Mexico City, December 3rd, 2021.
This past December 1st, 2021, the Minimum Wages National Commission (CONASAMI, acronym for its name in Spanish) announced the new general and border cities´ minimum wages, starting as of January 1st, 2022.
The increase in the minimum wage will be as follows:
- 0% increase, plus an amount of $25.45 pesos as Independent Recovery Amount (MIR acronym for its name in Spanish), elevating the minimum wage in the northern border cities to $260.34 pesos.
- The rest of the Republic, a 9.0% adjustment, plus an amount of $16.90 pesos for MIR, increasing the minimum wage to $172.87 pesos.
The increase in percentage goes in line with the current government policy to take the minimum wage above the inflation rates and surpassing the so called “welfare salary”.
After the announcement by the CONASAMI, the publication in the Mexican Official Gazette will follow, in which we are expecting that it is expressly mentioned that the MIR will not be taken into consideration as a percentage of increase in the negotiation of collective bargaining agreements. However, we have heard President Lopez Obrador announce that the increase to the minimum wage was 22%, and will probably be broadcasted that way in radio, television and social media.
This could also have a major impact with the workforce and complicate the revision of the scale of wages, as we have recently seen in the northeast of Mexico.
Likewise, with respect to social security obligations, the increase will impact in the calculation of social security fees and other concepts that integrate the quotation base salary.
Partners and Associates of the Labor and Employment and Social Security practices of Basham, Ringe y Correa, S.C. remain available should you have any comments or requirements.
S I N C E R E L Y,
Jorge De Presno