[Mexico] 20% minimum wage increase for 2023 will benefit 6.4m workers

On December 1, President Andrés Manuel Lopez Obrador announced that the business and labour sectors, as well as the government, had unanimously agreed to increase Mexico’s minimum wage by 20 per cent for 2023, The National Law Review reports.

The wage rise will be applicable in the Free Zone of the Northern Border (Zona Libre de la Frontera Norte or ZLFN), as well as the rest of the country. The increase will become official when it is published in the Official Gazette of the Federation (Diario Oficial de la Federación).

Prior to the determination, the Mexican National Commission on Minimum Wages (Comisión Nacional de los Salarios Mínimos, or CONASAMI) reportedly applied an independent recovery amount (Monto Independiente de Recuperación or MIR) in accordance with the following:

• MIR for the ZLFN: MXN $23.68
• MIR for the rest of the country: MXN $15.72

On top of the MIR, the CONASAMI approved a 10 per cent increase from the 2022 rate to the daily minimum wage applicable to the ZLFN and the rest of the country, resulting in MXN $312.41 (approximately USD $16.11) for the ZLFN and MXN $207.44 (approximately USD $10.69) for the rest of the country. The new rates would be effective as of January 1, 2023.

The MIR and the 10 per cent increase combined represent a 20 per cent increase in the daily minimum wage rate which translates to more than MXN $30 per day.

Secretary of Labor Luisa Maria Alcalde said that these increases would directly benefit 6.4 million workers in Mexico.

On December 1, President Andrés Manuel Lopez Obrador announced that the business and labour sectors, as well as the government, had unanimously agreed to increase Mexico’s minimum wage by 20 per cent for 2023, The National Law Review reports.

The wage rise will be applicable in the Free Zone of the Northern Border (Zona Libre de la Frontera Norte or ZLFN), as well as the rest of the country. The increase will become official when it is published in the Official Gazette of the Federation (Diario Oficial de la Federación).

Prior to the determination, the Mexican National Commission on Minimum Wages (Comisión Nacional de los Salarios Mínimos, or CONASAMI) reportedly applied an independent recovery amount (Monto Independiente de Recuperación or MIR) in accordance with the following:

• MIR for the ZLFN: MXN $23.68
• MIR for the rest of the country: MXN $15.72

On top of the MIR, the CONASAMI approved a 10 per cent increase from the 2022 rate to the daily minimum wage applicable to the ZLFN and the rest of the country, resulting in MXN $312.41 (approximately USD $16.11) for the ZLFN and MXN $207.44 (approximately USD $10.69) for the rest of the country. The new rates would be effective as of January 1, 2023.

The MIR and the 10 per cent increase combined represent a 20 per cent increase in the daily minimum wage rate which translates to more than MXN $30 per day.

Secretary of Labor Luisa Maria Alcalde said that these increases would directly benefit 6.4 million workers in Mexico.