• Insights

Minimum wage in Mexico increases

Written by
Basham, Ringe y Correa S.C., drawing on more than a century of experience helping clients to conduct business in Mexico.
Mexico has increased its minimum wage from 1 January 2020

On 16 December 2019, the Council of Representatives of the Minimum Wage National Committee resolved to increase the minimum wage by 20%, which means that minimum a general daily wage increases from MXN 102.68 to MXN 123.22 per day has been effective since 1 January 2020.

Conversely, the daily minimum wage applicable in cities located in a strip of 25 kilometers from the Mexico-US border was increased by 5% and is now set at MXN 185.56.

Federal Labour Law provides that the Minimum Wage National Committee meets once a year at the end of each year to set the minimum daily wage for the next year. This means that the minimum wage in Mexico changes annually and the new minimum wage enters into force on the first day of each year.

The minimum wage is not automatically adjusted in line with inflation, as the Committee’s decision is guided by research data, which may include inflation, exchange rates and the cost of living in different regions of the country.

Jorge De Presno
Partner - Mexico
Basham, Ringe y Correa S.C.