Mexico: The New Minimum Wages Foreseen for 2024
On the 1st of December 2023, the Board of Representatives of the National Commission of Minimum Wages issued a press release informing the public that an agreement was reached by unanimous vote from the government, labour, and business sectors, whereby the minimum wages will be increased by 20% in 2024.
With this increase, the recovery of the purchasing power of the minimum wage will accumulate 110% in the period 2018 and 2024. Moreover, according to the Commission, it will cover 173 times the Income Poverty Line of the Council for the Evaluation of Social Development Policy (Coneval for its Spanish acronym), and it is estimated that it will directly benefit more than 8.9 million workers.
According to the bulletin, the general minimum wage will increase from 207.44 to 248.93 MXN per day, while in the Northern Border Free Zone, it will increase from 312.41 to 374.89 MXN per day.
The minimum professional wages for the 61 professions, trades, and special jobs will have a 20% increase.
This increase adds to those granted 16% in 2019, 20% in 2021, 15% in 2022, and 20% this year, and with this is the fifth time that a consensus has been reached by the three sectors.
The composition of the general increase is based on the minimum wage of 2023 plus the sum of an Independent Recovery Amount (MIR), 46.26 MXN for the Northern Border Free Zone, 27.40 MXN for the rest of the country, and a 6% increase for fixation.
In accordance with the provisions of Article 570 of the Federal Labour Law, the increase in minimum wages shall become effective on January 1, 2024. When the wage decree is actually published in the Official Gazette, we will inform you of the specific terms of the corresponding decree.
