Mexico: Minimum Wages set to Increase in 2022

Mexico agrees to 22% increase in minimum wage for 2022

On 1 December 2021, the National Minimum Wage Commission (CONASAMI) announced that an agreement was reached to increase the daily minimum wages in Mexico, effective as of 1 January 2022.

New Minimum Wages

As of 1 January 2022 –

• the general minimum wage for the Free Economic Zone of the Northern Border will be $260.34 (MXN) Mexican pesos per day (approx. $12.15 USD); and
• the general minimum wage for the rest of the Mexican Republic will be $172.87 (MXN) Mexican pesos per day (approx. $8.07 USD).

Combined, this represents a 22% increase in the daily minimum wage rate compared to 2021. These increases are above the inflation foreseen for 2022 and will need to be taken into consideration when renewing Collective Bargaining Agreements (CBAs), if applicable.

Key Action Points for Human Resources and In-house Counsel

In light of the above, it will be very important for companies to work efficiently, and in consultation with the relevant union(s), to review and revise the applicable collective bargaining agreement (as needed), in order to avoid potential conflicts and strikes. The same level of due diligence and care is required for the planning, elaboration and implementation of labour relations and crisis management strategies.