On December 12, 2023, a resolution was published in the Federal Official Gazette (“Diario Oficial de la Federación”) establishing a 20% increase in the minimum wage in Mexico. The Council of Representatives of the National Commission of Minimum Wages (CONASAMI) on December 1, 2023, resolved to increase the general minimum wage as of January 1, 2024.
Therefore, as of January 1, 2024, the minimum wage will be as follows:
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Zone
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Minimum Wage 2023
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Minimum Wage 2024
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Northern Border Free Zone
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$312.41 MXN
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$374.89 MXN
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Resto of the country
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$207.44 MXN
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$248.93 MXN
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The increase in the minimum wage in Mexico may affect employers and businesses in various ways, depending on several factors, including the size of the company, the sector in which it operates and the financial capacity of the company.
An increase in the minimum wage implies higher labor costs for companies, as they will have to pay higher wages to their employees. This may particularly affect small and medium-sized companies with tight profit margins.
Increases in minimum wages may also contribute to inflation, as companies may pass on some of these additional costs to the prices of the goods and services they offer. This can affect consumers and the economy as a whole.
One of the most direct benefits is the improvement in the purchasing power of minimum wage workers. By increasing their income, workers have the ability to purchase more goods and services, improving their quality of life.
Finally, the implementation and impact of a minimum wage increase depends on several factors, and balancing the interests of workers and businesses is crucial to achieving sustainable and equitable economic growth.
Hogan Lovells is ready to assist you with this matter.
Authors: Mary Carmen Fuertes, Regina Torrero, Almudena Cuesta and Juan Pablo Vazquez
