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Coparmex Proposes 12.8% Increase in Mexico’s Minimum Wage for 2024

Mexico City – The annual negotiations for adjustments to Mexico’s minimum wage have begun, and Jos茅 Medina, president of the Employers’ Confederation of the Mexican Republic (Coparmex), has revealed plans for a substantial 12.8% increase by 2024.

In an interview with the Spanish news agency EFE last week, Medina outlined Coparmex’s plan, aiming to raise the current daily minimum wage from just over 207 pesos (US$12.02) to nearly 234 pesos (US$13.59). This would translate to a monthly increase of around 600 pesos (US$34.85).

President Andr茅s Manuel L贸pez Obrador has consistently prioritized raising the minimum wage since taking office in December 2018 when it stood at 88 pesos a day (US$5.11). With double-digit annual increases, the wage has now surpassed 200 pesos a day. L贸pez Obrador envisions reaching 260 pesos per day (US$15.03) by the end of his term on October 1, 2024.

Currently, workers in the northern border states receive a higher minimum wage of 312 pesos per day ($18.15). These regions benefit from proximity to the United States, offering better wages and conditions. Tax breaks and other measures have also been implemented in the Free Zone.

Comparing global wage statistics, as of 2022, Mexico ranks 34th in the OECD, with an average hourly wage of $1.80 USD. France leads the list at $13.80 per hour, while Canada ranks 10th at $11.10 USD, and the United States is 17th at $7.30.

While Coparmex has made its proposal public on behalf of the employers of 36,000 companies that together contribute a third of Mexico’s GDP, L贸pez Obrador is awaiting a formal offer from the business sector. The final decision rests with the National Minimum Wage Commission.

Throughout L贸pez Obrador’s administration, the minimum wage has seen an average annual increase of 18.6%. Despite this, outside the northern states, the wage remains below the level needed to ensure the well-being of a two-income family of four. Medina attributes this to inflation, which, after reaching 7.82% in 2022, has been steadily decreasing, reaching 4.26% in October of this year.

According to the National Council for the Evaluation of Social Development Policy (CONEVAL), the percentage of Mexicans living in poverty has decreased from 41.9% in 2018 to 36.3% in 2022, indicating positive strides in economic well-being.

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