Since January 1, the minimum wage in Mexico increased by 12%, according to figures from the National Minimum Wage Commission (Conasami).
With this adjustment, the daily income went from 248 pesos and 93 centavos to 278 pesos and 80 centavos in most of the country. In the Northern Border Free Zone, the amount rose from 374 pesos to 419 pesos per day. This was confirmed by Marath Bolaños, head of the Ministry of Labor and Social Security, during a conference headed by the President.
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The secretary highlighted that since 2018, the minimum wage has had a cumulative increase of 135%. “By 2025, the general minimum wage will be 8,364 pesos per month in the center and south of the country, while in the Northern Border it will reach 12,596 pesos,” Bolaños pointed out.
Differences between minimum wage and contractual wage
It is important to mention that the increase in the minimum wage does not affect all workers, since in Mexico there are two main types of wages:
- Minimum wage: It is the lowest amount an employer is authorized to pay for a day of work. This amount is established by the government and Conasami reviews it every year with the aim of preserving the purchasing power of employees.
- Contractual salary: This is negotiated between employers and workers, either individually or collectively. In this case, the increase in the minimum wage does not require adjustments, unless it is stipulated in the corresponding labor contracts.
According to article 86 of the Federal Labor Law, All wages, whether minimum or contractual, must be fair and proportional to the effort made by the worker.
Goal of the increase: guarantee 2.5 basic baskets
President Claudia Sheinbaum celebrated the 12% increase in the minimum wage, highlighting that the main objective is to strengthen the purchasing power of employees.
“Our goal is for a worker to be able to purchase 2.5 basic baskets with a minimum wage,” Sheinbaum declared last December.
The president also assured that this increase will not have a negative impact on inflation or the arrival of foreign investment, rejecting the doubts raised by some sectors.
What happens to taxes after the increase?
The increase in the minimum wage does not represent a higher tax payment. This income is exempt from Income Tax (ISR) thanks to the employment subsidy implemented by the government in previous years.
This means that those who receive the minimum wage will receive their entire income, without deductions for taxes.
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