The minimum wage in Mexico will increase by 20% in 2024. - Expat Community

The minimum wage in Mexico will increase by 20% in 2024.

Dec 1, 2023 | Mexico, News & Articles | 0 comments

Starting January 1 of the following year, the basic salary, received by approximately 20.5 million Mexicans, will rise to 248.93 pesos per day nationwide and 375 pesos per day in the Northern Border Free Zone. President Andrés Manuel López Obrador announced this historic raise at the National Palace after reaching an agreement with employers and unions, aiming to fulfill the government’s commitment to doubling the real minimum wage.

 

This fifth increase in the minimum wage under the current administration occurs amidst a decrease in inflation, currently at 4.32%. However, negotiations faced challenges between union representatives, the government, and the country’s business sector. While unions sought an increase of over 25%, the Mexican Employers’ Confederation (Coparmex) proposed only a 12.8% increment. The government did not disclose its proposal beforehand, but a 20% increase was anticipated.

 

Throughout this administration, Mexico’s minimum wage has risen by 18.2%, from 88.15 pesos in 2018 to 248.93 pesos for the upcoming year. A worker earning the previous minimum of 2,644 pesos monthly will now receive 7,467 pesos, rising to over 11,200 pesos for those living in the northern border in 2024.

 

The Secretary of Labor, Marath Bolaños López, celebrated the unanimous decision among employers, entrepreneurs, and the government, estimating that around 8.9 million formal workers in companies affiliated with Social Security will directly benefit from this increase starting January 1, 2024.

 

Experts note the fulfillment of predictions regarding next year’s increase. Despite business pressures, the government, as in previous years, imposed its criteria for a 20% raise. This increase is significant, as it will impact contractual salary reviews for 2024, demonstrating that general minimum wage increases in the country do not affect inflation and are unlikely to strain small businesses financially.

 

Diego García Saucedo, a member of the Mexican Academy of Procedural Labor Law, welcomes the raise and emphasizes that it was an expected percentage due to the determination of unions and the government to elevate this wage base, despite the reluctance of business owners, who warned of increased costs. He highlights that the raise will lead to other indexed increases, such as social security costs, affecting not only payroll but also obligations to cover social security contributions.

 

With these consecutive raises, Mexico has been closing the gap compared to its regional counterparts. As of 2024, the country will boast a monthly minimum wage exceeding 7,400 pesos, approximately 428 dollars. In comparison, Uruguay currently has a minimum wage equivalent to 550 dollars, Chile, under President Gabriel Boric, has instituted a phased increase surpassing 500 dollars, and in Ecuador, workers with this salary receive 450 dollars per month.

 

ElPais – https://elpais.com/mexico/2023-12-01/el-salario-minimo-en-mexico-aumentara-un-20-en-2024.html

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