Mexico, City, December 5th, 2022.
On December 1, 2022, President Andres Manuel López Obrador and Mrs. Luisa María Alcalde, Secretariat of the Ministry of Labor and Social Welfare, officially announced the increase to the minimum wages, which will come into effect as of January 1, 2023.
The increase to the minimum wages will be as follows:
-10% increase, plus an amount of $23.67 pesos as Independent Recovery Amount (MIR acronym for its name in Spanish), increasing the minimum wage in the northern border cities from $260.34 to $312.41 pesos.
– The rest of the Republic, a 10% adjustment, plus an amount of $15.72 pesos for MIR, increasing the minimum wage from $172.87 to $207.44 pesos.
The increase intends to reduce the impact of inflation, which is currently above 8%.
President Lopez Obrador and the media, announced that the increase to the minimum wages is 20%, however, it is of the utmost importance to distinguish that the percentage of increase agreed by the National Minimum Wage Commission (CONASAMI for its acronym in Spanish), is 10%, which added to the MIR, are intended to recover the purchasing power of the minimum wages.
The foregoing is of special relevance since, for purposes of collective bargaining and the revision of the scale of wages, the increase that will be published by CONASAMI is usually taken as a reference, that is, only 10%, but not the sum of the percentage plus the MIR.
After the President´s announcement and the resolution of the CONASAMI, the publication within the Mexican Official Gazette will follow.
Likewise, with respect to social security obligations, the increase will impact the payment of contributions, especially those on retirement pensions that will increase in the employer contribution in 2023.
This newsletter was prepared with the support of Gustavo Poblete Baron.
