Minimum Wage Could Increase 12.8% in 2024 in Mexico

A proposal to increase the minimum wage by 12.8% in 2024 has been presented by the Employers’ Confederation of the Mexican Republic (COPARMEX), which represents the private sector. The proposal will be further discussed by the Mexican government and workers. However, if accepted, Mexicans would have greater purchasing power.

SOURCE: Mexico Business News

José Medina, President of COPARMEX, proposed that the new minimum wage be increased from MX$207.44 (US$11.50) to MX$234. The objective is to reach the family welfare line, which represents a family of four in which two people work. Both wages should be enough to purchase the basic food and non-food basket. Medina emphasized that the new minimum wage seeks to guarantee that Mexican families will be able to purchase more than basic needs. For the proposal to become effective, the National Minimum Wage Commission (CONSAMI) must accept it.

By 2026, all companies will pay between MX$8,550 and MX$8,600 per month, expects the confederation. “The proposal we make to companies is that they should not wait for the living wage to reach that level, but that each company, to the extent of its possibilities, should pay at least the living wage that will allow us to reach that level for Mexican families,” said Medina.

Rogelio Gómez Hermosillo, Coordinator of Acción Ciudadana Frente a la Pobreza, stated that improving wages reduces poverty. According to the National Council for the Evaluation of Social Development Policy (CONEVAL), the percentage of Mexicans living in poverty decreased from 41.9% in 2018 to 36.3% in 2022.

In 2023, minimum wages in Mexico increased by 20%, from MX$172.87 to MX$207.44, while jobs at the border moved from paying MX$260.34 to MX$312.41. In the last four years, the minimum wage has increased from MX$88 to MX$173. In 2019, the minimum wage increased 16.2%; in 2020, it increased 20%; in 2021, 15%; and in 2022, 22%.

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