This article by Nancy Escutia originally appeared in the October 16, 2025 edition of El Economista.
A bill was introduced in the Senate to reform the Federal Labor Law (LFT) to require employers to make the salary ranges for the vacancies they post transparent, thus promoting equal pay between women and men.
The reform seeks to require companies to publish their salary ranges in all job postings, ensuring equal pay and non-discrimination in hiring, since, in the country, job postings often use euphemisms such as “competitive salary” or the phrase “negotiable” when referring to remuneration.
“This culture of salary secrecy not only harms job seekers, who are unable to make informed decisions or compare job opportunities objectively, but it also hides pay gaps,” the initiative states.
The project is promoted by Senators Martha Lucía Micher Camarena (Morena), Geovanna Bañuelos de la Torre (Workers Party – PT), and Senator Luis Donaldo Colosio Riojas (Citizens Movement – MC). The proposal recognizes that the gender pay gap has been a persistent problem.
Despite Laws, Gender Pay Gap Persists
Although the principle of “equal pay for work of equal value” has existed in the European Union since 1957, in Mexico it wasn’t until 1970 that the LFT (Law on Labor Law) prohibited wage discrimination based on gender, but not actions that would widen the wage gap.
Therefore, the initiative details that, in practice, “women continue to earn less than men for the same work.”
While the country has signed international treaties to guarantee equal pay, it wasn’t until 2024 that reforms were approved to promote actions that would help reduce the gender pay gap.
However, it remains insufficient. Figures from the National Employment Survey (ENOE) and the OECD show that women earn between 14% and 18% less than men, while the Mexican Institute for Competitiveness (IMCO) estimates a gap of around 15%.
“In practical terms, this cumulative disparity means that a woman could lose up to 1.6 million pesos over the course of her working life compared to a man with an equivalent career,” the reform proposal states, adding, “Women earn, on average, 25% less than men,” meaning that for every 100 pesos men earn, women receive 75 pesos less.
Lack of Salary Transparency
According to an OCC survey, at least 25% of job applicants expect the salary to be included in the job description, so much so that this information makes a difference not only in whether they accept a position, but even in whether they apply at all.
However, AON’s 2025 Global Salary Transparency Study indicates that only 21% of organizations publish salaries for all their job openings worldwide, and specifically in Latin America, only 2% do so; while six out of 10 don’t even publish their salary range.
“There is no equivalent general obligation in current Mexican legislation; except in specific cases,” the proposal states, noting that companies freely define the information they provide in their job postings, and this creates a “regulatory gap that fosters opacity in the hiring process.”
Although Article 86 of the LFT reinforces the idea that “equal pay must be paid for equal work performed in the same position, with equal hours and efficiency conditions,” the lack of transparency in pay maintains the gap and prevents the detection and challenge of potential cases of wage discrimination.
“Without comparative information, it’s virtually impossible to file a claim for unfair pay,” the senators’ proposal states, adding that this puts female candidates at a disadvantage.
Therefore, the reform initiative proposes adding a paragraph to Article 83 detailing how salaries are set, establishing as a requirement the publicity of the salary range offered, and in terms of base remuneration per unit of time from the start of the recruitment process until hiring.
Policies such as the company certification program for workplace equality and non-discrimination and minimum wage increases have been aimed at reducing inequality; however, “reality shows that the wage gap persists and that traditional tools have not been sufficient,” the initiative states.
Mexico Outlines European-style Salary Transparency
The initiative is inspired by Directive 2023/970, which was approved by the European Union (EU) and requires employers to inform job applicants about the starting salary or salary band for the position offered, in addition to prohibiting them from asking candidates about their salary history.
While the Mexican proposal is based on the European model, it’s worth noting that it’s not the only one available; for example, Canada and the United Kingdom have also encouraged salary disclosure, while Colombia and Chile have discussed it.
In contrast, states like California, New York, and Colorado in the United States have legislated to make the publication of salary ranges for job openings mandatory.
“Salary transparency is an effective tool for empowering workers,” the proposal states, highlighting that it can also provide benefits for companies, such as finding the right candidate more quickly, reducing turnover, and encouraging fair competition among employers.
This initiative joins four projects in the current legislative period that seek to make job postings and recruitment processes more transparent.
Nancy Escutia is a legal journalist specializing in labor rights and policies, organizational well-being, and mental health; she holds a Master’s degree in Political Journalism from Carlos Septién García University.
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