Mexico City — The National Minimum Wage Commission’s Council of Representatives (Conasami) agreed to increase the minimum wage in Mexico to 248.93 pesos per day for 2024, the final year of President Andrés Manuel López Obrador’s six-year term.
Employers, unions, and the government approved a 20% increase in next year’s general minimum wage during the early hours of this Friday. As a result, the daily minimum wage will rise to 248.93 pesos starting January 1, 2024.
The minimum wage increase was decided unanimously among Conasami’s council members, an anonymous source familiar with the matter told Bloomberg Línea.
With this increase, the general minimum wage in Mexico will rise from 207.44 pesos to 248.93 pesos per day in 2024.
President López Obrador confirmed the wage increase during his morning press conference on December 1, the fifth anniversary of his inauguration as President of Mexico. The president described the raise as “historic” and stated that it fulfills the government’s promise to double the minimum wage in real terms.
The head of state also noted that at the beginning of his term, the minimum wage had started out at 88 pesos per day, equivalent to 2,687 pesos per month. Starting January 1, 2024, the daily wage will be 249 pesos, equivalent to 7,508 pesos per month.
AMLO pointed out that in the Northern Border Free Zone (ZLFN), the minimum wage will increase from 88 pesos per day in 2018 to 375 pesos per day starting January 1, 2024, translating to an increase from 2,687 pesos to 11,403 pesos per month next year.
Where Will the Minimum Wage Hike be Applied in Mexico?
The general minimum wage hike that will take effect as of January bring about a 20% increase both nationwide and in the Northern Border Free Zone (ZLFN).
In the case of the ZLFN minimum wage, the current amount of 312.41 pesos per day was increased by adding 41.26 pesos as an Independent Recovery Amount (MIR), as well as 6% increase, resulting in a total of 374.89 pesos per day for the next year.
The general minimum wage for 2024 was calculated starting from a current wage of 207.44 pesos per day, adding 27.40 pesos of MIR, and then applying a 6% percentage increase, resulting in a total of 248.93 pesos per day.
The increase fell short of what had been requested by the unions represented in Conasami, which had sought out a 25% hike. However, it clocked in above the 12.8% that had been proposed by the Mexican Employers’ Confederation (Coparmex).
Inflation Slowing Down
The minimum wage increase comes amid a trend of slowing inflation in Mexico in 2023, although the rate of decline has slowed in October and the first half of November.
In January 2023, general inflation stood at 7.9% annually, decreasing to 4.2% annually by October, according to Inegi. The Bank of Mexico (Banxico) forecasts an average inflation rate of 4.4% in the fourth quarter of 2023, with an expectation of a further decrease to 3.4% in 2024.
How Much has the Minimum Wage Risen Under AMLO?
During AMLO’s six-year term, the minimum wage has experienced double-digit increases: 16.2% in 2019, 20% in 2020, 15% in 2021, 22% in 2022, and 20% in 2023.
In 2019, the first year of AMLO’s term, the minimum wage was 88 pesos per day, and by 2024, the final year of the administration, it will be 248.93 pesos per day.
“For the next agreement, it will be up to whoever replaces me as President, but I had six agreements for minimum wage increases, and on five occasions, including today, consensus was achieved. Only one year did the business sector not participate, but it is a good end to our government to have achieved this consensus,” López Obrador said.
