Mexico City, December 5th 2024.
On December 4, 2024, the Minimum Wage National Commission (CONASAMI for its acronym in Spanish), unanimously agreed to increase the minimum wages, which will come into effect as of January 1, 2025.
The minimum wage increase will be:
- In the northern border-free zone, a 6.5% increase, plus MX$19.36 as an Independent Recovery Amount (MIR acronym for its name in Spanish), raised the minimum wage from MX$374.89 MXN to MX$419.88 per day.
- In the rest of the country, there will be a 6.5% increase, plus MXN$12.85 as MIR, raising the general minimum wage from MX$248.93 to MX$278.80 per day.
This increase was achieved through consensus amongst employers, unions, and the federal government and represents an overall increase of 12% in the minimum wages starting January 1, 2025. President Claudia Sheinbaum announced this through various media outlets, however, it is crucial to note that the increase percentage officially disclosed by CONASAMI is 6.5%, which combined with the MIR, the aim is to restore the purchasing power of minimum wages.
This distinction is particularly significant because the increasing percentage published by CONASAMI is typically used as the reference for collective bargaining and wage reviews, without the inclusion of the MIR.
Following the announcement by President Sheinbaum and CONASAMI’s resolution, the new minimum wage rates will be published in the Official Federal Gazette (Diario Oficial de la Federación).
The Secretary of Labor and Social Welfare, Marath Baruch Bolaños, stated that this increase is to ensure that the minimum wage continues progressing toward covering 2.5 times the cost of the basic consumer goods (canasta básica). He also highlighted that the minimum wage has increased 135% since the previous and current presidential administrations.
It will be important for companies to review their scale of wages to ensure that initial ones are not below the new minimum wage, which will take effect in 2025. If adjustments are required, they must be made starting January 1, 2025. Non-compliance with the minimum wage payments not only would lead to fines under the Federal Labor Law but may also be considered as labor exploitation under the Human Trafficking Law.
We strongly recommend approaching the union to establish an appropriate communication strategy, as employees with lower wages could benefit from this increase resulting from the minimum wage adjustment in addition to any increases arising from salary or contractual reviews.
This newsletter was prepared by the Labor Practice with the support of Regina Torres Septién.
Sincerely,
Jorge G. de Presno Arizpe
David Puente Tostado
Luis Álvarez Cervantes
