Economy Politics Country 2025-12-04T22:19:01+00:00

Mexico: 13% Minimum Wage Hike Approved

Mexico's Conasami has unanimously approved a 13% minimum wage increase for 2026. The decision, reached after negotiations with unions and businesses, aims for the presidential goal of 2.5 basic baskets but raises concerns about inflation and sustainability.


Mexico: 13% Minimum Wage Hike Approved

This was confirmed by the president of Conasami, Luis Munguía, in an interview with Bloomberg Línea. He explained that to meet the presidential goal of the minimum wage equivalent to 2.5 basic baskets, average annual increases of 12% are needed. "If it grows by 13% in one year, then it can grow by 11% the next year," he stated. Munguía's statements came the day after Conasami unanimously approved a 13% increase in the general and professional minimum wage for 2026, far below the 30% demanded by the unions and just above the 11-12% offered by employers. In the Northern Border Free Zone, the increase will be smaller, at 5%. Sheinbaum prepares another minimum wage hike and sustainability alerts grow. "From 16% it gave me that it could have an inflationary impact of more than 1% and in addition there could be unemployment," Munguía pointed out. Another factor that weighed in the decision was that the increase on the border would be only 5%, which helped the business sector accept the general adjustment. A Consultative Commission will be created to address the union's concern that average wages are not increasing at the same rate as the minimum. The president of Conasami announced that a Consultative Commission will be created to address the union's concern that average wages are not increasing at the same rate as the minimum. "I say they are going to increase it by some amount because, for example, the minimum wage is left at MXN$315.04 per day. According to Conasami calculations, the 2025 increase impacted inflation by 0.25 points. Among the negotiation factors that allowed reaching the agreement, the gradual application of the reduction of the working day is listed. He also said that the future of the Independent Recovery Amount will be discussed, a mechanism that unions want to eliminate to facilitate wage decompression. Conasami estimates that 8.5 million IMSS workers will receive some adjustment. The minimum wage will continue to grow in double digits during Claudia Sheinbaum's six-year term. If a worker earns MXN$310, they are going to increase it by MXN$5," he explained.