Mexico’s New President Aims for Annual Double-Digit Minimum Wage Increases, Reports Reuters

MEXICO CITY (Reuters) – Mexican President Claudia Sheinbaum has announced plans to raise the country’s minimum wage by approximately 12% starting next year and to maintain similar increases annually thereafter.

Currently, the minimum wage in Mexico, the second-largest economy in Latin America, is set at 248.93 pesos (around $12.81) per day, having seen significant increases over the past few years under the previous administration.

Data from the national statistics agency reveals that nearly 40% of Mexico’s workforce earns minimum wage or less, highlighting the prevalence of informal labor in the nation.

During a daily press conference, Sheinbaum stated, “Our objective is to implement a wage increase of around 12% for next year, and every year thereafter.”

As the first woman to serve as president, Sheinbaum emphasized her government’s commitment to gradually raise the minimum wage to ensure it can cover the cost of 2.5 basic food baskets, an increase from the current coverage of 1.6 baskets. Additionally, she unveiled a series of reforms aimed at enhancing women’s rights, including a constitutional guarantee of equal pay for equal work.

Her proposed changes are consistent with the policies of her predecessor and mentor, Andres Manuel Lopez Obrador, who initiated some of the largest minimum wage hikes in decades.

The minimum salary was raised by 20% in both 2023 and 2024 as part of efforts to improve workers’ purchasing power.

Moreover, Sheinbaum indicated her government will seek to implement legislation to shorten the work week from 48 to 40 hours, a measure that Lopez Obrador had aimed to pass but did not succeed. This reform would require a constitutional amendment and a two-thirds majority in favor. Although the ruling leftist National Regeneration Movement (MORENA) and its allies supported it, there was considerable pushback from business groups and the center-right opposition National Action Party.