In a legislative move that shakes the foundations of compensation models in restaurants, hotels, and bars, Mexico’s Chamber of Deputies has overwhelmingly approved a bill that prohibits employers from using tips to cover, in whole or in part, the minimum wage owed to their employees.
The reform seeks to protect the millions of service sector workers who survive solely on what they receive from customers, without a guaranteed base salary from their employer.
If your company operates in hospitality, food and beverage, tourism, or any industry where tips are a customary part of employee income, this change requires an immediate rethinking of your labor and financial strategy.
But… has it already taken effect? Is it mandatory? What are the risks of non-compliance? We explain it below:
What does the reform establish?
• Tips can no longer be counted toward the minimum wage.
• The minimum wage must be fully covered by the employer.
• Tips cannot be used as a disciplinary measure or be subject to any condition.
• The distribution of tips will be exclusively managed by workers, without employer intervention.
Current status of the legislative process
The bill has been approved by the Chamber of Deputies and is now under review in the Senate for final analysis and voting. Although it has not yet been enacted or entered into force, it is the most advanced labor-related initiative in recent months. Final approval could occur in the coming weeks.
Implications for employers
Once the reform becomes law, companies will be legally required to ensure a fixed minimum wage for all employees, without relying on tips to fulfill this obligation. This will have several effects:
• Reconfiguration of compensation schemes: Employers will need to adjust employment contracts, payroll budgets, and remuneration models.
• Increased fixed labor costs: The base salary can no longer be offset by variable income such as tips.
• Stronger legal certainty and international compliance: A positive signal for audits, institutional investors, and foreign regulators.
Who will be affected?
• Hotels, restaurants, bars, cafés, and tourism service providers.
• Businesses with foreign investment or operating under international franchise models.
• Any employer currently integrating tips into their compensation structure.
Recommendations
• Review employment contracts and internal payroll policies to ensure alignment with the new rules.
• Train administrative and HR personnel on the scope and implications of the reform.
• Establish clear internal communication to inform employees of their rights and the applicable changes.
Beyond the legal and operational challenges, this reform can also enhance organizational culture, reduce employee turnover, and strengthen your corporate reputation with clients, regulators, and strategic partners.

At Calderón Marín, we are committed to providing comprehensive and personalized legal and tax advisory services. If you need more information or assistance in adapting your strategy to this new context, please don’t hesitate to contact us. We’ll be happy to support you.