaum committed to closing the gender pay gap, leading to constitutional and labor law reforms. Further adjustments may be needed for full implementation.
